All internal loan requests must be initiated through Banking & Merchant Services.
Reason for Directive
Investments are made in accordance with the University of Florida Investment Policy adopted by the Board of Trustees in accordance with Section 1011.42(5) and 218.415, Florida Statutes.
Who must comply?
All University departments.
- Contact Banking & Merchant Services at 392-9057 or email@example.com for information about an internal loan
- Banking & Merchant Services will send the ‘Institutional Loan Request’ form to requesting University departments
- The department will complete the form, including all required signatory approvals, and send the form back Banking & Merchant Services (firstname.lastname@example.org)
- Once received, Banking & Merchant Services assigns the sequential loan number and creates an amortization schedule
- Banking & Merchant Services sends the loan request form and amortization schedule to the University Controller for review and approval by the Controller and CFO
- If the requested loan amount is less than $500,000.00, Banking & Merchant Services creates the Institutional Loan Agreement which is then sent to the Department for signature
- The Department will sign the agreement and send back to Banking & Merchant Services
- When the Loan Agreement is received by Banking & Merchant Services it is then routed to the CFO for signature
- Once the CFO has signed, a journal entry is completed by Banking & Merchant Services to transfer the borrowed funds to the appropriate ChartField which was provided on the completed loan request form
- If the requested loan amount is more than $500,000.00, the loan request must be approved by the University Controller, CFO, and the University’s Investment Committee
- Once the Investment Committee has approved the loan request the above steps are followed
As payments come due, which is agreed upon during the loan request process, Banking & Merchant Services will reach out to the department and verify that the payment ChartField indicated on the loan request is still correct for making the principal and interest payments. Banking & Merchant Services will process the payment and notify the department once it is complete.
Payments can be as often as monthly but at least must be made yearly.
07/31/2021: reviewed content
Banking & Merchant Services: (352) 392-9057
University Controller’s Office: (352) 392-1321