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              WHEREAS, Dr. Otis A. Singletary has tenure as a full
       professor in the Department of History and is thereby eligible to
       remain in that capacity until mandatory retirement age for
       faculty; and

               WHEREAS, Ashland Oil, Inc. has endowed a chair in the
       Humanities and expressed the hope that it should first be filled
       by Dr. Otis A. Singletary upon his retirement as President; now
       therefore

               BE IT RESOLVED, that the Board of Trustees hereby (1)
        appoints Dr. Otis A. Singletary as President Emeritus and
        Professor of History upon his retirement as President; (2)
        appoints Dr. Otis A. Singletary to fill the Chair in the
        Humanities funded by a gift from Ashland Oil, Inc. and accepted
        by the Board of Trustees January 21, 1986; and (3) authorizes the
        Chairman of the Board to negotiate an agreement with Dr.
        Singletary to be effective upon his retirement as President of
        the University of Kentucky.

        Mr. Clay's motion was seconded by Mr. Hershey and unanimously
carried.

        G.    Resolution Regarding Liability Insurance Crisis

        President Singletary explained that a temporary emergency in-
volving liability insurance exists which threatens the normal processes
and functions of the University. He informed the Board that the
Trustees, Central Administration officers, and academic deans are covered
by liability insurance but that faculty and staff members are not. He
explained that University officials have tried unsuccessfully to obtain
coverage for these individuals. He indicated that the University has
hired an insurance broker, with national and international ties, to
assist in finding liability insurance coverage, and said that he hopes to
have a response from the broker within a month.

        President Singletary expressed his understanding of faculty who
may be reluctant to serve on committees which have recommending or
decision making responsibility. He added that the problems associated
with these procedures are not hypothetical.  One department chairman in
the College of Business and Economics has already resigned and an Appeals
Board has refused to make a decision because of the liability issue. He
informed the Trustees that with no liability insurance, the vulnerability
to law suits is a very real and legitimate concern. He pointed out that
the institution has incorporated in its procedures a collegial approach
to decisions affecting students and faculty; therefore, when faculty
and/or staff members choose not to participate in committee assignments,
there is a breakdown in the normal process. The proposed resolution will
give temporary relief so that the University is able to carry out its
administrative functions.



Mr. McCowan then read the following resolution: