January 17-18, 2002

MONTANA BOARD OF REGENTS OF HIGHER EDUCATION
Policy and Procedures Manual

SUBJECT:  FINANCIAL AFFAIRS
Policy 901.12  USE OF TIMBER SALE REVENUES
December 10, 2001; Issued January 18, 2002

Board Policy:

1.       The Montana University System elects to receive timber sale revenue from trust lands generated after July 1, 2001, as distributable revenue.

2.       Trust land timber sales revenues available as a result of this policy shall be used for one of the following purposes:

a.       Legal obligations under the indentures(s) to which trust land income is pledged.

b.       Elimination or reduction of chronic or material negative fund balances as defined in Board of Regents Policy - Negative Fund Balances.

c.       Deferred maintenance and equipment/fixed asset expenditures that are not recurring in nature.

History:   approved (Item).