September 19, 2003

Unorthodox Strategy Saves Financially Strapped College, for Now

By JOHN PULLEY

By JOHN L. PULLEY

Teetering on the edge of bankruptcy, Hood College backed away from the financial abyss this summer by tapping into restricted endowment funds that are generally considered untouchable. An unusual legal maneuver allowed the college to pry loose $10.5-million from its $50-million endowment, pay off defaulted loans, and continue operations this fall.

"We fashioned in a legal manner a financial game plan that may very well set the model for other

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