| Revision Responsibility: |
Executive Council |
| Responsible Executive Officer: |
Vice President for Business & Finance |
PURPOSE
The purpose of this policy is to establish the process regarding collection of accounts receivable.
DEFINITIONS
- Disposable earnings - means that part of the earnings of an individual remaining after the deduction from those earnings of any amounts required by law to be withheld.
POLICY
I. General
A. This policy applies to the collection of all accounts and notes receivable. Walters State shall, to the maximum extent practicable, require payment in advance for all
services and goods to avoid the creation of receivables.
1. TBR Policy 4.01.03.00 on the Tuition, Fees, Charges, Refunds, and Payments requires (with limited exceptions) that all assessed fees be paid in advance by a student before being considered enrolled for any academic term.
2. Types of Receivables.
Accounts and notes receivable may be generated from programs and activities including but not limited to:
a. Deferred payment programs;
b. Traffic and parking fines;
c. Library fines;
d. Bad checks;
e. Contracts;
f. Property rental;
g. Damage, loss, or liability to the institution by others; and
h. Financial aid adjustments.
3. Security Deposits.
Walters State is authorized to require any person to post a deposit or security bond, or provide appropriate insurance to offset potential obligations to the
institution arising from programs or activities.
4. Statute of Limitations.
Pursuant to T.C.A. Section 28-1-113, there is no time limit on the institution’s authority to collect receivables unless otherwise expressly provided by statute.
II. General Collection Procedures
A. Institutional Procedure for Accounts Receivable Statements
Walters State has a systematic process and procedure for collecting receivables from all persons, including students and employees. Walters State’s process is as follows:
1. The Cashier’s Office automatically generates Accounts Receivable Statements on the 5th of each month for any balance more than thirty (30) days past due. For those
balances greater than $100, the College enforces holds and undertakes collection efforts. Students with balances of $100 or less are sent statements, but if not paid,
amounts are eventually written off, instead of being sent to collection agencies.
2. The GUIMAIL screen in Banner is updated automatically to record that a letter was sent out to the individual.
3. Emails are automatically generated and sent to appropriate personnel regarding the success or failure of the report, a CSV listing
of the details, and a PDF file with the actual Accounts Receivable statements.
4. The CSV file and the statements are reviewed and any statements for the Veterans Administration, TN Board of Regents, the State of Tennessee agencies,
or other business accounts are pulled and given to the Accountant in the Cashier’s Office.
5. If any of these pulled statements are between sixty (60) and ninety (90) days past due, the Director of Student Accounts and Revenue is notified, and follow-up is initiated.
6. The remaining approved statements are folded and mailed.
7. If the account remains delinquent, three Accounts Receivable statements are sent at thirty (30) day intervals.
8. This process and procedure may be modified based on sound and responsible management practices.
9. Any modifications shoudl result in more cost-effective procedures or provide better or more convenient service to debtors of the institution without compromise to collection.
B. Institution Procedure for Placing Accounts with a Collections Agency
Collection notices are generated in ARGOS and mailed for any account where the balance is greater than $100 and the balance is at least 105 days past due or the 3 Accounts Receivable statements that were sent are older than 120 days. This process does not apply to receivables for active duty military (bill code of AD or delinquency code of 09). These notices alert the account holder to the fact that their account will be turned over to a collection agency, if not paid promptly.
1. Between the 20th and 25th of each month, a collections list is generated in ARGOS for accounts being transferred to a collection agency. An Excel spreadsheet is created from this data and uploaded to the collection agency’s online account portal. A copy of the collection agency placement memo is printed and placed with a copy of the Excel spreadsheet. Once this document has been approved by the Director of Student Accounts and Revenue, it is filed for reference.
2. T1 holds and C1 delinquency codes are applied in Banner.
3. The institution may negotiate alternative payment arrangements with debtors when such arrangements offer the best prospect of collecting the debt.
4. Between the 1st and 5th of the month, download the monthly report from the collection agency’s website and have the cashier receipt payments. Update hold codes and delinquency codes in Banner as needed. Review the reasons for accounts returned from the agency. Accounts can be returned due to the debt being uncollectible, the debtor filing bankruptcy, the debtor being active military, or the debtor being underage.
