CHANCELLOR’S OFFICE UPDATE Financing and Treasury Telephone (562) Fax (562) The California State University Financial Officers Association - Annual Conference April 9-10, 2001

CSU COMMERCIAL PAPER PROGRAM  Presented for Trustee approval in January, 2001  Innovative financing for CSU DRF projects  Will be used as interim financing for all DRF projects  Reduce interest costs during construction  Possible additional arbitrage earnings during construction  Results in lower financed amount when long term bonds are issued  The CSU Institute is a key element in the program  Currently two projects are being financed thru this program. Humboldt Student Union and Fullerton Housing.

CSU COMMERCIAL PAPER PROGRAM Process for project approval for financing  Commercial Paper will only be issued after  Specific Trustees action to approve capital projects  Adoption of long-term financing plans for each project  Trustee resolution to issue long-term bonds to finance these projects; and  Trustee resolution to issue project-specific revenue bond anticipation notes (RBANs)

CSU COMMERCIAL PAPER PROGRAM  Key Elements for the success of this program and substantial savings for campuses for projects  Accurate project cash flows  Spending the CP proceeds first  Meeting the spend down requirements

CSU COMMERCIAL PAPER PROGRAM  Contact at the Chancellor’s Office Commercial Paper Program Shahenaz Churiwala Cash and Investment Manager Phone (562)