Special Called Meeting of the Executive Committee of the Board of Trustees,
Monday, November 20, 1967


        The Executive Committee of the Board of Trustees of the University of
Kentucky met in special called session on Monday, November 20, 1967, at 11:30
a. mn., Eastern Standard Time, in the Board Room of the Administration Building
on the campus for the purpose of considering proposals from prospective bidders
on $31, 400, 000 Revenue Bond Anticipation Notes and to authorize future issue of
Series C and D Bonds for the Lexington campus for academic facilities. Members
of the Executive Committee present were Dr. Ralph Angelucci, Chairman, Dr.
Harry Denham, and Mr. Robert Hillenmeyer. Members absent were Mr. Smith
Broadbent and Mr. Richard Cooper. Mr. Sam Ezelle, Secretary of the Board of
Trustees and ex-officio member of the Executive Committee, was also present as
were President John Oswald, Vice Presidents A. D. Albright, Robert F. Kerley,
Glenwood L. Creech, and Robert L. Johnson. Mr. C. W. Grafton, Bond Counsel,
Mr. Thomas Dupree, Bond Consultant, and Mr. Don Bradshaw, Department of
Finance, were present as were representatives of the news media.


        A. Meeting Opened

        Dr. Angelucci called the meeting to order and, following roll call by the
secretary who reported a quorum present, declared the meeting officially open at
11:32 a.m.


        B. Purpose of Meeting Explained

        Mr. Kerley said that the meeting had been called for the purpose of
considering proposals from prospective bidders on all or part of a $31,400,000
issue of Revenue Bond Anticipation Notes that were to be issued November 20,
1967, and to authorize future issue of Series C and D of the capital construction
bonds for the Lexington campus for academic facilities to retire the notes. At
the time the call was issued for the meeting, it was the opinion of the finance
people that bids would be submitted for at least part, if not all, the $31, 400, 000
of notes. Over the weekend the British government devalued the pound with
repercussions on the money market of the world. The Federal Reserve then
raised the rediscount rate in the United States and created further chaos in the
financial markets. During the morning, potential bidders have indicated by
telephone calls that they will bid if it is the University's wish to go ahead with
the issue but it is their counsel and the counsel of the financial advisers that it
would not be prudent to act at this particular time. Mr. Kerley concluded by
saying that it was his recommendation that no action be taken now. A careful
watch will be kept on the money market which is expected to stablize rather
quickly and, when this occurs, it should be possible to receive reasonable bids--
perhaps within a week or ten days.