5. After generation of another ARGOS report and creation of another Excel spreadsheet for the remaining delinquent accounts, send eligible accounts to Walters State’s second collection agency. Be sure to exclude accounts paid in full, bankruptcy, and active duty military. Update Banner hold codes to T2 and reason codes to C2.
C. Defaulted Accounts. Accounts are classified as defaulted when the institution’s established collection efforts for the type of debt have failed to produce payment.
1. Receivables of $100 or more shall be referred to a collection agency as descried in II.B.
2. Referral of accounts under $100 to a collection agency is not required.
a. No additional collection efforts are required for receivables under one-hundred dollars ($100.00), except as provided for under the Record Holds (Section II. D.) and Employee Receivables (Section III.).
b. See Section IX. for write-off procedures.
D. Record Holds. Walters State is authorized to issue diplomas, certificates of credit, or official transcripts only after the student involved has satisfied all debts or obligations owed to the college, including, but not limited to, its library. However, this does not prevent the conferring of the degree.
1. This limitation does not apply to debts of less than one-hundred dollars ($100.00).
2. This limitation shall not apply to debts or obligations:
a. Evidenced by notes or other written contracts providing for future payment, such as, but not limited to, loans wuthorized under federal or state education or student assistance acts.
b. An amount owed under the instituton’s installment payment plan for enrollment fees which is not yet due shall not cause a hold to be applied. A notice stating the specific amount due should be sent to each student prior to completion of registration.
3. Notwithstanding the limitation above, Walters State shall issue a certificate of credit or official transcript for a student seeking admission to any college in that system if the student has entered a written agreement (acknowledgement of debt/promise to pay) to satisfy the outstanding debt or obligation owed to the college issuing the certificate of credit or official transcript. Any certificate of credit or official transcript so issued shall indicate that it is subject to an outstanding debt owed to Walters State Community College. The college receiving such a certificate of credit or official transcript shall not subsequently issue a diploma, certificate of credit, or official transcript to that student until it receives proof that the student has satisfied the outstanding debt to the college that issued the certificate of credit or official transcript.
E. Enrollment Holds.
1. A student must pay any past due debts and obligations owed to the institution incurred in prior academic terms before being permitted to register at the institution unless the debt is less than $100 or an acknowledgement of debt/promise to pay agreement (see section II. F.) for the prior debt or obligation has been executed.
2. Institutions shall allow enrollment when the outstanding obligation is less than $100.
3. Additionally, all known debts and obligations to the institution incurred during the current term and $100 or greater must be satisfied prior to a student being allowed to pre-register for any future terms.
4. An amount owed under the institution’s deferred payment plan for enrollment fees which is not yet due shall not cause an enrollment hold to be applied.
5. A student that is currently assigned to a collection agency will be allowed to register if the student signs an agreement (acknowledgement of debt/promise to pay) that acknowledges they will not be allowed to receive a diploma, certificate of credit or official transcript until the debt is paid in full. The student account will not be recalled from the collection agency.
F. Acknowledgement of Debt/Promise Agreement for Prior Debt and Obligations. A student that has prior outstanding debt and was not enrolled in the preceding semester (excluding summer semester) may execute an acknowledgement of debt/promise to pay agreement with the institution and be allowed to register.
1. The agreement will require that the debt be fully satisfied before a diploma or degree will be issued.
2. The agreement will require continuous enrollment (Fall and Spring). If continuous enrollment is not maintained the institution may continue with normal collection procedures as delineated herein or pursuant to the terms of any previously executed repayment agreement.
3. A student may only ever execute one such agreement with the institution.
4. “Continuous enrollment” means a student is enrolled in the fall and spring semesters of a single academic year unless granted a medical or personal leave of absence. Allowable medical or personal reasons may include illness of the student; illness or death of an immediate family member; extreme financial hardship of the student or student’s immediate family; fulfillment of a religious commitment encouraged by members of that faith; fulfillment of required initial active duty for training as a National Guard or Reserve member or for National Guard or Reserve mobilization.
