Section 28: Installation Payments - Contract Prepayments
(1) A contract entered into by Utah State University may provide for installment payments, including interest charges, over a period of time, if the Director of Purchasing and Contract Services makes a written finding that:
(A) the use of installment payments are in the interest of Utah State University;
(B) installment payments are not used as a method of avoiding budgetary constraints;
(C) Utah State University has obtained all budgetary approvals and other approvals required for making the installment payments;
(D) all aspects of the installment payments required in the contract are in accordance with the requirements of law; and
(E) for a contract awarded through an invitation for bid or a request for proposal, the invitation for bid or request for proposal indicates that installment payments are required or permitted.
(2) Utah State University may not pay for a procurement item before the procurement item is received by Utah State University, unless the Director of Purchasing and Contract Services makes a written finding that it is necessary or beneficial for Utah State University to pay for the procurement item before the procurement item is received by Utah State University.
(3) Circumstances where prepayment may be necessary for, or beneficial to, Utah State University include:
(A) when it is customary in the industry to prepay for the procurement item;
(B) if Utah State University will receive an identifiable benefit by prepaying, including reduced costs, additional procurement items, early delivery, better service, or better contract terms; or
(C) other circumstances permitted by Utah State University.
(4) A prepaid expenditure shall be supported by documentation indicating:
(A) the amount of the prepayment;
(B) the prepayment schedule;
(C) the procurement items to which each prepayment relates;
(D) the remedies for noncompliance with requirements relating to the provision of the procurement items; and
(E) all other terms and conditions relating to the payments and the procurement items.
(5) The Vice President for Business and Financial or the Director of Purchasing and Contract Services or, their designee may require a performance bond, of up to 100% of the prepayment amount, from the person to whom the prepayments are made.