Acceptance & Sale of Marketable Securities UPPS No. 03.07.01
Issue No. 4
Effective Date: 03/20/2007
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 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. PROCEDURE FOR ACCEPTING GIFT 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 the 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.
03.03 The Vice
President for Finance and Support Services is authorized to execute all
documents for the sale, assignment or transfer of all marketable securities
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 Texas State University-San Marcos 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:
Vice President for Finance and June 1 E6Y
Treasurer June 1 E6Y
Director, Advancement Services June 1 E6Y
05. CERTIFICATION STATEMENT
UPPS has been approved by the following individuals in their official
capacities and represents
Vice President for Finance and Support Services; senior reviewer of this UPPS