Washington State University
EXECUTIVE POLICY MANUAL

Executive Policy #31
Approved by Board of Regents, May 6, 2011

Washington State University Board of Regents
Debt Management Policy

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PURPOSE

In accordance with the provisions of RCW 28B.10.022, 28B.10.300-330, 28B.30.700-780, 28B.140 and 39.94, the Board of Regents (the "Regents") of Washington State University (the "University") has the power and authority to enter into financing contracts secured by the revenues it controls, and not subject to state appropriation, or to borrow money to acquire, construct, and/or equip dormitories, hospitals, clinics, dining halls, facilities for student activities, facilities housing services for students, parking facilities, research facilities, and any buildings or facilities authorized by the legislature. This policy states the principles that will govern the use of debt instruments to finance University capital and infrastructure projects and assigns responsibilities for the implementation and management of the University's debt.

DEBT SUBJECT TO POLICY

Debt, as the term pertains to this policy, means University obligations for the repayment of borrowed money incurred to fund the construction or acquisition of capital assets, infrastructure and any other University purpose approved by the Regents. This includes, but is not limited to, University general revenue bonds, revenue bonds for various auxiliaries, and any public-private project that would impact the University's credit. It does not include state general obligation bonds or state certificates of participation benefitting the University, whether or not such obligations are reimbursable by the University.

GOVERNING PRINCIPLES

DEBT ISSUANCE PRINCIPLES

REFINANCING AND REFUNDING PRINCIPLES

Refinancing may be considered:

Refunding Thresholds

Years Between
Call Date
  Present Value
Standard
1-2   1%
3-4   2%

5-6   3%
7+   4%
Years Between
Call Date and
Final Maturity Date
  Present Value
Standard


1-2   1%
3-4   2%
5-6   3%
7-8   4%
9+   5%

RESPONSIBILITIES

The Board of Regents is responsible for:

The Vice President of Finance and Administration is responsible for:

If at any time the Vice President for Finance and Administration becomes aware of and substantiates concerns about project revenue streams or ability of a project or auxiliary to meet debt service or coverage requirements on outstanding or proposed debt, and/or the ability of the University to meet internal compliance targets or service outstanding or proposed debt, he or she shall report such concerns at the next meeting of the Board of Regents, and shall periodically report thereafter until the concerns have been fully addressed and resolved.

GENERAL REPORTING REQUIREMENTS

At least annually, the Vice President for Finance and Administration will provide a report to the Regents detailing: