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items for action. FCR 1 is a recommendation that the Board accept the
University of Kentucky interim financial report for the six months ended
December 31, 1996. The realized income is 51% of the budget and expenditures
are 49% for the fiscal year. The University continues to have a positive cash
flow and is in excellent financial condition. He moved approval of FCR 1. Mr.
Chellgren seconded the motion, and it passed. (See FCR 1 at the end of the
Minutes.)

      I.   Disposal of Surplus Property (FCR 2)

      Mr. Hardymon reviewed the item in Attachment I and moved that the
Board approve the disposition of surplus property as listed in the attachment
to FCR 2. Mr. Reed seconded the motion, and it passed. (See FCR 2 at the end
of the Minutes.)

      J.    Report of Leases (FCR 3)

      Mr. Hardymon said that FCR 3 is the report of three new leases that are
valued at less than $30,000 per year. He noted one of the new leases is for
temporary residential property for the Acting President at Ashland
Community College. He said the leases were competitive and moved approval
of FCR 3. Mr. Guthrie seconded the motion, and it passed. (See FCR 3 at the
end of the Minutes.)

      K.   Patent Assignment (FCR 4)

      Mr. Hardymon said FCR 4 is an invention which provides a computer
implemented method for achieving the optimum selection of machining
parameters and tool inserts for finish turning operations. He moved approval
of FCR 4. Mr. Grayson seconded the motion, and it carried. (See FCR 4 at the
end of the Minutes.)

      L.   Patent Assignment (FCR 5)

      Mr. Hardymon said that FCR 5 is another invention concerning coal fly
ash. The invention utilizes electrostatic forces to selectively separate unburned
carbon from fly ash and then to concentrate that usable coal fly ash in a
separate product stream. He moved approval. His motion, seconded by
Professor Miller, passed. (See FCR 5 at the end of the Minutes.)

      M.   Revision of the Policy Statement on Tuition and Fee Refunds to
Students (FCR 6)

      Mr. Hardymon stated that FCR 6 recommends a revision of the policy
statement on tuition and fee refunds to students that will adjust the schedule
for refunds from a maximum of eight weeks to four weeks, to become effective