Encumbrance Policy Frequently Asked Questions

What is "encumbrance?"
What information needs to be included in the lease, lease addendum, or membership contract?
What do I do if this information is not included in the current lease?
How do I encumber a member’s record for out of house fees or suite fees?
What payments are eligible to be submitted for record encumbrance?
What payments are not eligible to be submitted for record encumbrance?
What chapters are eligible to encumber a member's record?
Are sororities eligible for this program?
Is there an appeal process?

What is "encumbrance?"

Fraternities and sororities are able to place a hold on, or "encumber," a member's records when that member fails to meet the financial obligations agreed upon for chapter housing. While encumbered, a student is not able to register for classes, obtain transcripts, add/drop classes, etc. until the bill has been paid, or the organization lifts the encumbrance.
 
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What information needs to be included in the lease, lease addendum, or membership contract?

  • The specific amount due.
  • The specific date payment was due.
  • Contracts must be properly signed and dated.
  • The encumbrance information statement verbatim (see below)
    • "The student (and his/her parent or guardian if he/she is a minor) expressly agrees that, at the request of the fraternity/sorority chapter or house corporation, Ball State University may place a hold on the records of the student for failure to pay, when due, all room rental, parlor/out-of-house fees, and board charges. The student (and his/her parent or guardian if he/she is a minor) expressly authorizes Ball State University to make the encumbrance with full knowledge that the encumbrance includes, but is not limited to:
      • Denial of the student's ability to obtain a copy of his/her transcript of academic records
      • Denial of the student's ability to register for future classes
      • Denial of the student's ability to make changes to his/her schedule (i.e. drops/adds)
      • Denial of the student's ability to receive a diploma

                        The encumbrance does not impair or limit the fraternity/sorority chapter or house corporation from taking legal action with 
                        respect to the unpaid obligations for which the encumbrance was made. The encumbrance procedure may not apply to 
                        any obligations that may be incurred by the student after he/she ceases to be a student at Ball State University."

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What do I do if this information is not included in the current lease?

Develop a membership contract or lease addendum. Each tenant needs to sign this form and should be given a copy. The information must be included in the lease the following year.

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How do I encumber a member’s record for out of house fees or suite fees?

The process will work the same. Members must sign a membership contract with the same information as a lease. See above.
 
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What payments are eligible to be submitted for record encumbrance?

  • Rent Payments paid to a housing corporation.
  • Parlor or "out-of-house" fees paid to a housing corporation by members not residing in the chapter house.
  • Fees assessed by chapters for payment of residence hall suite costs.
  • Total amount to be encumbered must be equal to, or greater, than $25.00.

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What payments are not eligible to be submitted for record encumbrance?

  • Social dues.
  • Chapter fines.
  • Other fees assessed by the national or international organization (annual dues, initiation fees, pledge fees, insurance).

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What chapters are eligible to encumber a member's record?

  • Chapters with loans guaranteed by Ball State University are required to participate in this program. Other chapters may choose to participate, but participation is not mandatory.
  • A chapter must have submitted a Greek Excellence Report for the previous year and be in good standing with Ball State University (if the chapter does not have a loan agreement with the University).

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Are sororities eligible for this program?

Yes. Records can be encumbered for suite fees provided proper documentation is made and the process if followed correctly.
 
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Is there an appeal process?

Appeals by individuals having holds placed on their record are heard by the Director or Assistant Director of Student Life at anytime throughout the process, and directors have the discretion to grant or deny the appeal.

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