INTERNAL LOANS FROM CURRENT FUNDS

This policy has been migrated to the standardized format.
See https://policy.itc.virginia.edu/policy/policydisplay?id=FIN-024

• 1.0 Purpose
• 2.0 Policy
• 3.0 Definitions
• 4.0 References
• 5.0 Approvals and Revisions

1.0 Purpose

This policy describes the use of internal loans from current funds.

2.0 Policy [Top]

The Board of Visitors, at their January 26, 1990 meeting, amended current funds guidelines to include investments in internal loans to University departments and activities, subject to approval by the Executive Vice President and Chief Operating Officer.

These loans are typically used for temporary financing of construction.

ALL INTERNAL LOANS MADE FROM CURRENT FUNDS WILL BE MADE IN ACCORDANCE WITH THE FOLLOWING GUIDELINES AND RESTRICTIONS.

• All loans are subject to the approval of the Executive Vice President and Chief Operating Officer.
• The total principal amount of internal loans outstanding shall not exceed $15 million.
• No loan shall be made for a period to exceed four years.
• The Executive Vice President and Chief Operating Officer will provide a report to the Board of Visitors at each Board meeting to include the following information:
  • Identification of all departmental loans outstanding;
  • The original and current loan amounts outstanding;
  • The due date of each loan; and
  • Interest rate equivalent to University's blended rate. Such rate subject to annual reset.
• Interest rates and payments shall be based on the terms in the memorandum of understanding.
• Any note may be prepaid by the maker at any time without penalty.

Department and activity heads should contact the Director of Investment & Tax Services to apply for such a loan or to obtain further information in this matter.

3.0 Definitions [Top]

4.0 References [Top]

5.0 Approvals and Revisions [Top]

Previous version in effect from 10/2/02 to 11/15/05 available in policy archive.