Borrowing and Loan Policy

Reason for Policy

In May 2005, the RF board of directors authorized management to borrow up to $80 million to meet daily operational and sponsored program needs. This policy describes the lines of credit established under this authorization. Any additional borrowing must be approved by the RF board of directors.

Statement of Policy

RF management established two programs: a working capital line of credit for daily cash liquidity needs and a project finance line of credit for campus sponsored program needs. Subject to approval in accordance with the provisions of this Policy, the RF lines of credit can be used for:

1. Major sponsored program activity that requires short-term (less than 1 year) financing of $1 million or more.
2. Sponsored program deficits as directed by the RF's CFO or the RF's President.
3. Day-to-day cash-flow operating needs.

   Occasionally campuses, affiliated organizations or other SUNY-related organizations require support through loan guarantees or other long-term financing options including any lease agreements that are not related to sponsored programs. Any long-term financing in the name of the RF must be evaluated by the Director of Finance and Associate Director of Financial Accounting & Reporting for proper accounting review, reviewed by RF Legal and approved by the RF CFO. The RF is committed to supporting other financing needs and will consider all inquiries.

Terms and Conditions

The following table outlines the interest rate, payment terms and maturity for each type of loan.

How to Request a Loan

Complete the RF Loan Application and include a detailed description of the project. All loan requests must be submitted in writing to the Director of Treasury Operations at Central Office. The Loan Application must be signed by the RF Operations Manager for the requesting campus.

1. The application will be reviewed by appropriate RF Central Office (CO) Leadership staff and make a recommendation to RF CO CFO
2. RF CO CFO will approve the loan if there is enough merit for support by the RF and whether it fits within the mission of the RF.
3. RF CO CFO has no authority to approve loans if they are not financially sound and in the best interest of the RF.
4. RF CFO will sign all documents with the bank or other financial institutions.

Responsibilities

The following table outlines the responsibilities for compliance with this Policy.

Definitions

SOFR - The secured overnight financing rate (SOFR) is a benchmark interest rate for dollar-denominated derivatives and loans. SOFR is based on transactions in the Treasury repurchase market and based on data from observable transactions rather than on estimated borrowing rates.

Maturity Date (Due Date) - The date on which the loan must be paid.

Related Information

Responsibility for Losses Policy

Investment Policy

RF Loan Application

Forms:

RF Loan Application

Change History