xt71vh5cc95p https://exploreuk.uky.edu/dips/xt71vh5cc95p/data/mets.xml Lexington, Kentucky University of Kentucky 1953037 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1953-03-apr7. text Minutes of the University of Kentucky Board of Trustees, 1953-03-apr7. 1953 2011 true xt71vh5cc95p section xt71vh5cc95p 









      Minutes of the Meeting of the Board of Trustees of the University of Ken-
tucky, April 7, 1953.


      The Board of Trustees of the University of Kentucky met in the President' 8
Office at 10:00 a. m. , Tuesday, April 7, 1953, with the following members pres-
ent: Guy A. Huguelet, Vice Chairman; Carl Dempewolfe, H. D. Palmore,
Herndon J. Evans, Smith D. Broadbent, Jr., Harper Gatton, Wendell P. Butler,
Ben S. Adams and M. W. Moore. Absent were: Governor Lawrence W. Wether-
by, Mrs. Paul G. Blazer, Paul M. Basham, John C. Everett, Thomas A.
Ballantine, and R. P. Hobson.  President H. L. Donovan and Secretary Frank
D. Peterson met with the Board.



      A. Approval of Minutes.

      On motion duly made, seconded and carried, the minutes of the Board of
Trustees of December 19, 1952; and the minutes of the Executive Committee of
February 20 and March 20, 1953, were approved as published.



     B. Purchase of Property at 400 Rose Street.

     President Donovan stated that, by authority of the Board of Trustees, the
University of Kentucky entered into a Lease and Agreement with Mr. and Mrs.
C. K. Morrell, under date of July 22, 1948. The Lease was to run for a period
of five years. The Agreement provided that, at the end of the five-year term,
the University had the option to continue the Lease or purchase the property for
the sum of $ 10, 000. President Donovan stated that 400 Rose Street was on the
southeast corner of the intersection of Euclid Avenue and Rose Street. It is a
very valuable piece of property, adjacent to the campus. This property could
be sold at public auction for more than the option held by the University. He
recommended that the Comptroller be authorized to notify the owner of this
property of the decision of the Board of Trustees of the University to purchase
the property upon termination of the lease period July 31, 1953.

     Members of the Board being advised, upon motion duly made, seconded
and carried, authorized the property at 400 Rose Street purchased for the sum
of $ 10, 000, purchase price to be paid from the Haggin Fund, and income from
this property to be used to repay the Haggin Fund for the purchase price.


     C. Change in the Budget.

     President Donovan stated that, through the death of President Emeritus
Frank L. McVey, the University budget should be changed by decreasing the
appropriation to the President' s Office in the amount of $ 1761. 36, for the
remainder of the current fiscal year. He recommended that the change be au-
thorized.




 










      Upon motion duly made, seconded and carried, the Comptroller was di-
rected to make the necessary budget adjustments in accordance with the Pres-
identt s recommendation.


      D. University Budget for 1953-1954 Approved.

      President Donovan stated that he was submitting the budget for the Division
of Colleges and Plant and Restricted Funds.  The budgets for the Agricultural
Experiment Station and Agricultural Extension Division were not included because
sufficient information was not yet available concerning Federal appropriations
for these budgets to be formalized.

      President Donovan made a statement as to how the University budget is de-
veloped and prepared.  He recalled that the efforts of many people are utilized
in the formulation and preparation of a budget of this magnitude and detailed the
steps involved. He presented a prepared statement showing median and av-
erage salaries at the University and certain comparable institutions for 1951-52.
He explained that this was the latest comparable data available.

     President Donovan emphasized the differences in salaries at the University
as compared in the table distributed. He called attention to comparable data
stating that salaries at the University of Kentucky are about 4% higher in 1952-
53 than they were in 1951-52. However, it can safely be assumed that salaries
in comparable institutions have risen at least this much and probably more. In
other words, there is little reason for believing that we have improved our com-
petitive position by the increases given for 1952-53 or that it will be bettered
by the increases proposed for the next year.

     The President asked the Comptroller to read COMMENTS ON TDIE ANNUAL
INTERNAL BUDGET for the fiscal year ending June 30, 1954, summarizing es-
timated income and anticipated expenditures.