G. Aging. All receivables should be aged at least annually.
H. Documentation. Accurate records of correspondence, telephone calls, and personal contacts with borrowers shall be maintained. Walters State shall comply with record maintenance, safekeeping, and retention regulations for federally funded loans.
III. Employee Receivables
A. Procedure for Withholding. Employee receivables (including student employees) may result from, among other things, traffic and parking fines, library fines, institution services or bad checks.
1. In order to recoup the amount owed from the employee’s paycheck, notice of intent to withhold must be sent to the employee by registered or certified mail, email, or personally delivered.
a. The notice should inform the employee of the amount alleged to be owed and should specify that he may elect to pay the debt in full, authorize deductions from his paycheck or, if the employee is terminating, the check for accrued but unused annual leave, or contest the intent to withhold in writing to the Vice President for Business & Finance. If the employee is not satisfied with the outcome of a contested decision, he/she has the right to an institutional or UAPA hearing.
b. Subsequent to receiving a notification of the debt owed, the employee, within 15 calendar days of receipt of such notice, must:
1. Pay the debt in full;
2. Authorize the institution to withhold a designated amount from each subsequent paycheck or, if the employee is terminating, from the accrued but unused annual leave until the debt is paid in full;
3. Elect to contest the intent to withhold through a written communication to the Vice President for Business & Finance; or, if not satisfied with the outcome of the contested matter;
4. Elect to contest the intent to withhold through an institutional hearing or a contested case hearing held pursuant to T.C.A. § 4-5-301, et seq.
2. If the employee elects an institutional hearing, the employee shall appear on behalf of himself but is entitled to be advised by counsel.
a. The Vice President for Business & Finance or his/her representative, or a representative of the department involved in the debt, shall be present to represent the institution.
b. The case will be heard before one hearing officer designated to hear all cases on that date.
c. The hearing officer must be an individual who is not so closely connected with the collection of the debt that they cannot render an unbiased and objective decision on the validity of the debt.
d. Such hearing should be held within one week of the decision to elect the hearing.
e. The hearing officer shall render a decision on the validity of the debt. If the debt is ruled valid, the debt shall be deducted from the employee’s payroll check beginning at the end of the next appropriate pay period in accordance with deduction schedules.
f. If the employee elects a UAPA hearing, the TBR Office of General Counsel should be notified immediately.
g. If the employee refuses to pay, authorize deduction, or specify or waive a hearing process, a UAPA hearing must be initiated.
h. The employee’s failure to appear at either an institutional or UAPA hearing will constitute default, or, if a prima facie case is presented that the debt is owed, it will be deemed valid; the appropriate deductions may then be made.
i. Additionally, if a UAPA hearing, a Default Order must be issued.
j. If the employee does not appeal the Default Order, funds may be deducted as specified.
B. Limitations on Amounts to be Withheld. The deduction from any check shall not exceed the maximum deductible under state garnishment laws.
1. The maximum amount of disposable earnings of an individual for any work week which is subjected to garnishment may not exceed:
a. Twenty-five percent (25%) of his disposable earnings for that week; or
b. Thirty (30) times the federal minimum hourly wage at the time the earnings for any pay period become due and payable, whichever is less.
2. In the case of earnings from any pay period other than a week, an equivalent amount shall be in effect.
3. These limits are applicable to retirement funds, but are not applicable to checks for accumulated annual leave.
4. Additionally, the above limits do not apply to employee overpayments.
C. Retirement Funds. If a former employee is found to owe a debt to the state, retirement funds may be utilized to pay off the amount owing to the extent permitted by Tennessee law.
1. The same procedural steps outlined in III.A. for notice and the opportunity for a hearing must be followed.
2. Accumulated retirement contributions of a former employee terminated for any reason and for which he has made application, or monthly benefits of a retired employee are subject to withholding to the extent permitted by Tennessee law.
3. A copy of the final order resulting from an institutional or UAPA hearing, or a signed waiver of hearing and written agreement of the former employee authorizing deductions should be sent to the director of the retirement system along with a written request to withhold, specifying the reason for the claim and the total amount involved.
