Procurement & Contracting Services

Processing Equipment Loans from Outside Vendors

This guide provides instructions on how to process a loan from an outside vendor. A loan occurs when a vendor provides a good to the university for a specific period of time at no cost to the university.

Please refer to the Processing Leases/Rentals guide if a vendor is providing a good or service to the university for a specific period of time (start AND end date) for a specific dollar amount.

General Loan Instructions

  1. Complete the Equipment Loan Agreement Form.
  2. After the form is completed and signed by your Department Chair/Head, it should be sent to the Vendor, Accounts Payable, and Equipment Management. 
  3. If the Vendor disagrees with any of the terms and conditions on the Equipment Loan Agreement Form, Procurement and 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 vendor modifications in the Notes and Attachments section of the Purchase Agreement document.  The equipment loan should NOT take place until Procurement and 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 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.

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