Consolidated Equipment Financing Program (CEFP) Department of Financial Services Bureau of Accounting

CEFP Used to purchase equipment Used to purchase equipment Purchase Amount – Minimum of $100,000 Purchase Amount – Minimum of $100,000 Financing Terms: Financing Terms: – 3-year – 4-year – 5-year

Interest Rate No “lock” upon DFS approval No “lock” upon DFS approval Estimated rate will be approved by DFS Estimated rate will be approved by DFS Actual rate determined when Agency submits final invoice to DFS Actual rate determined when Agency submits final invoice to DFS Will not exceed statutory maximum pursuant to Section (1)(b), F.S. Will not exceed statutory maximum pursuant to Section (1)(b), F.S.

Payments Agency makes Quarterly Payments Agency makes Quarterly Payments Bank makes payment to contractor within 10 days after receiving Executed Exhibits. Bank makes payment to contractor within 10 days after receiving Executed Exhibits.

Prepayment Penalties Agency must notify Bank of America and DFS Agency must notify Bank of America and DFS 30 days notification required prior to exercising prepayment 30 days notification required prior to exercising prepayment Prepayment and penalties made on next payment date Prepayment and penalties made on next payment date Not permitted first two years of financing Not permitted first two years of financing

Prepayment Penalties 1% - final 12 months of financing term 1% - final 12 months of financing term 2% - 24th through 13th month prior to expiration of financing term 2% - 24th through 13th month prior to expiration of financing term 3% - 36th through 25th month prior to expiration of financing term 3% - 36th through 25th month prior to expiration of financing term

Steps to Finance Equipment AgencyDFSBank Application Approval Letter - Estimated Interest Rate - Estimated Payment Schedule

Application Documents to submit with Application: Documents to submit with Application: - Price Sheet, Quote, or Bid Sheet - Basis of bid - Letter from Budget office - Equipment need justification - If sole source, copy of approved certificate - If IT product, IT manager approval

Steps to Finance Equipment BankDFSAgency Signed Approval Letter Agency orders equipment after receiving Signed Approval Letter from DFS

Steps to Finance Equipment AgencyDFSBank Final Invoice -Submitted after installation and acceptance of equipment Actual Interest Rate and Actual Payment Schedule -Determined when Bank receives final invoice

Steps to Finance Equipment BankAgencyBank Prepares for Execution Execute with copy to DFS Exhibit B – Equipment Schedule (Includes equipment location, equipment list, and payment information ) Exhibit C – Certificate of Acceptance and Acknowledgement of Agency Lease Exhibit E – Arbitrage and Tax Certificate Agency must also provide evidence of insurance with the above executed documents

Steps to Finance Equipment BankContractor Payment Bank makes payment within 10 business days Agency makes payment in accordance with the Actual payment schedule AgencyBank Payment

Steps to Finance Equipment Bank Agency Actual Funding Date If actual funding date differs from original stated funding date - Bank proposes revised payment schedule - DFS approves and sends to Agency and bank DFS

Contact Information Fax: (850) Mike Rutherford: (850) David James: (850) Address: 200 East Gaines Street Tallahassee, Florida