Standard Procedure 104
Employee Computer Purchase
Effective:
Supersedes:
Prepared by:
William E. Stice, Director of Technology
Services
Approved by:
William B. Coleman, Jr., Town Manager
PURPOSE:
The
purpose of this procedure is to implement the Employee Computer Purchase Policy
as adopted by the Town Council. The Employee Computer Purchase Policy and this
standard procedure shall guide this process.
TERMS AND CONDITIONS:
1. The total amount available
for borrowing for the purchase of the hardware and software will be established
by the Schedule of Current Values Standard Procedure. This list is updated as needed by the Finance
Department and the employee will be responsible for all costs related to
installation and training. The loan will
not include the cost of such services.
2. Employees will make loan
payments through payroll deduction as described in the Promissory Note and Loan
Disclosure.
3. An employee may not
purchase more than one computer in a five-year period under this program.
4. Because the purpose of the
program is to encourage employee investment in developing computer skills which
they are likely to use for Town business, the Technology Services Director and
the Finance Director will review purchase requests. This is to assure that the type of equipment
and software purchased will be useful in developing skills which the employee
will use, or might be called on to use, on the job. Review of the application will take into
consideration that the Town’s use of computer technology is evolving, as are
the skills, knowledge and abilities of its employees.
5. Participating employees
must submit the following to the Technology Services Director: 1) a signed “Request to Participate in
Employee Computer Purchase Program” (Form A) and 2) a list of the software
and hardware the employee wishes to purchase and the prices of each. The request will be reviewed and, if
approved, a check will be given to the employee for the amount loaned. The check will be made out to the vendor who gave
the quote.
6. Participating employees
must respect the terms of software licensing as defined by the individual
software vendors. Software piracy
(unauthorized duplication) is illegal.
7. Only non-probationary
(except for employees on probation due to a promotion and firefighters) regular
employees in good standing with the Town may participate in this program. The Town reserves the right to discontinue
this program at any time if it determines that it is in the best interest of
the Town to do so.
8. Certain software and
hardware items will not be approved for this program because they do not fit
within its purpose. The employee will be informed of any issues of this nature
before the loan request is processed.
9. If an employee desires to
purchase a system that costs more than the maximum amount allowed by this
program, the
additional funds must be paid by the employee.
RESPONSIBILITIES:
1. The Employee will:
2. The Technology
Services Director will:
3. Accounting will:
a.
Determine if sufficient funds are available for meeting the request. If
not, hold the request (if employee wishes) until funds become available and
process in the order received.
b.
Obtain employee signatures on appropriate forms.
c.
Make out check for value of quote or maximum amount allowed by the Town,
whichever is less, and deliver to employee.
d.
Initiate loan payments by payroll deduction entries
FORM A
To: Technology Services Director
From: ___________________________________
Subject:
Request to Participate in Employee Computer Purchase Program
I
have read and understand the terms and conditions of the Employee Computer
Purchase Policy and Standard Procedure and I wish to participate in the Town’s
program. I request consideration for the equipment listed below:
Hardware
and Software Description Cost
(If
quote is separate please staple it to this form and mark “see attached” below.
Employee Signature: ______________________________ Date: ____________
COMPUTER LOAN DISCLOSURES
Employee Name: _________________________________
Mailing Address: _________________________________
_________________________________
This Disclosure
pertains to your computer loan from the Town of
HERE IS A
BREAKDOWN OF YOUR LOAN:
|
ANNUAL PERCENTAGE RATE The
cost of your credit as a yearly rate. 0
% |
FINANCE CHARGE
The
dollar amount the credit will cost you. $ __0.00__ |
AMOUNT FINANCED The
amount of credit provided to you or on your behalf. $
___________ |
TOTAL OF PAYMENTS The
amount you will have paid after all payments have been made as scheduled. $
__________ |
Your
Bi-Weekly Payment Schedule will be:
Number of Payments
|
Amount of Payments
|
When Payments are Due
|
|
|
|
Each Payroll Period |
|
|
|
Last Payment |
Prepayment.
You
may prepay the outstanding loan balance in full at any time without penalty.
You may make prepayments toward the outstanding balance with any
installment payment, provided such prepayments are in the amount of one hundred
dollars ($100.00) or more.
