Extension of State Credit

01. POLICY STATEMENTS

01.01

We at Texas State are committed to providing sound financial stewardship through accounting, budgeting, monetary management systems, and fundraising activities which maximize the institution's fiscal posture. This procedure contributes to the implementation of this policy.

01.02

The purpose of this UPPS is to establish policy for extending credit to individuals, business entities, or other governmental agencies.

01.03

Article 3, Section 50 of the Texas State Constitution states: "The Legislature shall have no power to give or to lend, or to authorize the giving or lending, of the credit of the State in aid of, or to any person, association or corporation, whether municipal or other, or to pledge the credit of the State in any manner whatsoever, for the payment of the liabilities, present or prospective, of any individual, association of individuals, municipal or other corporation whatsoever."

01.04

The interpretive commentary further states that "...any plan which in effect loans or gives the credit of the State is forbidden regardless of the particular form of the transaction. Nevertheless, this section does not prohibit the legislature from using the credit of the State for State purposes."

01.05

In view of the Constitutional prohibition quoted above, the University may not enter into a transaction, the effect of which gives credit to any individual, association of individuals, municipal or other corporation.

01.06

Credit may be extended, through the installment system, for payment of tuition and fees for the fall and spring semesters as authorized in Education Code 54.007.

02. MAJOR RESPONSIBILITIES ASSOCIATED WITH THIS UPPS

02.01

Major responsibilities for routine assignments associated with this UPPS include the following:

Position	Section		Date
Comptroller	Review		June (E4Y)

03. CERTIFICATION STATEMENT

Mr. Stanley Naumann, Comptroller; Reviewer of this UPPS

Mr. Bill Nance, Vice President for Finance and Support Services

Dr. Jerome H. Supple, President