Financials

Debt Service Schedule

(a) Revenue Bond, 1998 Series 1

During August 1998, the Institute arranged a $17,000,000 loan with the New Jersey Educational Facilities Authority through the Authority’s issuance of Stevens Institute of Technology Revenue Bonds, 1998 Revenue I. The 1998 Revenue I Bonds are a special obligation of the Authority payable from and secured by a pledge of revenue derived by the Authority pursuant to the mortgage loan agreement between the Authority and the Institute. Principal and interest payments on the long term debt are made by the Institute on a semi-annual basis to the trustee. The bonds are due serially through 2028 with interest ranging from 4.25% to 5.38%.

The mortgage loan agreement is secured by (i) a mortgage on the land on which the athletic and recreation center was built; (ii) any building improvements to be made to the land; and (iii) the Technology Hall and the land upon which it was constructed.

(b) Higher Education Capital Improvement Fund Series 2000A

The Institute entered into a loan agreement with the Authority on July 31, 2000 for capital improvements and related costs. The loan agreement was financed through the issuance of bonds by the Authority, the Institute’s portion of which amounted to $143,138. In accordance with the loan agreement, the Institute is required to provide one-half (50%) of the annual debt service and related costs. The State of New Jersey is obligated to provide one-half (50%) of the annual debt service and related costs. The bonds mature on August 15, 2020 and bear an interest rate ranging form 5.00% to 5.75%.

(c) Higher Education Capital Improvement Fund Series 2000B

The Institute entered into a loan agreement with the Authority on July 31, 2000 for capital improvements and related costs. The loan agreement was financed through the issuance of bonds by the authority, the Institute’s portion of which amounted to $1,468,088. In accordance with the loan agreement, the Institute is required to provide one-half (50%) of the annual debt service and related costs. The State of New Jersey is obligated to provide half (50%) of the annual debt service and related costs. The bonds mature on September 1, 2020 and bear an interest rate ranging from 2.34% to 5.75%.

(d) Dormitory Safety Trust Fund Series 2001 A and B

The Institute entered into a loan agreement with the Authority on May 3, 2001 for improvements of dormitory safety facilities, including fire prevention and sprinkler systems. The loan agreement was financed through the issuance of bonds by the Authority. The Institute’s portion amounted to $1,200,000. In accordance with the loan agreement, the Institute is required to provide for the principal payments of the annual debt service in fifteen annual installments. On July 1, 2003 the Institute received an additional $1,000,000 from the Authority financed through the issuance of Dormitory Safety Trust Fund 2001 A Bonds. In accordance with the loan agreement, the Institute is required to provide for the principal payments of the annual debt service in 14 annual installments. The State of New Jersey is obligated to provide the interest payments of the annual debt service. At June 30, 2004 and 2003, the Institute’s liability, present valued, amounted to $1,361,000 and $741,199 respectively. The bonds mature on January 15, 2016.

(e) Equipment Leasing Fund Series 2001 A

The Institute, along with other institutions, entered into a capital lease agreement with the Authority, dated September 1, 2001, for equipment purchases required for laboratory and instructional facilities. The agreement was financed through the issuance of Authority bonds, the Institute’s portion of which amounted to $191,412. The bonds were issued on September 1, 2001 and bear interest at the rate ranging from 3.5% to 5.00% per annum and mature on august 1, 2009. In accordance with the agreement, the Institute is required to make annual lease payments equal to 25% of the annual debt service and related costs. The State of New Jersey is obligated to pay the remaining 75% of the annual debt service and related costs. As of June 30, 2004 and 2003, the Institute had a capital lease obligation, net of unamortized interest, of $150,102 and $171,119 respectively.

(f) Revenue Bonds, 2002 Series C

During December 2002, the Institute arranged a $59,585,000 mortgage loan with the Authority through the Authority’s issuance of Stevens Institute of Technology Revenue Bonds, 2002 Series C. The Institute on a semi-annual basis makes principal and interest payments on the long-term debt to the trustee. The bonds are due serially through 2032 with interest ranging form 3.00% to 5.25%.

The mortgage loan agreement is secured by (i) a first and second mortgage of the land on which the athletic and recreation center was built; (ii) any building improvements to be made to the land; (iii) the Technology Hall and the land upon which it has been constructed. The Institute pledges rentals, tuition fees and other available money sufficient to cover the cost of operating and maintaining the projects financed under the mortgage loan agreement.

Under the 2002 Series C Bonds the mortgage loan agreement requires the Institute to establish and maintain all original funds as deposit with a trustee in a debt service reserved account and construction and other escrow accounts similar to a construction loan whereby the Trustee, as evidenced by Institute payments, releases funds during construction. Such deposits amounted to $31,831,717 and $51,914,424 as of June 30, 2004 and 2003, respectively.

(g) Dormitory Safety Trust Fund, Series 2003 A

On January 15, 2004, the Institute entered into a loan agreement with the Authority for improvements of dormitory safety facilities, including fire prevention and sprinkler systems. The loan agreement was financed through the issuance of bonds by the Authority. The Institute’s portion of the funds amounted to $243,500. In accordance with the loan agreement, the Institute is required to provide principal payments of the annual debt service in fifteen annual installments. The State of New Jersey is obligated to provide the interest payments of the annual debt service. As of June 30, 2004, the Institute’s liability, present valued, amounted to $184,788. The loan matures on January 15, 2018.

(h) Equipment Leasing Fund, Series 2003 A

On September 1, 2003, the Institute entered into a loan agreement with the Authority for Equipment purchases required for laboratory and instructional facilities. The loan agreement was financed through the issuance of bonds by the Authority. The Institute’s portion of the funds amounted to $16,517. In accordance with the loan agreement, the Institute is required to provide twenty-five (25%) percent of the annual debt service and related costs. The State of New Jersey is obligated to provide seventy-five percent (75%) of the annual debt service and related costs. The interest ranges from 3.50% to 5.00%. The loan matures on August 1, 2011.