Itemization of Amount
Financed:
The
amount financed, $ _________ will be paid directly to the vendor from whom you
purchase a qualifying computer or computer equipment.
Security:
You
are giving a purchase money security interest in the computer and any computer
equipment purchased with the loan.
See
your contract documents or contact __________________________ for any
additional information about nonpayment, default, and any required prepayment
in full before the scheduled date.
Employee:
Sign
Name: ____________________________ Date:
_______________________
Print
Name:____________________________
Satisfaction: The debt evidenced by
this Note has been satisfied in full this
______
day of ______________, 200_.
Signed:
_____________________
STATE
OF
FOR
VALUE RECEIVED, the undersigned (“Maker”), jointly and severely, promise to pay
to the Town of Cary, or order, the principal sum of _____(3)_______ dollars
($__(4)__) with interest at the rate set forth below and pursuant to the terms
set forth below.
This Note shall not bear interest (0.0% interest) unless and
until default, subject to the terms and conditions set forth below. Maker shall make equal consecutive bi-weekly
installment payments of principal in the amount of $_____(5)_____ (the
“Payment”) commencing on the ____ day of ___(6)_____, 200_ and continuing on
Friday of every other week thereafter until __________(7)________, 200__ , a
date that is approximately twenty-four months after the date of this Note (“Maturity
Date”). Unless sooner paid, the entire
remaining indebtedness shall be due and payable in full on Maturity Date.
Maker shall make payments in lawful money of the
This
Note is secured by a purchase money security interest, granted by Maker, in all
the computer and equipment purchased with the proceeds of this Note.
If
payable in installments, each such installment, shall, unless otherwise
provided, be applied first to payment of interest then accrued and due on the
unpaid principal balance, with the remainder applied to the unpaid principal.
Unless
otherwise provided, this Note may be prepaid in full or in partial payments of
at least one hundred dollars ($100) each at any time without penalty or
premium. Partial prepayments shall be
applied to installments due in reverse order of their maturity.
The
Maker covenants to fulfill all obligations of the employee borrower under Town
of Cary Policy Statement 114, Employee Computer Purchase Policy as amended and
the Town of Cary Standard Procedure No. 104 that implements that Policy, as
amended.
In
the event of (a) default in payment of any installment of principal or interest
as the same becomes due and such default is not cured within fifteen (15) days
from the due date, (b) default under the terms of any instrument securing this
Note and such default is not cured within fifteen (15) days after written
notice to Maker, (c) termination of Maker’s employment with the Town of Cary
for any reason; (d) termination by Maker
of payroll deduction authorization, or (e) Maker sells, assigns, transfers,
conveys or otherwise alienates the computer or computer equipment purchased
with the proceeds of this loan, then in
any such event the holder may without further notice, declare the remainder of
the principal sum, together with all interest accrued thereon at once due and
payable. Failure to exercise this option
shall not constitute a waiver of the right to exercise the same at any other
time. The unpaid principal of this Note
and any part thereof, and all other sums due under this Note and the Security
Agreement, if any, shall bear interest at the rate of eight per cent (8.0%) per
annum after default until paid.
All
parties to this Note, including maker and any sureties, endorsers, or
guarantors hereby waive protest, presentment, notice of dishonor, and notice of
acceleration of maturity and agree to continue to remain bound for the payment
of principal, interest and all other sums due under this Note notwithstanding
any change or changes by way of release, surrender, exchange, modification, or
by way of any extension or extensions of time for the payment of principal; and
all such parties waive all and every kind of notice of such change or changes
and agree that the same may be made without notice or consent of any of
them.
Upon
default the holder of this Note may employ an attorney to enforce the holder’s
rights and remedies and the maker, principal, surety, guarantor and endorsers
of this Note hereby agree to pay to the holder reasonable attorneys fees not
exceeding a sum equal to fifteen percent (15%) of the outstanding balance owing
on said Note, plus all other reasonable expenses incurred by the holder in
exercising any of the holder’s rights and remedies upon default. The rights and remedies of the holder as
provided in this Note and any instrument securing this Note shall be cumulative
and may be pursued singly, successively, or together, in the sole discretion of
the holder. The failure to exercise any
such right or remedy shall not be a waiver or release of such rights or
remedies or the right to exercise any of them at another time.