     INTRODUC TION

          The General University Budget consists of four divisions; namely:

               1. Division of Colleges and Plant,
               2. Agricultural Experiment Station.
               3. Agricultural Extension
               4. Restricted Fux-.

          The budget herein submitted contains only requests for the Division of
     Colleges and Plant and the Restricted Funds.  The budgets for the various
     departments of the Agricultural Experiment Station and the Agricultural
     Extension Diyision have been omitted from this budget because of the un-
     settled conditions relating to federal appropriations by Congress for the
     ensuing year.  We do not know at this time whether Congress will increase
     or decrease federal appropriations for agricultural experimentation and
     agricultural extension work.  These budgets for the fiscal year 1953-54
     will be prepared and presented to the Board for approval as soon as we are
     notified by the Federal Department of Agriculture of federal grants avail-
     able to Kentucky.




 










INC OME

      The estimated income for the Division of Colleges and Plant for the
fiscal year 1953-54 totals $ 4, 757, 567. 87, an increase of $ 384, 876. 82
over the estimated income for the current fiscal year.  The biennial
budget enacted by the General Assembly and approved by the Governor
in 1952 provided for an increase of $ 249, 600. 00 in the appropriation
for operations of the Division of Colleges for the second year of the
biennium.  The University State appropriation for Vocational Education
through the State Department of Education for the year 1953-54 has been
decreased $ 467. 59. Therefore, the net increase from state appropriations
for the Division of Colleges is $ 249, 132. 41. Federal funds for Vocational
Education purposes (Smith-Hughes Act) is received on a matching basis,
and since the State Vocational Education funds allocated to the University
were decreased $ 467. 59, there will be a like decrease in federal grants
for these purposes.

      The estimated income from student fees for the ensuing fiscal year
is increased by $141, 778. 00. This increase is due to an expected enroll-
ment of 2, 300 for the summer term and 4, 800 for each of the two semesters
for the academic year 1953-54. Also, the estimate of income from stu-
dent fees takes into account veterans, tuition in arrears.  It, likewise,
reflects the fact that the Korean veterans will pay the same fee and be
considered as any other student, thus eliminating the "tuition" charge
in addition to the registration and incidental fee, formerly received from
veterans enrolled under the original G. I. Bill of Rights.

      The estimated income for auxiliary enterprises reflects a decrease
of $ 4, 843. 00 for the year 1953-54.  A small decrease in the summer term
occupancy in the residence halls is anticipated.  There is a small decrease
in the requirements for debt service in the Plant Fund.

EXPENSE

      The total estimated expenditures for the Division of Colleges and Plant
for the fiscal year 1953-54 are $ 5, 240, 217. 04.  This is an increase over
the estimated expenditures for 1952-53 of $ 531, 097. 86.  The amount budget-
ed for Plant commitments is $ 3, 765. 00 less than the preceding year. Ap-
propriations for all other functional purposes have been increased.  The
requested appropriation for administrative and general expense has been
increased $ 57, 857. 00. However, $ 22, 280. 00 of this increase is budgeted
for an International Business Machine Service Unit to be used for adminis-
trative and research purposes.  The rate of employer' s contribution to
Social Security will on January 1, 1954, be increased from 1-1/z to 2 per
cent on gross wages and salaries.  This increase in rate will cost the
University an additional $15, 000. 00 for the period.  The normal adminis-
trative and general expense for the University has been increased $ 20, 577. 00,
which is 3. 87 per cent of the total increase for the Division of Colleges and
Plant.

     The largest increase is for instruction, research, and related activ-
ities, which amounts to $ 31i, 199. 86.  This is 58. 59 per cent of the total
increase of $ 531, 097. 86 for the Division of Colleges and Plant. Practically




 






4



all of the increase for instruction, research and related activities has
been applied to salary increases.

    The amount budgeted for auxiliary enterprises has been increased
$ 93, 813. 00, of which $ 90, 000. 00 has been requested for equipment for
various buildings, including new dormitories.  The other auxiliary
budget requests are approximately the same as they were last year.

