SUBJECT: Kappa Sigma Gamma Nu Alumni Association
The Gamma Nu Alumni Association, the alumni housing corporation for the campus Kappa Sigma fraternity, is making improvements on the house and has obtained financing for the project from the Washburn Endowment Association. The Kappa Sigma house, like the other Greek houses on campus, is owned by the alumni association and located on land leased to them on a long term lease. The first loan made by the Washburn Endowment Association was made in 1947 in conjunction with of the sale of the house to the chapter and lease of the land to the alumni association.
In 1979, the Washburn Endowment Association, the Gamma Nu Alumni Association and Washburn University entered into a tripartite agreement under which the Gamma Nu Alumni Association borrowed funds from the WEA which were guaranteed by the University. Under the loan guaranty agreement an escrow agent holds "...a deed to and bill of sale for the Building, transferring and selling all of Alumni's interest in said Building to the University" so in event of default the house becomes the property of the University.
The Gamma Nu Alumni Association has sought, and the WEA has agreed to make, an advance of $40,000 for the improvements to the Kappa Sigma house which would be added to the balance of approximately $36,000 from the previous loan made in 1979 for which the University would continue to be the guarantor.
President Farley recommends the Board of Regents approve the continuation of the University's serving as guarantor on the WEA loan to the Gamma Nu Alumni Association.
(date) Jerry B. Farley, President