This
note is to be governed and construed in accordance with the laws of the State
of
I
HEREBY AUTHORIZE PAYROLL DEDUCTIONS FOR REPAYMENT OF THIS NOTE
, TO COMMENCE THE FIRST PAY PERIOD OF THE MONTH FOLLOWING THE DATE OF
THIS NOTE AND TO CONTINUE UNTIL THIS NOTE IS PAID IN FULL. IN THE EVENT OF TERMINATION OF MY EMPLOYMENT
WITH THE TOWN FOR ANY REASON, I AUTHORIZE OFFSETTING ANY BALANCE DUE ON THIS
NOTE FROM ANY PAYCHECK(S) DUE TO ME.
I
HAVE READ THIS PROMISSORY NOTE AND RECEIVED A COPY.
IN
TESTIMONY WHEREOF, each individual maker has hereunto set his or her hand and
adopted as his or her seal the word “SEAL” appearing beside his or her name,
the day and year first above written.
____________(8)_____________(SEAL) witness:
________(10)___________
Print
Name: _________(9)________________
INSERTS:
(1)
Insert the date.
(2)
Insert the numeric amount of the loan.
(3)
Insert the written amount of the loan.
(4)
Insert the numeric amount of the loan.
(5)
Insert the amount of the bi-weekly payment.
(6)
Insert the date of the the
first payment is due.
(7)
Insert the Maturity Date. The Maturity Date ___
(8)
This line is to be executed by employee.
Although it is not necessary for the employee to place a seal on his
signature, please do not remove the word “(SEAL).”
(9)
Print or type the employee’s name on this line.
(10)
This line is to be executed by a witness to the employee’s execution of
the Note.
PURCHASE MONEY SECURITY AGREEMENT
The
undersigned Borrower for a valuable consideration, receipt of which is hereby
acknowledged, hereby grants to the Town of Cary, a North Carolina municipal
corporation, whose principal address is 316 N. Academy Street, Cary, Wake
County, North Carolina 27513,
(hereinafter called "Town") a security interest in the following
property (hereinafter called the "Collateral"):
All
of that computer and/or related equipment consisting of: _____________________________(1)________________________________________
_______________________________________________________________________
This
security interest is given by Borrower to secure the payment in full of: Note dated ___(2)_____
executed by ___(3)_____ in the amount of $___(4)_____ to the order of Town, the
proceeds of which were used to purchase Collateral; and as security for all
expenses and charges incurred by the Town, including but not limited to
attorneys' fees, in realizing upon or protecting this Security Agreement or the
indebtedness secured hereby.
The
Collateral will be kept at the Borrower's home address. Borrower will notify
Town promptly in writing of any change of location of the Collateral.
This
agreement is subject to the additional provisions set forth on the two pages
attached, the same being incorporated herein by reference and made a part
hereof.
Executed
this ____(5)____ day of ________,20__.
Borrower
signature: ___________(6)______________________
Print
Borrower’s name: ________________(7)________________________
Address: ___________________(8)_______________________
Acknowledgement
By Town (to be signed only if this document is used as
a financing statement)
Town
of
By: _______________________________
ADDITIONAL
PROVISIONS
Further Warranties and Covenants of Borrower. Borrower hereby warrants
and covenants that:
(a)
Except for the security interest granted hereby, Borrower is the owner
of the Collateral free from any adverse lien, security interest or encumbrance;
and Borrower will defend the Collateral against all claims and demands of all
persons at any time claiming the same or any interest therein;
(b)
No Financing Statement covering any of the Collateral or any proceeds
thereof is in existence. The Borrower will immediately notify the Town in
writing of any change in address from that shown in this Agreement and shall
also upon demand furnish to the Town such further information and will execute
and deliver to the Town such financing statements and other documents in form
satisfactory to the Town and will do all such acts and things as the Town may
from time to time reasonably request or as may be necessary or appropriate to
establish and maintain a perfected purchase money security interest in the
Collateral as security for the Obligations, subject to no adverse liens or
encumbrances; and Borrower will pay the cost of filing the same or filing or
recording this agreement in all public offices wherever filing or recording is
deemed by the Town to be necessary or desirable;
(c) Borrower
will not sell or offer to sell, assign, pledge, lease or otherwise transfer or
encumber the Collateral or any interest therein, without the prior written
consent of the Town;
(d) Borrower
will have and maintain insurance at all times with respect to Collateral
against risks of loss or damage by fire (including so-called extended coverage)
and theft.
