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7.05          Financing

A.      Mortgages and Loans

1.      The Board of Regents may invest funds belonging to the institutions under its jurisdiction, subject to Iowa Code §262.14 and Iowa Code §633A.4301-4309, the State's Uniform Prudent Investor Act, and the investment policies adopted by the Board through the use of mortgages and loans. 

2.      The Board shall have charge of the foreclosure of all mortgages and of all collections from delinquent debtors to the institutions under its jurisdiction.  All actions shall be in the name of the Board of Regents, for the use and benefit of the appropriate institution.  (Iowa Code §262.15)

3.      When loans are paid, the Board shall release mortgages securing the same. (Iowa Code §262.16)

4.      In case of a sale upon execution, the premises may be bid off in the name of the Board of Regents for the benefit of the institution to which the loan belongs. 
(Iowa Code §262.17)

5.      Deeds for premises so acquired shall be held for the benefit of the appropriate institution and such lands shall be subject to lease or sale the same as other lands.  (Iowa Code §262.18)

6.      No lapse of time shall be a bar to any action to recover on any loan made on behalf of any institution.  (Iowa Code §262.19)

B.     Lease Financing of Equipment and Facilities

1.      Upon the recommendation of the chief business officer of an institution the Executive Director may execute lease agreements on behalf of the institution with a third-party leasing agent with which the Board has approved master lease documents and when outstanding leasing is within dollar allocation amounts set by the Board.

§         Master lease drawdowns shall be reported to the Board at its next meeting following the drawdown.

2.      Vendor installment purchase agreements may be executed by the chief business officer of an institution under the delegated purchasing authority as outlined in Section 7.05, Purchasing, subject to the provisions below:

a.      Vendor installment purchase agreements with a total value of greater than $250,000 for the universities and $25,000 for the special schools shall be approved by the Executive Director and reported to the Board at its next meeting following the agreement date.

b.      All vendor installment purchase agreements of $50,000 or more shall be reported to the legislative fiscal bureau as required by Iowa Code §8.46.

c.      Vendor installment purchase agreements shall meet all other standards pertaining to purchasing, including obtaining cash price quotes, and shall be evaluated against the relative economics of a cash purchase, the Board's Master Lease Agreement and other third-party leases.

3.      True leases of equipment where ultimate ownership of the equipment is not intended, other than through the future exercise of an option to purchase, may be executed by the chief business officer or designee of an institution under the delegated purchasing authority.

C.     Parietal Rules and Dormitories

1.      Students may choose to live in university residence halls, university apartments, fraternities, sororities, or off-campus housing. 

2.      When and if a requirement for a parietal rule requiring students to live in university housing is needed, in the university's judgment, to carry out the responsibility of the Board under its bond covenants to assure maximum occupancy of the dormitories, the university shall first present a recommendation to the Board.

3.      If the above parietal rule for any of the three Regent universities is to be invoked, the Board will publish notice before any enforcement of the parietal rule.

4.      The Board encourages the directors of student housing and dining services to meet regularly to exchange information and to discuss policies, practices, and procedures and for the three universities to prepare appropriate information that will enable analysis trends in occupancy by class, sex, and age.

5.      The Board covenants and agrees that, so long as any of the bonds (dormitory) shall remain outstanding, it will continuously operate and maintain the system; will adopt such rules and regulations for occupancy, including parietal rules, as will assure maximum occupancy of the buildings; and will fix, maintain, revise and adjust from time to time such rates, rents, fees, and charges for the use of said system as will provide revenues sufficient at all times to pay the reasonable cost of operating and maintaining the system and to provide and maintain the “Dormitory Revenue Bond Sinking Fund” and the required reserve therefore; that it will not permit any free use of the system; and that it will collect and account for and apply the rents, profits, income, and revenues in accordance with (its bond resolutions). 

D.     University of Iowa Hospitals and Clinics

1.      Rate schedules will be presented to the Board annually for approval prior to submission of final budgets.

2.      The director of the department of Human Services, in respect to institutions under the director's control, the administrator of any of the divisions of the department, in respect to the institutions under the administrator's control, the director of the Iowa Department of Corrections, in respect to the institutions under the department's control, and the Board of Regents in respect to the Iowa Braille and Sight Saving School and the Iowa School for the Deaf may send any inmate, student, or patient of an institution, or any person committed or applying for admission to an institution, to the hospital of the medical college of the state university for treatment and care as provided in this chapter, without securing the order of court required in other cases.  The Department of Human Services, the Iowa Department of Corrections, and the Board of Regents, shall respectively pay the traveling expenses of any patient thus committed, and when necessary the traveling expenses of an attendant for such patient, out of funds appropriated for the use of the institution from which the patient is sent.  (Iowa Code §263.21)