Small N.C. College Puts Up Endowment and Campus as Collateral
July 20, 2009
Facing $19-million in debt, Greensboro College in North Carolina has put up its campus and most of its endowment as loan collateral, reports the News & Record of Greensboro.
In December the Methodist-affiliated liberal-arts college put up parts of the 19th-century campus as collateral in a renegotiated $16-million loan with Bank of America. Last month it put up the remainder of its real estate and shifted $12-million from its endowment to the bank in a deal designed to solve the college’s worsening debt problem, which stemmed from a burst of real-estate activity in 2002.
