This plan is basically an appropriation style, installment purchase with no prepayment penalty. Title passes after acceptance. Placement of the financial obligations is generally with institutions, bond funds, or high income investors. Lender will make all necessary disclosure statements. Interest is considered to be tax-exempt for federal income tax purposes, and state income tax-exempt for California investors. See Alpha Plan Description for more details.
The State does not pay for any assets or services in advance. The State also will only pay interest on the Assets that have been accepted by the State.
In case of refinancing, the same process and closing documents are used. The closing, however, would be quicker since the financed assets have already been delivered and accepted by the State. The term is the remaining term of the original payment schedule or the useful life of the assets (if less).
Rates offered here are for specific purchase amounts ($50,000, $100,000, $250,000, $500,000, and $1 million) over the most popular payment periods (24 months, 36 months, 48 months, 60 months, and 84 months) and are presented for comparison purposes only. Actual rates will vary by term, amount financed, and other purchase order characteristics. The tables for different purchase amounts will display rate, monthly payment and cost information based upon delivery of asset within 30 days of the rate quote, no acceptance testing period, quick acceptance, payment to supplier within 30 days after acceptance, and first payment made by agency 30 days after acceptance.
For quick useful comparisons, the amount below that is immediately lower than the actual purchase amount should be selected and then payment amounts and cost of borrowing may be prorated for a close approximation. Please select the desired amount:
For other payment terms (e.g., quarterly, semi-annually, annually), non-uniform payments (e.g., $1 million this year, $2 million next), pre-payment fee option, or special circumstances (e.g., state-of-the-art asset, relatively unknown supplier, payments from benefits only), contact a $Mart Manager for more information.
Closing Documents
In order for the Supplier to be paid, the following closing documents must be executed quickly for funding. The Lender will identify required documents and provide instructions to the State as to the timing and where to send executed documents:
- Copy of Contract (The State executes and references the specific fianancing plan and attaches the Lender's payment schedule)
- Opinion of Bond Counsel (If the State requests, the Lender has Bond Counsel prepare and sent to $Mart Manager)
- Certification Form (Lender prepares, the State executes and returns to the Lender)
- Tax Certification (If the Lender requests and prepares, the State executes and returns to the Lender)
- Opinion of Counsel (If Lender requests, the $Mart Manager will have DGS counsel execute and return to Lender)
- UCC-1 (If the Lender requests and prepares, the State executes and returns to the Lender)
- IRS 8038-G or GC (Lender prepares, $Mart Manager will sign and file with Internal Revenue Service)
Although the posted rates quotes are for the latest version of the GS $Mart Alpha Plan Terms and Conditions, other older approved versions are still acceptable for any State of California financings. See Terms and Conditions for latest version.
|
