Mount Allison word mark
Policy #: 8901
Subject: Authorization for Borrowing
Group: Institutional
Approved by: Executive Committee of the Board of Regents
Approval date: October 28, 1989
Effective date: October 28, 1989
Revised: April 27, 2011
Administered by: Vice-President (Administration)

1. PURPOSE

The purpose of this policy is to establish requirements for the approval of and reporting on all borrowing.
 

2.   AUTHORITY
2.1

Line of Credit

Increases to the University's line of credit facility must be approved by the Executive Committee of the Board of Regents.
   
2.2 External Loans
All external loans must be approved by the Executive Committee of the Board of Regents.
   
2.3 Internal Loans

Internal loans that in total do not exceed in any fiscal year 1% of the General Operating Fund budgeted expenditures, net of internal cost recoveries, and which have a payback of less than 5 years, require the approval of the President.

Other Internal loans require the approval of the Executive Committee of the Board of Regents.

Internal loans other than those which are to be repaid by the General Operating Fund will be charged interest at the University’s opportunity cost of cash.

Approval of internal loans for new revenue generating activities will be based on the external cost of borrowing funds.
 

3. REPORTING
The Controller shall report annually to the Finance and Administration Committee on any new loans, on year end balances of all loans, and on changes to the University’s line of credit facility.
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Maintained by the Office of the Vice-President (Administration)
June 10, 2003