xt7r222r5n1v https://exploreuk.uky.edu/dips/xt7r222r5n1v/data/mets.xml Lexington, Kentucky University of Kentucky 1963052 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1963-05-apr2. text Minutes of the University of Kentucky Board of Trustees, 1963-05-apr2. 1963 2011 true xt7r222r5n1v section xt7r222r5n1v 











       Minutes of the Meeting of the Board of Trustees of the University of
Kentucky, April 2, 1963.


       The Board of Trustees of the University of Kentucky met in the Pres-
ident's Office on the campus of the University at 1:40 p.m., Eastern Standard
Time, Tuesday, April 2, 1963, with the following members present: Governor
Bert T. Combs, chairman, Dr. Ralph Angelucci, Mr. Smith Broadbent, Dr.
Aubrey Brown, Dr. Lewis Cochran, Dr. Harry Denham, Mr. Sam Ezelle,
Mr. Robert Hillenmeyer, Mr. Gilbert Kingsbury, Dr. H. B. Murray, Mr. Clif-
ford Smith, Judge J. A. Sutherland, and Mr. Floyd Wright.  Members absent
were: Mr, Emerson Beauchamp, Mr. Wendell P. Butler, Dr. R. W. Bushart,
and Mr. W.F. Foster. In addition to the members of the Board, the following
representatives of the University administration were also present: President
Frank G. Dickey, Dr. A.D, Albright, Mr. George Kavanaugh, Mr. Clay Maupin,
Dean William A, Seay, Dr. William R. Willard, and Mr. Carl Delabar. Guests
were Mr. Cornelius W. Grafton and Mr. Spencer E, Harper, Jr.


       A. Meeting Opened

       It having been determined that a quorum was present for the transaction
of business, the meeting was opened. by Governor Combs who asked the Reverend
David F, Noble, Pastor of the Beaumont Presbyterian Church, to pronounce the
invocation,


       B, Approval of Minutes

       Upon motion duly made, seconded and carried, the Minutes of the March
15, 1963, meeting of the Executive Committee of the Board of Trustees were
approved as published.



       C. Press Welcomed

       President Dickey welcomed members of the press and indicated that if
the number of representatives continued to grow it would be necessary to
schedule the meetings of the Board of Trustees in larger quarters.


      D. Secretary of the Board Named

      Dr. Dickey called attention to the fact that the Board of Trustees at its
meeting on March 4, 1963, had approved a recommendation that the Board be
provided ". .. . .with a secretary to allow full and complete recordation of its
actions and minutes, in recognition of the Boardis needs for this service without




 






2



dependence on administrative officials or staff of the Unm-r-T ity." He asked
what action the Board wished to take on the appointment of a secretary,

       On motion by Mr. Smith, seconded by Mr E.e'   and carried, fudge
James A. Sutherland was named secretary of the Bcard of Trustees and the
Executive Committee, without compensation. until further orders from the
Board of Trustees.



       E. Amendatory Resolution to Commun tv Ccle~ges Educational Buildings
Project of the University of Kentucky

       The President reminded the Board of Trustees of its adoption on March
4; 1963, of a Resolution creating and establishing a Community Coll.eges Educa-
tional Buildings Project of the University, and creating and establishing an issue
of Community Colleges Educational Buildings Revenue Bonds of the Bcard of
Trustees, which Bonds may be authorized and issued in one or more Series
from time to time pursuant to Series Resolutions, all to be payable ec1ually and
ratably from the Student Registration Fees collected from al. students attending
Community Colleges of the University elsewhere than in Fayette Couanty, Kentucky,
which are made parts of the Community Colleges Educational Buildings Project.
He stated that, upon review of said Resolution with the Fiscal Agents and Bond
Counsel, he wished to submit, and recommend adoption by the Board -f, an
amendatory resolution having for its principal purpose the clarification Cf
Section 4. 05 of ARTICLE IV, so that it will more definitely appear that it was
the intention of the Board to postpone the segregation and pledg-ng of the Student
Registration Fees until after the end of the fiscal biennium terminating on J-une
30. 1964, and to postpone commencement of the extra deposits in -he Bo5d Fund
for the accumulation of a reserve therein until May  :965.  He poainted cut
that since no Bonds had been issued under the authoritv of the Res.-;ltJcution adopted
on March 4, 1963, and no contractual rights had otherwise vested thereunder,
the Board was free to amend the same if it should see fit to do so.

