New policy proposed for internal loans
By Craig Leroux, Senior Communications Officer
A proposed university policy on internal loans has been posted to the website of the University Secretariat for review and comment by the Queen’s community. The proposed policy would create a consistent process for the application, approval and administration of loans that the university provides to academic and shared service units to finance capital projects.
“Internal loans are a source of financing for capital projects and are part of the university’s overall debt management strategy,” says Caroline Davis, Vice-Principal (Finance). “The proposed policy creates a clear and transparent process for internal loans across the university.”
The internal loans policy applies to units within the university that wish to undertake capital projects in excess of $1 million that require financing. Internal loans will have terms of five to 40 years and interest rates will be based on the university’s indicative cost of financing.
“The university has a limited capacity to grant internal loans, and so they will only be approved for strategic priorities where there is a clear benefit to the university,” adds Vice-Principal Davis.
Approval of internal loans is the responsibility of the Capital Assets and Finance Committee and the Board of Trustees.