Consolidated Consolidated Equipment Equipment

Financing ProgramFinancing Program(CEFP)(CEFP)

Department of Financial Department of Financial ServicesServices

Bureau of AccountingBureau of Accounting

CEFPCEFPUsed to purchase equipmentUsed to purchase equipmentPurchase Amount – Minimum of Purchase Amount – Minimum of $100,000$100,000Financing Terms:Financing Terms:

–3-year3-year–4-year4-year–5-year5-year

Interest RateInterest Rate

No “lock” upon DFS approvalNo “lock” upon DFS approval Estimated rate will be approved by Estimated rate will be approved by

DFSDFS Actual rate determined when Agency Actual rate determined when Agency

submits final invoice to DFSsubmits final invoice to DFS Will not exceed statutory maximum Will not exceed statutory maximum

pursuant to Section 287.063(1)(b), pursuant to Section 287.063(1)(b), F.S.F.S.

PaymentsPayments

Agency makes Quarterly PaymentsAgency makes Quarterly Payments Bank makes payment to contractor Bank makes payment to contractor

within 10 days after receiving within 10 days after receiving Executed Exhibits.Executed Exhibits.

Prepayment PenaltiesPrepayment Penalties

Agency must notify Bank of America Agency must notify Bank of America and DFSand DFS

30 days notification required prior to 30 days notification required prior to exercising prepayment exercising prepayment

Prepayment and penalties made on Prepayment and penalties made on next payment datenext payment date

Not permitted first two years of Not permitted first two years of financingfinancing

Prepayment PenaltiesPrepayment Penalties

1% - final 12 months of financing 1% - final 12 months of financing termterm

2% - 24th through 13th month 2% - 24th through 13th month prior to expiration of financing prior to expiration of financing termterm

3% - 36th through 25th month 3% - 36th through 25th month prior to expiration of financing prior to expiration of financing termterm

Steps to Finance EquipmentSteps to Finance Equipment

Agency DFS BankApplication

Approval Letter

•Approval Letter

-Estimated Interest Rate

-Estimated Payment Schedule

ApplicationApplication

Documents to submit with Documents to submit with Application:Application:

- Price Sheet, Quote, or Bid SheetPrice Sheet, Quote, or Bid Sheet- Basis of bidBasis of bid- Letter from Budget officeLetter from Budget office- Equipment need justificationEquipment need justification- If sole source, copy of approved If sole source, copy of approved

certificatecertificate- If IT product, IT manager approvalIf IT product, IT manager approval

Steps to Finance EquipmentSteps to Finance Equipment

Bank DFS Agency

Signed Approval Letter

Signed Approval Letter

•Agency orders equipment after receiving Signed Approval Letter from DFS

Steps to Finance EquipmentSteps to Finance Equipment

Agency DFS Bank

Final Invoice

Final Invoice

•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 EquipmentSteps to Finance Equipment

Bank Agency Bank

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 EquipmentSteps to Finance Equipment

Bank Contractor

Payment

•Bank makes payment within 10 business days•Agency makes payment in accordance with the Actual payment schedule

Agency Bank

Payment

Steps to Finance EquipmentSteps 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 InformationContact Information

Email: Email: Financing@myfloridacfo.comFinancing@myfloridacfo.comFax: (850) 413-3232Fax: (850) 413-3232

Mike Rutherford: (850) 413-5594Mike Rutherford: (850) 413-5594David James: (850) 413-5666David James: (850) 413-5666

Address:Address:200 East Gaines Street200 East Gaines StreetTallahassee, Florida 32399-0354Tallahassee, Florida 32399-0354