xt7hdr2p6276 https://exploreuk.uky.edu/dips/xt7hdr2p6276/data/mets.xml Lexington, Kentucky University of Kentucky 19680922 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, 1968-09-oct22. text Minutes of the University of Kentucky Board of Trustees, 1968-09-oct22. 1968 2011 true xt7hdr2p6276 section xt7hdr2p6276 










       Minutes of the Special Meeting of the Board of Trustees of the University of
Kentucky, Tuesday, October 22, 1968


       As provided by action of the Board of Trustees taken on May 7, 1968, when
monthly meetings of the Board were established for the academic year 1968-69,
the Board of Trustees met in special session on Tuesday, October 22, 1968, at
2:00 o'clock, Eastern Daylight Time, in the Board Room of the Administration
Building on the campus of the University with the following members present: Dr.
Ralph Angelucci, Vice Chairman, Mr. William R. Black, Mrs. Rexford Blazer,
Mr. Smith Broadbent, former Governor A. B. Chandler, Mr. Richard E. Cooper,
Dr. Harry Denham, Mr. George W. Griffin, Mr. Robert Hillenmeyer, Dr. N. N.
Nicholas, non-voting faculty members Professor Paul Oberst and Dr. Robert W.
Rudd, and non-voting student member Mr. Wallace Bryan. Absent were: Governor
Louie B. Nunn, Mr. Wendell P. Butler, Mr. Sam Ezelle, Mr. J. Robert Miller,
and Mr. B. Hudson Milner. The administration was represented by Interim P-resi-
dent A. D. Kirwan ant Vice Presidents A. D. Albright, William R. Willard, Robert
F. Kerley, Glenwood L. Creech, Lewis W. Cochran and Acting Vice President of
Student Affairs Stuart Forth. Members of the news media were also present.


      A. Meeting Opened

      The meeting was called to order at 2:00 p.m. Following the invocation,
pronounced by Mr. William R. Black, the secretary announced that a quorum was
present and Dr. Angelucci, presiding in the absence of Governor Nunn, declared
the meeting officially open for the conduct of business at 2: 05 p. m.


      B. Minutes Approved

      On motion by Governor Chandler, seconded by Mr. Hillenmeyer, and passed,
the reading of the Minutes of the September 17, 1968 meeting of the Board of Trustees
was dispensed with and the Minutes were approved as published.


      C. President's Report to the Trustees

      Dr. Kirwan gave the monthly report of the President to the Trustees which
summarized some of the representative activities carried on by the University since
the last meeting. His report was accepted with thanks by the chairman and was
ordered filed.



      D. Recommendations of the President (PR 2)



The recommendations contained in PR 2 were routine in nature, and, upon the




 








2



members indicating they had no questions, Dr. Angelucci called for a motion for
adoption. Mr. T{illenmeyer moved that PR 2, Recommendations of the President,
be approved as a whole and made an official part of the Minutes of the meeting.
His motion was seconded by Governor Chandler and, without objection, it was so
ordered. (See PR 2 at the end of the Minutes. )


      E. Fees Committee Authorized tc Determine Residency for Purpose
of Assessment of Enrollment Fees (PR 4)

       Dr. AJight explained that the recommendation contained in PR 4 was
primarily a confirmation by the Board of Trustees of action taken by the Council on
Public Higher Education relative to the determination of residency for purpose of
assessment of enrollment fees, and delegated the authority for the final decision on
each application to the Fees Committee. He added that the guidelines approved by
the Council on Public Higher Education did not differ greatly from those under
which the University of Kentucky had been operating for some time.

       On motion by Dr. Nicholas, seconded by Mr. Broadbent, and approved, the
recommendations set forth in PR 4 were approved. (See PR 4 at the end of the
Minutes.)


      F. Doctor of Pharmacy Degree in College of Pharmacy Authorized (PR 5)

      Dr. Willard said that the College of Pharmacy under the leadership of Dean
Swintosky had shown remarkable advancement and efforts to integrate the Pharmacy
program into that of Medicine have been most successful. The need for pharmacists
has been growing and the inauguration of the proposed six-year program leading to
the Doctor of Pharmacy degree would be a very important step in the training of
pharmacists. He pointed out that the Doctor of Pharmacy degree would not be the
equivalent of the Ph. D. degree. In answer to a question, he said he believed that
persons earning this degree would probably be employed in research capacities
rather than as pharmacists in drug stores. Dr. Willard concluded his remarks with
the statement that the recommendation that the Doctor of Pharmacy degree be
authorized carried the enthusiastic endorsement and support of the Academic Council
of the Medical Center. An advisory committee made up of pharmacists throughout
the state is also supportive of this proposed advanced professional preparation
program in pharmaceutical education.

      On motion by Governor Chandler, seconded by Mrs. Blazer, and passed
unanimously, the College of Pharmacy of the Albert B. Chandler Medical Center
was authorized to develop an advanced professional preparation program in pharma-
ceutical education leading to the degree of Doctor of Pharmacy. (See PR 5 at the
end of the Minutes. )




 






3



       G. Institution-Wide Self-Study Program Authorized (PR 6)

       Dr. Albriglat explained that every ten years a university which is accredited
by and is a member of the Southern Association of Colleges and Schools is required
to conduct a self-study for purposes of reaccreditation. The time is at hand when
the University of Kentucky is subject to this process. The self-study usually re-
quires eighteen months to complete and the Board of Trustees needs to authorize the
study.

       On motion by Me. Cooper, seconded by Dr. Denham, and passed unanimous-
ly, the Board of Trustees authorized an institution-wide Self-Study program
preparatory to the visitation by the Southern Association of Colleges and Schools for
purposes of accreditation. (See PR 6 at the end of the Minutes.)


       H. Departments of Diagnostic Radiology and Therapeutic
Radiology Created (PR 7)

       Dr. Willard pointed out that there has been a growing appreciation of the
basic differences in the disciplines of Diagnostic Radiology and Therapeutic Radi-
ology for many years. They have been allied in the past mainly by tradition. The
American Board of Radiology is promoting division of the specialty into two distinct
components and. inasmuch as the specialty training programs in these two fields
are separate at the University of Kentucky for all practical purposes, it is deemed
desirable to separate the two departments administratively as recommended by the
American Board of Radiology. Dr. Willard concluded his presentation with the
statement that the proposed separation of the present Department of Radiology into
two departments to be known as the Department of Diagnostic Radiology and the
Department of Therapeutic Radiology would have no noticeable effect on the present
teaching program. He further recommended that Dr. Harold D. Rosenbaum be
named Chairman of the Department of Diagnostic Radiology and that Dr. Robert H.
CflrPEn1iw be named Chairman of the Department of Therapeutic Radiology, with the
division to become effective July 1, 1969.

       Without discussion, the motion was made by Dr. Nicholas, seconded by Dr.
Denham, and passed unanimously, that the recommendations as set forth in PR 7
be approved, (See PR 7 at the end of the Minutes. )


       I. University of Kentucky Sports Center Named for Bernie A.
Shively  PR 8-1)

       Dr. Kirwan said he had been requested by the Board of Directors of the
University of Kentucky, Athletics Association to present a unanimous recommend
dation from that Board to the Board of Trustees of the University of Kentucky that
the new Sports Center be named in honor of Mr. Bernie A. Shivelv, former
Athletics Director of the University, who died in December, 1967. Knowing of the




 






4



high esteem in which the Board of Trustees' members held Mr. Shively, Dr. Kirwan
said the recommendation was presented to the Board of Trustees with the full con-
currence and support of the University's administrative staff.

      After several comments by the members of the Board as to the appropriate-
ness of such an action, the motion was made by Mr. William R. Black that the new
Sports Center of the University of Kentucky be named the Bernie A. Shively Sports
Center. His motion was seconded by Dr. Denham, and passed unanimously. (See
PR 8-1 at the end of the Minutes. )

      Dr. An.gelucci named Mr. William R. Black, Governor A. B. Chandler, and
Dr. Harry Denhama-to serve as a committee to plan a fitting ceremony when a plaque
would be placed on the building designating it as the Bernie A . Shively Sports Center.
Mr. Black was named chairman of the committee.


      J. Extension of Period of Leave Granted Mr. Buster Brown (PR 8-2)

      Dr. Kirwan said a second recommendation from the Athletics Association
Board of Directors concerned the approval by the Board of Trustees of the Uni-
versity of Kentucky of an extension of the military leave granted Mr. Buster Brown,
Equipment Manager of the Athletics Association for many years, to cover the
period January 1, 1943, to January 1, 1952. He indicated that such action was
necessary since Mr. Brown will retire in January, 1969, and there are no official
records to indicate the understanding which Mr. Shively and Mr. Brown had relative  
to his leave of absence from the University to engage in war defense work.

      On motion by Governor Chandler, seconded by Mr. Hillenmeyer, and, with-
out objection so ordered by the Chairman, the military leave of absence granted
Buster Brown, Equipment Manager for the Athletics Association, was extended to
cover the period January, 1943, to January, 1952. (See PR 8-2 at the end of the
Minutes. )


      K. Budget Revisions for 1968-69 Approved (PR 9)

      Dr. Albright indicated that the University had received $27, 811 more in
gifts and grants than anticipated and the proposed budget revisions covered the ex-
penditure of this sum.

      On motion by Governor ChandLekr, seconded by Dr. Nicholajs, and passed
without dissent, the budget revisions recommended in PR 9 were authorized. (See
PR 9 at the end of the Minutes. )



      L. Financial Report Approved (FCR 1)



The Board members, having had an opportunity to examine the financial




 







5



report covering the three months' period, July 1, 1968, through September 30,
1968, had no questions and on motion by Dr. Denham, seconded by Mr. Black, and
approved, the financial report as presented in FCR 1 was accepted and ordered
made a matter of record. (See FCR 1 at the end of the Minutes. )


       M. Audits for the University of Kentucky and the Housing and
Dining System Accepted (FCR 2)

      At the request of Dr. Denhanm. Mr. Kerley explained that the four documents
mailed to the members in advance of the meeting included the following:

       (1) Transmittal letter from the audit firm, Peat, Marwick, Mitchell and
Company indicating the University of Kentucky had abided by the laws of the Common-
wealth.

       (2) Financial Statements and Schedules for the Housing and Dining System of
the University of Kentucky prepared by the auditors.

       (3) A detailed Financial Report for the year ended June 30, 1968.

       (4) A less detailed Financial Report, primarily for distribution
externally.

      He indicated that the management letter from the audit firm would be sub-
mitted to the Board of Trustees after the Finance Committee had had anopportunity
to examine it in detail.

       The Board members indicated they had no questions and on motion by Dr.
IJenham, seconded by Mr. H311enrneyer, the recommendation made as a part of
FCR 2 was passed unanimously. (See FCR 2 at the end of the Minutes. The ac-
countants' report and the two financial statements are not included in the Minutes
but are in the official files of the Board of Trustees.)


      N, Resolution Authorizing Issuance of $33, 200, 000 Bond Anticipation
Notes, Invitation to Submit Proposal and Official Statement Relating to the
Issuance and Sale of the Notes

      Mr. Kerley, speaking for the Finance Committee, explained that the
$33, 200, 000 Bond Anticipation Notes authorized November 27, 1967, by the Ex-
ecutive Committee of the Board of Trustees, acting under proper authority from
the Board, expire on December 11, 1968. He then stated that University officials
and the Finance Committee of the Board of Trustees acting upon the advice of bond
counsel and fiscal agent and with the approval of the Department of Finance of the
Commonwealth recommend to the Board of Trustees that the University remain in




 






6



the short-term market for another year and that renewal of the Bond Anticipation
Notes of 1967 be authorized. Renewal of the notes wvill permit the University to
delay long-term financing to take farther advantage of the improving long-term
market and to participate in a new Federal program to assist institutions in
meeting interest cost on long-term debts which has been authorized but has not
been funded. After this introduction and explanation by Mr. Kerley, Dr. Harry
Denham introduced, caused to be read and moved immediate adoption of the pro-
posed Resolution as follows:

           A RESOLUTION OF THE BOARD OF TRUSTEES OF THE
           UNIVERSITY OF KENTUCKY AUTHORIZING THE ISSUANCE,
           JOINTLY WITH THE STATE PROPERTY AND BUILDINGS
           COMMISSION OF KENTUCKY, AND SUBJECT TO THE APPROVAL
           AND CONCURRENCE OF SAID COMMISSION, OF ITS $33,200,000
           REVENUE BOND ANTICIPATION (RENEWAL) NOTES ACCORDING
           TO AUTHORITY OF KRS 56.513, PAYABLE AS TO PRINCIPAL
           AND INTEREST SOLELY AS HEREINAFTER PROVIDED, AND
           NOT CONSTITUTING GENERAL OBLIGATIONS OF THE UNIVERSITY,
           THE BOARD, OR THE COMMONWEALTH; AND REQUESTING APPROVAL
           AND CONCURRENCE OF THE SAID COMMISSION.



           WHEREAS. at a meeting held on November 27, 1967, the

statutory Executive Committee of the Board of Trustees of the Univer-

sity of Kentucky (the "Executive Committee"), acting under proper

authority from the Board of Trustees of the University of KCentucky

(the "Board"), adopted a certain resolution (the "Series C and Series D

Resolution"), which is identified by its title or caption, as follows:

         "A RESOLUTION AUTHORIZING THE ISSUANCE OF $4,393,000
         CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE BONDS,
         SERIES C, AND $29,250,000 CONSOLIDATED EDUCATIONAL
         BUILDINGS REVENUE BONDS, SERIES D, OF THE BOARD OF
         TRUSTEES OF THE UNIVERSITY OF KENTUCKY
                                AND
          IN ANTICIPATION OF THE ISSUANCE OF SAID BONDS,
          AUTHORIZING THE ISSUANCE, JOINTLY WITH THE STATE
          PROPERTY AND BUILDINGS COMMISSION OF KENTUCKY, AND
          SUBJECT TO THE APPROVAL AND CONCURRENCE OF SAID
          COMMISSION, OF REVENUE BOND ANTICIPATION NOTES IN

                                         (UK, Consol. C & D; Rev.
                                              Bond Ant. (Renewal) Notes)




 









          THE MANNER AUTHORIZED BY KRS 56.513, THE SAME TO
          BE PAYABLE (A) AS TO PRINCIPAL SOLELY FROM THE
          PROCEEDS OF THE CONSOLIDATED EDUCATIONAL BUILDINGS
          REVENUE BONDS, SERIES C AND SERIES D, HEREIN
          AUTHORIZED, WHEN SAID BONDS ARE SOLD AND DELIVERED
          (OR FROM THE PROCEEDS OF RENEWAL NOTES), AND (B) AS
          TO INTEREST FROM THE SOURCES HEREIN PROVIDED THMEFOR;
          AND REQUESTING APPROVAL AND CONCURRENCE OF THE SAID
          CCIMISSION."; and

          WHEREAS, with the approval, concurrence and authorization of

the State Property and Buildings Commission of Kentucky (the "Commission")

and pursuant to KRS 56.513 and the aforesaid Series C and Series D

Resolution, and in anticipation of the future issuance of the Board's

aforesaid Consolidated Educational Buildings Revenue Bonds,

Series C, in the principal amount of $4,393,000, and the Board's

Consolidated Educational Buildings Revenue Bonds, Series D, in the

principal amount of $29,250,000, there were duly authorized, sold and

delivered the 'Revenue Bond Anticipation Notes" (the  Notes;') in the

principal amount of $31,400,000, being the joint obligations of the

Board and of the Commission, the same being dated December 11, 1967,

maturing on December 13, 1968, and bearing interest at the respective

rates provided in said Notes (such interest being payable at the

maturity of the Notes); and in connection with the issuance of said

Notes, and conforming to the provisions of said Series C and Series D

Resolution, deposit was made with Chemical Bank New York Trust Company,

New York, New York, as the Paying Agent designated for said Notes, of

the sum of $1,501,545.82, representing interest on said Notes from

                               - 2 -     (UK, Consol. C & D, Rev. Bond
                                              Ant. (Renewal) Notes)




 









date to maturity, the same to be held, invested and reinvested from

time to time by said Paying Agent; and

          WHEREAS, KRS 56.513 authorizes,,and said Series C and Series D

Resolution permits, renewal of said Notes at the option of the Board

and the Commission; and it has been determined by the Board (subject to

the approval and authorization of the Commission, as hereinafter

requested) that the Notes should be renewed by the issuance of

$33,200,000 principal amount of "Revenue Bond Anticipation (Renewal)