(e) Borrower
will keep the Collateral free from any adverse lien, security interest or
encumbrance and in good order and repair and will not waste or destroy the
Collateral or any part thereof; Borrower will not use the Collateral in
violation of any statute, ordinance or policy of insurance thereon; and the
Town may examine and inspect the Collateral at any reasonable time or times;
Events of Default. Borrower shall be in default under this agreement
upon the occurrence of any of the following events or conditions:
(a)
Default
in the payment or performance of any of the Obligations or of any covenants or
liabilities contained or referred to on either side of this document or in the
Note;
(b)
Any
warranty, representation or statement made or furnished to the Town by or on
behalf of Borrower proves to have been false in any material respect when made
or furnished;
(c)
Loss,
theft, substantial damage, destruction, sale or encumbrance to or of any of the
Collateral, or the making of any levy, seizure or attachment thereof or
thereon;
(d)
Death,
termination of employment with Town, insolvency, or the commencement of any
proceeding under any bankruptcy or insolvency laws by or against Borrower.
Remedies. Upon such default and at any time thereafter (such default not having
previously been cured), the Town at its option may declare all Obligations
secured hereby immediately due and payable and shall have the remedies of a
secured party under the Uniform Commercial Code, including without limitation
the right to take immediate and exclusive possession of the Collateral, or any
part thereof, and for that purpose may, so far as Borrower can give authority therefor, with or without judicial process, enter (if this can be done without breach of the
peace), upon any premises on which the
Collateral or any part thereof may be situated and remove the same therefrom and the
Town shall be entitled to hold, maintain, preserve and prepare the Collateral
for sale, until disposed of, or may propose to retain the Collateral subject to
Borrower's right of redemption in satisfaction of the Borrower's Obligations,
as provided in the Uniform Commercial Code. The Town without removal may render
the Collateral unusable and dispose of the Collateral on the Borrower's
premises. The Town may require Borrower to assemble the Collateral and make it
available to the Town at a place to be designated by the Town which is
reasonably convenient to both parties. Unless the Collateral is perishable or
threatens to decline speedily in value or is of a type customarily sold on a
recognized market, the Town will give Borrower at least 5 days' notice of the
time and place of any public sale thereof or of the time after which any
private sale or any other intended disposition thereof is to be made. The
requirements of reasonable notice shall be met if such notice is mailed, postage prepaid, to the address of
Borrower shown at the beginning of this
agreement at least five days before the time of the sale or disposition. The
Town may buy at any public sale and if the Collateral is of a type customarily
sold in a recognized market or is of a type which is the subject of widely
distributed standard price quotations, Town may buy at private sale. The net
proceeds realized upon any such disposition, after deduction for the expenses
of retaking, holding, preparing for sale, selling or the like and the
reasonable attorneys' fees and legal expenses incurred by the Town, shall be
applied in satisfaction of the Note secured hereby. The Town will account to
the Borrower for any surplus realized on such disposition and the Borrower
shall remain liable for any deficiency.
The remedies of the Town hereunder are
cumulative and the exercise of any one or more of the remedies provided for
herein or under the Uniform Commercial Code shall not be construed as a waiver
of any of the other remedies of the Town so long as any part of the Note
remains unsatisfied.
General. No waiver by the Town of any default shall operate as a waiver of any
other default or of the same default on a future occasion. All rights of the
Town hereunder shall inure to the benefit of its successors and assigns, and
all obligations of Borrower shall bind his heirs, executors or administrators
or his or its successors or assigns. This agreement shall become effective when
it is signed by Borrower. The terms and
provisions contained herein shall, unless the context otherwise requires, have
the meanings and be construed as provided in the Uniform Commercial Code.
(1)
Insert description of computer and equipment, including model numbers
and serial numbers, if known.
(2)
Insert date of Note
(3)
Insert name of Maker
(4)
Insert loan amount
(5)
Insert day, month and year
(6)
Borrower to execute the Agreement
(7)
Print borrower’s name
(8)
Print borrower’s home address
(9)
Town to execute Agreement