This plan is basically an appropriation style, installment purchase with no prepayment penalty. Title passes after acceptance. Placement of the financial obligations is with sophisticated investors. Lender will make all necessary disclosure statements. Interest is considered to be taxable for federal and state income tax purposes. See Beta Plan Description for more details.
The State will not pay for any equipment 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 closing documents and process can be used. The closing, however, would be quicker since the financed assets would normally have been accepted by the State. The term should be the remaining term of the original schedule or the useful life of the assets if shorter.
Payment schedules for contracts with an acceptance testing period will vary from payment schedules for contracts that do not have an acceptance testing period because of California law. Interest is calculated from the first day of the successful acceptance testing period or actual acceptance if there is no acceptance testing period specified by the State. However, the same terms and conditions and closing documents would apply. Agencies should contact the Lender for appropriate payment schedules.
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 (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 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 close approximations. 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), see Participating Lenders for more information.
Closing Documents
The following closing documents must be executed quickly for funding. Lender will identify needed documents and provide instructions to Agency as to timing and where to send executed documents:
- Copy of Contract (Agency executes including financing plan and payment schedule)
- Consent and Acknowledgement Form (Lender prepares, Agency executes and returns to Lender)
- Opinion of Counsel (if Lender requests, Agency's counsel executes standard form and sends to Lender)
- UCC-1 (if Lender requests and prepares, Agency executes and returns to Lender)
The State expects that the Contractor and the Lender enter into any agreement that is necessary to complete the financing in a timely manner ("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.
Although the posted rates quotes are for the latest version of the Beta Plan Terms and Conditions, other older approved versions are still acceptable for any State of California lease purchase. See Terms and Conditions for latest version.
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