Colorado State University Research Foundation    
Home Technology Transfer Office Leasing Programs Land Holdings Contact Information Colorado State University Homepage
"The Municipal Lease"

(II) "The MUNICIPAL Lease". This lease option is used to acquire more expensive equipment. CSURF administers the transaction but is not a party to it. This year to year cancelable lease agreement is between the University as lessee and a bank, leasing company or underwriter as lessor. The lessor is chosen by competitive bids submitted by interested parties to the CSU Purchasing Department. The lease agreement is signed between the University and the successful bidder and upon full payment of the lease, title passes to the University. The interest rate on a Municipal Lease is reflective of market conditions and is usually around 75-80% of the prime lending rate. An administrative fee is paid to CSURF of 1.5% - 3% of the total amount financed, depending upon the size of the transaction. In the Municipal Lease, the University makes clearly defined payments of principal and interest and the lessor is allowed to treat the interest portion of the lease payments as tax exempt income. The municipal lease term, as with the CSURF lease, is on a fiscal year to year basis with renewal options to assure the University's liability is limited to the present lease term and thereby complies with Colorado law.

Features of a municipal lease are:

Available for equipment valued over $50,000.
Payments are made semi-annually.
The 1.5% to 3% administrative fee is based upon the size of the lease and is paid at time of closing.
Payback period is generally 5 years or less.
The lease is put out for bid to obtain the lowest competitive interest rate.

The leasing process (CSURF or Municipal) begins when an interested department determines a need for a specific piece of equipment and submits a lease/purchase request form to the University Representative or the CSURF office. The lease/purchase request form is signed and verified by the Request Originator, Department Head, and Dean of the College to indicate the awareness of all individuals and entities of the financial obligation of the lease arrangement. Requests for computer equipment must also receive the approval of the University's Computer Center. If indication is given on the lease request that payments will be made from research contracts and/or grants, approval of the proper contract and grant administrator is also required to determine that 1) adequate funds are available, 2) the lease payments are allowable charges to the contract or grant. The request is then reviewed by the CSURF leasing officer, the University Representative, and the Vice President for Administration/University Controller to develop a needs assessment and an analysis of the department's ability to make the lease payments, based upon the projected sources of repayment.

Municipal Lease Application

 

Colorado State University (PDF format)
Colorado State University - Pueblo (PDF format)

Get Acrobat Reader

Contact Information

Julie H. Birdsall
Chief Financial Officer, Corporate Secretary/Treasurer
Phone: 970.482.2916
Fax: 970.484.0354

< Back to Leasing Programs
copyright Copyright © 2006 Colorado State University Research Foundation. All rights reserved.
This page was last updated October 1, 2006.
CSURF Homepage CSURF Homepage CSURF Homepage CSURF Homepage