Policy - Section 4 - Loans and Advances
Subject: Travel and Payroll Advances
Date: October 2, 1998
The MSU Foundation provides travel advances ($500 maximum) to employees of Murray State University to assist with MSU business-related travel expenses. In addition, the MSU Foundation provides payroll advances to employees of Murray State University under limited circumstances. These circumstances are limited to employees who have performed their duties during the pay period but were not issued a payroll check because of a departmental error or delay in the preparation of the necessary personnel action form.
- Employees who desire to obtain a Murray State University Foundation travel loan must complete a Temporary Loan Request (Exhibit 1). The request must be submitted to the Executive Director of the MSU Foundation with an approved copy of the MSU Travel Request form used to authorize the trip for which the loan is being sought. Also, the employee must complete a Power of Attorney document (Exhibit 2). The amount of the loan may not include university vehicle expenses or non-reimbursable personal expenses. The maximum amount of the travel loan will be $500 unless the trip includes out-of-country travel.
- The temporary loan request should be submitted to the MSU Foundation at least five working days prior to the date that the check is to be issued. The MSU Foundation will make every effort to ensure that the loan request is processed as quickly as possible.
- Employees who desire to obtain a Murray State University Foundation loan for a payroll advance should complete the temporary loan request as described in item number one for a travel loan with the exception of an approved MSU travel request form. In addition, an Authorization for Payroll Deduction card should be completed and signed. A copy of the employee's personnel action form and completed time sheet must be included with the loan application along with a memo from the employee's supervisor explaining the need for a loan. The amount of the payroll advance will be provided to the Foundation bookkeeper by the Payroll Office. The MSU Foundation will make every effort to ensure that the loan request is processed as quickly as possible.
- Travel loans may be obtained only for expenses that are reimbursable to the employee for travel. Payroll loans may be obtained only for services that have been provided and are due to the employee.
- No additional loans will be made to an employee with a delinquent loan outstanding.
- The office of Accounting and Financial Services will be notified by the Foundation of all loans by way of a copy of the temporary loan request and power of attorney to the payroll clerk or travel clerk as applicable. The travel reimbursement check or the payroll check (unless a Payroll Deduction card was completed) for which the temporary loan was approved will be issued in the name of the employee but delivered to the Foundation. The employee will be notified by the Foundation that the check has been issued and the employee is responsible for endorsing the check to the Foundation or paying the temporary loan in a satisfactory manner.
- MSU Foundation temporary loans are interest free if paid by the due date which is the earlier of the date of issuance of the travel reimbursement or payroll check, or fifty (50) days from the date the loan check was written. Interest will be charged on loans outstanding at the rate of twelve (12) percent per annum.
- Temporary loan requests must be approved by the Executive Director of the MSU Foundation or designee. Any exceptions to the policies stated above must be approved by the Executive Director of the MSU Foundation.
Subject: Collection Procedures for Employee Temporary Loans
Date: January 1, 1991
The MSU Foundation provides travel advances or payroll advances to employees of Murray State University under certain circumstances. If for some reason, the temporary loans are not repaid on a timely basis the Executive Director will initiate the following procedures:
- A letter will be mailed to employees whose temporary loans will be due within five (5) days.
- A second letter will be mailed to employees whose temporary loans are thirty (30) days past due.
- A third letter will be mailed to employees whose temporary loans are sixty (60) days past due.
- A fourth letter will be mailed by an attorney on behalf of MSU Foundation to employees whose temporary loans are seventy-five (75) days past due.
- If an employee who has an outstanding loan has not responded to these letters within three weeks after the attorney's letter is mailed, the Foundation will institute legal proceedings in the small claims court of Calloway County, Kentucky.
Subject: Student Loans
Date: January 1, 1991
In the past, the MSU Foundation has received contributions by donors to be used for students in completing their college education. Funds were established with certain restrictions to provide loans for students which are to be repaid within a certain time period. The specific funds for student loans are the Jackson Purchase PCA Loan Fund; the Molly Jones Nursing Loan Fund; the Carl Timmel Memorial Loan Fund; and the West Kentucky PCA Loan Fund.
- Approval and eventual collection of the student loan is the responsibility of the Murray State University Foundation.
- The recommendation for the loan must be made by a faculty member or an administrator of Murray State University in the college or department in which the student intends to major. The signed recommendation indicates that the student qualifies and meets the criteria for the loan.
- The student must apply for the loan at the MSU Foundation and must complete a student loan application form. The rate of interest is to be determined by the Investment Committee of the MSU Foundation.
- Student loan requests must be approved by the Executive Director of the MSU Foundation or designee. Any exceptions to the policies stated above must be approved by the Executive Director of the MSU Foundation.
- A signed recommendation by a faculty member or administrator in the college or department in which the student majors must be provided to the Foundation before the student completes the student loan application. The recommendation must indicate that the student meets the criteria and is eligible for the loan and indicates the due date for repayment of the loan.
- The student must complete the student loan application which includes a promissory note and approval or disapproval by the Executive Director or designee. (as in Section 4.01, Exhibit 1)
- As soon as the student graduates or withdraws from Murray State University, the Murray State University Foundation will mail a letter reminding the student of the loan and asking that the student call to make arrangements for payment.
- If the student does not respond to the first letter within a reasonable time period, a telephone call will be made to the individual to schedule repayments of the loan.
- If no arrangement is agreed to after the phone call, a reminder will be mailed to the student on an annual basis.
- If no payment has been received by the due date, the student will be notified that legal action is being initiated to collect the outstanding obligation. If there is no response from the student, the account will be submitted to the Foundation attorney for collection and/or legal action.