Chapter 2. Accounting Services
Section 2.8. Accounts Receivable

2.8.2.7. Draft Instruments

Draft Instruments: A substitute for cash, such as checks, money orders, and travellers checks. Does not include credit cards and electronic transfer of funds.

All draft instruments must be payable in legal tender of the United States of America.

All draft instruments made payable to the University or any branch or subgroup of the University must be made payable to "Michigan Technological University" and will be deposited in an account of the University.

Any draft instrument to be prepared for deposit in the bank accounts of the University should be made payable to "Michigan Technological University", "Michigan Tech", or "MTU", without any further designations.

In the cases where solicitations are made by University employees for legitimate University purposes, donors must be instructed to make drafts payable to "Michigan Technological University,” "Michigan Tech,” or "MTU.”

Returning a draft to the maker with a request that the draft be rewritten so as to divert the funds from the University is strictly prohibited.

Banks honoring draft instruments for deposit to a Michigan Tech Fund account made payable to Michigan Technological University, or vice versa, run the risk of substantial liability as there is an obvious difference between the payee and endorser.

Extraordinary cash receipts (such as items representing gifts and/or grants to the University) must be accompanied by documentation provided by the donor or other correspondence when the draft instrument is deposited at the Cashiers' Office. Draft instruments received without such documentation or where disposition is not otherwise apparent, will be credited to a clearing account.

When an employee or groups of employees of the University solicit funds for a private purpose, such as a non-University sponsored retirement function, the solicitation must specify that any drafts must be made payable to a person or entity that does not identify the person or entity as acting on behalf of the University. If any drafts received are made payable to MTU and deposited with the University, disbursements from that deposit must be made in accordance with University policy.