Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 438]

EXTRACTED TEXT FROM PAGE:

1983]

UNIVERSITY OF ILLINOIS

429

nology, U P I concluded that this invention would not sustain a successful licensing program and, hence, patent protection is not appropriate. The University Patent Committee has recommended that the University release its rights to the inventors. I concur. O n m o t i o n of Dr. D o n o g h u e , these r e c o m m e n d a t i o n s were a p p r o v e d .

Assignment of Certain Federally Supported Loans

(20) Under Federal regulations, defaulted notes in the National Defense and Direct Student Loan Programs, Health Professions Loan Programs, and Nurses Training Act Loan Programs may be assigned to the Federal government for collections after the institution has followed certain prescribed due-diligence collection procedures. The Board of Trustees has approved the assignment of defaulted notes in recent years. An institution can better its default ratio and enhance its eligibility for additional Federal capital contributions for 1984-85 through the assignment process. The loan funds in question are held in trust by the University and loaned to its students according to criteria established by the Federal government. The funds consist of Federal capital contributions, plus institutional capital contributions equal to one-ninth of Federal contributions. Collections and earnings are added to the loan funds, and expenses of the program are credited. Under the law, the loan and interest are cancelled in case of death or permanent and total disability. To 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 the 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 on the assigned loans, including any portion thereof furnished by the University. The value (in terms of increased eligibility for Federal student loan support) derived from the assignment is greater than the net recovery anticipated from the University's continued efforts at collection. The net assets of the loan fund will remain in excess of the University contribution to the fund. The vice president for business and finance has proposed that the Board of Trustees approve the assignment to the U.S. Government of defaulted loans on which reasonable collection efforts have been made by the University in the following maximum amounts: National Direct Student Loans Health Sciences Center University Center Health Professions Loans Health Sciences Center Dentistry Medicine Pharmacy Nurses Training Act Loans Health Sciences Center I recommend approval. O n m o t i o n of D r . D o n o g h u e , this r e c o m m e n d a t i o n w a s approved. $ 71 802 ( 32 loans) $177 295 (124 loans)

$148 572 ( 55 loans) $232 568 ( 86 loans) $129 653 ( 65 loans) $ 92 534 ( 57 loans)

Revision of Investment Policy, Endowment Funds

(21) On January 20, 1983, the board adopted certain changes in investment policies relating to current and endowment funds. In an effort to increase the investment return of the University's endowment portfolio, the Finance and Audit