Pursuant to the Maryland Annotated Code, Education Article Section 16-302, the college is authorized to incur debt only for the purposes provided by this section.  

This debt policy is intended to meet the needs of the college, promote continued sound financial management, and be consistent with all applicable state and local laws and applicable college policies: 

• The college shall only borrow money and incur debt for the purposes provided by the Maryland Annotated Code, Education Article Section 16-302. 
• The college shall only borrow money and incur long-term debt for the purposes provided above when it is in the best interests of the college.
• All multi-year financing agreements for purchases provided by the Maryland Annotated Code, Education Article Section 16-302, shall include a provision allowing cancellation by the Board of Trustees at the end of a fiscal year if sufficient funds are not appropriated to fund the agreement in subsequent years. 
• The college shall not use variable rate debt instruments but rather fixed rate instruments in all financing agreements entered into pursuant to this policy. 
• The college shall maintain open communication and full disclosure with appropriate bond rating agencies and external financial auditors concerning its financial condition.  

The Board of Trustees hereby authorizes the President, or his/her designee, to develop and establish appropriate procedures to implement and enforce this policy. 

Policy Title: Debt Policy  

Policy Category: Administration, Business and Fiscal Affairs 

Policy Owner: Vice President for Learning Resources Management 

Policy Administrator: Associate Vice President for Learning Resources Management 

Contact Information: Andrew Little; aplittle1@aacc.edu; 410-777-2227 

Approval Date: December 8, 2009 

Effective Date: December 8, 2009 

History: N/A 

Applies to: All employees 

Related Policies: N/A 

Related Procedures: N/A 

Forms/Guidelines: N/A 

Relevant Laws: N/A