Can BOCES enter into Installment Purchase contracts for the procurement of equipment?
Yes. This concept was authorized by an addition to Section 109 (b) of the General Municipal Law in October, 1979. However, this law contains several restrictions and procedures. Also, the contract is not exempt from competitive bidding. The Board must pass a resolution approving the installment concept if the financing is coming from the general fund budget over more than one year and must be approved by the Commissioner of Education. A down payment cannot be more than 10 percent of the full price; payments are to be substantially equal, month-to-month, year-to-year; the bid specifications and resulting contract must contain a “non-funding clause” and the payments under this contract are not to be made from bonds or notes. The amount financed also cannot include any cost for maintenance/support and cannot exceed the probable useful life of the equipment or five years, whichever is less.
