Alpha Plan (Tax Exempt), Description

• No State financial obligation to pay until assets are accepted by the State
• Funds are disbursed to Supplier within 30 days after acceptance and within 6 months of funding
• Financial obligations unrated and privately placed
• No withholding of payments to Lenders for Supplier problems
• Should acceptance not occur when anticipated, the rate may be adjusted (up or down) based on the proportional change (more than 10 basis points) to the Treasury bill rate for the payment period selected, as long as the payment schedule notes and provisions are properly completed
• Maintenance costs extra
• Interest computed on 360-day year and at fixed rate for entire payment term
• Interest in the first payment will include only the amount for the payment period. Any other prior interest, if any, will be shown on the payment schedule as capitalized interest
• State will pay sales tax on purchase
• No convenience termination right available until all payments owed have been made
• Prepayment option with no penalty
• Title passes to the State after acceptance (ergo, no personal property tax)
• Standard non-appropriation provision included
• Agency provides insurance policy or self-insurance certification
• Payments will be approximately equal and made in arrears
• State funds used and appropriated on annual basis
• No escrow funding (i.e., no advance payments by the State into an acquisition fund)
• The State expects that the Contractor and the Lender enter into any agreement that is necessary to complete the financing in a timely manor ("Assignment Agreement"). While the State is not party to this Assignment Agreement, the State expects that the Assignment Agreement will clearly outline the rights, roles, responsibilities and reciprocal indemnifications of the both the Supplier and the Lender for this financing to take place