UPPS 03.07.01 - Acceptance and Sale of Marketable Securities

POLICY STATEMENT

Texas State University is committed to responsibly managing marketable securities for the long-term benefit of the university community.

1. SCOPE

   1. This document establishes guidelines and policies concerning the acceptance and sale of gifts of marketable securities.

   2. The Texas State University System (TSUS) Rules and Regulations Chapter III, Section 6. (18)(1) states “the authority to sign Corporate Resolutions on behalf of The Texas State University System and its Components, confirming the person or persons authorized to approve investment transactions is delegated to the Vice Chancellor and Chief Financial Officer. Requests to the Vice Chancellor and Chief Financial Officer to authorize Component investment officers to approve investment transactions shall be made by letter from the Component’s President, in which the names of all persons being authorized to conduct such business for the Component are specified.”

2. PROCEDURES FOR ACCEPTING GIFTS OF MARKETABLE SECURITIES

   1. As required by Chapter III, Section 1.(12)3 of the TSUS Rules and Regulations, a report on all gifts of $5,000 or more including gifts of cash, personal property, and intellectual property shall be submitted to the chancellor for reporting publicly to the TSUS Board of Regents. Upon written request of the donor, the TSUS Board of Regents report and minutes shall not state the donor’s name and/or the gift’s value.

   2. Gifts of stock will be entered on the donor account of the university books at a value equal to the mean market value of the day the stock was received.

   3. Acceptance of gifts of marketable securities will follow UPPS No. 03.05.01, Soliciting, Accepting, and Processing Gifts and Grants from Private Sources.

   4. The wishes of the donor shall be honored when consistent with the best interest and position of Texas State University.

3. PROCEDURES FOR DISPOSITION OF GIFTS OF MARKETABLE SECURITIES

   1. Texas State will consider retained gifts of marketable securities as investments and will record any resulting income in the appropriate accounts as it accrues.

   2. Texas State will sell marketable securities given to it at the prevailing market value as soon as practical, unless a radical decline in the stock’s market value has taken place since receipt of the gift. If such a decline has taken place, the assistant vice president and Treasurer will consult with the university’s and TSUS’ investment advisor and recommend to the executive vice president for Operations and Chief Financial Officer (CFO) whether to hold or sell the stock. The university will sell stocks held under this situation as soon as practicable as advised by an investment advisor.

   3. In accordance with the certification of the chancellor of the TSUS dated October 19, 2015, the executive vice president for Operations and CFO and the assistant vice president and Treasurer are authorized to execute all documents for the sale, assignment, or transfer of all marketable securities given to Texas State.

   4. The executive vice president for Operations and CFO is responsible for ensuring the president advises the chancellor in writing of all university officers authorized to execute the sale, assignment, or transfer of marketable securities.

4. REVIEWERS OF THIS UPPS

   1. Reviewers of this UPPS include the following:

      Position	Date
      Executive Vice President for Operations and Chief Financial Officer	June 1 E6Y
      Assistant Vice President and Treasurer	June 1 E6Y

5. CERTIFICATION STATEMENT

   This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.

   Executive Vice President for Operations and Chief Financial Officer; senior reviewer of this UPPS

   President