D. Recovery of Overpayments to Employees. In instances of overpayments to employees there is no obligation to provide a hearing.
1. The institution is obligated, however, to attempt to recoup the funds. The institution should advise the employee in writing of the overpayment and the institution’s proposed actions to correct the overpayment.
2. The method of repayment will depend upon the amount of the overpayment, the time which has elapsed between the overpayment and its discovery, the hardship which immediate repayment might cause the employee because of amount of current salary and personal expenses, the culpability of the employees in not reporting the overpayment, and the longevity as well as the expectation that the employee will remain in state government until the repayment is completed.
3. If a current employee receives overpayment, the refund may be made in one of the following ways:
a. Repayment by the employee by cash or check; or,
b. Adjustment of deductions to be made automatically from the employee’s paycheck, either with a single deduction or a series of deductions made from each paycheck until the full amount is recovered.
c. The amount of partial payments recovered by the latter method should be reasonable and systematic so that full recovery will be completed within the shortest period possible.
4. If overpayment is discovered after the employee terminates employment with the state, an account receivable should be established.
a. The former employee should be notified of the overpayment, the circumstances of the overpayment and a request that the employee contact the appropriate campus official.
b. If the employee has not received his final paycheck, the appropriate deduction from that check can be made.
c. If the final paycheck has been received, negotiations for reimbursement should be initiated.
d. If repayment cannot be negotiated or collected, the account should be turned over to the collection agency.
e. In the event collection is not possible, proper write/off procedures should be followed.
5. In instances in which the employee has agreed to systematic deduction(s) from his paycheck(s), written authorization from the employee is encouraged.
6. The institution shall draft forms to document overpayments, the steps taken to recoup same, any negotiated repayment plan, the amounts received, and any write/off of the overpayment.
IV. Dishonored Payments
A. Enrollment Fees. Pursuant to the TBR Policy on the Payment of Fees and Enrollment of Students (4:01:03:00), if any student tenders payment of fees by a check or credit card that is subsequently dishonored by the financial institution, and the payment is not redeemed in cash within the time period specified below, the institution has the option to not consider that student enrolled at the institution.
1. At Walters State, the student may be considered enrolled and will be assessed the applicable returned check fee and will be denied grade reports, transcripts and future registration privileges until such dishonored check is redeemed.
2. Walters State will allow enrollment when the outstanding obligation is $100 or less. Any student with a balance over $100 will have a hold placed back on his/her account, if the payment was dishonored.
3. Students who have checks dishonored twice are denied future check writing privileges and the ability to pay via ACH in the future.
4. A student paying enrollment fees with a check that is dishonored must redeem the check within five (5) calendar days from receipt of the notice. If payment for the current term is returned prior to the 14th day, the student is charged for the returned payment plus a $30 fine. The student is subject to purge at the next fee payment deadline. The same rules apply if the student is on a payment plan; however, in addition to the foregoing steps, the payment plan enrollment fee is reversed. In both cases, students are notified by phone and/or email depending on the timing of the next fee payment deadline. If the payment is returned after the 14th day, the student is charged for the returned payment plus a $30 fine. If the student is not on the payment plan, he/she is invoiced through the normal aging/statement process. If the student is on the payment plan, future installments automatically increase.
a. Notice should be sent by the institution to the student no more than three (3) working days from receipt of notice of a bad check from the bank.
b. Notice by certified mail is optional.
c. The institution will have five (5) working days after the expiration of the five (5) calendar days to pursue any additional collection efforts deemed necessary.
d. Immediately after the five (5) working days, the student will be deleted if the check has not been redeemed in full if that option is selected by the institution.
e. Enrollment fees including returned check fees for students de-enrolled for bad checks should be reversed.
B. Non-Student or Non-Employee. Any person other than a student or employee who tenders a check for payment for goods or services which is subsequently dishonored shall be given the opportunity to redeem the check and pay the amount due in cash. The person shall be given notice of the dishonored check, sent certified mail, demanding payment within five (5) days.
