Master Lease Program
The Regents' master lease agreement may be used for purchase of
equipment or capital projects (real or personal property) with cost
from $100,000 to $5,000,000 with a maximum maturity of 10 years.
Proposals for the purchase of equipment or capital projects that
are to be financed using the Regents' master lease agreement
shall be submitted to the Treasurer's Office for review and
shall contain a business plan setting forth the:
- Description of the equipment or project
- Cost of equipment or project
- Projected use of equipment or project with a breakdown of public and private use
- Length of time for financing
- Projected date for funding
- Source of funds for master lease payments
- Return on investment calculation
The proposal will be forwarded to the University's legal counsel for review and to the university's leasing agent for a tentative amortization schedule and interest rate.
The financing will be docketed for the Board of Regents, State of Iowa review and approval. Once approved by the Board, lease documents will be prepared and signed by the University, the university's leasing agent, and the Executive Director of the Board. Notification of the approved financing will be forwarded to the Legislative Fiscal Bureau. Depending on the length of the project an escrow account will be established to hold funds for disbursement. All funds must be spent within 18 months to avoid arbitrage.