Processing Equipment Loans from Outside Vendors

A loan occurs when a vendor provides a good to the university for a specific period of time at no cost to the university.

This guide provides instructions on how to process a loan from an outside supplier, if the university is being charged for a good or service for a specific period of time (start and end date) for a specific dollar amount, please refer to the Processing Leases/Rentals guide.

General Loan Instructions

  1. Complete the Equipment Loan Agreement Form on the Forms page.

  2. After the form is completed and signed by your Department Chair/Head, copies should be sent to the Supplier, Accounts Payable, and Equipment Management.  Your department should keep the original signed copy.

  3. If the Supplier disagrees with any of the terms and conditions on the Equipment Loan Agreement Form, Procurement & Contracting Services review and approval is required.

    • Complete a No Cost Type of Purchase Agreement in the Kuali Financial System (KFS) and attach the proposed supplier modifications in the Notes and Attachments section of the Purchase Agreement document.

    • The equipment loan should NOT begin until Procurement & Contracting Services has reviewed and approved any terms and conditions modifications.

  4. If the item being loaned meets the definition of a Capital Asset, the Asset Global (Add) document should be processed in KFS citing the Acquisition Type of Borrowed.  A copy of the Equipment Loan Agreement Form should be attached to the Asset Global (Add) document in the Notes and Attachments section. The KFS document will route to Equipment Management for approval.

  5. If modifications are necessary to the loan after it has been established, complete the Equipment Loan Agreement Modification Form on the Forms page.