The University’s General Revenue obligations take three forms:
1. General Revenue bonds and Commercial Paper Notes Program
GRB Description Placeholder
The University is authorized to issue Commercial Paper Notes from time to time in an aggregate principal amount not to exceed $250 million, for University purposes, pursuant to a Resolution of the Board of Regents adopted on July 16, 2009. The University issues Commercial Paper Notes generally to provide interim financing for University projects. The University provides self-liquidity for the payment of its Commercial Paper Notes, which are not secured by a bank credit or liquidity facility.
2. Leases and other contractual obligations payable from General Revenues.
- Leases Supporting Lease Revenue Bonds. The University has entered into a number of financing and other leases in connection with lease revenue bonds, which are payable from General Revenues. University lease payments are applied to pay debt service on lease revenue bonds issued by the Washington Economic Development Finance Authority or by nonprofit corporations issuing bonds on behalf of the University. Lease revenue bonds have financed the University’s multi-phase South Lake Union biomedical research facilities and other clinic, research and administrative facilities.
- Other Contractual Obligations. The University has entered into other contracts payable from all or a component of General Revenues and, in some cases, other revenues. Reimbursed State General Obligation Bonds (“Reimbursed Bonds”) refers to bonds authorized by the Legislature and issued as State general obligation bonds to provide proceeds to the University. These bonds are payable from all or a component of General Revenues and, in some cases, other revenues. The University also enters into equipment leases and leases in connection with State-issued certificates of participation (“Certificates of Participation”) from time to time to finance equipment and other property.
3. Line of Credit.
The University has entered into a Master Financing Agreement with JPMorgan Chase Bank, N.A., which serves as a line of credit to be drawn upon to finance short-term University assets. The line of credit currently allows for draws in an aggregate amount not to exceed $12 million through November 14, 2016. The University anticipates extending the line of credit, and may increase the aggregate amount to be drawn under the line of credit to an amount not to exceed $30 million.
Outstanding General Revenue Bonds, the Commercial Paper Notes, other lease or contractual obligations, and the University’s line of credit are equally and ratably payable from General Revenues without preference, priority or distinction because of date of issue or otherwise.