Section 40.3. Financial stability

(a) An institution or chartering group applying for institutional approval shall:

(1) Have funds available in accordance with section 312.A.(1) of the Nonprofit Corporation Law (15 P. S. § 7312.A.(1)) to carry on the programs as required for the requested type of institution.

(2) Provide a 4-year projection of anticipated income and expenditures which demonstate that tuition and other sources of income will be sufficiently large to provide a sound financial operation and assure diversity of intellectual interests and resources.

(b) An application from an existing institution shall include, in addition, a comparative report of current fund revenues and expenditures for the 4-year period prior to application for the requested approval. Financial stability shall be determined by the comparison of current fund expenditures against current fund revenues over the 4-year period prior to application for the requested approval.

(c) [Reserved].

(d) An institution shall carry on a continuous financial development program, including solicitation from its various constituencies.

The provisions of this § 40.3 adopted April 30, 1982, effective May 1, 1982, 12 Pa.B. 1389; amended November 13, 1987, effective November 14, 1987, 17 Pa.B. 4651. Immediately preceding text appears at serial page (108474).

Notation

Authority

The provisions of this § 40.3 amended under sections 1317 and 1319 of The Administrative Code of 1929 (71 P. S. § § 367 and 369).