Effective Date: |
July 1, 2021 |
Supersedes: |
Borrowing Policy and Loan Guidelines, effective December 8, 2006 |
Policy Review Date: |
To be reviewed every 1 year from effective date |
Issuing Authority: |
Research Foundation President |
Responsible Party: |
RF Chief Financial Officer |
Contact Information: |
518.434.7050 |
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.
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:
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.
The following table outlines the interest rate, payment terms and maturity for each type of loan.
Type of Loan |
Interest Rate Basis |
Payment terms and Maturity |
Working Capital Line of Credit |
SOFR (Secured Overnight Financing Rate) minimum of 50 bps, plus 160 basis points for a total minimum of 2.1%* |
On the Maturity or Due Date, the loan becomes payable. Loans may not be paid off early. If the loan will be paid off on the Maturity or Due Date, the Operations Manager must notify the Director of Treasury Operations Central Office (CO) five days in advance. On the Maturity Date if CO is not notified that the loan will be repaid, the loan will be automatically renewed for the existing principal amount, at the existing term, and at the interest rate in effect on the date of renewal. * At Maturity, interest rates may change based on the SOFR rate at the time. Interest is assessed and charged monthly to the campus' RMS allocation account. |
Project Finance Line of Credit |
SOFR minimum of 50 bps, plus 190 basis points for a total minimum of 2.4%* |
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.
The following table outlines the responsibilities for compliance with this Policy.
Responsible Party |
Responsibility |
Operations Managers |
Request and sign loan application; provide notification of loan pay off |
Director of Finance and Assoc. Dir. of Financial Accounting & Reporting |
For non-project line of credit loans, evaluate any long-term financing for proper accounting review |
RF Central Office Leadership staff |
Review for approval |
RF Officers: CFO, General Counsel & Secretary and President |
Approval of loan and any variations from the Policy |
Campus |
Fund Monitoring |
RF Board of Directors |
Approval Authority |
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.
Responsibility for Losses Policy
Date |
Change History |
October 31, 2023 |
Revision to Project LOC interst rate. |
April 5, 2023 |
Revision to benchmark rate and title of RFCO contact. Policy Reviewed. |
July 1, 2021 |
Revision to rates, amouts and titles. |
May 12, 2011 |
Revision to rates. |
April 13, 2010 |
Revisions to rates and amounts. |
December 8, 2006 |
New Document. |