       He tendered to members of the Board an. Anendatcry Reso-l.ut.cn prepared
by Bond Counsel and approved by the President of the U. nrcty, the Trustee
and the Fiscal Agents.

      After examination and discussion thereof, Bo-.rd member Angelucci
introduced, caused to be read in full, and moved immediate adopt on of the prc-
posed Resolution, as follows:

      A RESOLUTION AMENDING IN CERTAIN RESPECTS A RESOLUTION
      WHICH WAS ADOPTED BY THE BOARD OF TRUSTEES ON MARCH 4,
      1963, CONCERNING THE CREATI-O1N AND ESTABLISHMENT OF A
      COMMUNITY COLLEGES EDUCATIONAL BUTLDIN -S PROJECT OF
      THE UNIVERSITY OF KENTUCKY AND THE CREAT.I'ON AND ESTABLISHME NT
      OF AN ISSUE OF COMMUNITY COLLEGES EDUCA                 ULTNGS
      REVENUE BONI)S OF THE BOA1RD OF TRUSTEES           UTNIE UNiVERSITY.




 






3



       WHEREAS, at a meeting held on March 4, 1963, the Board of Trustees
of the University of Kentucky adopted a Resolution entitled:


       A RESOLUTION creating and establishing a Community Colleges
       Educational Buildings Project of the University of Kentucky; creat-
       ing and establishing an issue of Community Colleges Educational
       Buildings 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.

       AND WHEREAS,     no Series Resolutions have been adopted by the Board
specifically authorizing any seriesof bonds pursuant to the terms and provisions
thereof, no bonds have been issued thereunder, and no other contractual rights
have become vested thereunder; and the Board now desires to amend the aforesaid
Re solution;

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

      Section 1. That certain Resolution which was adopted by the Board of
Trustees on March 4, 1963 and which is identified by quotation of its title or
caption in the preamble of this resolution is hereby amended in the following
respects:

      (A)  ARTICLE I, Section 1l 01, subparagraph (k) is amended to
            redefine the term "Resolution" to mean the aforesaid Reso-
            lution which was adopted on March 4, 1963, as hereby amended,
            and the single word "Resolution" need not be followed by the
            words "as amended" or any other qualifying phrase.

      (B) ARTICLE IV, Section 4, 05 is deleted in its entirety and the
            following text is hereby substituted in lieu  thereof:

                     Section 4, 05. There is hereby created a separate
            account called the "Community Colleges Educational Buildings
            Project Bond and Inte rest Sinking Fund" (hereinafter referred
            to as the "Bond Fund").  The Bond Fund shall be established
            and maintained by and in the custody of the Trustee, and
            maintained by it so long as any of the Bonds are outstanding.
            Such Bond Fund shall be used by the Trustee to pay interest
            on the Bonds as it becomes due from time to time, and to
            pay and retire the Bonds as they mature, or as otherwise
            herein provided,




 






4



         In connecti.n with the establishment and main-
tenance of the Bcnd Fund, the Board covenants and agrees,
as follows:

         (1) There will be deposited in the Bond Fund the
accrued interest, if any, received at the time or times of
the sale or sales of the Bcnds, together with such further
sum, if any, from the Bond proceeds as may be determined
by the Board in the Series Resolution as necessary to pro-
vide for the payment of the interest on the Bonds for a period
not in excess of three years from the date of the issuance
thereof.

