Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 94]

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84

BOARD O F TRUSTEES

[September 11

Amendment, University of Illinois Statutes (Article XIII, Section 3}

(23) T h e campus senates have approved a minor wording change in Article X I I I , Section 3, of the University of Illinois Statutes, as shown below (new material is in italics; deleted material is in brackets). I concur. Article X I I I . Section 3. ANNUAL R E P O R T S On or before the first day of September in each year, each dean and director, and the chief executive officer of each department or equivalent unit on each campus, shall make to the chancellor an annual report, treating fully the work of the college, school, institute, division, or department. Any of these officers may make reports or advance suggestions at any time and shall report to the chancellor and to the president whenever requested to do so. [University administrative officers] Officers of the Central Administration of the University and chancellors shall make such reports as the president shall require.

O n motion of Mrs. Smith, this amendment was approved by the following vote: Aye, Mrs. Day, Mr. Forsyth, Mrs. Gravenhorst, M r . Hahn, Mr. Howard, M r . Logan, Mr. Madden, Mrs. Shepherd, Miss Smith; no, none; absent, Governor Thompson. ( T h e student advisory vote was: Aye, Mr. Filip, Mr. Starkeson; no, none.) Assignment of National Defense/Direct Student Loans

(24) Under Federal regulations, defaulted notes in the National Defense and Direct Student Loan (NDSL) programs may be assigned to the Federal government for collection after the institution has followed certain prescribed "due diligence" collection procedures. T h e Board of Trustees has approved the assignment of defaulted notes several times over the last few years. T h e funds in question are held in trust by the University and loaned to students in accord with criteria established by the Federal government. They consist of Federal capital contributions plus institutional capital contributions equal to one-ninth of the Federal contributions. Collections and earnings are added to the funds and the expenses of the program are credited. Under the law, the loan and interest are cancelled in case of death or permanent and total disability. T o assist institutions in reducing their current default rates (which in turn will increase their eligibility for future funding) the Federal government has agreed to accept the assignment of notes which have been in default for two or more years, if due diligence collection efforts have taken place. Loans assigned to the Federal government will not be counted in determining the University's default rate, but the government will retain any funds it may recover. T h e value, in terms of increased eligibility for Federal student loan support, is greater than the net recovery anticipated from the University's continued efforts at collection. T h e net assets of the loan fund will remain in excess of the University contribution to the fund. T h e vice president for business and finance has recommended the assignment of defaulted NDSL notes on which reasonable collection efforts have been made by the University in the following maximum amounts: Chicago campus Urbana-Champaign campus I recommend approval. $402 200 (372 loans) 71 000 ( 72 loans)

O n motion of Miss Smith, this recommendation was approved by the