NOTICE OF SALE OF BONDS



                                   $7,805,000
                            UNIVERSITY OF KENTUCKY
       COMMUNITY COLLEGES EDUCATIONAL BUILDINGS REFUNDING REVENUE BONDS
                           SERIES D (SECOND SERIES)
                             DATED AUGUST 1, 1986


           The Treasurer of the Board of Trustees of the University of
Kentucky, Lexington, Kentucky (the "Board"), hereby gives public notice that
until the

                           day of                        , 1986

at the hour of                   .M., E.D.T., it will receive in the office of
the President, Administration Building, University of Kentucky Campus,
Lexington, Kentucky 40506, sealed, competitive bids for the purchase of
$7,805,000 of the above-identified issue of bonds, subject to adjustment as to
amount as hereinafter provided, being fully registered bonds, in the denomina-
tion of $5,000 or any multiple of same within the same maturity, maturing on
May 1, 1987 through 2008.

           The minimum bid is $7,648,900 (98% of par). All bidders must bid
for all of the Bonds, and the purchase price is payable in Federal Funds. The
initial reoffering price of all Bonds to the public must be at par (100%).

           Bids will be received at said office until              _     .M. on
such sale date and will be acted upon by the Board of Trustees (or the
Executive Committee of the Board) at                     .M., E.D.T., on the same
date.

           The amount of the Bonds to be sold may be increased or decreased by
approximately 15% at the time of the sale, as set out in detail in the Official
Terms and Conditions of Sale of Bonds and in the Preliminary Official State-
ment.

           The Bonds will be issued subject to the approving legal opinion of
the firm of Rubin & Rays, Municipal Bond Attorneys, Louisville, Kentucky, with
a separate no-arbitrage opinion of the firm of Haynes & Miller, Washington,
D.C., based on the assumption of compliance by the Board with certain covenants
made by the Board in accordance with HR 3838, if enacted into law in the Eorm
passed by the U.S. House of Representative on December 17, 1985, and assuming
that such law as enacted reflects the postponement of the effective date to the
extent endorsed in a certain "Joint Statement", as set out in detail in the
Official Terms and Conditions of Sale of Bonds and in the Preliminary Official
Statement.

            Good faith check is $78,050. Bid Forms, Official Terms and
Conditions, and Preliminary Official Statement may be obtained from the Fiscal
Agent, Dupree & Company, Inc., 167 West Main Street, Lexington, Kentucky
40507, phone (606) 254-7741.



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