Chapter 11

11.1-11.5 | 11.6-11.10 | 11.11-11.15 | 11.16-11.17


Finance and Document Execution Authority

Effective Date: 08/07/2014

11.1 General Investment Policy

  1. Protection of principal amounts.
    • In considering the investment of University cash, protection of the principal amount must be the foremost consideration. It is therefore paramount that the purchase of speculative investments be prohibited. Optimum yield shall be our secondary objective.

  2. The following investments are authorized:
    • Equities, fixed income securities and public and corporate bonds including but not limited to those permitted by Sections 18, 19 and 20 of Article IX of the Constitution of the State of Michigan.

    • Negotiable certificates of deposit, savings accounts, and other interest bearing accounts of (1) a bank which is a member of the Federal Deposit Insurance Corporation, (2) a savings and loan association which is a member of the Federal Savings and Loan Insurance Corporation, or (3) a credit union which is insured by the National Credit Union Administration, within the limitations imposed by Article IX, Section 20 of the Constitution of the State of Michigan.

    • Purchase of U.S. Treasury obligations, Federal agency securities, and money market certificates may be made in any amounts.

    • Deposits in cash management accounts may be made in any amount.

    • Commercial paper rated within the two highest classifications of prime as established by at least one of the standard rating services are authorized. The total investment in commercial paper of any one corporation shall be limited to an amount of $1,000,000 or 20% of the equity of the stockholders of the corporation, whichever is greater.

    • Bankers acceptances and irrevocable letters of credit drawn on a bank which is member of the Federal Deposit Insurance Corporation.

    • Eurodollar time deposits or certificates of deposit in Tier 1, 2, or 3 United States banks or their branches in Montreal, Toronto, Nassau, or London or Tier 1, 2, or 3 Canadian banks in Montreal or Toronto.

  3. The provisions of MCLA 451.921, the Uniform Prudent Management of Institutional Funds Act, shall be considered in all investment decisions.
  4. All endowment funds shall be invested, managed and expended in compliance with any donor-imposed restrictions.
  5. The purchases and selling of any investments shall be the responsibility of the Treasurer or a designee appointed by the Treasurer, consistent with the objectives outlined in paragraphs 1 and 2, above.
  6. Purchases of investments (other than certificates of deposit) may be transacted through any banking, financial, or investment institution.


  • 06/09/1976: Commercial Paper
  • 12/05/1975
  • 01/28/1980: Broadened authorized investments
  • 01/28/1982
  • 03/19/1982: Eurodollar
  • 01/17/1986
  • 09/24/1993: Added exceptions for University Endowment Fund and Employee Retirement Health Care Plan
  • 07/15/2010: Was previously Policy 13.1. Renumbered and added collateralized certificates of deposit as permitted investments.
  • 08/07/2014: Revised to clarify language.


Effective Date: 09/01/2010

11.2 Cash Management

The University maintains a positive cash position. The amount of cash varies based on the schedule of tuition receipts and State appropriation payments. It is the policy of the University to have all excess cash electronically deposited into an investment grade money market account invested in United States Government obligations.


  • 09/22/1995
  • 07/15/2010: Was previously Policy 13.1.3. Renumbered only.


Effective Date: 09/01/2010

11.3 Sale of Stock

The Treasurer or a designee appointed by the Treasurer of the University are, fully authorized and empowered to transfer, convert, endorse, sell, assign, set over and deliver any and all shares of stock, bonds, debentures, notes, subscription warrants, stock purchase warrants, evidences of indebtedness, or other securities now or hereafter standing in the name of or owned by the University, and to make, execute and deliver, under the seal of the University or otherwise, any and all written instruments of assignment and transfer necessary or proper to effectuate the authority hereby conferred.

Whenever there shall be annexed to any instrument of assignment and transfer, executed pursuant to and in accordance with the foregoing policy, a certificate of the Secretary of the Board of Trustees in office at the date of such certificate which sets forth this policy and states that it is in full force and effect, and also sets forth the names of the persons who are then officers of the University then all persons to whom such instrument with the annexed certificate shall thereafter come, shall be entitled, without further inquiry or investigation and regardless of the date of such certificate, to assume and to act in reliance upon the assumption that the shares of stock or other securities named in such instrument were theretofore duly and properly transferred, endorsed, sold, assigned, set over and delivered by this University, and that with respect to such securities the authority of this policy and of such officers is still in full force and effect.


  • 11/26/1927
  • 02/15/1963
  • 04/05/1963
  • 10/11/1963
  • 04/14/1967
  • 02/05/1971
  • 10/20/1978
  • 03/28/1980
  • 01/28/1982
  • 01/19/1989: Revised authorized positions
  • 07/15/2010: Was previously Policy 13.2. Renumbered and changed "this corporation" to "the University" or "Board of Trustees".


Effective Date: 09/01/2010

11.4 Banking Relationships

Transactions with the following financial institutions, any successor by merger, or any other hereafter designated by the Board are authorized:

  • Bank of America
  • Fifth Third Bank
  • Michigan Tech Employees Federal Credit Union
  • Citizens Bank
  • River Valley Bank
  • Range Bank
  • The Superior National Bank & Trust Company of Hancock
  • Wells Fargo
  • Miners State Bank
  • Associated Bank

Authorized Signatories

For all Banks, any one of the following University Officers or designee of any one plus an officer for up to $50,000 (Fifty Thousand Dollars):

Board of Trustees Secretary

Board of Trustees Treasurer


and countersigned by any one of the above University Officers or designee of any one plus an officer for amounts greater than $50,000 (Fifty Thousand Dollars).

Any draw of funds from the University line of credit must be promptly reported to the Board of Trustees Chairperson. Any draw from the line of credit exceeding five million dollars must be approved by the Chairperson(s) of the Board of Trustees and of the Audit and Finance Committee.


  • 04/23/1976
  • 03/28/1980
  • 01/28/1982
  • 07/15/1983: changed authorized institutions
  • 01/18/1985: changed authorized institutions
  • 07/12/1985: changed authorized institutions
  • 03/20/1987: changed authorized institutions
  • 01/19/1989: complete revision
  • 07/21/1989: changed authorized institutions and signatories
  • 03/23/1990: changed authorized institutions
  • 02/01/1991: changed authorized signatories
  • 11/22/1991: changed authorized signatories
  • 01/31/1992: changed authorized institutions
  • 03/20/1992: changed authorized signatories
  • 03/19/1993: changed authorized signatories
  • 09/24/1993: : changed authorized institutions
  • 08/05/1994: changed authorized institutions
  • 11/21/1997: added Bank of America
  • 03/20/1998: added Old Kent Bank of Grand Rapids
  • 05/22/1998: removed institutions with an inactive relationship with MTU
  • 08/03/2000: changed authorized signatories
  • 10/05/2000: changed authorized institution to reflect name change to Wells Fargo
  • 10/11/2001: changed authorized institutions to include Fifth Third Bank and remove Old Kent Bank and changed authorized signatories
  • 09/29/2005: changed authorized institutions to reflect name change of D&N Bank to Republic Bank; First of America - Copper Country to National City Bank; North Country Bank to River Valley State Bank; removed Society Bank - Michigan; and changed authorized signatories
  • 05/02/2008: Removed National City Bank; changed Republic Bank to Citizens Bank; The First National Bank of Calumet to Range Bank; and replaced D.D. Reed as authorized signatory with L. M. Lovett-Doust
  • 07/15/2010: Was previously Policy 13.6. Renumbered, deleted Commercial National Bank of L'Anse; added Miners State Bank and Associated Bank; deleted the specific names of signatories and replaced with University title.
  • 08/04/2022: increased from $25,000 to $50,000, and added designee language.


Effective Date: 09/01/2010

11.5 Reserve Accounts Auxiliary Enterprises

Earnings may be withheld from the annual earnings of the various revenue bond trusts to be placed in Special Local Reserve Accounts to be expended for items encumbered in the previous fiscal year with the specific written permission of the Trustee on a case by case basis, provided that there exists, at the close of the fiscal year, sufficient earnings to meet the then required Trust Agreement payments.


  • 04/02/1979
  • 01/28/1982
  • 01/27/1984
  • 07/15/2010: Was previously Policy 13.18. Renumbered only.