Signature Authority Policy (B11)

SUBJECT:
Signature Authority Policy

PURPOSE:
To clarify the Board’s authorization of administrative personnel to sign on behalf of Graceland University.

BACKGROUND:
Article VIII of the Articles of Incorporation of Graceland University is as follows:

Conveyances, etc.

“All conveyances, mortgages, bills of sale and assignments of assets, releases, contracts for purchase and/or sale of real estate or for the construction of buildings, and all undertakings of material obligations, must receive the prior approval of the Board of Trustees and be signed on behalf of the Corporation by the Chair or the Vice Chair of the Board of Trustees and by the President or the Vice President for Business Affairs of the Corporation; provided, however, that notwithstanding the foregoing, the Board of Trustees may from time to time adopt one or more policies dispensing with the need for prior approval in specified situations and granting other signature authority, all in its sole discretion.”

Consistent with Article VIII, the Board of Trustees authorizes administrative officers to sign legal documents on behalf of the corporation to insure continuity in business and to maintain appropriate controls. The President or the Vice President for Business Services/Treasurer has historically signed contracts and drafts on behalf of Graceland. In the course of normal business operations, Graceland is requested to present a copy of a corporate authorization.

Signature Authorization – The Board of Trustees authorizes the President (or presiding officer) and the Vice President for Business Services/Treasurer or one of them to sign legal documents for Graceland University containing financial obligations of $10,000 or less and with a term of one year or less. The Board of Trustees authorizes the President (or presiding officer) and the Vice President for Business Services/Treasurer to sign legal documents for Graceland University containing financial obligations greater than $10,000 or a term longer than one year. When time is of the essence and either the President (presiding officer) or the Vice President for Business Services/Treasurer is not available, any Vice President is authorized to be the second signer on legal documents.

Legal Documents Defined – Legal documents include contracts, drafts and documents to establish bank/custody accounts; to sell, assign, endorse or transfer assets other than real estate; and to take all actions necessary to transfer certificates representing stocks, bonds, or other securities registered in the name of Graceland University.

Real Estate Contracts/Conveyances – Conveyances of real estate within limits defined in the “Receipt and Sale of Real Estate Policy” may be administratively transacted. Conveyance of real estate above/outside the policy’s limits requires prior approval of the Board of Trustees.

Debt Obligations – All debt obligations require the prior approval of the Board of Trustees before authorized administrators can sign binding agreements.

Extending Signature Authority – The President (presiding officer) and the Vice President for Business Services/Treasurer may jointly agree in writing in specific situations and within established limits to extend their signature authority to other Graceland administrators. Each extended authority must be needed for valid reasons (e.g. the volume of use of a standard contract in a specific program, a low-balance bank account in Independence to avoid potential cash security issues and to expedite business operations, or accreditation requirements in a specific program). Each extended authority must be periodically reviewed by the President (presiding officer) and the Vice President for Business Services/Treasurer.