Acceptance & Sale of Marketable Securities                  UPPS No. 03.07.01
Issue No. 5
Effective Date: 08/21/2013
Review: June 1 E6Y

 

 

01.       POLICY STATEMENTS

 

01.01  This UPPS establishes the guidelines and policies concerning the acceptance and sale of gifts of marketable securities.

 

01.02  The Board of Regents, Texas State University System, approved the policy for the acceptance and sale of gifts of stock at the February 23, 1979, meeting and presented as order 79-117 in the official minutes. This order reads as follows:

           

"Gifts of stock will be entered on the university books at a value equal to the mean market value of the day the stock was received, and the university be authorized to sell the stock certificates at the going market price as soon as practical if such sale does not violate the wishes of the donor."

 

01.03  The Board of Regents, Texas State University System, approved a motion at the May 3, 1996 meeting and presented as order 96-331 in the official minutes. This order reads as follows:

           

"That the authority to sell stocks, bonds and/or related securities received as a gift by a Texas State University System component be delegated to that component's investment office with the approval of the component's president/chancellor. All such sales will be reported to the Board of Regents at its next board meeting."

 

01.04  The Board of Regents, Texas State University System, added paragraph 4.5 of Chapter II of the Regent’s Rules and Regulations at its meeting on May 18, 2006.  This paragraph reads,

 

“The authority to sign Corporate Resolutions on behalf of The Texas State University System and its components, confirming the person or persons authorized to buy, sell, assign and endorse for transfer certificates representing stocks, bonds or other securities now registered or hereafter registered in the name of the component is delegated to the Chancellor in consultation with the Board Chair. Requests for such authorization shall be accompanied by a letter from the component’s president in which the names of all persons being authorized to conduct such business are specified.”

 

02.       PROCEDURES FOR ACCEPTING GIFTS OF MARKETABLE SECURITIES

 

02.01  As required by Section 1.73 of Chapter III of the Rules and Regulations of the Board of Regents, a report on all gifts of $5,000 or more including gifts of cash, personal property, and intellectual property shall be submitted to the Board.

 

02.02  Acceptance of gifts of marketable securities will follow UPPS No. 03.05.01, Soliciting, Accepting and Processing Gifts and Grants from Private Sources. This policy shall be communicated to all donors or prospective donors of gifts of marketable securities.

 

02.03  The wishes of the donor shall be honored when consistent with the best interest and position of Texas State University.

 

03.       PROCEDURE FOR DISPOSITION OF GIFTS OF MARKETABLE SECURITIES

 

03.01  The university will consider retained gifts of marketable securities as investments and will record any resulting income in the appropriate accounts as it accrues.

 

03.02  Texas State will sell marketable securities given to it at the prevailing market value as soon as practical unless a radical decline in the stock’s market value has taken place since receipt of the gift. If such a decline has taken place, the treasurer will consult with the university’s/system’s investment advisor and recommend to the vice president for Finance and Support Services whether to hold or sell the stock. The university will sell stocks held under this situation as soon as practicable as advised by an investment advisor.

 

03.03  In accordance with the certification of the chancellor of The Texas State University System dated April 4, 2012, the vice president for Finance and Support Services and the treasurer are authorized to execute all documents for the sale, assignment or transfer of all marketable securities given to Texas State.

 

03.04  The vice president for Finance and Support Services is responsible for providing information to The Texas State University System administrative office to obtain the approval of the chancellor or chair of the Board of Regents.

 

03.05  The vice president for Finance and Support Services is responsible for ensuring the president advises the chancellor in writing of all university officers authorized to execute the sale, assignment or transfer of marketable securities.

 

04.       REVIEWERS OF THIS UPPS

 

04.01    Reviewers of this UPPS include the following:

 

Position                                                         Date

 

Vice President for Finance and                June 1 E6Y

Support Services

 

Treasurer                                                       June 1 E6Y

 

Assistant Director, Donor Services           June 1 E6Y

 

05.       CERTIFICATION STATEMENT

 

This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.

 

Vice President for Finance and Support Services; senior reviewer of this UPPS

 

President