Quote of the Day

Tuesday, May 26, 2009

No Debt Policy?

According to the school's official history, it operates under a strict no-debt policy: "Here is an institution of higher learning that was begun with no funding of any kind, and a no-debt policy from its inception. ...the College would use absolutely no debt for any reason."

However, it appears that in order to purchase its current campus, the school signed a $489,719 trust deed (securing a loan, aka debt) with the State Bank of Southern Utah. The document, dated November 2004, is available at the Iron County, Utah recorder's website. In addition, the note was co-signed by a local tree farm, which appears to have quit-claimed its interest in April 2007.

In May 2007, the school appears to have taken out a new loan against the facility in the amount of $125,000, again with the State Bank of Southern Utah.

3 comments:

Tim Harper said...

If they can sell the property for more than they borrowed against it, they are not in debt.

R.C. said...

But they haven't sold the property. They are in debt, violating their own policy.

The Real George Wythe said...

Tim Harper said "If they can sell the property for more than they borrowed against it, they are not in debt."

Tim,

They appear to be very underwater on their Monticello land. Therefore, even by your extreme definition, they are in debt.