xt7tx921cx5n https://exploreuk.uky.edu/dips/xt7tx921cx5n/data/mets.xml Lexington, Kentucky University of Kentucky 19560518 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, 1956-05-may18-ec. text Minutes of the University of Kentucky Board of Trustees, 1956-05-may18-ec. 1956 2011 true xt7tx921cx5n section xt7tx921cx5n 







        Minutes of the Meeting of the Executive Committee of the University
of Kentucky, May 18, 1956.

        The Executive Committee of the University of Kentucky met in the Pres-
ident, s Office at 10:30 a. m. , Friday, May 18, 1956, with the following members
present: R. P. Hobson, Dr. Ralph J. Angelucci, Louis Cox and J. Stephen Wat-
kins. Absent: Ha'rper Gatton.  President H. L. Donovan and Secretary Frank
D. Peterson met with the Committee.


        A. Approval of Minutes.

        On motion duly made, seconded and carried, the minutes of the Executive
Committee of March 19, 1956, were approved as published.


        B. Financial Report.

        Vice President Peterson made financial report for the period ended April
30, 1956.  The report consisted of balance sheet and a statement of income and
expenditures.  The report was examined and explained.

        Members of the Committee being satisfied, upon motion duly made, second-
ed and carried, the report was ordered received and filed.


        C. Purchase Orders and Requisitions Approved.

        President Donovan submitted the following letter from Vice President
Pe ter son:

                                                April 26, 1956


        Dr. H. L. Donovan, President
        University of Kentucky
        Administration Building

        Dear Dr. Donovan:

                   From January 1, 1956 through March 31, 1956 the fol-
        lowing requisitions and orders were processed for the purchase of
        merchandise, supplies, material and other items for the use and
        benefit of the University of Kentucky:



State Requisitions
Emergencies
Special Orders
Job Order Vouchers



Stores Vouchers

Vouche rs
Orders -by-Letter
Athletic Orders



Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive



Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.



601 - 920
136 - 217
1,011 - 2,167
3827 - 3999
4901 - 5200
2654 - 2,900
   1 - 239
1 - 5,335
1 - 36Z
79 - 122




 






Emergency Purchase Memo Orders     Inclusive Nos. PR
                                                  N
                                                  W



- 704 - 996
- 303 - 439
- 66 - 100



         The requisitions, emergency requisitions, special orders,
vouchers and other documents are made a part of this letter and avail-
able to the Board for inspection. All purchases have been made in
accordance with approved policy of the Board of Trustees and I re-
spectfully request confirmation and approval of the purchases as list-
ed conforming to the statutes requiring action by the Executive Com-
mittee.

                                   Very truly yours,

                       (Signed)   Frank D. Peterson
                                   Vice President
                                   Business Administration



      Members of the Committee being advised, upon
seconded and carried,



State Requisitions
Emergencies
Special Orders
Job Order Vouchers

Stores Vouchers



Vouchers
Orders -by-Letter
Athletic Orders
Emergency Purchase



Memo Orders



Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive
Inclusive



motion duly made,



Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.
Nos.



601 - 920
136 - 217
1,011 - 2,167
3827 - 3999
4901 - 5Z00
2654 - 2900
   1 - 239
1 - 5,335
1 - 362



79 - 122
PR - 704
N - 303
W - 66



- 996
- 439
- 100



were approved and the action of the Comptroller and Vice President in making
the purchases referred to was approved and ratified.



       D. Bond Resolution--Small Dormitory, 338 Clifton Avenue.

       President Donovan stated that the Board of Trustees had before it at the
meeting of April 3, 1956, Resolution concerning the authorization for the construc-
tion of a dormitory building adjacent to the carrmpus on premises known as 338
Clifton Avenue. The Board of Trustees authorized a dormitory constructed and
invested in the Executive Committee full authority to do any and all things neces-
sary to approve plans and specifications, to authorize publication of invitation
for bids, and to authorize bonds to be issued, sold and delivered in amount
sufficient to construct said building.




