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Central Bank Loans

Directive Statement

All internal loan requests (known as “central bank loans”) must be initiated through Treasury Management.

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.

Procedures

Application

  1. Contact Treasury Management at 392-9057 or tmhelp@ad.ufl.edu for information about a central bank loan
  2. Treasury Management will send the ‘Institutional Loan Request’ form to requesting University departments
  3. The department will complete the form, including all required signatory approvals, and send the form back Treasury Management (tmhelp@ad.ufl.edu)
  4. Once received, Treasury Management assigns the sequential loan number and creates an amortization schedule
  5. Treasury Management sends the loan request form and amortization schedule to the University Controller for review and approval by the Controller and CFO
  6. If the requested loan amount is less than $500,000.00, Treasury Management creates the Institutional Loan Agreement which is then sent to the Department for signature
    • The Department will sign the agreement and send back to Treasury Management
    • When the Loan Agreement is received by Treasury Management it is then routed to the CFO for signature
    • Once the CFO has signed, a journal entry is completed by Treasury Management to transfer the borrowed funds to the appropriate ChartField which was provided on the completed loan request form
  7. 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

Payments

As payments come due, which is agreed upon during the loan request process, Treasury Management 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.  Treasury Management 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.

Last Reviewed

05/01/2020: reviewed content

Contacts

Treasury Management: (352) 392-9057

University Controller’s Office: (352) 392-1321