POLICY NAME: 317.01: Cancellation of Uncollectible Debt EFFECTIVE: 04-13-2016 SUPERSEDES: SOURCE: Alabama Const. Art. IV, Sec 93; AG Opinion #2007-080 (April 11, 2007) CROSS REFERENCE:

The Chancellor is authorized to review and submit to the Attorney General’s office for approval the cancellation of uncollectible debt incurred at an institution. The Chancellor shall report all approved cancellations of uncollectible debt to the Board of Trustees.

PROCEDURE:

1. Each institution must take appropriate measures, including utilizing the services of a collection agency, to collect all outstanding debt.

2. After all methods of collection have been exhausted and the debt is deemed uncollectible, the institution must submit a letter to the Chancellor to request cancellation of the uncollectible debt. The request must include a letter from a collection agency stating that the debt is uncollectible, the date the debt was due, the debtor’s name, and the dollar amount owed.