Notes" (the "Renewal Notes"), to be issued as joint obligations of the

Board and of the Commission, as hereinafter provided; said Renewal

Notes to be dated December 12, 1968, to be issued and delivered on

said date, and to mature as to principal on December 11, 1969) with

provision that from the proceeds of said Renewal Notes the interest

accruing thereon at the respective rates which may be made applicable

thereto as hereinafter provided, computed from the date of the Notes

to the maturity date thereof, shall be deposited with a paying agent

(to be designated as hereinafter provided) for investment and reinvest-

ment from time to time in the manner hereinafter provided; said Renewal

Notes, and the interest thereon, to be payable solely from the respective

sources hereinafter set forth, and not to constitute an indebtedness

of the University of Kentucky, or of the Board, or of the Commission,

or of the Commonwealth of Kentucky; and

          WHEREAS, the Board is duly aware of all of the foregoing; has

                                 - 3 -   (UK, Consol. C & D, Rev. Bond
                                              Ant. (Renewal) Notes)




 









received the advice of its Fiscal Agent, F. L. Dupree & Co., Inc.,

Lexington, Kentucky; has consulted with the Commissioner of Finance

of the Commonwealth of Kentucky; and is properly advised,

          NOW, THEREFORE, THE BOARD OF TRUSTEES OF THE UNIVERSITY OF

KENTUCKY HEREBY RESOLVES, AS FOLLOWS:

          Section 1.01. Authorization of Revenue Bond Anticipation

(Renewal) Notes. With the approval, concurrence and participation of

the State Property and Buildings Commission of Kentucky (the "Commis-

sion"), it is hereby determined that interim financing shall be effected

through the issuance of Revenue Bond Anticipation (Renewal) Notes (the

"Renewal Notes") under authority of KRS 56.513. Such Renewal Notes

are hereby authorized to be issued in anticipation of the later issuance,

at a proper time, of the Consolidated Educational Buildings Revenue

Bonds, Series C and Series D, which were authorized by a certain resolu-

tion which was adopted by the Statutory Executive Committee of this

Board at a meeting held on November 27, 1967, and which is identified

in the preamble hereof. The Renewal Notes shall be dated the 12th day

of December, 1968; shall be issued in the aggregate printipal amount

of Thirty-three Million Two Hundred Thousand Dollars ($33,200,000);

shall be in such denominations (each a multiple of $5Q000) as may be

requested by the purchaser or purchasers thereof in their purchase

proposals or within three (3) days after the Renewal Notes are awarded

to purchasers thereof, as hereinafter provided; shall mature on the

                                  4 -    (UK, Consol. C & D; Rev. Bond
                                              Ant. (Renewal) Notes)




 









12th day of December, 1969; and shall bear interest until maturity at

such rate or rates, not to exceed six per cent (6%) per annum as may

be established in a supplemental resolution awarding the Renewal Notes;

and if for any reason the Renewal Notes, or any of them, are not paid

in full, both principal and interest, at maturity or upon prior redemp-

tion, then such Renewal Notes, and the interest at that time due and

unpaid, shall thereafter bear interest at the uniform rate of six per

cent (6%) per annum until payment thereof in full, both principal and

interest. The Renewal Notes shall be payable as to both principal and

interest at the principal office of a bank or trust company, acceptable

to the Commissioner of Finance, in the City of New York, State of New

York, nominated by the purchaser to which the greatest dollar amount

of the Renewal Notes may be awarded.

          Section 1.02. The Renewal Notes shall be subject to redemption

by the Board, with the approval of the Commission, as a whole, but not

in part, on the 11th day of December, 1969, upon terms of the principal

amount of each Renewal Note, accrued interest at the prescribed rate

to the date of redemption, and without premium or additional interest,

upon condition that a "Notice of Redemption" to that effect be published

one time at least thirty (30) days prior to the redemption date in a

daily newspaper published in and of general circulation throughout

Kentucky and in a newspaper or financial journal of national circulation

among bond buyers published in the City of New York, New York.

