Extension of Credit Regulation

System Regulation 21.01.04: Extension of Credit

The purpose of this regulation is to provide guidelines for the extension of credit and referral of delinquent account and to establish uniform procedures for system extension of credit and related collection processes.

Please review the full regulation for details. Below is a listing of some requirements:

  • May extend credit only when it serves the best interest of the system and the public good of the state of Texas.
  • Must provide written documentation explaining the need to extend credit and that documentation must be reviewed and approved.
  • Must only extend credit to customers no more than thirty (30) days. Special circumstances requiring more than thirty (30) days must be disclosed and approved.
  • Must submit monthly report of receivable billings and collections including aging of outstanding accounts to Sales and Receivables.
  • Must be in compliance with the Federal Trade Commission's Red Flag Rule by understanding and following TAMU's Identity Theft Prevention Program. Please email Sales and Receivables to request a copy of the program.
  • Must place delinquent accounts on State Warrant Hold as stated by the State's Accounting Policy Statement (APS 028). Please see State Hold Form Instructions for more information.
  • Must have approval to write off delinquent accounts.
    • Should not exceed 10% of total amount of extension of credit.
    • Can only write off accounts external to TAMU System.