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VIII - 4.01    PROCEDURES FOR THE ACQUISITION AND DISPOSITION OF
                          REAL PROPERTY
      (Approved by the Board of Regents, February 1, 1989;
       Amended, March 1, 1989; Amended on February 9, 2001)

A.   These procedures are intended to implement portions of
     University System of Maryland Policy VIII - 4.00 Policy on
     Acquisition, Disposition, and Leasing of Real Property ("the
     Policy") and shall be interpreted consistent with the provisions
     of that Policy, including the definitions therein.  In case of
     any inconsistency, the Policy shall govern.

B.   Acquisitions

     1.   Proposal

          Subject to Paragraph B.5, whenever an Institution or
          the Office seeks to acquire real property, its
          president or VCAF shall submit to the Chancellor for
          review a proposal that includes the following:
          
          a.   Description (including improvements) and location
               of the property;

          b.   Location map;

          c.   Anticipated cost based upon most recent
               appraisals, assessments, and other available
               information;

          d.   Source of funds and/or other consideration to be
               used for the acquisition;

          e.   If external financing or other form of borrowing
               is to be used, the expected terms and the source
               for paying the debt service;

          f.   If a contract containing an option to purchase or
               right of first refusal is involved, the terms of
               the option or right of first refusal;

          g.   Amount, source, and nature of consideration for
               Capital Leases;

          h.   The purpose of the Acquisition;

          i.   Confirmation that the property is included in the
               institution's Board-approved acquisition plan or facilities
               master plan, or an explanation of why it is not.

     Review shall include as appropriate the VCAF, the Office of
     the Attorney General (OAG), and officials of the Institution
     that submitted the proposal.
     
     2.   Approvals

          If the Chancellor approves the proposal, and Board
     approval is required, it shall be submitted to the Finance
     Committee of the Board ("Committee") for its consideration.
     If the Committee's action is favorable, it shall recommend
     approval by the Board.  Acquisitions shall be considered by
     the Committee and the Board in executive session unless
     otherwise decided by the Board.  If the Board approves the
     Acquisition, it may delegate to the Chancellor authority to
     negotiate and execute all required documents.  However, if
     during the negotiations, the terms of the Acquisition change
     materially to the detriment of the System or the Institution
     from those approved by the Board, the Chancellor shall
     return the matter to the Committee and the Board for further
     consideration.  The OAG shall review and approve all
     documents for form and legal sufficiency prior to their
     execution.
     
     3.   Due Diligence

          Appropriate due diligence shall be undertaken with
     respect to any Acquisition and shall be conducted
     collaboratively by staff of the System, the OAG, and the
     proposing Institution.  All elements of due diligence need
     not be completed before submission of a proposal to the
     Chancellor, the Committee, or the Board.  At the discretion
     of the VCAF, and with the agreement of the Board, the
     completion of due diligence may follow Board approval, but
     shall occur before closing of the Acquisition.  The due
     diligence practices to be applied shall be consistent with
     those established by the Chancellor pursuant to paragraph 17
     of the Policy on Acquisition, Disposition and Leasing of
     Real Property.
          
     4.   Board of Public Works

          All Acquisitions must be approved by the Board of
     Public Works ("BPW") except (1) agreements granting the
     System or an Institution an option or right of first
     refusal; (2) Acquisitions by gift; and (3) easements, rights-
     of-way, and rights of entry unless the VCAF, in
     collaboration both with the Institution receiving such
     easement, right-of-way, or right of entry and the OAG,
     determines that special circumstances dictate that the BPW
     approval should be sought.  BPW agenda items are prepared
     and submitted to BPW by VCAF staff.
          
     5.   Option/Right of First Refusal Contracts

          An Institution president or the VCAF may, without other
     approval, enter into a contract giving the Institution an
     option to purchase or a right of first refusal to acquire
     real property that is included in its Board-approved
     acquisition plan or facilities master plan, provided that
     the cost of such option or right of first refusal does not
     exceed the lesser of (a) 10% of the most current appraised
     value (or the current assessed value if more recent
     appraisals are unavailable) of the property, or (b)
     $100,000.  All such contracts shall be reviewed and approved
     for form and legal sufficiency by the OAG.  No option or
     right of first refusal shall be exercised without prior
     approval of the Board and BPW in accordance with these
     Procedures.
          
C.   Dispositions

     1.   Proposal

          When an Institution or the Office seeks to dispose of
     real property, its president or the VCAF shall submit to the
     Chancellor for review a proposal that includes the
     following:
          
          a.   Description (including improvements) and location
               of the property

          b.   Location map

          c.   Value of the property based on most recent
               appraisals, assessments, and available information

          d.   Consideration (cash, in-kind, other) to be
               received

          e.   If a contract containing an option to purchase or
               right of first refusal has been received with
               respect to the property, the terms of the proposed
               option or right of first refusal

          f.   Purpose of the Disposition

          g.   Confirmation that the Disposition is consistent with the
               institution's Board-approved facilities master plan, and
               explanation of any departure from that plan.
          
     Review shall include as appropriate VCAF, OAG, and officials
     of the institution that submitted the proposals.
     
     2.   Approvals

          If the Chancellor approves the proposal, and Board
     approval is required, it shall be submitted to the Committee
     for its consideration.  If the Committee's action is
     favorable, it shall recommend approval by the Board.
     Dispositions shall be considered by the Committee and the
     Board in executive session unless otherwise decided by the
     Board.  If the Board approves the Disposition, it may
     delegate to the Chancellor authority to negotiate and
     execute all required documents.  However, if during the
     negotiations, the terms of the Disposition change materially
     to the detriment of the System or institution from those
     approved by the Board, the Chancellor shall return the
     matter to the Committee and the Board for further
     consideration.  The OAG shall review and approve all
     documents for form and legal sufficiency prior to their
     execution.
          
     3.   Due Diligence

          Appropriate due diligence shall be undertaken with
     respect to any Disposition and shall be conducted
     collaboratively by staff of the System, the OAG, and the
     proposing institution.  All elements of due diligence need
     not be completed before submission of a proposal to the
     Chancellor, the Committee, or the Board.  At the discretion
     of the VCAF, and with the agreement of the Board, the
     completion of due diligence may follow Board approval, but
     shall occur before closing of the Disposition. The due
     diligence practices to be applied shall be consistent with
     those established by the Chancellor pursuant to paragraph 17
     of the Policy on Acquisition, Disposition and Leasing of
     Real Property.
          
     4.   State Clearinghouse

          The VCAF shall notify the State Clearinghouse of the
     State Department of Planning of proposed Dispositions in
     accordance with applicable law.
          
     5.   Board of Public Works

          All Dispositions must be approved by the BPW, except
     easements, rights-of-way, and rights of entry.  The VCAF
     after consultation both with the Institution granting such
     easement, right-of-way or right of entry and the OAG, may
     determine that special circumstances dictate that BPW
     approval should be sought.  BPW agenda items are prepared
     and submitted to BPW by VCAF staff.

D.   These Procedures are effective upon their approval by the
     Board and replace any preceding policy under this Board
     policy number.