Pursuant to Article 95, Section 22F(d) of the Annotated Code of Maryland, Howard Community College is required to adopt a debt policy that is consistent with the Maryland Constitution, Articles 23A, 24 and 31 of the Annotated Code of Maryland and all other applicable statutes, charters, and local laws.
Since the Howard Community College Board of Trustees’ (the Board’s) borrowing authority is limited by the applicable provisions of Title 16 of the Education Article of the Annotated Code of Maryland, the college has not incurred long-term debt for real estate and/or improvements.
However, the Howard Community College Educational Foundation, Inc. (HCCEF) can borrow funds for real estate properties and the college can enter into long-term capital leases with the HCCEF to utilize these properties.
In addition, the Howard County government can also borrow funds for the college’s capital projects and the college agrees to repay the debt service on these projects through student fees, tuition, and donations. In addition, the college can utilize lease purchase agreements to purchase personal property, including fixtures for the operation of the college, as authorized by Section 16-302 of the Education Article, Annotated Code of Maryland. The college can also enter into rental agreements to lease space for college operations.
Adopted by the Howard Community College Board of Trustees: October 28, 2009