Approval and Execution of Financing Agreements
The acquisition of any capital asset by a State Agency that is paid through a Financing Agreement must be done in accordance with the procedures established in ORS 283.087 to 283.092 if the principal portion of the agreement exceeds $100,000.
The acquisition of any software or capital asset may not be divided into parts with each part being less than $100,000, to avoid the Financing Agreement approval process. The Department will combine each component of a single project to determine if the principal amount of the financing for the project exceeds $100,000. If the principal amount exceeds $100,000 the financing is subject to ORS 283.087 to 283.092.
A “single project” will be determined to exist if:
A State Agency is acquiring two or more items using separate Financing Agreements when the total principal sum of the Financing Agreements exceeds $100,000;
The items perform or contribute to the same general function at a particular location or as part of an interdependent system; and
Are proposed to be acquired under a continuing appropriation or within the same biennium.
If the principal amount of the Financing Agreement exceeds $100,000, it must be executed by the Director. The form of the proposed agreement must be submitted to and approved by the Director at least 14 business days before the expected closing of the financing.
The Director is the only state officer authorized to enter into Financing Agreements under ORS 283.087 to 283.092. The Deputy Director may execute a Financing Agreement in lieu of the Director under ORS 184.335.
In cases of Financing Agreements approved in writing by the State Treasurer, or the Treasurers designee, and the Director to acquire equipment through the Department of Administrative Services, State Services Division in accordance with the Public Contracting Code, the Directors approval of the terms of a proposed Financing Agreement, with such changes, if any, as are authorized by the Director, will serve as direction to the State Services Division Administrator to execute the Financing Agreement under the Directors authority.
Requests for approval of Financing Agreements will be made in the manner, and on forms as directed by the Department.