H.   Interest rates must be on an ascending scale, in that the
     interest rate for Bonds of any maturity may not be less than
     the interest rate stipulated for any preceding maturity.

I.   The right to reject bids for any reason deemed advisable by the
     Board and the right to waive any possible informalities,
     irregularities, or defects in any bid which, in the judgment of
     the Board, with the advice of the Fiscal Agent, shall be minor
     or immaterial, is expressly reserved.

J.   Bids must be made on forms which, together with an Official
     Statement, may be obtained at the office of the Treasurer of
     the University or from the Fiscal Agent, Dupree & Company,
     Inc., 167 West Main Street, Lexington, Kentucky 40507, phone
     (606) 254-7741. Bids must be enclosed in sealed envelopes
     marked "Proposal for University of Kentucky Community Colleges
     Educational Buildings Refunding Revenue Bonds, Series D (Second
     Series), dated August 1, 1986", and bids must be received by
     the aforesaid Treasurer prior to the date and hour set for the
     sale.

K.   The original purchasers (the "Original Purchasers" or the
     "Purchasers") of the Bonds will pay the CUSIP Service Bureau
     charge for the assignment of CUSIP numbers, which numbers will
     be printed on the Bonds at no expense or cost to the
     Purchasers. Neither the failure to print a CUSIP number on any
     Bond nor any error with respect thereto shall constitute cause
     for a failure or refusal by the Purchasers thereof to accept
     delivery of and pay for the Bonds in accordance with the terms
     of the purchase agreement.

L.   Delivery will be made on or about                 , 1986, at
     Commerce National Bank, Lexington, Kentucky, at no additional
     cost or expense to the Purchasers, or elsewhere at the expense
     of the Purchasers.

M.   It is anticipated that the University may tender the Bonds in
     the form of a single fully registered Master Bond or similar
     document to the Original Purchasers, in which event, within not
     more than three days following such delivery such Original
     Purchasers will be issued fully registered Bond Certificates
     (in the denomination of $5,000 or any multiple of same within
     the same maturity) in such names as shall have been properly
     designated to the Bond Registrar.

N.   It shall be the responsibility of the Original Purchasers to
     furnish or cause to be furnished to the Payee Bank/Registrar at
     least five days prior to the date of delivery of the Bonds, a
     list of the names, addresses, social security numbers or
     employer identification numbers, principal amount, and



- 6 -