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       Y.    Report on Utilization of the General Fund Surplus Expenditure
Plan Funds - Information Item

       Mr. Chellgren said that the President also briefed the Finance
Committee on three information items. The first was a report on the
utilization of the General Fund Surplus Expenditure Plan funds.  He reminded
the Board that the Kentucky General Assembly added an additional 1% to the
budget.  This specifies and lays out where the President and his staff have
decided to allocate those funds for expenditures during the 1994 budget.
This allocation was discussed in some detail in the Finance Committee
meeting.

       Z.    Report on Athletic Association Funds - Information Item

       Mr. Chellgren said that the second information item relates to the
library financing. It is a report on the Athletic Association funds that
have been reallocated to support the bonds that were issued to initiate the
construction of the library. The debt service on the bonds is approximately
$3.2M. This subject was also discussed extensively in the Finance Committee.

       AA.   Report on the Bond Sale

       Mr. Chellgren said that the last item relates to the financing of the
library. The Committee was given a brief report on the bond sale. Seven
bids were received on December 8 at 11 a.m. The total spread on the bids
was about 1/10 of a percent interest rate which shows what an excellent bid
process took place. Lehman Brothers, one of the largest and most
prestigious Wall Street investor banking houses with PaineWebber being the
co-manager, submitted the lowest bid at a net interest cost of 6.75%. The
next lowest bid was submitted by Goldman Sachs & Co. at a net interest cost
of 6.78%  The difference being less than 300th of 1% which indicates that it
is a very competitive process. It is a $41 million bond issue with a 20
year average maturity and a 30 year maximum maturity. The Kentucky Medical
Services Foundation approved a guarantee to back the bonds and help ensure
their excellent ratings. He said this was an excellent process and a very
successful one that the institution will be proud of for decades to come.

       BB.  Meeting Adjourned

       There being no further business to come before the Board, the
Chairperson adjourned the meeting at 4:45 p.m.

                                        Respectfully submitted,



                                        Lois C. Weinberg
                                        Secretary
                                        Board of Trustees

(PR 2, 3A, 4A, 5A, 5B, 5C, 5D, 5E, 5F, and 5G; FCR 1, 2, 3, 4, 5, 6, and 7;
and the Information Items which follow are official parts of the Minutes of
the meeting.)