Financing & Treasury


Code:     FRM 99-09
Date: August 18, 1999
To: Vice Presidents for Administration/Finance
From: Richard K. Leffingwell, Director
Financing and Risk Management
Business and Finance
Subject: CSU Equipment Lease Financing Program - Program Update

This memorandum is intended to advise you of an update to the existing review and approval process for all campus tax-exempt equipment lease-financing transactions. This process was originally outlined on June 10, 1996, under Contract Services and Procurement Bulletin 96-06. Program responsibility was transferred to the Office of Financing and Treasury in Coded Memorandum BF 97-03.

As currently structured, the CSU Equipment Lease Financing Program has pre-established contract terms and conditions with several lease financing service providers for tax-exempt financing. The pre-established terms and conditions allow the campus to secure financing services for various types of essential use equipment at competitive interest rates. The pre-qualified lease financing service providers are familiar with the standard terms and conditions, forms, tax opinions, and process.

Attachment A is a summary of the revised instructions for processing the financing documents. Attachment B is a summary checklist that must accompany the Master Agreement Order package to the Office of Financing and Risk Management for each transaction.

Key features of the updated process may be of particular interest. Campuses are being asked to inform the Office of Financing and Risk Management of any planned transactions early to discuss processing scheduling and transaction features. In addition, campuses are being asked to have their business office review the terms of each transaction and the decision to use external financing. Also, campuses are being asked to maintain a database of all the outstanding debt associated with these transactions.

Campuses need to ensure that they meet the processing standards and that forms are complete in order to avoid delays caused by the material being returned for additional campus processing. Campuses are also responsible for working with the pre-qualified lender to assure the documents for the transaction are in order. Please contact Mr. Syrus En, in Financing and Treasury at (562) 951-4593 or via email at for any questions about the program and/or the proposed changes. This letter and related attachments may be found in the Financing and Treasury web page located at

RKL: gs

Attachment A (.pdf)
Attachment B (.pdf)

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