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Policy 1801: Debt Management

Subject Area: Debt Financing
Responsible Office: Office of Treasury Management
Sponsor: Chief Financial Officer
Originally Issued: October 1992
Revised: August 2000, February 2004, October 2007, January 2010, January 2015, April 2017
Refer Questions To: John Kroll, 773-702-1941


Purpose: To establish responsibility for issuance and management of external debt

Policy

1. Responsibility – The Chief Financial Officer is responsible for the recommendation to issue external debt.

2. Approval – All external debt financings, including issuance of taxable or tax-exempt debt, the structure of that debt, bank lines of credit, and liquidity enhancements must be approved by the Board of Trustees.

3. Refunding and Restructuring of Debt – Management will periodically review all outstanding debt to determine if there are refunding opportunities that would provide a net economic benefit to the University.

4. Debt Service and Compliance – The Office of Treasury Management is responsible for administering debt service requirements and ensuring compliance with applicable debt covenants.