 









        Whereupon, Dr. Ralph Angelucci introduced and caused to be read in
full the following Resolution:


           A RESOLUTION OF THE EXECUTIVE COMMITTEE OF
           THE BOARD OF TRUSTEES OF THE UNIVERSITY OF
           KENTUCKY PROVIDING FOR THE ISSUANCE, SALE,
           AND DELIVERY OF DORMITORY REVENUE BONDS TO
           PAY THE COST (NOT OTHERWISE PROVIDED) OF
           CONSTRUCTING AND EQUIPPING A DORMITORY BUILD-
           ING UPON A SITE GENERALLY KNOWN AND DESIGNAT-
           ED AS NO. 338 CLIFTON AVENUE, 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 the University construct a dormitory build-
ing upon premises generally known and designated as No. 338 Clifton Avenue,
in Lexington, Kentucky; and

        WHEREAS, said building can be constructed and equipped for $135,000. 00;
and

        WHEREAS, under the provisions of Chapter 58 of the Kentucky Revised
Statutes, Tie Board of Trustees of the University of Kentucky, as a governmental
agency, is authorized to issue bonds, as hereinafter provided, for the purpose
of financing the construction of said building, appurtenances, and equipment;
and the Board of Trustees of the University, at its regular statutory meeting,
held on April 3, 1956, expressly authorized the Executive Committee to take all
necessary action; and authorization of the said project and financing has been
given by the State Property and Buildings Commission and by the Department of
Finance, as required by law;

        NOW, THEREFORE, THE EXECUTIVE COMMITTEE OF THE BOARD
OF TRUTEES OF THE UNIVERSITY OF KENTUCKY RESOLVES, AS FOLLOWS:

        SECTION 1. It is hereby determined that in order to provide the Uni-
versity of Kentucky with additional and needed accommodations for educational
purposes, it is necessary and desirable that there be constructed upon the prem-
ises generally known and designated as No. 338 Clifton Avenue, in Lexington, Ken-
tucky, a building which is suitable for use and occupancy for dormitory purposes,
at a cost to the University not to exceed $135, 000. 00.  The said building, ap-
purtenances, and equipment are collectively sometimes hereinafter referred to
as the Project; and are hereby declared to be a "public Project" within the mean-
ing and application of Chapter 58 of the Kentucky Revised Statutes.

        SECTION 2. In order to provide for the payment of the costs and ex-
penses of the Project, there shall be and there are hereby ordered to be issued
by the Board of Trustees of the University of Kentucky, in its corporate capacity
and by and through its corporate name, and as a state educational institution and




 



4



agency, bonds which shall be designated "University of Kentucky Dormitory
Revenue Bonds (338 Clifton Avenue)" in the aggregate principal amount of One
Hundred Thirty-five Thousand Dollars ($135,000. 00), dated May 1, 1956, con-
sisting of one hundred thirty-five (135) bonds of the denomination of One Thou-
sand Dollars ($1, 000. 00) each, to be numbered consecutively from One (1) to
One Hundred Thirty-five (135), 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, or
rates, to be determined at the time of the receipt and consideration of financing
proposals as hereinafter provided, none of which may exceed 6% per annum.
Said bonds shall mature serially and in numerical order, as follows:


BONDS NUMBERED              PRINCIPAL AMOUNT           DATE OF MATURITY
  (Inclusive)

