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Bd. Min. 6-26-12.

1. Outside Entities.  This rule applies to the acceptance of equity or similar participation in a separate legal entity for the primary purpose of advancing a university mission and not for the primary purpose of investment, including operating entities that the university controls and uses to conduct university operations, joint venture entities in which the university is a relatively active or significant participant, and minority-interest entities in which the university is a minority owner with a more passive role.
   
   1. Participation in such an entity requires approval by the campus Chancellor (if initiated by a campus) with subsequent approval by the President, or by the President (if initiated by the system office), and approval of documents as to legal form by the Office of the General Counsel.
   2. Approval of the Board of Curators is required for operating entities or, in the case of joint venture entities, if the university, or a properly authorized representative, (1) forms the entity, or (2) owns at least 50% or more, or (3) commits to make a contribution of $1.0 million or more.
   3. Approval of the Board of Curators is required for minority-interest entities if the interest is in exchange for (1) in-kind consideration of goods and/or services valued at greater than or equal to both 50% of total book value and $1.0 million, excluding licenses of intellectual property, or (2) cash greater than or equal to $1.0 million.
   4. Participation in all such entities, whether or not approved by the Board of Curators, shall be reported annually to the Board of Curators.
   5. All such activities will be subject to due diligence, conflict-of-interest, reporting, and other business policies approved by the President and Vice President for Finance and Administration and reviewed as to legal form by General Counsel.  Subsequent changes in such activities will be subject to reporting and approval requirements to be specified in such business policies.
   6. The total out-of-pocket outstanding cash investment by the University at any one point in time shall not exceed $5 million without Board approval.