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    P.   Financial Statement of Spindletop Hall, Inc. (FCR 2)

    On motion by Mr. Clay, seconded by Mr. Farmer and passed, the
Board of Trustees accepted the financial statement of Spindletop Hall,
Inc. for the year ended December 31, 1980.

    Q.   Authorization  to  Expend  from  Maintenance Reserve by Sigma
Alpha Epsilon Fraternity (FCR 3)

    Acting on the recommendation of the Finance Committee, Mr. Clay
moved that the Vice President for Business Affairs and Treasurer be
authorized to request funds from the "Maintenance Reserve Account" as
recommended in FCR 3 for the purpose of paying the cost of replacing
two water heaters at the Sigma Alpha Epsilon Fraternity House. His
motion was seconded by Mr. Frank Ramsey and passed with all present
voting "aye". (See FCR 3 at the end of the Minutes.)

    R.     Resolution  Approving  Report  of  the  Director, Auxiliary
Services, Reciting Inspection of the Housing and Dining Buildings and
Appurtenant Facilities of the University's Housing and Dining System,
Previously Approved by the President as Required in Connection with
the Delivery to the Purchasers of the University's $4,200,000 "Housing
and Dining System Revenue Bond Anticipation Notes, Series L," Sold    at
Public Sale on March 10, 1981 (FCR 4)

    The members of the Board were reminded that the Executive
Committee at its meeting held on March 10, 1981, awarded at public
sale the University's $4,200,000 Housing and Dining System Revenue
Bond Anticipation Notes, Series L. The Series L Notes were sold for
the purpose of providing for payment of the costs of constructing an
addition to the University's Student Center.

    One of the conditions set forth in the Board's June 1, 1965, Trust
Indenture with Farmers Bank & Capital Trust Company, Frankfort,
Kentucky, as Trustee, creating and establishing the issue of "Housing
and Dining System Revenue Bonds," is that each Series of Bonds may
rank on a basis of parity as to security and source of payment with
all previously issued Bonds only if there is a written report, made by
a proper member of the University's staff, approved by the President,
and submitted to and approved by the Board, showing that there has
been a physical inspection of all the facilities of the System and
that they are found to be in a good and tenantable state of repair,
ordinary wear and tear excepted.

    Mr. Albert Clay tendered to the Board such a certificate made
under date of March 23, 1981, signed by the Director, Auxiliary
Services, and bearing the written endorsement of approval of the
President. He requested that the same be approved by the Board.

    Mr. Clay moved that the tendered certificate of the Director,
Auxiliary Services, be approved, and his motion was seconded by Mr.
Homer  Ramsey.   After  discussion,   the Chairman put the question and
upon call of the roll, the motion was approved by unanimous vote of
all members present. (See FCR 4 at the end of the Minutes.)