Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 479]

EXTRACTED TEXT FROM PAGE:

466

BOARD OF TRUSTEES

[November 18

I. Policies

After reasonable efforts have been made by the University to collect debts owed to it, litigation may be instituted to collect such debts if the following terms and conditions have been met: 1. At least five efforts to contact the debtor have been made by the University at intervals of not less than twenty calendar days after the initial billing to the debtor on an account which is due and payable. "Efforts to contact" may include a letter to the last known address of said debtor by ordinary United States mail with first-class postage prepaid thereon. 2. The debtor has failed or refused to cooperate with the University's attempts to secure payment of said indebtedness, either according to the original terms thereof or to terms modified by the University under unusual circumstances to avoid undue hardship to the debtor. 3. There is no legal restraint prohibiting the University from instituting litigation against said debtor. 4. a. Information is available which indicates, in the opinion of the university counsel and vice president for administration, or their delegates, that there is a reasonable chance of collecting the indebtedness or a substantial part thereof if the litigation is successful, or b. It is necessary to obtain a judgment to prevent recovery being barred by an applicable statute of limitations. 5. There are not other circumstances which, in the judgment of the university counsel and the vice president for administration, would render it unwise for the University to proceed with such litigation. 6. All such litigation shall be initiated on behalf of the University either by the Office of the University Counsel, or by outside legal counsel selected or approved by the university counsel, or by a collection agency under terms and conditions approved by the university counsel.

II. Procedures

When any account owed the University becomes delinquent, the University shall make reasonable efforts through its Office of the Associate Vice President for Business Affairs to collect such delinquent accounts directly. Such reasonable efforts may include, but are not limited to, billings, repeated billings, encumbrance of records, telephone calls to the debtor, and letters to the debtor. All communications from the University to the debtor are to be in accordance with standards of good taste and conduct befitting the nature of the University. When such efforts to obtain payment of the indebtedness are unsuccessful, and upon review and approval by the vice president for administration (or his delegate), the debt may be referred for collection purposes to an agency specializing in the collection of indebtedness from delinquent debtors; provided, however, that the vice president for administration shall use reasonable precautions to insure himself of the reputability, integrity, acceptability of methods, and good standing of any collection agency to which such account may be referred. T h e vice president for administration (or his delegate), without referring the matter to an outside collection agency, or, if the efforts of that agency have been unsuccessful, and with or without the recommendation of such agency, may also refer the matter to the university counsel (or his delegate) for determination as to whether litigation shall be instituted against the debtor in question. Any such referral shall be accompanied by sufficient information to enable the university counsel (or his delegate) to determine whether the board's "policies" with respect to institution of litigation against such debtors have been met.