University System of Maryland Debt Service Information Resource
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	Debt Service Home           Aux Fac & Tuit Rev Bond Debt Service Schedules           Revolving Equipment Loan Program           Continuing Disclosure           Staff           Email Debt Service Office		Revolving Equipment Loan Procedural Summary         01. Equipment eligible for financing under the Revolving Equipment Loan Program must be tangible or intangible personal property which, under generally accepted accounting principles, is eligible to be capitalized as plant, property or equipment of the System and is expected to have a useful life of at least five years.     02. For large loans, $500,000.00 and up, please contact the System Office to determine availability of funds and to let our office know the time frame and amount of your upcoming need.     03. Please send a cover letter, the " Institution Loan Agreement and Requisition Equipment Loan Program" and " Private Use Questionnaire and Certificate" forms, as well as your purchase order, if available, and the original and one copy of each invoice.     04. If you are submitting invoices for reimbursement, see Description of the Program for reimbursement guidelines, you must have already completed a " Declaration of Intent to Reimburse Form".     05. Your equipment invoices will be submitted directly to our trustee, by our office, for payment on the 20th of each month.     06. Revolving Equipment Loans are generally repaid over a two to five year period at an interest rate of 5.5%. Each loan also carries on half of one percent cost to administer the program. You will be sent a repayment schedule for each loan.     07. The first Revolving Equipment Loan payment is billed, and is due, on or before the first day of the month after the funding date of the loan. This payment will be the interest due for the remainder of the current fiscal year at the estimated fixed rate.     08. Debt Service payments are billed, and payment is due, on a semi-annually basis in July and January.     09. The actual interest rate for the Revolving Equipment Loan Program is reset weekly. At the begining of the fiscal year following the final debt service payment on a loan any interest paid in excess of the actual interest rate for that loan, over the loan period, will be return to the institution. In the event interest rates rise above the fixed rate the System will recover this interest from the institutions.           Please contact the System office at (301) 445.1951 or weems@usmd.edu if you have any questions or need clarification with regard to the Revolving Equipment Loan Program