     1-2                    $2,000. 00                May 1, 1958
     3-4                      2,000. 00                May 1, 1959
     5-6                      2,000.00                 May 1, 1960
     7-8                      2,000.00                 May 1, 1961
     9-10                     2,000. 00                May 1, 1962
     1I-12                    2,000. 00                May 1, 1963
     13-14                     2,000. 00                May 1, 1964
     15-16                     2,000.00                 May 1, 1965
     17-18                     2,000. 00                May 1, 1966
     19 -20                    2,000. 00                May 1, 1967
     21-22                     2,000. 00                May 1, 1968
     23-24                     2,000.00                 May 1, 1969
   25-26                     2,000. 00                May 1, 1970
   27-29                     3,000. 00                May 1, 1971
   30-32                     3,000. 00                May 1, 1972
   33-35                     32000.00                 May 1, 1973
   36-38                     3,000. 00                May 1, 1974
   39-41                     3,000. 00                May 1, 1975
   42-44                     3,000.00                 May 1, 1976
   45-47                     3,000.00                 May 1, 1977
   48-50                     3,000.00                 May 1, 1978
   51-53                     3,000.00                 May 1, 1979
   54-57                     4,000.00                 May 1, 1980
   58-61                     4,000.00                 May 1, 1981
   62-65                     4,000.00                 May 1, 1982
   66-69                     4,000.00                 May 1, 1983
   70-73                     4,000.00                 May 1, 1984
   74-77                     4,000.00                 May 1, 1985
   78-81                     4,000.00                 May 1, 1986
   82-86                     5,000.00                 May 1, 1987
   87-91                     5,000.00                 May 1, 1988
   92-96                     5,000.00                 May 1I 1989
   97-101                    5,000.00                 May 1, 1990
   102-106                    5,000.00                 May 1, 1991
   107-111                    5,000.00                 May 1, 1992
   112-117                    6,000.00                 May 1, 1993
   118-123                    6,000.00                 May 1, 1994
   124-129                    6,000.00                 May 1, 1995
   130-135                    6,000.00                 May 1, 1996




 




5



provided, however, that any of said numbered 9 to 135, inclusive bonds shall
be redeemable prior to maturity as a whole or from time to time in part, in
the inverse order of their numbering on May 1, 1961 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 provided also that such notice shall have
been published at least once not less than thirty (30) days prior to the redemp-
tion date in a newspaper having general circulation throughout Kentucky. In
the event of redemption prior to stated maturities in accordance 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 applicable coupon rate and together with
additional interest in the sum of Thirty Dollars ($30. 00) if the redemption
date is on or prior to November 1, 1965; Twenty-five Dollars ($Z5. 00) if the
redemption date is on or after May 1, 1966, but on or prior to November 1,
1970; Twenty Dollars ($20. 00) if the redemption date is on or after May 1,
1971, but on or prior to November 1, 1975; Fifteen Dollars ($1.5. 00) if the re-
demption date is on or after May 1, 1976, but on or prior to November 1,
1980; Ten Dollars ($10. 00) if the redemption date is on or after May 1, 1981,
but on or prior to November 1, 1985; and Five Dollars ($5. 00) if the redemp-
tion date is on or after May 1, 1986, but on or prior to November 1, 1990. If
the redemption date is on or after May 1, 1991, no such additional interest
shall be due or payable.  All bonds called for redemption, as herein provided,
funds for the payment of which are duly deposited at the place of payment of
principal and interest at or prior to the specified redemption date, shall cease
to bear interest from and after such specified 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 facsimile 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 principal
office of Farmers Bank & Capital Trust Company, in the City of Frankfort,
Kentucky, but only out of the "338 Clifton Avenue Dormitory Revenue Bond and
Interest Redemption Fund," 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 folowg form, to-wit:


                             (FORM OF BOND)

                       UNITED STATES OF AMERICA
                     COMMONWEALTH OF KENTUCKY
                       UNIVERSITY OF KENTUCKY
                       DORMITORY REVENUE BOND
                          (338 CLIFTON AVENUE)

No.                                                                 $1,000. 00

     The Board of Trustees of the University of Kentucky, in its corporate
capacity and by and through its corporate name and as a state educational




 




6



institution and agency, for value received, hereby promises to pay to the bear-
er, or if this bond be registered, to the registered holder 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 semian-
nually on each Novernber 1 and May 1, 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 Farmers Bank
C Capital Trust Company, in the City of Frankfort, Kentucky.

