DA 2132
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
|
 |
SANTA BARBARA • SANTA CRUZ
|
OFFICE OF THE PRESIDENT |
1111 Franklin Street
Oakland, California 94607-5200
Phone: (510) 987-9074
Fax: (510) 987-9086
http://www.ucop.edu |
June 27, 2002
JOSEPH P. MULLINIX
SENIOR VICE PRESIDENT--BUSINESS AND FINANCE
Delegation of Authority--MOP Portfolio Sale Program
On March 14, 2002, The Regents authorized the establishment of a program for
the periodic sale of all or portions of the Mortgage Origination Program (MOP)
loan portfolio to increase the level of MOP liquidity for the purposes of providing
additional loans for the recruitment and retention of faculty and other employees
in support of the projected student enrollment growth, subject to the following:
- The MOP Portfolio Sale Program shall be conducted to provide additional funding
for future MOP loans, within the following parameters authorized by The Regents:
- Proceeds from the MOP Portfolio Sale Program shall be deposited in the Short
Term Investment Pool (STIP) and shall be available for additional funding for
new mortgage loan originations within the limits already established by The
Regents for MOP. MOP loans sold shall be deducted from the total MOP funding
provided by STIP.
- If the sale of any portion of MOP results in proceeds less than the outstanding
receivables of the MOP loans sold (par value), a funding source must be approved
by the President if the funding source is within Presidential control or by
The Regents if the proposed fund source is not within Presidential control.
- No sale of MOP Portfolio loans shall extend the term of any individual MOP
loan or modify the interest rate to be charged under MOP parameters.
- Purchasers of MOP 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 MOP Portfolio loans may include
terms that: (i) provide for The Regents to make 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 (ii) 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 MOP loan of similar size and
characteristics at the same discount rate, if any, that applied to the original
loan sale.
- Each sale pursuant to the MOP Portfolio Sale Program sale be reported to The
Regents, together with information related to the loans sold, fund source used
if the sale results in less than the par value of loans sold, and an update
of unused funding for the MOP Program authorized by The Regents.
- 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 MOP 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 MOP 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.
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