I. Introduction 
The university recognizes the occasional need of its employees for emergency funds in cases of grave personal crisis. This Policy defines the authority of the Treasurer and Vice President for Finance and Administration to create a mechanism to issue short-term (up to one year) emergency loans to eligible employees. This policy applies to all faculty and staff who may have financial hardship emergency needs.

 

II.  Definitions
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III.  Authority

The Treasurer and Vice President for Finance and Administration has the authority to issue procedures and regulations for university-issued emergency loans.  

 

IV. Legal Obligation

The employee who is issued an emergency loan must sign a promissory note and authorize payroll deduction of the repayment.  The promissory note shall be a legal obligation of the employee.

 

V.  Limits

An eligible employee may borrow up to 10% of their annual salary with a minimum of $100 and a maximum of $5,000.  The total amount due to the university from all loan programs emergency loans and any other programs) cannot exceed $5,000.  Employees are limited to one loan per year and three loans during their career at the university.   

 

VI. Interest and Payment Schedules

Loans are based on a maximum term of twelve (12) months starting with the employee’s next regular payday.  The Treasurer and Vice President for Finance and Administration sets the Interest rate, which compounds monthly.  An employee may prepay all or any part of their obligation at any time without penalty.

                  

VII.  Defaults

If an employee fails to make a scheduled payment, goes on unpaid university leave and does not make payment arrangement, separates from employment at the university or otherwise fails to fulfill their obligations under the promissory note, the university may, at its option and after any legally required cure period, accelerate the payment obligations and declare the entire remaining unpaid balance immediately due and payable.