      The right is hereby reserved to call and redeem bonds numbered Nine (9)
to One Hundred Thirty-five (135), inclusive, 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 any interest payment date on or after
May 1, 1961, 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 that such notice shall have been pub-
lished at least once not less than thirty (30) days prior to the redemption date
in a newspaper having general circulation throughout Kentucky.  Upon the
specified redemption date the holder of each bond so redeemed shall be entitled
to receive the face amount of the bond, together with interest to the redemption
date at the coupon rate and together with additional interest in the sum of
Thirty Dollars ($30. 00) if the redemption date is on or prior to November 1,
1965; Twenty-five Dollars ($25. 00) if the redemption date is on or after May 1,
1966, but on or prior to November 1, 1970; Twenty Dollars ($20. 00) if the re-
demption date is on or after May 1, 1971, but on or prior to November 1, 1975;
Fifteen Dollars ($15. 00) if the redemption date is on or after May 1, 1976, but
on or prior to November 1, 1980; Ten Dollars ($10. 00) if the redemption date
is on or after May 1, 1981, but on or prior to November 1, 1985; and Five
Dollars ($5. 00) if the redemption date is on or after May 1, 1986, but on or prior
to November 1, 1990. If the redemption date is on or after May 1, 1991, no such
additional interest shall be due or payable. All bonds called for redemption
as herein provided, funds for the payment of which are duly deposited at the
place of payment of principal and interest at or prior to the specified redemption
date, shall cease to bear interest from and after such specified redemption date.

      This bond is issued to finance the cost of constructing and equipping a
dormitory building 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 58. 010 to 58. 140,
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 dormitory building and appur-
tenances which will be set aside as a special fund and pledged for that purpose
and identified as the "338 Clifton Avenue Dormitory Revenue Bond and Interest
Redemption Fund," and this bond does not constitute an indebtedness of the
University of Kentucky or if its Board of Trustees or of the Commonwealth of
Kentucky within the meaning of any constitutional provisions or limitations.



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 University of Ken-
tucky, such registration to be evidenced by notation thereof on the reverse here-
of 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 au-
thorized representative and similarly noted on the reverse hereof. But this
bond may 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 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 of its
Board of Trustees, does not exceed any limit prescribed by the Constitution or
Statutes of Kentucky; that said dormitory building and appurtenances will be
continuously operated by said University of Kentucky, and that a sufficient por-
tion 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 in-
terest on this bond and the series of which it is a part, as the same will re-
spectively 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 corporate seal
to be hereunto affixed, attested by the Secretary, and the coupons hereto attached
to be executed with the facsimile signatures of the said Chairman and said
Secretary, who, by the signing of this bond, do adopt said facsimile signatures,
and each of them, to be their respective authorized and official signatures, all
as of the First day of May, 1956.


(SEAL)
                                                     Chairman
                                                     Board of Trustees
ATTEST:



Secretary
Board of Trustees




 






8



(FORM OF COUPON)



$



(* ) Unless the bond to which this coupon is attached shall have been
   called for prior redemption.



     On the First day of              , 19        , the Board of Trustees
of the University of Kentucky will pay to bearer ___Dollars
_$_          ) out of its "338 Clifton Avenue Dormitory Revenue Bond and
Interest Redemption Fund,' at the principal office of Farmers Bank & Capital
Trust Company, in the City of Frankfort, Kentucky, as provided in and for
interest then due on its Dormitory Revenue Bond (338 Clifton Avenue) dated
May 1, 19 56, Number



Chairman, Board of Trustees



                                      Secretary, Board of Trustees


(* This redemption legend to appear only upon interest coupons at-
   tached to bonds maturing on and after November 1, 1961. )


(Form for Registration to be printed on the back of each bond)



Date of                    Name of                 Signature of
Registration            Registered Holder   : Secretary, Board of Trustees



     SECTION 4.   The Project shall be operated as a revenue-producing under-
taking on a fiscal year basis commencing on May 1 of each year and ending on
April 30 of the ensuing year, and on that basis the gross income and revenues of
said Project shall be sufficient so as to set aside the required amounts (herein-
after specified) into a separate and special fund designated the "1338 Clifton
Avenue Dormitory Revenue Fund" (hereinafter designated the "Revenue Fund").

