Before a recommendation is made for resolution by the Board of Governors of the University of Manitoba to guarantee another party loan the following procedures are necessary:

1. The University should only guarantee loans for bodies directly associated with the University, such as the University of Manitoba Faculty Club or the University of Manitoba Students Union.
   
   
2. A formal request in writing by the other party must be received setting out full details as to purpose and the amount of the loan. Only direct loans will be guaranteed. Overdraft arrangements are not acceptable.
   
   
3. An audited financial report of the other party for the immediately preceding year will be required.
   
   
4. All terms and conditions set out by the loaning authority must be submitted by the other party.
   
   
5. Support documentation by the other party will be required indicating future operating projections for loan repayment. A pro forma statement of income and expenditure and balance sheet are required for the current fiscal year and the upcoming fiscal year.
   
   
6. Secure loaning authority agreement to provide quarterly confirmation as to current balance of loan and a notification if any single payment falls into default.
   
   
7. Other party to agree to file an audited annual financial report each year during guarantee period.
   
   
8. Other party to provide security by way of pledge or other acceptable means of its real or personal property in case of default and that the other party will not encumber its real or personal property, except to the extent of the original bank security, while the guarantee is still extant.