C. Collection of Dishonored Checks. A check presented for payment of any goods or services which is subsequently dishonored shall be treated as an account receivable under Section II. Any transactions that have been processed should be reversed when possible and appropriate.
D. Future Check-Writing. Receipt of one or more bad checks from any person may result in that person becoming ineligible to make payments by check thereafter, or to have any check cashed by the institution. A record of individuals who have written bad checks should be maintained.
V. Federal Loans
Walters State does not participate in Federal Loan programs.
VI. Collection Agencies
- The Tennessee Board of Regents provides, on a system-wide basis, collection services through one or more companies.
- The service provides for the referral of all types of delinquent accounts and notes from Walters State to the designated company only after campus collection efforts have been exhausted.
- The terms of the contract and RFP govern all collection actions.
- Unless otherwise prohibited by law or regulation, any note, contract or lease which may result in accounts receivable to the institution should contain a provision pursuant to which the person will be responsible for the costs of collection and reasonable attorneys’ fees in the event of default, and should further provide for the assignment of the account or note to the proper agency. Students are not responsible for the collection costs charged by the collection agency. Walters State pays those collection costs.
- Collection Agency. Accounts that are still delinquent 30 days after the final collection letter should be turned over to a collection agency. Receivables less than $100 are not required to be turned over to a collection agency.
- Reporting Requirements. The collection agency is required to report the status of delinquent loans periodically to Walters State and to the Tennessee Board of Regents.
- Revised Repayment Plan. A revised repayment plan agreement should be signed by the borrower if the borrower returns to repayment status.
- Recalling Accounts from Collection Agency. No account should be recalled from a collection agency other than debts eligible for deferment, postponement, cancellation, bankruptcy, death, disability or some other mitigating circumstance (institutional error, etc.).
- No account should be recalled in order for a borrower to re-enroll or obtain a transcript.
- A student who is currently assigned to a collection agency will be allowed to register if the student signs a repayment agreement that acknowledges they will not be allowed to graduate until the debt is paid in full. The student account will not be recalled from the collection agency.
- The borrower should pay the accelerated amount plus collection costs to the collection agency.
VII. Litigation
A. General. After all other attempts at collection have failed, the institution must authorize litigation of accounts of $2,000 or more providing litigation costs do not exceed the amount which can be recovered. Generally, the collection services contract will provide for litigation when appropriate.
VIII. Bankruptcy
A. General Information – Walters State’s bankruptcy contact person is the Vice President for Business and Finance. He/she will serve as a liaison between the institution and the Attorney General’s office. The Account Clerk II position in the Cashier’s Office files proof of claim documents.
1. Once notice of, or a petition for, bankruptcy is received, all collection efforts against the debtor must cease immediately.
2. If the account is at a collection agency, the file must be returned to Walters State immediately.
3. Walters State should immediately forward the file to the Attorney General’s office with a Referral Form and the documentation specified on the Referral Form. A copy of this information should also be provided to the TBR General Counsel’s office.
4. The Attorney General’s office will advise the institution when and if collection efforts may resume, depending on the debt’s discharge ability.
a. NOTE: Effective for actions filed on or after 5/28/91, the period during which an educational loan may not generally be discharged will increase from five (5) years to seven (7) years.
b. This period is calculated from the date the loan first came due to the date the bankruptcy action was filed, exclusive of periods during which repayment obligations are suspended.
c. Additionally, obligations to repay an “overpayment” of, or any other obligation to repay an “educational benefit” provided by a governmental unit or under a program funded by a government unit or non-profit institution will be excepted from discharge during the same seven year period under either Chapter 7 or 13 unless the borrower establishes that repayment constitutes undue hardship.
B. Chapter 7 (Liquidation) Upon receiving any notice of the filing of a petition, all collection efforts against the debtor must be suspended immediately until the bankruptcy has been discharged.
1. Collection efforts may continue against an endorser.
2. Walters State shall immediately forward the file to the Attorney General’s office with a Referral Form and the documentation specified on the Referral Form.