     There shall be and there is hereby created a fund to be known as the "338
Clifton Avenue Dormitory Revenue Bond and Interest Redemption Fund" (herein-
after called the "Bond Fund,#) into which there shall be set aside from the moneys



Number




 




9



held in the Revenue Fund such amounts as will be sufficient to pay the interest on
and principal of the bonds hereby authorized as may be outstanding from time to
time.  The amount to be set aside into said fund during each fiscal year so long
as any of said bonds remain outstanding shall be not less than as set forth in the
following schedule:



During the fiscal year ending April 30, 1957
        (partly from bond proceeds and accrued
        interest, the rest from rentals, as



hereinafter provided)



ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending Ap ril
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April
ending April



30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,
30,



1958 .............
1959.
1960..............
1961...................
1962...................
1963...................
1964...................
19A65....              .



1966...........
1967...........
1968.........
1969...........
1970...........
1971...........
1972...........
1973...........
1974...........
1975..........



1976....................
1977....................
1978....................
1979............
1980....................
1981....................
1982....................
1983....................
1984....................
1985....................
1986....................
1987....................
1988          ...
1989....................
1990....................
1991....................
1992.
1993....................
1994.
1995...................
1996....................



$5,062.50



7,062.
6,987.
6,912.
6,837.
6,762.
6,687.
6,612.
6,537.
6,462.
6,387.
6,312.
6,237.
6,162.
7,087.
6,975.
6,862.
6,750.
6,637.
6,525.
6,412.
6,300.
6,187.
7,075.
6,9 25.
6, 775.
6,625.
6,475.
6, 325.
6,X175.
7, 025.
6, 837.
6,X650.
6,462.
6, 275.
6, 087.
6,X900.
6, 675.
6,450.
6, 225.



50
50
50
50
50
50
50
50
50
50
50
50
50
50
00
50
00
50
00
50
00
50
00
00
00
00
00
00
00
00
50
00
50
00
50
00
00
00
00



Provided, however, that the minimum annual amounts to be set aside into said



During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During
During I
During I
During I
During I
During
During
During
During !
During
During I
During I
During I
During I
During



the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the
the



fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal
fiscal



year
yea r
year
year
yea r
yea r
yea r
yea r
year
year
yea r
year
year
year
year
year
year
yea r
year
yea r
year
year
yea r
year
year
year
yea r
yea r
year
yea r
year
yea r
year
year
year
year
yea r
year
year



. I .......
........
........ .
........ .

........ .
........ .
........ .
........ .




 




10



Bond Fund, as set forth in the foregoing schedule are based upon an arbitrary
assumption that when said bonds are publicly sold on a competitive basis, a
single interest coupon rate of three and three-fourths per cent (3-3/4%) will be
established and made applicable thereto, and the minimum amount to be so
set aside in each year is sufficient to provide for the payment of the interest
coupons maturing on November 1 in such fiscal year, and the bonds and coupons
maturing on May 1 immediately following the end of such fiscal year. If less
than all of the bonds are sold and outstanding, or if the interest coupon rates es-
tablished and made applicable, as herein provided, are otherwise than three
and three-fourths per cent (3-3/4%) for all of the bonds, the minimum annual
amounts to be so set aside in said Bond Fund shall automatically be adjusted to
such sums as shall be sufficient to accomplish the purposes set forth in this
paragraph, without further action by the Board of Trustees, or of its Executive
Committee.

      All funds received as accrued interest at the time of the issuance of said
bonds shall be paid into said Bond Fund at the time of the issuance and delivery
of the bonds hereby authorized, together with such additional sum from bond
proceeds as will cause the total of said deposit to equal all interest which will
accrue on the bonds during the estimated construction period (to January 1,
1957), and shall be used for the payment of the interest on said bonds next thereafter
becoming due.

