General

The Senate shall adopt, upon the advice of the Financial Manager, an appropriate Financial Policy specifying the range of financial assets in which the Association's funds, and the funds of student organizations on deposit with the Students' Organizations Fund, may be invested, and the distribution of funds across such assets. Within the limitations of this policy, the Financial Manager shall be responsible for the investment of all such funds, provided that:

1. The Financial Manager may at his/her discretion extend short-term loans to student organizations, providing that appropriate guarantees are made for their repayment. The maximum amount which may be loaned to any one organization, and the maximum amount of such loans which may be outstanding at any one time, shall be specified in a Financial Policy. Such loans shall bear an appropriate rate of interest which reflects the opportunity cost and high risk involved, as specified in this Financial Policy.

2. The Senate may authorize specific investments to be made in other activities, including projects or programs of the Association and its agencies, and corporations and partnerships in which the Association is an investor, on an individual basis. All such authorizations shall be by a two-thirds vote of the Senate.

3. The expenditure of funds on the purchase of capital equipment as provided in the operating or capital budgets of the Association or its agencies, as authorized by the Senate, shall be exempt from the requirements of this section.