    The appropriation for maintenance and operation of the physical plant
has been increased $ 44, 243. 00, which is 8. 33 per cent of the total increase
for the Division of Colleges and Plant for 1953-54. About $ 30, 000. 00 of
this increase has been allocated to salaries and wages, and the remainder
has been budgeted for normal increases in operating and maintenance costs.

    This budget contains the Plant Fund appropriations.  The proposed
plant expenditures provide only for the retirement of bonds, the interest
due and the bank charges, incident to bond issues, for the fiscal year
1953-54. It is understood that the unexpended balance of the 1952-53
plant appropriations will be continued and carried forward to the ensuing
year.

BUDGET SUMMARY

    The budget summary for the Division of Colleges and Plant is presented
on the following page on a comparative basis for the fiscal yeamsl952-53 and
19 53 -54.




 






5



  BUDGET SUMMARY
  Division of Colleges
Year 1952-53     1953-54



Resources:
Estimated Income:
  State Appropriations
  Federal Grants
  Endowment Income
  Sales, Services and Rentals
  Student Fees
  Auxiliary Enterprises
  Miscellaneous

          Total Estimated Income

Add:
Estimated Surplus--July 1, 1952 &
                  1953
   Total Resources Available

Less:
Appropriation:
Estimated Expenditures:
Admin. & General Expense
Instruction, Research & Related
     Activities
 Maintenance & Operations of
     Physical Plant
 Auxiliary Enterprises
 Plant Commitments
 General Stores

    Total Estimated Expenditures

Estimated Surplus - July 1, 19 53-
                  1954



1952-53
Budget



1953 -54
Budget



$3, 161, 281. 09 $ 3,410, 413.50
   128, 699. 46  128, 231. 87
     9,644.50       9,644.50
     18, 700. 00  18, 700.00
   546,022.00   687,800.00
   479,992.00   475,149.00
   28,352.00    27,629.00

$ 4,372,691. 05 $ 4, 757, 567. 87



1,012,261. 07  675,832.94
$ 5,384,952.12 $5,433,400.81




$  397,077.00 $  454,934.00

2,919,700.18  3,230,900.04

   805,977. 00   850,220.00
   338,824.00    432,637.00
   220,291.00    216,526.00
   27,250. 00    55, 000.00

$4, 709,119.18 $ 5,240,217.04


$  685,832.94 $  193,183.77



Inc rease
(Decrease)

$  249,132.41
       467.59)


   141, 778.00
(*   4,843.00)
C:    - 723. 00)



$  384,876.82



(  336, 428. 13)
$   48, 448. 69




$   57, 857.00

   311, 199. 86

   44, 243. 00
   93, 813. 00
     3, 765. 00)
     27, 750. 00



$  531,097.86



($  482,649.17)



RES TRIC TED BUDGETS

     The Board of Trustees has authorized the establishment of various funds
classified as Restricted or Trust Funds (Kentucky Revised Statutes 41. 290). The
Board directed that these "private funds and contributions" be retained and depos-
ited in a local bank. Budgets are included herein for most of these monies. Those
not included were omitted because sufficient data were not available. In all cases
Restricted Fund budgets are submitted for approval at the time of receipt of funds.
In the latter case, acceptance of the funds by the Board is considered to be au-
thorization for spending the funds in accordance with the terms of acceptance.




 






6



      President Donovan examined with members of the Board of Trustees the
summary of estimated income and departmental appropriations. He pointed
out specifically appropriations for various colleges and individuals. He ex-
plained that a complete copy of the Annual Internal Budget for the year 1953-
54 had, been prepared for each member of the Board and they were at liberty to
keep the copies if they so desired. He urged them to study the budget in detail.

      A general discussion of anticipated income and recommended appropriations
ensued. Members of the Board being advised, upon motion duly made, seconded
and carried, the budget was authorized accepted as a basis of maximum expendi-
tures for the year 1953-54, and it was noted that the inclusion of the name of any
person in the budget shall not be considered as a contract of employment, and
the Board of Trustees or the Executive Committee shall be authorized to make
such changes in the budget as may from time to time be deemed necessary or
desirable. A copy was ordered filed.