3. A copy of this information should also be provided to the TBR General Counsel’s office.
4. Educational loans: If the date of bankruptcy filing is after the expiration of the exception period, the loan should be written off once the notice of discharge is received unless there is some other basis upon which to challenge discharge ability.
a. The Attorney General’s office will contact the institution to advise whether the debt is dischargeable.
b. However, if there is an endorser, collection efforts may proceed against him.
c. If the date of bankruptcy filing is before the expiration of the exception period, collection activity may be reinstated once the notice of discharge is received due to the self/executing nature of the exception unless the debtor has been able to establish discharge ability of the debt through an adversary proceeding.
d. If the institution is served with a summons and complaint, the institution shall immediately fax to the Attorney General’s bankruptcy unit a copy of the Summons and Complaint, the debt payoff amount, the date the note went into repayment, and any deferment and/or forbearance history.
e. A copy of this information should also be provided to the TBR General Counsel’s office.
5. Other debts: The institution shall immediately forward the file to the Attorney General’s office with a Referral Form and the documentation specified on the Referral Form.
- A copy of this information should also be provided to the TBR General Counsel’s office.
- When the notice states “No assets,” unless the institution is a secured creditor (in which case a proof of claim would have been filed), the debt must be written off once the Attorney General’s office provides the institution with notice of discharge.
C. Chapter 13 (Reorganization)
1. NOTE: For petitions filed on or after 11/5/90, an educational loan is non-dischargeable if the loan first became due within five years calculated from the date the loan first came due to the date the bankruptcy action was filed, exclusive of periods during which repayment obligations are suspended.
2. Effective for bankruptcies filed on or after 5/28/91, that same five (5) year period was increased to seven (7) years. See NOTE above for further details.
3. Regardless of the date of filing or the nature of the debt owing, upon receiving any notice of the filing of a petition, all collection efforts against the debtor and endorser must cease immediately.
a. The institution shall immediately forward the file to the Attorney General’s office with a Referral Form and the documentation specified on the Referral Form.
b. A copy of this information should also be provided to the TBR General Counsel’s office.
c. The Attorney General’s office will advise the institution whether the debt is dischargeable and the extent to which collection activities may be reinstated.
4. If the seven (7) year exception period applies and the debtor serves the institution with a summons and complaint the institution shall immediately fax to the Attorney General’s bankruptcy unit a copy of the Summons and Complaint, the debt payoff amount, the date the note went into repayment, and any deferment and/or forbearance history.
- A copy of this information should also be provided to the TBR General Counsel’s office.
5. Other debts: The institution shall immediately forward the file to the Attorney General’s office with a Referral Form and the documentation specified on the Referral Form.
- A copy of this information should also be provided to the TBR General Counsel’s office.
- The Attorney General’s office will advise the institution as to the discharge ability of the debt.
IX. Write Offs
A. Authority. The Tennessee Board of Regents and its institutions are authorized to write off uncollectible receivables pursuant to policies outlined in Chapter 0620-1-9 of the rules of the Department of Finance and Administration.
- This includes the write off of any account of five thousand dollars ($5,000) or greater and/or accounts aggregating twenty-five thousand dollars ($25,000) or more.
- Receivables submitted for write off must have been subjected to appropriate collection efforts in accordance with TBRGuideline B-010 and Walters State procedures.
B. Reserve. A reserve for doubtful accounts should be established for activities for which accounts receivable represent a material amount to the activity income.
- The reserve should be reported in the financial records of Walters State.
- Receivables which prove to be uncollectible after prescribed collection efforts have been exhausted should be written off by a charge to the reserve for doubtful accounts after appropriate approvals are obtained.
C. Approval. The proposed write offs must be approved by Walters State officials not directly involved in recording and collection of accounts receivable.
- The president and vice president for Business & Finance should certify compliance with the prescribed statute and collection guidelines.
- The accounts submitted for write off should be single accounts of $5,000 or more and/or accounts aggregating $25,000 or more. The write off request summary and certification, along with a detailed list of the accounts, should be submitted to the Vice Chancellor for Business and Finance’s office for approval.
