Internal Bank

The Office of Financial Services (OFS) manages cash, investments and debt for all the departments within the institution. In performing these functions, OFS serves as a “bank” to university departments- taking deposits, issuing debt, investing operating funds and distributing loans. The internal bank concept is a framework for coordinating these activities and providing a consolidated view of the associated assets, liabilities, revenues and expenses. (Internal Bank Loan Request Form)

 

Borrowing Guidelines

  • Capital Loan: An internal loan to finance a capital project that is part of the University Capital Plan approved by the Trustees. The interest rate is set in the Term Sheet and in the MOU.  Interest accrues at first drawdown. An interest-only period may be offered during construction. Maximum amortization period is 30 years; minimum amortization period is 5 years.
  • Line of Credit: A non-revolving internal loan of a maximum specified amount that can be drawn down as needed during a specified period. Lines of credit may be for capital or non-capital purposes.   All Lines of Credit require approval by the Senior Vice President for Business and Finance.
  • Master Lease: Financing used to acquire land, buildings or equipment. All leases require approval by the Senior Vice President for Business and Finance. Leases of a present value of $10 million or more must be approved by the Board of Trustees.

 

Term Sheet (April 1 - June 30, 2020)