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             University of Kentucky
             Kentucky Research Foundaticn
             University of Kentuicky Athletic Association
             Thomas Poe Cooper Foundation

.Background: You will recall tha t by Board of Trustees action on August 24,
1963, the firm of Peat, Marwick, Mitchell and Company was employed to examine
and audit the accounts of the University and each and all of its several affiliated
organizations for the fiscal year which ended June 30, 1963.

Within the University of Kentucky report of Peat, Marwick, Mitchell and Company
are the financial transactions and results of the Fund for Advancement of Education
and Research in the University of Kentucky Medical Center, A separate and
more detailed report on the Fund is being prepared and submitted to the Board
of Directors of that Fund.


    On motion by Mr. Smith, seconded and so ordered by the Governor, the
reports were ordered received and filed until the May meeting of the Board at
which time Peat, Marwick, Mitchell and Company will have completed the report
of the Fund for Advancement of Education and Research in the University of
Kentucky Medical Center and consideration of the acceptance of all the reports
can be given at that time.


    I. Approval and Acceptance of Revised HHFA Loan Agreement and Authori-
zation of Issuance. Sale, and Delivery of University of Kentucky Housing Bonds
of 1964.

    The President of the College called attention to the fact that the next item
on the agenda was consideration of a Revised Loan Agreement tendered by
Housing and Home Finance Agency of the United States Government (HHFA),
at the request of the University, relating to HHFA Project No, CH-Ky-70(D) for
financing the costs Ito the extent not ctherwise provided) of constructing four
small dormitories intended to be leased to and occupied by Delta Gamma, Sigma
Alpha Epsilon, Sigma. Nu, and Phi Kappa Tau Fraternities under rental agree-
ments sufficient to provide for payment of the principal of and interest on the
bonds offered to be purchased by HI-FA.

    The President stated that after conferring with the Business Staff and re-
viewing previous actions of the Board, or of its Executive Committee, he felt
it would be desirable for him to review the history of this proposed transaction.
The Board has on a number of occasions in the past undertaken to finance the
construction of fraternity and sorority houses, under rental agreements, i.nas-
much as they relieve, even though to only a small extent in each case, the growing
demands for housing of students and student grou- on or adjacent to the campus
of the University.  The present p roject was originally conceived for Delta.
Gamma, Sigma Alpha Epsilon and Sigma Nu at an estimated cost of $160, 000
each, and Zeta Beta. Tau at an estimated cost of $150, 000, making a total of