      E. Appropriation for Dawson Springs 4-H Club Camp.

      President Donovan stated that the State Department of Conservation, in co-
operation with the Federal Government, had given to the University of Kentucky
a tract of several hundred acres of land near Dawson Springs, Ky. He stated
that he and others had personally inspected this property. It is ideally situated
for a 4-H Club camp and could be used to a great advantage in our agricultural
extension program.  The State Property and Building Commission has appropri-
ated an allocation of $ 25, 000. 00 to construct a club house. Interested citizens
in western Kentucky have raised, through gift., about $40, 000 with which to
assist in the construction of sleeping quarters. Additional funds may be raised
through efforts of interested citizens. President Donovan recommended that
the University appropriate $ 1 0, 000 to assist in the over-all project.

     Members of the Board discussed the desirability of the project and other
phases involved.  Upon motipn duly made, seconded and carried, the sum of
$ 10, 000 was authorized appropriated from the unappropriated surplus of the
University to assist in activating this property for a 4-H Club Camp.



     F. Bids on Small Dormitory Construction Considered.

     President Donovan reported that competitive bids had been received by
the State Department of Finance, based on plans and specifications for the construc-
tion of six small dormitories east of Rose Street and west of Woodland Avenue Ex-
tended, near Cooperstown. He submitted a list of eight bids received.  The low
lump-sum bid was submitted by Hargett Construction Co. , Inc. , 113 Walton Ave-
nue, Lexington, Ky.  Mr. Ernst Johnson, architect for the project, was asked
to meet with the Board and make recommendation.

     Mr. Johnson stated that he and the Comptroller had conferred on Alternates
No. 1 and No. 5, which are additives, and referred to inclusion of kitchen equip-
ment and extra fire alarm system respectively. He recommended acceptance of
Alternate No. 1 and rejection of Alternate No. 5. This recommendation was
concurred in by President Donovan and Comptroller Peterson.  Alternates Nos.




 






7



2, 3 and 4 are deductives and refer to waterproofing, painting and built-in
chests of drawers and closets respectively. He recommended acceptance of
Alternate No. 2 for the deduction of $ 2, 100. 00 for waterproofing, and the re-
jection of Alternates No. 3 and 4, as set forth in the specifications. The total
Hargett Construction Company lump sum bid, adjusted by alternates, is $ 66Z, 156. 00.

      President Donovan, Comptroller Peterson and Mr. Johnson, the architect,
recommended acceptance of the low bid.

      It was further stated that the sum of $ 662, 156. 00 did not include the archi-
tect, s fee for plans and specifications, or cost of the sale of the bonds or interest
on borrowed money during construction.

      Mr. Johnson left the meeting.

      Board members being advised, upon motion duly made, seconded and carried,
the Hargett Construction Company, Inc., bid of $66Z, 156.00 was accepted, and
the Comptroller was directed to request the purchasing division of the State Depart-
ment of Finance to make the award of the contract.



     G. Issuance and Sale of Dormitory Revenue Bonds of 1953 Authorized.

     President Donovan stated that the University would furnish the sites for six
small dormitory buildings, construct roadways and install utilities, but it would
be necessary to finance the construction of six small dormitory buildings through
the issuance of revenue bonds. He stated that provisions of Section 162. 340 and
succeeding sections of the Kentucky Revised Statutes authorized the Board of
Trustees, with the approval of the State Property and Building Commission to
issue bonds for the purpose of financing the cost of buildings needed for University
purposes and not otherwise provided. He recommended that dormitory revenue
bonds of 1953 be issued and sold for the purpose of paying the construction cost,
including architect' s fee and interest during the period of construction of these
six buildings. Mr. Peterson reported that the AIttorney General had approved the
bond 'resolution. Whereupon Harper Gatton introduced and caused to be read the
following proposed Resolution entitled "Resolution of the Board of Trustees of the
University of Kentucky providing for the issuance, sale and delivery of dormitory
revenue bonds of 1953, to pay the cost of constructing six small dormitory build-
ings upon premises owned by the University of Kentucky in Lexington, Ky. ",
which Resolution and Notice of Sale of Bonds are as follows:




      A RESOLUTION OF THE BOARD OF TRUSTEES OF THE UNIVERSITY
      OF KENTUCKY PROVIDING FOR THE ISSUkANCE, SALE AND DELIVERY
      OF DORMITORY REVENUE BONDS, OF 1953, TO PAY THE COST OF
      CONSTRUCTING SIX SMALL DORMITORY BUILDINGS UPON PREMISES
      OWNED BY THE UNIVERSITY IN LEXINGTON, KENTUCKY

         WHEREAS, the University of Kentucky and its students are not now
     being provided with adequate buildings for educational purposes and in
     order to provide same, it is necessary that there be constructed six




 





8



small dormitory buildings upon premises owned by the University and
to be generally known and designated as Student Dormitories A, B, C,
D, E and F; and

    WHEREAS, plans and specifications for such construction have
been prepared and submitted to the Executive Committee of this Board
and the same have been approved and construction contracts have
been received and provisionally accepted, indicating to the Board of
Trustees that the cost of such buildings will exceed the available
funds on hand and which have been set aside for that purpose, by not
more than Seven Hundred Ten Thousand Dollars ($ 710, 000. 00); and

    WHEREAS, under the provisions of Section 162. 340 and succeeding
sections of the Kentucky Revised Statutes, the Board of Trustees of the
University of Kentucky, as the governing body of said state educational
institution, is authorized to issue bonds as hereinafter provided for the
purpose of financing the cost of said building and appurtenances to the
extent not otherwise provided;

    NOW, THEREFORE, THE BOARD OF TRUSTEES OF THE UNIVER-
SITY OF KENTUCKY, RESOLVES AS FOLLOWS:

    Section 1. That the plans and specifications prepared and submit-
ted to the Executive Committee of this Board for the construction of
six small dormitory buildings upon premises owned by the University
and which shall be generally known and designated as Student Dormitories
A., B, C, D, E and F, are hereby in all respects approved. Said build-
ings and appurtenances are hereinafter sometimes referred to as the
"Project".

    Section 2. In order to provide for the payment of the costs of the
Project not otherwise provided, there shall be and there are hereby
ordered to be issued by the Board of Trustees of the University of Ken-
tucky, in its corporate capacity and by and through its corporate name,
and as a state educational institution and agency, bonds which shall be
designated "University of Kentucky Dormitory Revenue Bonds of 1953"
in the aggregate principal amount of Seven Hundred Ten Thousand Dol-
lars ($ 710, 000. 00), dated May 1, 1953, consisting of Seven Hundred
Ten (710) bonds of the denomination of One Thousand Dollars ($ 1, 000. 00)
each, to be numbered consecutively from One (1) to Seven Hundred Ten
(710), both numbers inclusive, bearing interest to be evidenced by
coupons attached to each bond and maturing on November 1 and May 1 of
each year to the respective maturity dates of principal at a rate not
exceeding Six per cent per annum (6%6) (the exact rate to be determined
at the time of the receipt and consideration of financing proposals as
hereinafter provided). Said. bonds shall mature serially and in numerical
order as follows:




 










BONDS NUMBERED             PRINCIPAL AMOUNT         DATES OF MATURITY
   (Inc1usi~                                -       -

       1-15                   $ 15, 000.00              May 1, 1955
       16-30                     15, 000.00              May 1, 1956
       31-46                     16,000.00               May 1, 1957
       47-62                     16, 000. 00             May 1, 1958
       63-79                     17, 000. 00             May 1, 1959
       80-96                     17, 000.00              May 1, 1960
       97-114                    18,000.00               May 1, 1961
     115-133                    19, 000.00              May 1, 1962
     134-152                    19,000.00               May 1, 1963
     153-172                    z0, 000. 00             May 1, 1964
     173-192                    20, 000.00              May 1, 1965
     193-213                    21,000.00               May 1, 1966
     214-235                    22, 000. 00             May 1, 1967
     236-258                    23, 000. 00             May X, 1968
     259-281                    23, 000.00              May 1, 1969
     282-305                    24, 000. 00             May 1, 1970
     3 06-330                   25, 000. 00             May 1, 1971
     331-356                    26, 000.00              May 1, 1972
     357-383                    27, 000. 00             May 1, 1973
     384-411                    28, 000.00              May 1, 1974
     412-440                    29, 000.00               May 1, 1975
     441-470                    30, 000.00               May I, 1976
     471-501                    31,000.00                May 1, 1977
     502-533                    32, 000. 00             May 1, 1978
     534-566                    33, 000. 00             May 1, 1979
     567-600                    34, 000. 00             May 1, 1980
     601-635                    35, 000.00               May 1, 1981
     636-672                    37, 000.00               May 1, 1982
     673-710                    38,000.00                May 1, 1983