         (2) That from and after the issuance of any of the
Bonds, beginning on September 1, 1964 and thereafter on
May 1 of each year, the Treasurer shall transfer from the
Revenue Fund and deposit to the credit of the Bond Fund all
the Revenues as and when the same are received and de-
posited in the Revenue Fund until there has been so deposited
and paid into the Bond Fund an amount equal to the total interest
and principal becoming due on or prior to the next succeeding
May 1 on all Bonds outstanding, and if by reason of a dispro-
portionate amount of principal being scheduled to become due
on May 1 of any year provision is made in the pertinent Series
Resolution authorizing such Series of Bonds for payments into
said Bond Fund in additicn to current interest and principal
requirements then the amount of such additional payments
shall also be transferred from the Revenue Fund and deposited
to the credit of the Bond Fund as so specified in such Series
Re sol ution.

         Prov;ided, further, that for the purpose of creating
and maintaining a. res.erve in said Bond Fund equal to the
maximum Aggregate Principal, Interest and Bond Fund Charges
the amount to be sc set aside into said Bond Fund from and after
May 1, 1965, shal.l. be 125% of the amounts otherwise herein
provided to be paid into said Bond Fund until and so long as
such reserve is so accumulated, and thereafter the same shall
be resumed and continued whenever and so long as required
to restore and maintain such reserve.

          (3) The amount by which such payments exceed the
Aggregate Principal, Interest and Bond Fund Charges in any
particular twel.ve month period shall be held in said Bond Fund
as a reserve, and unless a'.'. Bonds payable from said Bond Fund
at the time ouitstandilg are to be then retired only such part of
said Bond Fund may be used to purchase or redeem Bonds in
advance of maturity as may be in excess of the Aggregate
Principal, Interest and Bond Fund Charges and the prescribed
reserve. Any such purchase of Bonds prior to maturity shall




 






5



             be made at the lowest prices (not exceeding their current
             fair market value to be determined by the Trustee nor the
             terms for redemption thereof) following advertisement for
             tenders, but if insufficient acceptable tenders are received
             the remaining excess may be applied to the calling and
             redemption of Bonds in the manner as specified in the Reso-
             lution and in accordance with the terms as specified in the
             Bonds. All Bonds so purchased or redeemed shall be
             cancelled.

       Section 2. This resolution shall be in full force and effect from and
after its adoption.

       ADOPTED April 2, 1963.


ATTEST:                             (Signed)   Bert Comnbhs,
                                               Chairman

(Signed) J. A. Sutherland
         Sec retary

       Board member J. A. Sutherland seconded the motion for the adoption
of said Resolution.

       After further discussion, the Chairman put the question, and the following
vote d:

Voting "Aye" Hon. Bert Combs, Dr. Ralph J. Angelucci, Mr. Smith Broadbent,
Dr. Harry Denham, Mr. Sam Ezelle, Mr. Robert H. Hillenmeyer, Mr. Gilbert
Kingsbury, Mr. H. B. Murray, Mr. Clifford E. Smith, Judge James Sutherland,
Mr. Floyd H. Wright.

Voting "Nay": None.



       The Chairman then announced that said Resolution had been duly adopted
and was in full force and effect.


       F. Resolution Authorizing Issuance of $1, 200, 000 Community Colleges
Educational Buildings Revenue Bonds, Series A.

       The President then reminded the Board that at the meeting held on March
4, 1963, the determination had been made that the Board would proceed in the
near future to authorize $1, 200, 000 Community Colleges Educational Buildings
Revenue Bonds, Series A, to supplement funds provided by the Commonwealth and
finance the Community Colleges buildings presently under construction at
Elizabethtown, in Hardin County, and at Prestonsburg, in Floyd County. He




 






6



tendered to the Board in mimeographed form the Series A Resolution as
prepared by Bond Counsel and approved by himself and the Fiscal Agents,
calling attention to the fact that if the Board should see fit to adopt the same,
authority is therein provided for the Executive Committee to act in advertis-
ing and conducting a public, competitive sale of the Series A Bonds and in
accepting the best bid received,

       After consideration and discussion, Board Member Angelucci introduced,
caused to be read in full, and moved immediate adoption of the proposed Series
A Resolution, as follows:

       A RESOLUTION AUTHORIZING THE ISSUANCE OF $1, 200, 000
       "COMMUNITY COLLEGES EDUCATIONAL BUILDINGS REVENUE
       BONDS, SERIES A, " OF THE BOARD OF TRUSTEES OF THE
               __ ___  UNIVERSITY OF KENTUCKY

       WHEREAS, the Board of Trustees of the University of Kentucky, by
Resolution entitled:

       A RESOLUTION creating and establishing a Community Colleges
       Educational Buildings Project of the University of Kentucky; creat-
       ing and establishing an issue of Community Colleges Educational
       Buildings 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.

adopted March 4, 1963, as amended in certain respects by a Resolution adopted
April 2, 1963, (hereinafter referred to collectively as the "Resolution") has
created and established an issue of "Community Colleges Educational Buildings
Revenue Bonds" of the Board of Trustees of the University of Kentucky; and

      WHEREAS, the Resclution authorizes the issuance by said Board of said
Bonds in one or more series pursuant to a resolution authorizing such series;
and

      WHEREAS, the Bcard has determined that it is in the best interests of
the Board to issue at this time the initial series of Bonds to be designated "Com-
munity Colleges Educational Buildings Revenue Bonds, Series A";

      NOW. THEREFORE, THE BOARD OF TRUSTEES OF THE UNIVERSITY
OF KENTUCKY HEREBY RESOLVES, AS FOLLOWS:

ARTICLE I - Definitions and Authority.

      Section 1 ,01.  This resolution (hereinafter referred to as the "Series A
Resolution") is a dopted in accordance with Article II, Section 2.03 of the Resolu-
tion,




 






7



       Section 1'. 02. (A) Ax. terms which are defined in Article I of the Reso-
lution shall have the same meanings. respectively, in this Series A Resolution
as such terms are given in said Article of the Resolution

                     (B) In this Series A Rsolution, Series X Bonds shall
mean the Bonds authorized by Article II of this Series A Resolution.

       Section 1. 03. 'I'his Series A Resolution is adopted pursuant to the pro-
visions of Section 162 340 et se. , of the Kentucky Revised Statutes and the
Re s oluti on.


ARTICLE II - Authoriz.i", of Series A Bonds.

       Section 2.0 1. Pursuant to the provisions of the Resolution there is here-
by authorized to be issued by the Board of Trustees of the University of Kentucky
in its corporate capacity, an initial series of Bonds in the aggregate principal
amount of One Million Two Hundred Thousand Dcllars ($1. 200, 000). Such Bonds
shall be designated as "University of Kentucky Community Colleges Educational
Buildings Revenue Bonds, Series A. " Said Series A Bonds are hereby declared
to have been authorized under the Resolution and in conformity with the pro--
visions of Section 7. 10 of the Resolution.

       Section 2.. 02  Said Series A Bonds are being issued for the purpose of
paying the costs (to the extent not c:thorwise provided) of erecting and completing
one or more educational bxii.'iiings with necessary appurtenances in the establish-
ment of a Community College in or adjacent to the City of Elizabethtown in
Hardin County, and in the establishmnent of a Community College in or adjacent
to the City of Prestonsburg in F!- Gd County, Kentucky, both of which Community
Colleges constitute parts of the C cmmunity Colleges Educational Buildings
Project by the terms and provirsi sins of the Resolution..

       Section 2, 03, The Serie(s A Bonds shall be dated May 1, 1963, and bear
interest payable November 1, 963. and thereafter semiannually on May 1 and
November 1 of each year at a coupon rate or coupon rates not exceeding the
statutory maximum of six per cent (6%) per annum, the exact rate or rates of
interest for said Series A Bonds to be fixed as a result of advertised sale and
competitive bidding for said Series A Bonds, as hereinafter provided. Said
Series A Bonds shall be numbered and scheduled to become due and payable in
numerical order on May I of the respective years, as follows:

BONDS NUMBERED                PRINCIPAL AMOUNT          DATE OF MATURITY
(Inclusive)

          i 130                      $30, 000            May 1, i965
          31-60                        30, 000            May 1, 1966
          61-95                         35, 000           May 1, 1967
          96 130                        35, 000           Ma.y 1, 1968




