UNIVERSITY OF KENTUCKY
                              LEXINGTON KENTUCKY 40506


OFFICE OF THE ASS.STAN7 VICE PRESIDENT
        BUSINESS AFFAIRS                                March 23, 1981


TO:         Dr. Otis A. Singletary, President: and
            Chairman and Members of the Board of Trustees
            of the University of Kentucky, Lexington, Kentucky

FROM:       Robert W. Blakeman
            Director, Auxiliary Services

SUBJECT: Report of Physical Inspection of the Housing and
            Dining Buildings and Appurtenant Facilities of the
            University's Housing and Dining System


            It has been brought to my attention in connection with the Housing
and Dining System Revenue Bond Anticipation Notes, Series L, "that Section
1101 (c)" of the Trust Indenture of June 1, 1965, requires as a condition
precedent that there be filed with the Trustee a certificate signed by an officer,
agent or employee of the Board principally charged with responsibility for the
maintenance and repair of the buildings and facilities comprising the Housing
and Dining System, approved by the President of the University and by
Resolution of the Board, showing that a physical inspection of such buildings
and facilities has been made and that they are found to be in a good and
current state of tenantability and repair, subject only to exceptions for matters
scheduled to be corrected and for which budgeted money is available.

            As Director of Auxiliary Services, I am the officer charged with
such responsibility, and this report is submitted responsive to the requirements
of the Trust Indenture.

            The Maintenance Staff of the University is adequate and is so
equipped and stocked that it is able to keep abreast of observed and
reported structural and mechanical defects and failures on a prompt and
regular basis. Inspections of roofs, tuck pointing, floors, stairways,
elevators, heating and air-conditioning systems and the like are on a
scheduled basis according to their useful life anticipation, and budgeted
funds are such that renewals and replacements are a part of an active,
continuing program. Movable furnishings and fixtures are repaired and
replaced on a regular basis.



AN EQUAL OPPORTUNITY UNIVERSITY