The internal bank will use available resources, including but not limited to the issuance of short-term and long-term notes and bonds, to make internal loans to the university community. The incurrence of debt will be managed consistently with university policies and financial objectives. For additional information, please refer to the Debt Management Policy and the Policy Governing Century Bonds.
Departments/units seeking financing should provide the purpose of the loan and its relationship to the University’s Strategic and Master Plans, the loan amount, and evidence of their ability to pay debt service. Departments/units should work with their campus Chief Financial Officer (CFO) and seek approval from their Chancellor before submitting for review to the University Budget Office, University Treasury, and Institutional Planning and Operations, where applicable. Final approval for internal loans will be granted by the Executive Vice President – Chief Financial Officer & University Treasurer or its designee. Ultimately, an internal bank loan agreement will be executed between University Treasury and the department/unit to memorialize the loan.
Loan Rate and Terms
The internal bank uses a blended rate for all loans to provide equitable and predictable financing to the university community. The internal loans will be structured with terms appropriate for the type of asset or activity being financed. The Office of Debt Management and Capital Finance will help departments/units structure loans.