provided, however, that said bonds numbered 63 to 710, inclusive, shall
be redeemable prior to maturity in whole, or from time to time in part,
in the inverse order of their maturity (less than all of a single maturity
to be selected by lot), on any interest payment date on or after May 1,
1958, providing a notice specifying the bonds to be redeemed shall have
been on file at the place of payment of the principal and interest at least
thirty (30) days prior thereto, and provided also that such notice shall
have been published at least once not less than thirty (30) days prior to
the redemption date in a newspaper having general circulation throughout
Kentucky. In the event of redemption prior to stated maturities in ac-
cordance with these provisions the holder of each bond so redeemed shall
be entitled to receive on the specified redemption date the face amount of
the bond, together with interest to the redemption date at the coupon rate
and together with additional interest, per bond, in the sum of Thirty
Dollars ($ 30. 00) if the redemption date is prior to May 1, 1963; Twenty
Dollars ($ 20. 00) if the redemption date is on or after May 1, 1963 but
prior to May 1, 1968; Fifteen Dollars ($ 15. 00) if the redemption date is
on or after May 1, 1968 but prior to May 1, 1973; Ten Dollars ($ 10. 00)
if the redemption date is on or after May 1, 1973 but prior to May 1,
1978; and Five Dollars ($ 5. 00) if the redemption date is on or after May
1, 1978, to final maturity. All bonds called for redemption and for which




 





10



funds are duly provided as herein provided shall cease to bear interest
as of the redemption date.

    Said bonds shall be signed for and on behalf of the Board of Trustees
of the University of Kentucky by the Chairman of said Board of Trustees,
attested by its Secretary, and sealed with its corporate seal, and the
interest coupons attached to said bonds shall be executed with the fac-
simile signatures of said Chairman and said Secretary, and said bonds
together with interest thereon shall be payable in lawful money of the
United States of America at the office of Security Trust Company in the
City of Lexington, Kentucky, but only out of the 'IStudent Dormitories
Revenue Bond and Interest Redemption Fund of 1953", hereinafter created,
and shall be a valid claim of the holders thereof only against said fund,
and the gross income and revenues of the project pledged to such fund.

    Section 3. The aforesaid bonds and coupons shall be in substantially
the following form, to-wit:

                        (Form of Bond)

                UNITED STATES OF AMERICA
              COMMONWEALTH OF KENTUCKY
                 UNIVERSITY OF KENTUCKY
                 DORMITORY REVENUE BOND
                           OF 1953

       (STUDENT DORMITORIES A, B, C, D, E AND F)

Not                                                         $ 1, 000. 00

    KNOW ALL MEN BY THESE PRESENTS:

    That the Board of Trustees of the University of Kentucky, as a state
educational institution and agency, for value received, hereby promises
to pay to the bearer, or if this bond be registered, to the registered hold-
er hereof, as hereinafter provided, the sum of One Thousand Dollars
($ 1, 000. 00) on the first day of May, 19  , with interest thereon
from the date hereof until paid at the rate of           per cent
      %) per annum, payable semi-annually on November 1 and May 1
of each year, except as the provisions hereinafter set forth with respect
to prior redemption may be and become applicable hereto, such interest
as may accrue on and prior to the maturity date of this bond to be paid
only upon presentation and surrender of the annexed interest coupons as
they severally mature, both principal and interest being payable in lawful
money of the United States of America at the principal office of Security
Trust Company, in the City of Lexington, Kentucky.

