Loan Guideline
Note
This is a translation of the original text. Only the German version of this regulation is legally binding.
Article I - Scope
This credit guideline regulates the procedure for granting loans to students and associations from the financial resources of the student body in accordance with the Financial Regulation of the student body §§ 8, 9.
The Student Council is free, if necessary, to decide on individual cases to deviate from the provisions of these regulations or to order or approve deviations from these regulations.
Article II - Object of the Loan
The purpose of the loan is regulated in §§ 8, 9 of Financial Regulation of the student body.
Article III - Application
Section 1 - Loans to students
The applicant shall attend compulsory social counselling by the Department of Social Affair
Social counselling helps the applicant to get an overview of his/her expected income and expenses during the loan period and gives suggestions on how to improve them in his/her favour.
The applicant shall demonstrate in the social counselling that he/she is able to repay the loan in due time. This must be documented in writing. A copy of any supporting documents submitted - e.g. a Bafög notice - must be included in the documents
The applicant shall state his/her neediness in the social counselling.
Section 2 - Loans to associations
The applying association shall state in the loan application,
what the funds are to be used for,
why a loan is necessary for this and
what risks are involved and
its financial situation (equity, outstanding receivables, outstanding liabilities).
Loans can only be granted for purposes corresponding to the tasks of the student body according to the ThürHG.
The planned use of funds must be presented in accordance with the provisions of Funding Guideline of the Student Council.
Article IV - Risk Assessment and Collateral
The Student Council shall only approve loans that are highly likely to be repaid on time and for which the purpose of the loan justifies the credit risk
Section 1 - Loans to students
The Department of Social Affairs (Referat Soziales) shall explain to the Student Council that the applicant is able to repay the loan and which risks could prevent the timely repayment.
Section 2 - Loans to associations
The Department for Finances (Referat Finanzen), together with the responsible departments, assesses the credit risk on the basis of the documents submitted.
- Collateral is financial claims which can be used with sufficient certainty to repay the loan. This includes, for example
Grants from foundations or state organisations,
bank guarantees and
own funds.
Article V - Decision-making
There shall be no legal claim to a grant.
The student council shall also decide on the modalities of repayment (deadlines, instalments, method of payment) of the loan.
The commitment of the loan only takes place with the execution and signing of the loan agreement by all parties involved.
Section 1 - Loans to students
The student council decides by secret ballot.
Section 2 - Loans to associations
The term shall be a maximum of 12 months.
Article VI - Disbursement
The Department for Finances (Referat Finanzen) shall draw up a loan agreement with the applicant.
Copies of the supporting documents submitted shall be kept on file.
The disbursement shall be made without cash.
Payment in instalments may be agreed and the payment of instalments may be linked to the existence of further preconditions such as the submission of proof of use.
No fees shall be charged for the granting of the loan.
Section 1 - Loans to students
The applicant (or his/her legal representative) must identify him/herself when signing the loan agreement (and prove his/her power of representation, if applicable).
Note
As a rule, the identity card should be copied and kept on file with the copy of the loan agreement for the StuRa.
Section 2 - Loans to associations
The loan agreement is to be signed by the legal representative, who has to prove his/her identity and his/her power of representation.
Note
In the case of associations, the executive board must sign. Each board member has to identify himself/herself once to the Referat Finance and in case of a change of board members to bring the new extract from the register of associations (a copy is sufficient).
Article VII - Use and receipts
Section 1 - Loans to students
No special provisions.
Section 2 - Loans to associations
For all expenditures made from the loan funds, proof of use shall be kept in accordance with the provisions of the Funding Guideline of the Student Council as well as the financial plan shall be updated as required in accordance with the provisions from the Funding Guideline of the Student Council.
Article VIII - Repayment
Repayment in the agreed instalments shall be made without interest and without cash to the current account of the Student Council.
If the repayment is not made on time, a reminder will be sent with four weeks’ notice. Thereafter, interest on arrears will be due in accordance with BGB §§288 and the Student Council will be entitled to immediate, extraordinary termination.
If the debtor is in arrears, dunning proceedings will be initiated. The Student Council reserves the right to assign the claim to a collection agency or to commission such an agency.
Section 1 - Loans to students
A set-off of the loan repayment with open claims against the student council is inadmissible.
Section 2 - Loans to associations
If the loan is linked to shortfall financing according to the Funding Guideline of the Student Council as collateral, the loan repayment may be offset against the outstanding claim against the student council from the settled shortfall financing.
If the outstanding claim from paragraph 1 is disputed or reduced by the student council, the loan repayment shall be continued without delay and the reduced amount shall be applied in the case of a set-off according to paragraph 1.
Other offsets in the repayment of the loan are only permissible with the prior written approval of the Student Council.
Note
Note: If the settled funding is reduced, the corresponding amount must be paid back from the loan.
Article IX - Whereabouts and Financial Update
The debtor shall notify the Student Council in writing without delay if he/she intends to transfer or has transferred his/her permanent residence. If, as a result of the transfer, a domestic residence of the student is moved abroad or the last domestic residence is abandoned, the Student Council shall be entitled to reclaim the debt immediately.
The debtor shall inform the Student Council in writing without delay if his/her financial situation changes in such a way that it is likely that the repayment cannot be made or cannot be made in full on time or if the securities presented at the time of application undergo substantial changes. In this case, the Student Council is entitled to demand immediate repayment of the debt.
The debtor shall immediately update the addresses and contact details of his/her legal representative deposited with the Student Council.
Article X - Extraordinary Termination
The Student Council is entitled to immediate, extraordinary termination if the borrower fails to fulfil his contractual obligations and thereby jeopardises the collection of the loan.
Article XI - Data Protection
Copies of identity cards, powers of representation and documents from the social counselling service shall be kept for a period of one year after repayment of the loan or one month after the rejection of the loan application. If these are documents from publicly accessible registers (e.g. excerpt from the register of associations), the period from sentence 1 is quintupled.
The storage according to paragraph 1 shall be carried out for the purpose of verification in the event of a challenge, within the framework of legal supervision or auditing by the finance committee.
The storage according to paragraph 1 for documents from social consultations which do not originate from publicly accessible registers shall take place in a lockable cabinet.
Article XII - Entry into Application
This guideline comes into force with the StuRa resolution 25/22-05 of 29.10.2014.