- The write off request must be approved by the Chancellor or designee and General Counsel and forwarded by TBR for approval by the Commissioner of Finance and Administration and the Comptroller of the Treasury.
- TBR will send approved write offs to Walters State for the appropriate accounting.
- Requests for the write off of single accounts of less than $5,000 and/or accounts aggregating less than $25,000 shall be approved at the institution level by the vice president for Business & Finance and the president.
- These requests do not require additional approval by the Tennessee Board of Regents office.
D. State/TBR Employees. Any debtors identified by the TBR or State as employees with debts $50 and above will not be approved for write off.
1. If the debtor works for Walters State, the Vice President for Business & Finance will be notified and will be responsible for collecting the debts utilizing the steps in Section III, Employee Receivables, of this policy.
- Written notification should be sent to the Tennessee Board of Regents if collection efforts are unsuccessful.
- The written notification shall be submitted with the next write off request for approval.
- The institution may agree to payment through payroll deductions if the employee signs a payroll deduction authorization.
E. Former TBR Employees. If a debt or obligation was incurred while a TBR employee, the debt constitutes an account receivable; refer to Section II.
F. Holds on Written Off Receivables. A hold on transcripts and future registration will continue until the debt is cleared for former students whose receivables were written off if the debt was one-hundred ($100) dollars or more.
- Institutions will continue to withhold certificates of credit, diplomas, grade reports, and transcripts for these accounts until they are paid in full or meet the criteria established in T.C.A. § 49-9-108.
- A student who has prior outstanding debt and was not enrolled in the preceding semester (excluding summer semester) may execute a repayment agreement with the institution and be allowed to register. The repayment agreement will require that the debt be fully satisfied before a diploma or degree will be issued. A student may only ever execute one such repayment agreement with the institution.
X. Gramm-Leach-Bliley Act Contract Clause
A. Include the standard language printed below in all future contracts with third party service providers that have access to the institution’s customers’ non-public financial information.
- “Throughout the term of this Agreement, Service Provider shall implement and maintain ‘appropriate safeguards,’ as that term is used in § 314.4(d) of the FTC Safeguard Rule, 16 C.F.R. § 314, for all ‘customer information,’ as that term is defined in § 314.2(b) of the FTC Safeguard Rule, delivered to Service Provider by Institution pursuant to this Agreement.
- The Service Provider shall implement an Information Security Program (‘the Program’) as required by the FTC Safeguard Rule.
- Service Provider shall promptly notify the Institution, in writing, of each instance of;
- Unauthorized access to or use of that nonpublic financial customer information that could result in substantial harm or inconvenience to a customer of the Institution; or
- Unauthorized disclosure, misuse, alteration, destruction or other compromise of that nonpublic financial customer information.
- Service Provider shall forever defend and hold Institution harmless from all claims, liabilities, damages, or judgments involving a third party, including Institution’s costs and attorney fees, which arise as a result of Service Provider’s failure to meet any of its obligations under this provision.
- Service Provider shall further agree to reimburse the Institution for its direct damages (e.g., costs to reconstruct lost or altered information) resulting from any security breach, loss, or alteration of nonpublic financial customer information caused by the Service Provider or its subcontractors or agents.
- Service Provider grants Institution the right to conduct on-site audits, as deemed necessary by the Institution, of the Service Provider’s Program to ensure the integrity of the Service Provider’s safeguarding of the Institution’s customers’ nonpublic financial information.
- Walters State retains the right to unilaterally terminate the Agreement, without prior notice, if Service Provider has allowed a material breach of its Program in violation of its obligations under the GLBA, if Service Provider has lost or materially altered nonpublic financial customer information, or if Walters State reasonably determines that Service Provider’s Program is inadequate.
- Within thirty (30) days of the termination or expiration of this Agreement, Service Provider shall, at the election of Walters State, either:
- Return to the Institution; or
- Destroy (and shall cause each of its agents to destroy) all records, electronic or otherwise, in its or its agent’s possession that contain such nonpublic financial customer information and shall deliver to the Walters State a written certification of the destruction.
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