Howard Community College Debt Policy - 62.09
College Procedure Number/Title:
Pursuant to Section 17-207 of the Local Government article of the Annotated Code of Maryland, Howard Community College (HCC) is required to adopt a debt policy that is consistent with the Maryland Constitution and all applicable State and local laws.
The college may not incur long-term debt for real estate or improvements because the Howard Community College Board of Trustees’ borrowing authority is limited by the applicable provisions of Title 16 of the Education Article of the Annotated Code of Maryland. 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 borrow funds for the college’s capital projects and the college repays the debt service on these projects through student fees, tuition, and donations. The college can also 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 and enter into rental agreements to lease space for college operations.
Adopted by the Howard Community College Board of Trustees: October 28, 2009, changes approved November 19, 2014. Amendments to the local debt policy must be board approved and the college must submit its revised policy to the State Treasurer, who determines if the policy is consistent with the Maryland Constitution and applicable State and local laws.
Effective Date: 11/19/14
President's Office Use: VPAF/PRES