802 - University of North Carolina at Chapel Hill Policy on Internal Loans

Reason for Policy

To provide University schools or departments with a funding mechanism for short-term financing needs.

Policy Statement

Internal loans are utilized to fund the purchase of equipment and other short-lived assets and to cover short-term financing needs created by cash flow-timing issues for capital projects. Internal loan requests should be for financing needs in excess of $250,000.

Internal Loans are approved by the University's Budget Committee through the approval process outlined in the accompanying procedure.

This policy defines the general terms of the loan agreement, the interest rate on the loan, and the repayment method.


Up to ten years, not to exceed the useful life of the financed asset, as established by generally accepted accounting principles, and the duration of the cash flows used to repay the debt.


The interest rate will be established by the Budget Committee at the time of the potential loan approval and will be based upon a combination of considerations, including but not limited to current interest rates, the term of the loan, the University's cost of funding, and the riskiness of the project.


Interest will accrue on a monthly basis and be assessed on the total loan amount outstanding to include principal advanced and accrued interest to date. Principal and interest payments will be structured to match up with the timing of the primary source of repayment.



Special Situations



Additional Information

Frequently Asked Questions


Related Data



Policy Contact
Subject Contact Telephone Fax E-Mail
Internal Loans Treasury Operations 919-843-7803 919-962-4140 treasury@unc.edu



  • March 11, 2010
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Article ID: 131558
Thu 4/8/21 9:11 PM
Tue 3/12/24 2:43 PM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Treasury Services Director
Next Review
Date on which the next document review is due.
02/28/2019 12:00 AM
Last Review
Date on which the most recent document review was completed.
03/11/2010 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
03/11/2010 12:00 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
02/28/2018 12:00 AM
Date on which the original version of this document was first made official.
03/13/2006 12:00 AM