      The amount by which the payments in any fiscal year exceed the aggregate
amount of interest on and principal of said bonds then currently becoming due
shall be held in said Bond Fund as a reserve for contingencies and used solely
as herein provided; provided, however, that no further payments need be made
into said Bond Fund whenever and so long as such amount of the bonds shall have
been retired that the amount then held in the Bond Fund, including the reserve
for contingencies, is equal to the entire amount of the principal and interest
that is to be paid on all of such bonds then remaining outstanding.

     If, for any reason, there be a failure to make any payments into such
Bond Fund as aforesaid during any fiscal year, any sums then held as a reserve
for contingencies shall be used for the payment of any portion of the interest or
principal on which bonds there would otherwise be default, but such reserve
shall be reimbursed therefor from the first available payments made into the
Bond Fund in the following year or years in excess of the required-payment for
the then current fiscal year.

     All moneys held in the Bond Fund or as a reserve for contingencies shall
be deposited in a bank which is a member of the Federal Reserve System and of
the Federal Deposit Insurance Corporation; the moneys held as reserve for con-
tingencies may be invested in direct obligations of the United States of America;
provided, however, that sale of a sufficient amount of such obligations shall be
made in the event that it shall prove necessary to draw upon said reserve, and
provided further that moneys so held may be applied to the redemption of bonds
prior to their maturities.

     The payments hereinabove provided into said Bond Fund from the Revenue
Fund shall be made in equal monthly installments on the First day of each month,
except when the first day of any such month shall be on a Sunday or a legal hol-
iday, in which event such payment shall be made on the next succeeding secular
day. The balance then and from time to time remaining in the Dormitory




 




I1



Revenue Fund may be set aside for the necessary expenses of operation and main-
tenance, as hereinafter more fully provided.  In the event that the moneys held
in the Revenue Fund in any month shall be insufficient to make the aforesaid pay-
ments in full, any such deficiency shall be added to the amounts required to be
paid into such Bond Fund in the following month.

      The Bond Fund hereinabove created and described shall be used solely and
only for the purpose of paying principal of and interest on the bonds herein au-
thorized to be issued, and is hereby irrevocably pledged for that purpose and
shall be used for no other purpose whatsoever.

      The balance of the moneys remaining in the Revenue Fund after the aforesaid
payments into the Bond Fund shall be set aside into an "Operation and Maintenance
Account," hereby created, and all moneys in said account shall be used for proper
operation and maintenance of said Project, including an amount sufficient to pay
the cost of insurance.

      SECTION 5. While the bonds authorized hereunder, or any of them, remain
outstanding and unpaid, the rents and charges for all services rendered by the
Project and fees charged to the students of the University of Kentucky shall be
reasonable and just, taking into account and consideration the cost and value of
said Project, the cost of maintaining and operating the same, the amounts neces-
sary for the retirement of all bonds and the accruing interest on all such bonds
as may be sold and are unpaid under the provisions of this Resolution, and there
shall be charged against the University of Kentucky such amounts for services
rendered by the Project as shall be adequate, together with rents and fees charged
to students, to meet the requirements of this and the two preceding Sections
hereof.

     SECTION 6. The Board of Trustees of the University of Kentucky hereby
covenants and agrees with the holder or holders of the bonds hereby authorized
to be issued, or any of them, that all duties with reference to said Project re-
quired by the Constitution and laws of the Commonwealth of Kentucky will be
faithfully and punctually performed, including the charging and collection from
the University of Kentucky and its students reasonable and sufficient amounts for
services rendered by said Project.

     The Board of Trustees of the University of Kentucky further covenants and
agrees with the holders of said bonds to maintain in good condition and continuously
to operate said Project, so long as the principal of or interest on any of the bonds
herein authorized remain outstanding and unpaid, and to charge and collect rea-
sonable and sufficient amounts as rent and for services rendered by the Project
in furnishing educational facilities to maintain the Bond Fund and the Operation
and Maintenance Fund as required by the preceding Sections of this Resolution,
and the same are hereby pledged for that p