                                 - 5 -   (UK, Consol. C & D; Rev. Bond
                                              Ant. (Renewal) Notes)




 









          Section 1.03. Each Renewal Note shall be executed on behalf

of the Board by an authorized facsimile reproduction of the signature

of the Chairman, and a facsimile of the seal of the Board shall be

reproduced thereon, attested by the manual signature of the Secretary

of the Board. Upon approval and concurrence by the Commission, it is

requested that the Commission join in the Renewal Notes as a party

thereto and provide that each Renewal Note shall be executed on behalf

of the Commission by an authorized facsimile reproduction of the signa-

ture of its Chairman, attested by the manual or authorized facsimile

reproduction of the signature of its Executive Director.

          Section 1.04. The Renewal Notes shall be in substantially

the following form:

             (FORM OF REVENUE BOND ANTICIPATION (RENEWAL) NOTE)


                       COMMONWEALTH OF KENTUCKY
             BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY
                                 AND
           STATE PROPERTY AND BUILDINGS COMMISSION OF KENTUCKY
               REVENUE BOND ANTICIPATION (RENEWAL) NOTE
         IN CONNECTION WITH THE ISSUANCE BY THE BOARD OF TRUSTEES
           OF THE UNIVERSITY OF KENTUCKY OF ITS "CONSOLIDATED
        EDUCATIONAL BUILDINGS REVENUE BONDS, SERIES C AND SERIES D"

No,                                                       $

          The Board of Trustees of the University of Kentucky, a public

body corporate, and an educational institution and agency of the Common-

wealth of Kentucky, at Lexington, Fayette County, Kentucky (the "Board"),

acting under authority of Section 162.340, et seq., and Section 56.513


                                  - 6 -    (UK, Consol. C & D; Rev. Bond
                                                Ant. (Renewal) Notes)




 









of the Kentucky Revised Statutes, and the State Property and Buildings

Commission of Kentucky, a public body corporate and an independent

agency of the Commonwealth of Kentucky (the 'Commission'), acting under

authority of pertinent provisions of Chapter 56 of the Kentucky Revised

Statutes (including Section 56.513 thereof), for value received hereby

jointly promise to pay to bearer the principal sum of

                                 Thousand Dollars ($) on

the 12th day of December, 1969, and to pay interest on said principal

sum at the rate of                  per cent (       %) per annum

payable at maturity or upon prior redemption; both principal and interest

being subject to the provisions hereinafter set forth with respect to

payment prior to maturity. The obligations of the Board and the

Commission for the principal of this Renewal Note, and interest hereon,

are limited to payment from the proceeds of the Board's Revenue Bonds,

herein identified, when said Bonds, or either Series thereof, are sold

and delivered and such proceeds are received and are available, except

to the extent provision shall previously have been made for payment

from the proceeds of other renewal notes, as authorized and permitted

by law, or from interest derived from investment of the proceeds hereof,

pending disbursement, or from the pledge (hereinafter made) of revenues

of the Board's Consolidated Educational Buildings Project, to the

extent such revenues are surplus to requirements of the Board's Consol-

idated Educational Buildings Revenue Bonds. The principal of this


                                 - 7 -    (UK, Consol. C & D; Rev. Bond
                                               Ant. (Renewal) Notes)




 







Renewal Note, and interest hereon, are payable in New York Clearing

House Funds in lawful money of the United States of America at the

principal office of _     __.X

in the City of              , __.*              If for any reason this

Renewal Note is not paid in full, both principal and interest, at the

specified maturity date (or on the specified redemption date if notice

be duly given as hereinafter provided), it is agreed that from and

after such failure of payment, interest on the principal amount of

this Renewal Note, and upon the amount of interest then due and unpaid,

shall accrue at the rate of six per cent (6%) per annum until payment

of this Renewal Note in full, both principal and interest.

