Docstoc

University of Brighton - PDF

Document Sample
University of Brighton - PDF Powered By Docstoc
					University of Brighton

Car, cycle and travel loan scheme
1.
1.1 1.2 1.3

Introduction
The university’s travel loan scheme includes loans for the purchase of annual season tickets and for the purchase of cycles and cars. The extended travel loan scheme came into operation for purchases made on or after 1 August 1994. Loans granted will be limited to the following maxima: Cars £7000.00 Cycles £500.00 Annual Season Ticket no limit The maximum figure for loans is reviewed annually on 1 April. A new travel loan will not be granted until any previous loan has been repaid in full either by the loan running its full course, or by early settlement. The university reserves the right to refuse a travel loan application, irrespective of whether any eligibility criteria are met. In these circumstances the university is not obliged to provide an explanation for its decision but would generally expect to do so. Discretion with regard to these procedures and the granting of travel loans rests with the Director of Personnel.

1.4 1.5 1.6

1.7

2
2.1

Car loans
Staff who hold a full current driving licence and meet one of the following criteria are eligible for a car loan:(i) where they are required to travel regularly by car, on official university business. (Note: the number of miles travelled will normally be in excess of 500 per annum at the full mileage rate excluding any miles claimed under an excess travel agreement);

(ii) where it is anticipated that they will meet the above criteria in the immediate future; (iii) where they occupy a post graded Head of School/Department or above. 2.2 2.3 2.4 2.5 The mileage rate is that laid down in the university’s Travel and Subsistence Scheme. Loans may be repaid over any period of months subject to a minimum period of 12 months and a maximum period of 60 months. The loan period for staff on fixed term contracts of employment will not exceed the period of the contract. When an application under this scheme is in respect of a second-hand car the applicant must arrange for the vehicle to be examined by the Colas Highway Services Ringmer (CHS). Arrangements should be made only after the Personnel Department has confirmed that the eligibility criteria have been met and has given approval for an inspection to take place. Further information is given in section 5.2 below. Following this examination, the university may at its absolute discretion either refuse to make the loan or limit the amount of the loan to a figure it considers reasonable in all the circumstances. If a loan is made, the university will not be responsible for the description, quality, condition or performance of the vehicle or its fitness for any particular purpose. A member of staff is advised to arrange an independent inspection of the vehicle prior to purchase. An application for a car loan will not be approved unless:-

2.6

2.7

(i)

the estimated future life of the car having regard to the annual mileage which the member of staff might reasonably be expected to cover on private and official journeys is at least two years; and

(ii) the university is satisfied that the type of car concerned is suitable for the performance of the official duties for which it is required.

3
3.1 3.2 3.3 3.4 3.5

Annual season ticket loans
Loans will be available to all staff who have a contract of employment for 12 months or more remaining at the time of the request. Loans will be repaid by deduction from salary/wage at source over a maximum period of 10 months/40 weeks. The Director of Personnel will be responsible for verifying the details on the application form e.g. to confirm the member of staff’s eligibility, address etc. Cheques will be made payable by the University of Brighton to the travel company, or to the individual upon production of a receipt. An application for a travel loan will only be approved where there is satisfactory evidence that the loan is to be used for travel on public transport from home to work.

4
4.1 4.2 4.3 4.4 4.5 4.6

Cycle loans
Loans will be available to all staff, on the same basis as for Annual Season Ticket Loans mentioned above. Loans will be repaid by deduction from salary/wage at source over a maximum period of one year. The Director of Personnel will be responsible for verifying the details on the application form, as for Annual Season Ticket Loans mentioned in paragraph 3.3 above. A quotation or invoice must be attached to the application form. Cheques will normally be made payable to the supplier. The maximum loan available (£500) may include the cost of a safety helmet. It is expected that the cycle purchased using the loan facility will be in road worthy condition and will be used to travel to and from work.

5
5.1 5.2 5.3

Repayment of loans and interest payable
A loan granted in accordance with this scheme is repayable by monthly (or weekly in the case of weekly paid staff) instalments. The interest rate in respect of new loans will be equal to the base rate plus 1.0%, with the minimum being 6%. Staff who have been granted a loan under this scheme must:(i) if they leave the employment of the university before the loan and interest have been paid, repay immediately the outstanding principal and interest due up to the date of repayment;

(ii) during the period of any car loan, make the car available for their use on university business unless the car is undergoing necessary repairs and maintenance; (iii) undertake not to dispose of the car/season ticket/cycle without the prior consent of the university at any time before the repayment in full of the amount of the loan and interest. Should disposal be authorised, the outstanding principal and interest up to the date of repayment immediately become repayable to the university;

Personnel

Page 2 of 4

(iv) undertake during the period of any car loan to maintain a comprehensive policy of insurance in respect of the said vehicle, including insurance in connection with their use of the vehicle on official university business; and (v) make all necessary arrangements for the agreed instalments to be paid during any periods of significant absence from the university (e.g. unpaid leave, maternity leave).

6
6.1

Signing of agreement
As a condition of the assistance granted under this scheme the staff concerned must enter into an agreement with the university in respect of their contractual obligations in accordance with the scheme.

7
7.1 7.2 7.3 7.4

Procedure for submitting applications
Applicants should complete a travel loan application form (PD16). Copies of this form are obtainable from the Personnel Department. The appropriate sections of part 1 of the PD16 should be completed and signed. A quotation for the purchase must be obtained from the vendor and attached to the PD16. The form and quotation should then be returned to the Finance Department, Mithras House for completion of Parts II and III of PD16. On completion of parts II and III of PD16, the Finance Department will forward the form PD16 together with any necessary supplementary documentation to the Personnel Department. On receipt of the PD16, in respect of a car loan application, the Personnel Department will, if the intended vehicle purchase is second-hand and the eligibility criteria have been met, notify the applicant that s/he may proceed with a vehicle inspection. Vehicle inspections should not be arranged until this notification is sent. An application for examination of a second-hand vehicle form (PD17) will be provided when the applicant is notified that s/he may proceed with the vehicle inspection. The applicant should complete Part 1 of the PD17 and send or take it by prior arrangement to CHS. Arrangements for the vehicle to be inspected should be made directly with CHS. The applicant should inform CHS that s/he is a member of staff at the university as CHS has inspection contracts with a number of organisations. CHS is located at The Broyle, Ringmer, near Lewes, telephone Ringmer 482930.

7.5

7.7 7.8

7.9

7.10 Vehicle inspections may be made only by CHS. Applicants are not normally required to meet the cost of inspection unless the number of inspections in respect of a single loan is more than would reasonably be expected, or they decide not to proceed with the purchase of a vehicle after a satisfactory vehicle inspection report has been supplied. The cost of an inspection is currently £45 + VAT. 7.11 Except in the case of private sales, it should not normally be necessary for the vehicle to be taken to CHS. The vehicle will usually be inspected on-site. Please note, however, that CHS will not always agree to on-site inspections outside the boundaries of East Sussex. Where an applicant arranges for an on-site inspection outside the County boundary and an additional charge for such an inspection is made, the applicant will be invoiced by the University for the additional cost incurred. 7.12 CHS will return the PD17 to the Personnel Department. Applicants will be notified of the outcome and provided with a copy of the report by the Personnel Department. 7.13 Please note: in the case of the purchase of a second hand vehicle at least ten working days should be allowed between receipt of a completed car loan application form and receipt of any loan authorised.

7.14 Subject to the eligibility criteria having been met and a satisfactory vehicle inspection report having been obtained, if appropriate, the Personnel Department will send to the applicant two copies of the Travel Loan Agreement (PD18) and Appendix (PD18a) for signature. Both copies should be signed by the applicant and returned to the Finance Department. 7.15 Please note that the Travel Loan Agreement is a Credit Agreement regulated by the Consumer Credit Act 1974. The university is unable to make a loan unless this Agreement is signed. By signing the Credit Agreement the applicant is bound by the terms of the Agreement and the Appendix to the Agreement. 7.16 Applicants will be formally notified by the Personnel Department if, for any reason, their application is refused. 7.17 The Financial Controller will make the travel loan advance after the signed Travel Loan Agreement (PD18) has been returned to the Finance Department. For a car loan, the individual’s driving licence and certificate of insurance have to be presented for inspection to the Finance Department. 7.18 Cheques will be made payable by the University of Brighton to the vendor, or to the individual upon production of a receipt. 7.19 Cheques made payable to applicants will be sent to the applicant’s home address unless prior arrangements have been made to collect the cheque in person. 7.20 Travel loan repayments will be automatically deducted from the applicant’s salary/wage, commencing with the month/week following the return of the Travel Loan Agreement. 7.21 Please note that the University is required to make an annual return to the Inland Revenue on form P11D of any loan being made at lower than market rates. This may result in the applicant being subject to additional taxation as a benefit in kind. 7.22 For matters relating to loan repayments and, in particular, early repayment of loans, the Financial Controller, ext 2723, should be contacted. 7.23 These procedures may be varied from time to time by the Director of Personnel and the Director of Finance. 7.24 For further advice on this scheme please contact staff in the Personnel Department, Mithras House.

Personnel

Page 4 of 4


				
DOCUMENT INFO