4:021 Tennessee State School Bond Appropriation Intercept Program
|Austin Peay State
|Tennessee State School Bond Appropriation Intercept Program
||February 2, 2017
||Vice President for Finance and Administration
It is the policy of Austin Peay State University to establish procedures for operating
with the Tennessee State School Bond Authority for financing capital projects.
This policy established University procedures for the operation of the Tennessee State
School Bond Authority appropriation intercept program in the instance of payment default.
-Procedures if Payment Default Occurs
- The Tennessee State School Bond Authority (TSSBA) is a corporate governmental agency
and instrumentality of the State of Tennessee whose purpose is to finance capital
projects for public institutions of higher education located in Tennessee by issuing
its bonds and notes.
- T.C.A. § 49-3-1206(b)(2) gives the TSSBA the authority to intercept the University’s
operating appropriation if any annual financing charges or administrative fees are
not paid when due and payable.
- The operating appropriation of any and all Tennessee institutions of higher education
may be intercepted to remedy the inability of one Tennessee institution of higher
education to pay its prescribed annual financing charges and administrative fees.
|If Austin Peay State University were to default on any annual financing charges or
administrative fees and an appropriation intercept is necessary, the Tennessee institutions
of higher education’s operating appropriations would be intercepted in the following
- The operating appropriation of the defaulting institution would be intercepted in
an amount equal to the unpaid financing charges or administrative fees due and payable;
- Should the defaulting institution’s operating appropriation be insufficient to satisfy
the amount of finance charges or administrative fees due and payable, the remaining
unpaid financing charges or administrative fees would be funded from appropriations
to other Tennessee State public universities.
- The remaining unpaid financing charges or administrative fees will be prorated to
Tennessee State public universities based on their operating appropriation as a share
of total appropriations to the sector.
- If the steps outlined in 1 and 2 above are not sufficient to satisfy the unpaid finance
charges or administrative fees due and payable of the defaulting institution, any
remaining deficit will be prorated to institutions in other Tennessee institutions
of higher education (i.e., community colleges and colleges of applied technology),
and the TBR System Office, based on their operating appropriation as a share of appropriations
to institutions involved in a subsection 3 assessment.
APSU Policy 4:021 - Issued: February 2, 2017
President: signautre on file