Regents' Policy Manual - Section 7.10: Borrowing and Bonding Authority

Adopted Date: 09-12-1996

Applicability

This policy applies to the financial affairs of the University.

Policy

The University is authorized to borrow money through the issuance and sale of University bonds for erecting, purchasing, or otherwise acquiring, altering, improving, furnishing and equipping any necessary buildings or structures at the University; or acquiring any necessary land for use by the University; or for retiring the whole or any part of any series of bonds previously issued by the University. The University also is authorized to borrow money through the issuance and sale of bonds for purchasing, erecting, altering, improving, repairing, furnishing and/or equipping any income-producing facility and for acquiring any necessary and convenient lands for these purposes. The Board of Regents may impose and collect fees for the use of such facilities as it deems necessary to retire these bonds on schedule. The University may borrow funds by issuing other debt obligations under terms approved by the Board of Regents.

Bonds or other obligations issued by the University may be sold at public or private sale, at the discretion of the Board of Regents. The proceeds from the sale of these bonds shall be paid to the University, which shall place the proceeds in a separate fund known as the Building and Improvement Fund. This fund shall be used only for the purposes stated in applicable law and the purposes for which the bonds were issued.

Bonds or other obligations shall be authorized and issued only when the Board of Regents determine that it is prudent to do so and that appropriate provisions can be made for orderly repayment. At the time of issuing bonds the Board of Regents shall establish a fund known as the Interest and Retirement Fund for the payment and interest of the bonds. The issuance and sale of these bonds constitute an irrevocable pledge by the Board of Regents of sufficient funds from each year's income from the University's funds to pay the interest and principal on the bonds.

Implementation

The President may adopt administrative policies and procedures to implement this policy.

References

NMSA 1978, §§ 6-13-1 to -26 (Institution Bonds); §§ 6-14-1 to -12 (Public Securities); §§ 6-17-1 to -19 (Finances of State Educational Institutions); §§ 21-7-3 to -25 (Building and Improvement Bonds); Signature Authority for Contracts, RPM 7.8