 






8



              331-165              $ 35, 000            May 1, 1969
              166-20 5               40,000             May 1, 1970
              206 -245               40,000             May 1, 1971
              246-285                40,000             May 1, 1972
              286-325                40,000             May 1, 1973
              326-370                45, 000            May i, 1974
              371-415                45,000             May 1, 1975
              416-460                45,000             May 1, 1976
              461-510                50,000             May 1, 1977
              511-560                50,000             May 1, 1978
              561-615                55,000             May 1, 1979
              616-670                55,000             May 1, 1980
              671-730                60,000             May 1, 1981
              731-790                60,000             May 1 1982
              791-850                60,000             May 1, 1983
              851-915                65,000             May 1, 1984
              916-980                65, 000            May 1, 1985
              981-1050               70, 000            May 1, 1986
            1051-1125               75, 000            May 1, 1987
            1126-1200               75,000             May 1, 1988


       Section 2.04. Said Series A Bonds shall be issued in coupon form, in
the denomination of $1, 000. 00, and shall be registrable as to principal only.

       Section 2. 05. The principal of and interest on said Series A Bonds
shall be payable in any coin or currency of the United States of America, which
at the time of payment therefor is legal tender for the payment of public and
private debts, at the principal office of First Security National Bank & Trust Com-
pany of Lexington, in the City of Lexington, Kentucky, Trustee (or successor
Trustee appointed pursuant to the provisions of the Resolution), or at the option
of the holders of the respective Series A Bonds and coupons at the principal
offices of Continental Illinois National Bank and Trust Company of Chicago,
in the City of Chicago, Illinois, or of Chemical Bank New York Trust Company;
in the City of New York, New York, which are hereby appointed Paying Agents
for the Series A Bonds.

      Section 2. 06, The Series A Bonds maturing May 1, 1974, and there-
after (being the Bonds numbered 326 and upwards) shall be subject to redemption
by the Board in whole or from time to time in part in the inverse order of their
maturities (less than all of a single maturity to be selected by lot), on any
interest payment date on or after May 1, 1973, at the redemption prices, ex-
pressed in percentages of principal amount, with respect to each Bond as set
forth below, plus in each case accrued interest to the date of redemption:
            If Redeemed                                     Redemption Price
On and after May 1, 1973 and prior to May 1, 1978  ....       .e         103%
On and after May 1, 1978 and prior to May 1, 1983 .......  ....,.. ..  102%
On and after May 1, 1983, but prior to final maturity .                  101%




 






9



       Section 2. 07 Said Series A Bonds shall be executed on behalf of said
Board with the reproduced facsimile signature of the Chairman of the Board
and attested by the manual signature of the Secretary of the Board, and the fac-
simile of the corporate seal of said Board shall be imprinted thereon. Interest
on said Series A Bonds falling due on and prior to maturity shall be represented
by appropriate interest coupons to be attached to each of said Series A Bonds,
which coupons shall be executed with the facsimile of the official signatures of
said Chairman and said Secretary.

       Section 2. 08;  For the purpose of securing the payment of both the
principal of and interest on all the Series A Bonds and to secure for the benefit
of all the holders of said Series A Bonds the faithful performance of the covenants
and provision.s contained in the Resolution in the manner and to the extent as
permitted and provided in the Resolution and in Sections 162. 340, et seq,. of
the Kentucky Revised Statutes, First Security National Bank & Trust Company
of Lexington, in the City of Lexington, Kentucky, is hereby designated as
Trustee under the Resolution for the holders of all of said Series A Bonds with
the powers and duties set forth in the Resolution and with no liability in con-
nection with any action or omission to act under the Resolution except for its
own negligence or willful breach of trust. Execution of the authentication
certificate of the Trustee on the respective Series A Bonds shall conclusively
establish the acceptance as to such Series A Bonds by the Trustee of the trusts
and provisions with respect thereto as set forth in the Resolution.