    The right is hereby reserved to call and redeem bonds numbered 63
to 710 of the series of which this bond is a part prior to stated maturities,
in whole, or from time to time in part, in the inverse order of their
numbering, on May 1, 1958, or on any interest payment date thereafter
providing a notice specifying the bonds to be redeemed shall have been
on file at the place of payment of the principal and interest at least thirty
(30) days prior thereto and providing also treat such notice shall have
been published at least once not less than thirty (30) days prior to the
redemption date in a newspaper having general circulation throughout




 






1'



Kentucky. Upon the specified redemption date the holder of each bond so
redeemed shall be entitled to receive the face amount of the bond, togethe-
er with interest to the redemption date at the coupon rate and together
with additional interest which shall be in the sum of Thirty Dollars
($ 30. 00) if the redemption date is prior to May 1, 1963; Twenty Dollars
($ 20. 00) if the redemption date is on or after May 1, 1963 but prior
to May 1, 1968: Fifteen Dollars ($ 15. 00) if the redemption date is
on or after May 1, 1968 but prior to May 1, 1973; Ten Dollars ($ 10. 00)
if the redemption date is on or after May 1, 1973 but prior to May 1,
1978; and Five Dollars ($ 5. 00) if the redemption date is on or after May
1, 1978, to final maturity. Bonds called for redemption as herein provided
and funds for the payment of which have been duly set aside, shall cease to
bear interest as of the redemption date.

    This bond is issued for financing the cost not otherwise provided of
six small dormitory buildings and appurtenances for educational purposes
in connection with the University of Kentucky, under and in full compliance
with the Constitution and Statutes of Kentucky, including among others,
Sections 162. 350 to 162. 380, inclusive, of the Kentucky Revised Statutes.

    This bond is payable only from a fixed amount of the gross income
and revenues to be derived from the operation of said dormitories and
appurtenances, which will be set aside as a special fund and pledged for
that purpose and identified as the "Student Dormitories Revenue Bond and
Interest Redemption Fund of 1952", and this bond does not constitute an
indebtedness of the University of Kentucky or its Board of Trustees or of
the Commonwealth of Kentucky within the meaning of any constitutional
provisions or limitations.

    A statutory mortgage lien, which is hereby recognized as valid and
binding on said dormitory buildings and appurtenances, is created and
granted to and in favor of the holder or holders of this bond and the series
of which it is a part and in favor of the holder or holders of the coupons
attached thereto, and said dormitory buildings and appurtenances shall
remain subject to such statutory mortgage lien until the payment in full
of the principal of and interest on this bond and the series of which it is
a part.

    This bond is fully negotiable but may be registered as to principal
only on the books of the Secretary of the Board of Trustees of the Uni-
versity of Kentucky, such registration to be evidenced by notation there-
of on the reverse hereof by said Secretary, after which no transfer of
this bond shall be valid unless made on said books at the written request
of the registered owner or his authorized representative and similarly
noted on the reverse hereof; but this bond rnay be discharged from
registry by being registered to bearer, and thereafter transferability by
delivery shall be restored.  Registration of this bond as aforesaid shall
not affect the negotiability of the coupons appurtenant hereto, which
shall continue to be transferable by delivery merely and shall remain
payable to bearer.

    IT IS HEREBY CERTIFIED, RECITED AND DECLARED, that all
acts, conditions and things required to exist, happen and be performed




 






12



precedent to and in the issuance of this bond do exist, have happened
and have been performed in due time, form and manner as required by
law, and the amount of this bond, together with all other obligations
of said University of Kentucky and its Board of Trustees, does not
exceed any limit prescribed by the Constitution or Statutes of Kentucky;
that said dormitory buildings and appurtenances will be continuously
operated by said University of Kentucky, and that a sufficient portion
of the gross income and revenues therefrom has been. pledged to and
will be set aside into a special account for the payment of the principal
of and interest on this bond and the series of which it is a part, as the
same will respectively become due.

    IN WITNESS WHEREOF, the Board of Trustees of the University of
Kentucky has caused this bond to be signed by its Chairman, and its cor-
porate seal to be hereunto affixed, attested by the Secreta