Regents Policy 5300: Policy on External Financing

Approved March 15, 2018

POLICY SUMMARY/BACKGROUND
This policy is intended to work in conjunction with Bylaw 22.2(c) of The Regents of the University of California, which provides that authorizing University external financing is reserved to the Board and/or its Committees for approval or other action within parameters specified by Committee Charter or Regents Policy.
POLICY TEXT
The President of the University of California is the manager of all University related external financings.The President of the University of California is authorized to obtain external financing as specified in the table below.
Approval
President's Maximum Authority
External financing for any University-related purpose, including, but not limited to, capital projects or working capital needs
Up to and including $20 million
External financing for capital projects consistent with the approved Capital Financial Plan, accepted Physical Design Framework, and approved Long Range Development Plan
Up to and including $70 million
External financing for real estate purchases consistent with the approved Capital Financial Plan
Up to and including $70 million
Augmentations to external financing originally approved by the Board or by action by concurrence
Up to and including $20 million
Refinancing existing external financing for the purpose of realizing lower interest expense
Unlimited

The President of the University of California’s external finance authority shall include, but not be limited to, the authority to (1) obtain interim financing for any external financing, (2) structure, issue, and sell revenue bonds or other types of external financing, (3) issue variable rate or fixed rate debt, and execute interest rate swaps to convert fixed or variable rate debt, if desired, into variable or fixed rate debt, respectively, subject to the  requirements of the Interest Rate Swap Guidelines, (4) provide for reserve funds and for the payment of costs of issuance of such external financing, (5) guarantee the repayment of indebtedness, (6) obtain letters of credit or similar instruments, (7) perform all acts reasonably necessary or appropriate in connection with the foregoing, and (8) approve and execute all documents in connection with the foregoing, including documents with indemnity provisions, provided that the general credit of The Regents shall not be pledged for any form of external financing.

COMPLIANCE/DELEGATION
The University’s Office of the Chief Financial Officer (or any successor office based on a change of title) shall be responsible for overseeing compliance with this policy.
NO RIGHT OF ACTION
This policy is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the University of California or its Board of Regents, individual Regents, officers, employees, or agents.
PROCEDURES AND RELATED DOCUMENTS
Changes to procedures and related documents do not require Regents approval, and inclusion or amendment of references to these documents can be implemented administratively by the Office of the Secretary and Chief of Staff upon request by the unit responsible for the linked documents.

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