New policy proposed for internal loans
March 17, 2014
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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鈥檚 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.
鈥淚nternal loans are a source of financing for capital projects and are part of the university鈥檚 overall debt management strategy,鈥 says Caroline Davis, Vice-Principal (Finance). 鈥淭he proposed policy creates a clear and transparent process for internal loans across the university.鈥
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鈥檚 indicative cost of financing.
鈥淭he 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,鈥 adds Vice-Principal Davis.
Approval of internal loans is the responsibility of the Capital Assets and Finance Committee and the Board of Trustees.
The policy on internal loans and its associated procedure . Comment is invited from the Queen鈥檚 community by March 31 and may be sent by email.