VIII - 4.00    POLICY ON ACQUISITION, DISPOSITION, AND LEASING OF
               REAL PROPERTY
  (Approved by the Board of Regents, February 1, 1989; Amended,
   March 1, 1989, Amended December 13, 1996; Amended on
   February 9, 2001)

1.   Pursuant to Sections 12-104(b)(6), 12-104(g)(1), and 12-
     104(h) of the Education Article, the Board of Regents
     ("Board") may acquire, hold, lease, use, encumber, purchase,
     sell, transfer, exchange, or otherwise dispose of real
     property on behalf of the University System of Maryland
     ("System") and any of its Institutions.  (As used in this
     Policy, "Institution" means a constituent institution, CES,
     UMBI, or the University System of Maryland Office
     ("Office").

2.   For purposes of this Policy, an "Acquisition" is a
     conveyance of real property or an interest therein to the
     State of Maryland for the use of the System or an
     Institution.   Acquisition of real property may occur by
     gift, purchase, exchange, or other grant or transfer.
     Acquisition may be accomplished by deed, easement, Capital
     Lease, (as defined in Paragraph 4), right-of-way, right-of-
     entry, contract (other than a Lease as defined in Paragraph
     5.) giving the System a right of first refusal or option to
     purchase, or the exercise of any such right or option.  If a
     transaction conveys to the System or an Institution an
     interest in real property, the transaction is an Acquisition
     regardless of the title given the document(s), unless this
     Policy provides otherwise, and provided that "Acquisition"
     does not include entering into a Lease as defined in
     Paragraph 5 of this policy.

3.   For purposes of this Policy, a "Disposition" is a conveyance
     of real property or an interest therein from the State of
     Maryland for the use of the System or an Institution.
     Disposition of real property may occur by gift, sale,
     exchange, or other grant or transfer.  Disposition may be
     accomplished by deed, Capital Lease (as defined in paragraph
     4),  easement, right-of-way, right-of-entry, restrictive
     covenant, or contract giving another party a right of first
     refusal or an option to purchase.  If a transaction conveys
     from the System or an Institution an interest in real
     property, the transaction is a Disposition subject to this
     Policy regardless of the title given the document(s), unless
     this Policy provides otherwise, and provided that
     "Disposition" does not include entering into a Lease as
     defined in Paragraph 5 of this policy.

4.   For purposes of this Policy, a "Capital Lease" is a lease-
     lease back, sale-lease back, ground lease, or any other method of
     acquiring, disposing of, and/or financing real property
     (including improvements) that creates System or State debt.  Any
     Lease that must be approved by the Board shall be reviewed by the
     Vice Chancellor for Administration and Finance ("VCAF") to
     determine whether or not it is a Capital Lease.  Capital Leases
     shall include:

     -    a lease pursuant to which the present value of all of the
          rent payments thereunder is equal to or greater than 90% of the
          fair market value of the leased property (at the inception of the
          lease);

     -    a lease in which the term of the tenancy equals or
          exceeds 75% of the estimated economic life of the
          leased property;

     -    a lease in which a bargain purchase option is given to
          the lessee;

     -    a lease that provides for title to the property to pass to
          the lessee without further payment at the end of the lease term;

     -    any other transaction with a structure consistent with the
          definition of Capital Lease in this Policy.

     The VCAF shall determine what transactions are Capital
     Leases.  System financing policies shall apply to the
     financing of Capital Leases.

5.   For purposes of this Policy, a "Lease" is an agreement, in
     which the System or an Institution either grants or receives
     the exclusive right to use, occupy, or possess real property
     for a certain, limited period of time in exchange for the
     payment of money or other consideration provided in such
     agreement.  Capital Leases are not Leases under this Policy.
     Subleases, and Lease assignments to, and Lease assumptions
     by, the System or an Institution are Leases covered by this
     Policy.  A Lease that includes a provision giving the System
     or an Institution an option to purchase or right of first
     refusal to purchase is nevertheless a Lease under this
     Policy.  Any transaction in which the System or an
     Institution gives an option to purchase or right of first
     refusal to another party is a Disposition under this policy.

6.   When the System or an Institution is the lessee of real
     property, the System or Institution involved shall
     ascertain, by application of appropriate due diligence, that
     the cost is reasonable and consistent with market values of
     any comparable leased properties that may be available.
     Competitive proposals shall be sought if practicable.

7.   All Acquisitions and Dispositions shall be reviewed and
     approved by the Board unless specifically exempted or
     delegated in this Policy or Board-approved Procedures for
     the Acquisition and Disposition of Real Property.
                                             

8.   Board review and approval shall be required for the
     following Leases:

     (a)  Leases in which the System or an Institution is lessee and
          (i) the consideration is expected to exceed $500,000 in any year,
          or (ii) the initial term exceeds ten years and the aggregate rent
          exceeds $2 million;

     (b)  Leases in which the System or an Institution is lessor
          and (i) the consideration is expected to exceed
          $500,000 in any year, or (ii) the term (including
          renewal options) exceeds ten years.

9.   Leases not requiring Board approval shall be approved and
     signed (i) by the Chancellor, if for the System or the
     Office, or (ii) by the President of the Institution
     involved.

10.  Upon approval of an Acquisition, Disposition, or Lease by
     the Board, it may delegate to the Chancellor the authority to
     negotiate such terms and conditions as are necessary and
     appropriate to implement such approval consistent with the action
     of the Board, and sign all documents required following review
     and approval for form and legal sufficiency by the Office of the
     Attorney General.

11.  The Board delegates to the Chancellor the authority to (i)
     grant or accept easements, rights-of-way, and rights of entry
     without review and approval by the Board, if in the Chancellor's
     judgment, the proposed agreement is not of such significance as
     to warrant Board review, and (ii) enter into agreements giving
     the System or an Institution options and rights of first refusal
     to acquire real property.  In addition, the Board delegates to
     the Presidents of Institutions the authority to enter into
     agreements giving their respective Institutions options or rights
     of first refusal to the extent provided for in Section B.5 of the
     Procedures for the Acquisition and Disposition of Real Property.

12.  The Chancellor may, except as otherwise provided by the
     Board, delegate to other System or Institution officials any duty
     or responsibility of the Chancellor under this Policy..

13.  Pursuant to Section 12-104(g)(2) of the Education Article,
     the System may use the proceeds from the sale of its real
     property only to purchase or improve real property and
     facilities.

14.  This Policy does not apply to naming rights or similar
     sponsorship agreements, signage agreements, student housing
     agreements, revocable or temporary licenses, or inter-Institution
     agreements.

15.  Implementation of this Policy shall be consistent with Board-
     approved "Procedures for the Acquisition and Disposition of Real
     Property" and "Procedures for Leasing of Real Property."

16.  The Chancellor or the Board may require System institutions
     to provide reports on Acquisitions, Dispositions, and/or Leases
     at times and in formats determined by the Chancellor or the
     Board.

17.  The Chancellor shall establish due diligence practices
     appropriate to the execution of this policy.

18.  This Policy shall be effective upon its approval by the
     Board and replaces any preceding policy under this Board
     policy number.