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[415]

Part of Minutes of the University of Kentucky Board of Trustees

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Notwithstanding the provisions of the Master Resolution, the Board covenants that it will implement, to the extent feasible, the recommendations of a Consultant retained to make recommendations as to a revision of such rates, fees and charges or the methods of operation of the Hospital. which will result in producing the amount necessary to satisfy the requirements of the foregoing paragraph. Section 6.05. Board Contribution. The Board covenants to make a contribution in an amount sufficient to pay all costs of the Series A Hospital Project and to fund the Reserve Account to the extent that proceeds of the Series A Bonds are insufficient for such purposes. Any Board contribution to the Reserve Account shall be made no later than the date of delivery of the Series A Bonds. The Board contribution to the costs of the Series A Hospital Project may be made in any one or more of the following ways: (i) by deposit to the Series A Construction Account, at one time or from time to time as and when needed to pay the costs of the Series A Hospital Project, (ii) by deposit at one time or from time to time to a specific account maintained by the Board or the State Treasurer of the amount estimated by the Treasurer to be needed to fund the additional costs of the Series A Hospital Project. The President of the University of Kentucky, upon the advice of the Treasurer, is authorized to determine the time and manner of making such contribution by the Board and to authorize same by executive order. ARTICLE VII. COMPLIANCE WITH FEDERAL ARBITRAGE REQUIREMENTS. Section 7.01. Arbitrage Certification. Section 103(c)(2) of the Code and the regulations promulgated thereunder provide that sums derived from the proceeds of the Series A Bonds shall not be invested in investments in a manner which would cause the Bonds to be treated as "arbitrage bonds". Prior to or at the time of delivery of the Series A Bonds, the Treasurer of the Board is authorized to execute the appropriate certification with reference to the matters required and contemplated by such statute and regulations, setting out all known and contemplated facts concerning the anticipated expenditures and investments, including the execution of necessary and/or desirable certifications con- templated by the aforesaid regulations in order to assure that interest on the Series A Bonds will be exempt from all federal income taxes and that the Series A Bonds will not be treated as "arbitrage bonds". The Board certifies that based on facts, estimates and circum- stances, the Board has reasonable expectations that on the proposed date of issue of the Series A Bonds, it is expected that at least 85% of spendable proceeds of the Series A Bonds will be expended for the costs of the Series A Hospital Project within five (5) years from such date of issue. ARTICLE VIII. COVENANTS TO COMPLY WITH TAX REFORM ACT OF 1985. The Board acknowledges that prior to the time this Series A Resolution is enacted, (a) the "Tax Reform Act of 1985," also known as H.R. -21-