WHEREAS, since an advance refunding necessarily carries with it the

need to invest the proceeds of the refunding bonds until the date of redemption

of the bonds being refunded, the precise amount of the refunding bonds can not

be determined until the time of the sale, when the interest rates are

determined, and

          WHEREAS, since (1) the investment of a certain amount at a certain

interest rate will provide sufficient funds to pay a larger amount than would

the investment of such amount at a lower rate of interest, and conversely,

(2) the investment of a certain amount at a certain interest rate will provide

sufficient funds to pay a lesser amount than would the investment of such

amount at a higher rate of interest; and thus, ironically, (a) the higher the

interest rate on the Refunding Bonds, (b) the lower the amount of Refunding

Bonds necessary to accomplish the refunding, and (i) the lower the interest

rate on the Refunding Bonds, (ii) the higher the amount of Refunding Bonds

necessary to accomplish such refunding,


           NOW, THEREFORE, THE UNIVERSITY OF KENTUCKY DOES HEREBY RESOLVE AS
FOLLOWS:


           1. That the President of the University is hereby authorized to

take the following steps with respect to the proposed sale *of University of

Kentucky Community Colleges Educational Buildings Refunding Revenue Bonds,

Series D (Second Series), dated August 1, 1986:

           (a) To fix the date and hour for the receipt of bids, and the date
                and hour of a meeting of the Executive Committee of the Board
                to be held at a later hour on the same day for the purpose of
                accepting the successful bid or of rejecting all bids;

           (b) To authorize the publication of the Notice of Sale of Bonds,
                setting out such date and such hours;



- 2 -