          The Board represents to the bearer of this Renewal Note that

it has taken all proper steps to initiate an Undertaking consisting of

the erection or reconstruction of one or more buildings' with necessary

appurtenances, at the main campus of the University of Kentucky in

Lexington, Kentucky, to be used f6r educational purposes, the same to

constitute parts of the Board's "Consolidated Educational Buildings

Project," heretofore established, and that it has made of record a

determination that the same shall be financed (to the extent funds are

not otherwise provided) through the issuance of the Board's "Consoli-

dated Educational Buildings Revenue Bonds, Series C and Series D,"

which will constitute a part of its issue of "Consolidated Educational



* To be supplied by supplemental proceedings

                                  - 8 -    (UK, Consol. C & D; Rev. Bond
                                                Ant. (Renewal) Notes)




 









Buildings Revenue Bonds" heretofore authorized, which Revenue Bonds

will not constitute an indebtedness of the Board, or of the Commission,

or of the Commonwealth of Kentucky, but will be payable solely from

the defined Revenues derived and to be derived from said Consolidated

Educational Buildings Project; and that it has duly adopted a "Series C

and Series D Resolution" authorizing said Revenue Bonds in the aggregate

amount of $33,643,000. The Board further represents that it has pro-

vided to the Commission all documentation required to be furnished by

the Board according to Section 56.513 of the Kentucky Revised Statutes,

and in accordance with the Commission's requirements thereunder as

conditions precedent to interim financing in anticipation of the

issuance of said identified Revenue Bonds.

          The Commission represents to the bearer of this Renewal Note

that it has received from the Board all documentation required by

Section 56.513 of the Kentucky Revised Statutes, and by the Commission's

requirements thereunder, in connection with the initiation of such

Undertaking and the proposal of the Board that the same be financed

(to the extent funds are not otherwise provided) through the issuance

of the aforesaid Revenue Bonds by the Board; that the Commission has

approved the documentation so furnished by the Board; and that the

Commission and the Board have made all such determinations as are

required preliminary to interim financing in anticipation of the

Board's issuance of such Revenue Bonds.


                                 - 9 -     (UK, Consol. C & D; Rev. Bond
                                                Ant. (Renewal) Notes)




 






          The Board covenants with the bearer of this Renewal Note that

at a proper time or times during the construction of said Undertaking,

or upon completion thereof (to be determined in the discretion of the

Commission), the Board will take all proper and necessary action under

existing statutory authority and in accordance with previous proceedings

creating its issue of "Consolidated Educational Buildings Revenue Bonds,

to offer at public sale, issue and deliver the Series of such Revenue

Bonds hereinabove identified, in an amount not less than $33,643,000,

which is an amount estimated to be the aggregate of all costs of said

Undertaking (to the extent funds are not otherwise provided), including

provision for payment from the proceeds of said Revenue Bonds of the

principal of and interest on this Renewal Note as herein provided,

unless interest shall previously have been paid, or provisions for

payment thereof have been duly made from other sources, as herein

provided.

          The Commission covenants with the bearer of this Renewal Note

that the Commission has approved the Board's authorization and later

issuance of said Revenue Bonds as required by the applicable provisions

of Chapter 56 of the Kentucky Revised Statutes, and that the Board is

authorized to offer the same at public sale and thereafter issue and

deliver the same.

          The Board and the Commission jointly covenant with the bearer

of this Renewal Note that when the proceeds of said Revenue Bonds are

received, the same will be deposited in a special escrow account with

                               - 10 -    (UK, Consol. C & D; Rev. Bond
                                              Ant. (Renewal) Notes)




 






the financial institution hereinabove named as the place of payment of

principal and interest, upon such terms as will provide that the escrow

agent shall pay from said proceeds to the respective bearers of all of

the Renewal Notes issued as constituting the series herein referred to

the principal amount thereof, together with interest as herein provided

(unless and to the extent such interest shall previously have been paid

or provision for payment of interest shall have been made from one or

more of the other sources herein provided in that connection), as a

first charge upon said proceeds; and thereafter to remit the balance

of said proceeds to the Commonwealth of Kentucky for disposition in

accordance with the provisions of the proceedings pursuant to which

said Revenue Bonds have been authorized to be issued.

          This Renewal Note is one of a series of Renewal Notes in the

authorized principal amount of $33,200,000, bearing interest at various

rates, but otherwise of the same tenor and effect and alike as to date

of maturity, and provisions for redemption prior to the maturity date,

issued by the Board with the approval and concurrence of the Commission

in anticipation of the issuance of said Revenue Bonds and for the

purpose of pr