Regents Policy 5308: Policy on Borrowing from Combined Investment Portfolios of the Short Term Investment Pool and the Total Return Investment Pool

Approved March 15, 2018

POLICY SUMMARY/BACKGROUND

This Policy authorizes the use of the University's Short Term Investment Pool and Total Return Investment Pool for liquidity support for the Commercial Paper Program, medical centers' working capital borrowings, Mortgage Origination Program loans, and contributions to the University of California Retirement Plan.   

POLICY TEXT

The President is authorized to utilize the combined Short Term Investment Pool and Total Return Investment Pool portfolios for the following:

1. The Commercial Paper Program:The President is authorized to either utilize a portion of Short Term Investment Pool/Total Return Investment Pool (STIP/TRIP) as liquidity support for the Commercial Paper (CP) Program or, if necessary, negotiate standby letters of credit, lines of credit or other liquidity agreements to provide additional liquidity support for the CP Program. Repayment of advances under such liquidity facility shall be repaid from revenue sources identified by the President so that the general credit of The Regents is not pledged. 
2. Medical Centers' Working Capital Borrowing:
   The President is authorized to utilize the combined investment portfolios of STIP/TRIP for medical centers' working capital borrowings. A hospital's working capital borrowings from STIP/TRIP for a month shall not exceed 60 percent of the hospital's total accounts receivable for that same month (total accounts receivable being defined as patient accounts receivable, net of allowances).
3. Mortgage Origination Program Loans:
   The President is authorized to utilize the liquidity available in the combined investment portfolios of STIP/TRIP for the Mortgage Origination Program (MOP) Loans.
4. University of California Retirement Plan
   The President is authorized to utilize the liquidity available in the combined investment portfolios of STIP/TRIP to make contributions to the University of California Retirement Plan as authorized by The Regents.

COMPLIANCE/DELEGATION

The University's Office of the Chief Financial Officer and Office of the Chief Investment 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.

PROCUDURES AND RELATED DOCUMENTS

Regents Policy 6108: Total Return Investment Pool (TRIP) Policy Statement
Regents Policy 6109: Short Term Investment Pool (STIP) Investment Guidelines

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.