Office of the President
                                       June 25, 1986




                                       FCR 17
Members, Board of Trustees:

       A MASTER RESOLUTION AUTHORIZING THE ISSUANCE OF
       UNIVERSITY HOSPITAL REVENUE BONDS, AND A RESOLUTION
       AUTHORIZING THE ISSUANCE OF $25,000,000 (OR LESS) OF
       UNIVERSITY OF KENTUCKY HOSPITAL REVENUE BONDS, SERIES A

Recommendation: that the Board of Trustees approve a resolution
creating and establishing a hospital project of the University
of Kentucky; creating and establishing an issue of University of
Kentucky Hospital Revenue Bonds of the Board of Trustees of the
University of Kentucky; providing for the issuance from time to
time of said bonds: providing for the payment of the principal
of and interest on said bonds and repealing all resolutions or
parts of resolutions in conflict with this resolution.

That the Board of Trustees also approve a resolution authorizing
the issuance of $25,000,000 (or less) of University of Kentucky
Hospital Revenue Bonds, Series A.

Background: The creation of a hospital bond series is for the
purpose of creating flexibility in financing the hospital opera-
tions and maintenance of debt capacity in the Consolidated
Educational Building Revenue Bonds. The Master Resolution
empowers the issuance of Hospital Revenue Bonds from time to
time as funds are required for the purpose of improving exist-
ing facilities and construction of additions to the University
Hospital. Each series of Hospital Revenue Bonds must be approved
by the Board of Trustees. Net revenues of the University Hospital
are pledged for the payment of debt.

The first issuance of $25,000,000 (or less) of University of
Kentucky Hospital Revenue Bonds, Series A, is also authorized
for the partial funding of an approximately $40,000,000 project
for improvement of existing hospital facilities, construction
of additional hospital facilities and a parking garage. The
University Hospital fund balance and interest earnings of
approximately $15,000,000 will be used in the project. The
exact amount of the bond sale will be submitted to the Board
for approval at the time of sale. When the final resolutions
are completed by the Bond Counsel, they will be forwarded to the
Board.


Action:  Approved   we       Disapproved            Other_

Date: June 25, 1986