Ohio University Policy and Procedure

Investment Loan Fund

SUPERCEDED on June 11, 2004

Current Version




Procedure No.:   50.002

Page No.:        1 of 1

Date Issued:    7/1/98

Issued By:       D. Siemer



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Purpose

To provide units within the University an opportunity to borrow money from the Universityıs Diversified Investment Pool of funds for purposes that advance the educational mission of the University.

Policy

To loan funds in original principal amounts from the Diversified Investment Pool for periods conforming to the nature of the investment to planning units of the University. The terms and conditions shall be consistent with this policy and approved by the University's President after review and recommendation by the Provost and Vice President for Finance.

a) All loans shall be for an amount$25,000 and for no more than 50% of this loan pool.

b) All loans shall be with an interest rate of Prime (as reported in the Wall Street Journal).

c) Information on any and all outstanding loans shall be included in quarterly reports to the Budget and Finance Committee of the University's Board of Trustees, aligned with the Board's meeting schedule.

d) No more than 25% of the Diversified Investment Pool in total shall be loaned for the purposes outlined in this policy without consultation with the Board of Trustees.

e) The amount of funds available to be loaned shall be determined based on the most current audited financial statements of the University and the target % for the Diversified Investment Pool. f) The President may recommend exceptions to this policy to the Board of Trustees.

Terms and Conditions

A loan request must be initiated from the planning unit to the Vice President for Finance, copying the Provost and any intermediary. The VP for Finance staff is available to assist with the development of the necessary information to prepare the request, which shall include:

a) Project description, cost and loan draw schedule (if the loan amount is not intended to be spent all at once, in what amounts will the loan be drawn down and when).

b) Explanation as to why the project merits consideration (related to the University's mission of teaching, research, and service; student health and well being; etc.).

c) Amortization schedule (based on monthly repayment with interest calculated at Prime on the average daily outstanding balance of the loan).

d) Identification of the funding source for the loan and the University account(s) to be charged for payment

e) Identification of an alternative source of funding in the event the primary source of funding is not adequate to meet the repayment schedule (i.e., generally this will be the head of a planning unit at a level above that of the requestor who essentially co-signs for the loan backstopping it with reserves or other income sources).

Responsibilities

Vice President for Finance

a) To develop, in concert with the planning unit, the loan request so that it meets this policy's requirements and to provide a recommendation as to its financial worthiness (to the President, Provost & requestor).

b) To forward the completed loan request to the Provost for review and recommendation to the President.

c) To maintain the official file on the loan request and to insure compliance with its terms and conditions.

Provost

To review the request and to recommend approval/disapproval to the President.

President

a) To approve or disapprove the loan request. The decision shall be final with no right of appeal.

b) To return the loan request to the VP for Finance for notification and disposition as appropriate.


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Dick Piccard revised this file (http://www.ohiou.edu/policy/s50-002.html) on June 16, 2004.

Please E-mail any comments or suggestions to "polproc@www.ohiou.edu".