Board of Visitors minutes :: April 7, 2006 :: University of Virginia Library

NAMINGS AND PROFESSORSHIPS

REPORT BY THE PRESIDENT

FINAL SESSION

APPROVAL OF INCREASE IN FACULTY AND STAFF HOUSING RATES FOR 2006-2007

APPROVAL TO ESTABLISH THE MELLON PROSTATE CANCER RESEARCH FUND WITH AN INVESTMENT OF $8 MILLION

APPROVAL OF HISTORICAL MARKER AT THE UNIVERSITY OF VIRGINIA CEMETERY

APPROVAL OF THE ESTABLISHMENT OF A PRESIDENTS’ PLOT AT THE UNIVERSITY CEMETERY

DELEGATION OF AUTHORITY TO ESTABLISH CEMETERY AND COLUMBARIUM POLICIES

APPROVAL OF CONTRACT RATES FOR DINING SERVICES FOR 2006-2007 FOR THE ACADEMIC DIVISION AND THE UNIVERSITY OF VIRGINIA'S COLLEGE AT WISE

APPROVAL OF AN INCREASE IN THE AMOUNT OF SHORT-TERM LOANS FOR THE CONSTRUCTION OF THE JOHN PAUL JONES ARENA

APPROVAL OF THE UNIVERSITY’S DEBT POLICY AND INTEREST RATE RISK MANAGEMENT POLICY

APPROVAL OF THE UNIVERSITY’S CAPITAL AND OPERATING RESERVES POLICY

RESOLUTION TO AUTHORIZE TRANSFER OF ENDOWMENT FUNDS FROM THE UNIVERSITY TO THE JEFFERSON SCHOLARS FOUNDATION

APPROVAL OF SUMMARY OF AUDIT FINDINGS

FACULTY PERSONNEL ACTIONS

THE UNIVERSITY OF VIRGINIA'S COLLEGE AT WISE

ADDENDUM TO THE OFFICIAL MINUTES OF THE MEETING OF THE BOARD OF VISITORS OF THE UNIVERSITY OF VIRGINIA

RESOLUTIONS NOT REQUIRING ACTION BY THE FULL BOARD

ATTACHMENT A UNIVERSITY’S DEBT POLICY

ATTACHMENT B

University of Virginia Interest Rate Risk Management Policy

I. Overview

II. Scope and Objectives

III. Oversight

IV. Derivative Use Guidelines

V. Allowable Derivative Instruments

VI. Policy Controls

Interest Rate Risk Management Policy Appendix A

Interest Rate Risk Management Policy Appendix B

ATTACHMENT C

ATTACHMENT D

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Interest Rate Risk Management Policy
Appendix B

EXPOSURE CONTROLS

Maximum Percentage of Floating Rate Debt – The University’s outstanding debt portfolio will have no more than 40 percent of the principal amount in floating rate debt, as described in its Debt Policy. This percentage is calculated to factor in the effects of interest rate derivatives.

Counterparty Credit Exposure – All derivative counterparties will be rated A3 or better by Moody’s and A- or better by Standard & Poor’s. The maximum allowable credit exposure, determined by the net mark-to-market of all trades with a single counterparty, will be $25 million for counterparties rated Aa2/AA or better and $10 million for counterparties rated less than Aa2/AA.

The University may take steps to reduce its exposure to a counterparty by either (i) requiring the counterparty to post collateral in the full amount of the exposure (all the while abiding by the terms of any Credit Support Annex between the University and the counterparty), (ii) terminating all or a portion of its outstanding contract(s) with the counterparty, or (iii) requiring the counterparty to obtain swap insurance or provide another form of third-party security agreeable to the University.

In determining counterparty credit exposure, the University will also consider the counterparty’s credit exposure to other University related organizations (e.g., University of Virginia Investment Management Company.)