DA 2137
U N I V E R S I T Y O F C A L I F O R N I A
BERKELEY • DAVIS • IRVINE • LOS ANGELES • MERCED • RIVERSIDE • SAN DIEGO • SAN FRANCISCO
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SANTA BARBARA • SANTA CRUZ
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OFFICE OF THE PRESIDENT |
1111 Franklin Street
Oakland, California 94607-5200
Phone: (510) 987-9074
Fax: (510) 987-9086
http://www.ucop.edu |
April 9, 2003
JOSEPH P. MULLINIX
SENIOR VICE PRESIDENT--BUSINESS AND FINANCE
Delegation of Authority--SHLP Portfolio Sale Program
On March 20, 2003, The Regents authorized the establishment of a program for
the periodic sale of all or portions of the Supplemental Home Loan Program (SHLP)
loan portfolio. This program increased the level of liquidity so campuses could
provide additional loans for the recruitment and retention of faculty and other
employees in support of projected student enrollment growth; the program is
subject to the following restrictions
- The SHLP Portfolio Sale Program shall be conducted to provide additional
funding for future SHLP loans, within the following parameters authorized
by The Regents:
- Met proceeds, after expenses, from the SHLP Portfolio Sale Program shall
be returned to the campus designated fund source;
- If the sale of any portion of the SHLP Portfolio results in proceeds
less than the outstanding receivables of the SHLP loans sold (Par Value),
an appropriate funding source must be approved by the Chancellor of the
campus for which the sale is being undertaken to cover any sales discounts
and other related transaction costs;
- No sale of SHLP Portfolio loans shall extend the term of any individual
SHLP loan or modify the interest rate to be charged, and the University's
Office of Loan Programs shall retain mortgage loan servicing; and
- Purchasers of SHLP loans shall have no recourse to Regental funds and
shall be repaid only from individual mortgage loan repayments and/or property
securing each individual loan, except that any such sale of SHLP Portfolio
loans may include terms that: (a) provide for the making of advances of
monthly remittances of principal and interest to the purchaser for all
loans sold, which are not in arrears in excess of three months, by an
agreed time each month, and (b) provide for the exchanging of any loan
sold to the purchaser that becomes non-performing, for more than an agreed
to time period, with another SHLP loan of similar size and characteristics,
or repurchase of such non-performing loan at the same discount rate or
premium, if any, that applied to the original loan sale, it being understood
that any loan repurchased would be funded from a source approved by the
Chancellor of the campus from which the loan originated.
Periodically, sales pursuant to the SHLP Portfolio Sale Program shall be
reported to The Regents, such reports to include information related to the
loans sold, purchase prices, and summary transactions costs.
- The President, after consultation with the General Counsel, shall be authorized
to execute such documents as may be necessary to effect any sale pursuant
to the SHLP Portfolio Sale Program.
* * *
Effective immediately, you are delegated authority, in consultation with the
General Counsel, to implement the above-described Program and to execute such
documents as may be necessary to effect any sale pursuant to the SHLP Portfolio
Sale Program that fits within the parameters of the Program adopted by The Regents.
Any redelegation of the above authority shall be in writing with copies to
the Special Assistant--Coordination & Review and the General Counsel and
Vice President for Legal Affairs.
Sincerely,
Richard C. Atkinson
President
cc: Chancellors
Laboratory Directors
Members, President's Cabinet
Assistant Vice President Bocchicchio
Assistant Treasurer Young
Special Assistant Gardner
Principal Officers of The Regents