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$630, 000 represented by an HHFA Loan Agreement dated March 1, 1963,
which was duly accepted by the Board. Subsequently construction bids were
received and it appeared that by reason of increasing costs of construction
since the date of the original estimates, all of the low construction bids were
higher than had been anticipated. It was the recommendation of the adminis-
tration, duly approved by the Board, that the excess of construction bids over
the previous estimates be advanced by the Board from available funds against
promissory notes of the respective fraternities, bearing simple interest at the
same rate provided in the HHFA Loan Agreement, with both interest and prin-
cipal payments deferred until retirement of the HHFA Bonds in order not to
conflict with HHFA requirements.  The proposal of the Board to make advance-
ments upon such terms were accepted and approved by Delta Gamma, Sigma
Alpha Epsilon and Sigma Nu but in the case of Zeta Beta Tau the fraternity con-
cluded that the aggregate obligation was more than it could afford, and it with-
drew, As noted in the minutes of the Board meeting of August 24, 1963, Phi
Kappa Tau requested and was permitted to be substituted in this program, but
its request was for a small dormitory estimated to cost $160, 000 rather than
$150, 000, necessitating a request that the HHFA Loan Agreement be amended
to increase the aggregate amount from $630, 000 to $640, 000, with the Board
still committed to advance any excess of cons truction bids over estimated costs.

    On this basis the administration of the University has negotiated with HHFA
and has now been tendered a Revised Loan Agreement for Project No. CH-Ky-
70(D) in the principal amount of $640. 000, still bearing the originally guaranteed
interest rate of 3-3/8% per annum. Bids for the construction of the other three
small dormitories were previously received and duly approved, construction
is nearing completion, and it has been ascertained that the amount necessary
to be advanced by the Board against such described promissory notes, will be
$15, 000 in the case of Delta Gamma, $20, 000 in the case of Sigma Alpha
Epsilon, and $17, 500 in the case of Sigma Nu. Constructions bids have now
been received for the small dormitory intended to be rented to Phi Kappa Tau,
and it appears that the Board's advance in this case will be $Z0, 000
By reason of regulations promulgated by the Department of Finance of the
Commonwealth, it is now necessary to consider the tendered Revised HHFA Loan
Agreement in order that, if it is approved and accepted by the Board, a "re-
ceivable" of the Commonwealth may be created as provided by law, thus per-
mitting acceptance and award of the construction contract or contracts for
construction of the small dormitory intended to be rented to Phi Kappa Tau.

    The President reported that in view of all of the foregoing, and in antici-
pation of the Board's approval at this meeting, he had requested Bond Counsel
previously employed by the Board to prepare and tender appropriate proceedings,
copies of which had been provided to all members of the Board for advance
conside ration.