The acquisition of new debt by the University will occur only on very rare occasions and will be preceded by a very thorough business and financial analysis to ensure that the debt is necessary to achieve a result of fundamental importance to the University. This overwhelming need will be considered in the context of the University’s ability to meet all related debt service obligations. The intent of this policy is to manage the overall cost of capital, minimize long-term debt service costs while ensuring that the overall level of risk does not exceed acceptable levels.
New debt will only be acquired to provide a source of financing for long-term capital investments necessary to achieve the University’s mission and strategic objectives. Such capital investments will be restricted to those producing verifiable incremental revenues or cost savings and have a feasible repayment plan. The life of the related obligations will not exceed the useful life of the capital investment being financed.
Any debt acquired by any means other than through the established procedures and protocols contained in this policy will lead to disciplinary action being taken against the individual(s) responsible up to and including dismissal.