       Section 2. 09. The Series A Bonds and coupons and provisions for regis--
tration appertaining thereto and the certificate of the Trustee to be endorsed
on said Series A Bonds shall be in substantially the following respective forms;
to-wit:

                             (FORM OF BOND)

                       UNITED STATES OF AMERICA
                     COMMONWEALTT OZE KENTUCKY
                        UNIVERSITY OF KENTUCKY
   COMMUNITY COLLEGES EDUCATIONAL BUILDINGS REVENUE BOND
                                 SERIES A

No.                                                                 $1, 000. 00

       The Board of Trustees of the University of Kentucky, a body corporate,
as an educational institution and agency of the Commonwealth of Kentucky, for
value received, hereby promises to pay, solely from the special fund provided
therefor, as hereinafter set forth, to the bearer, or, if this Bond be registered,
to the registered owner hereof, as hereinafter provided, the sum of One Thousand
Dollars ($1, 000. 00) on the first day of May, 19 , and to pay, solely from said
special fund, interest thereon from the date hereof until payment of principal at
the rate of               per cent          l %) per annum, such interest being
payable semiannually on the first days of May and November in each year,
commencing November 1, 1963, except as the provisions hereinafter set forth




 






10



with respect to prior redemption may be and become applicable hereto, such
interest as may accrue on and prior to the maturity date of this Bond to be
paid only upon presentation and surrender of the annexed coupons as they
severally mature, both principal and interest being payable in any coin or cur-
rency of the United States of America which at the time of payment thereof is
legal tender for the payment of public and private debts, at the principal
office of the Trustee, First Security National Bank& Trust Company of Lexington,
in the City of Lexington, Kentucky, or, at the option of the holder  hereof or
of the interest coupons hereunto appertaining, at the principal offices of Con-
tinental Illinois National Bank and Trust Company of Chicago, in the City of
Chicago, Illinois, or of Chemical Bank New York Trust Company, in the City
of New York, New York,

        This Bond is one of a duly authorized issue of Bonds designated as "Com-
munity Colleges Educational Buildings Revenue Bonds' (hereinafter referred to
as the "Bonds") issued and to be issued under and in full compliance with the
Constitution and Statutes of the Commonwealth of Kentucky, including among
others, Sections 162. 350 to 162. 380, inclusive, of the Kentucky Revised Statutes,
now in full force and effect, and under and pursuant to the Resolution adopted
by the Board of Trustees on March 4, 1963, as amended in certain respects by
a Resolution adopted on April 2, 1963 (hereinafter referred to collectively as
the "Resolution") and the Series A Resolution adopted by the Board of Trustees
on April 2, 1963.

       As provided in the Resolution, the Bonds may be issued from time to
time pursuant to separate resolutions in one or more series, in various principal
amounts, may bear interest at different rates and may otherwise vary as in the
Resolution provided.  The aggregate principal amount of Bonds which may be
issued under the Resolution is not limited except as provided in the Resolution,
and all Bonds issued and to be issued under the Resolution are and will be
equally secured by the pledges and covenants made therein, except as otherwise
expressly provided or permitted in the Resolution.

       Thie Bond is one of a series of Bonds of various maturities designated
as "Community Colleges Educational Buildings Revenue Bonds, Series A, '
(herein called the "Series A Bonds") issued in the aggregate amount of $1, 200, 000
under the Resolution for the purpose of financing the costs {to the extent not
otherwise provided) of erecting and completing educational buildings and necessary
appurtenances as parts of the Community Colleges Educational Buildings Project
of said University (hereinafter referred to as the "Project").  Copies of the
Resolution and the Series A Resolution are on file at the office of the Trustee.
Reference is hereby made to the Resolution pursuant to which First Security
National Bank & Trust Company of Lexington, in the City of Lexington, Kentucky,
has been designated as Trustee for the holders of the issue of Bonds of which
this Bond is one and for the provisions, among others, with respect to the custody
and application of the proceeds of the Bonds; the rights, duties and obligations
of said Board of Trustees, and of the Trustee, and the rights of the holders of the
Bonds; and by the acceptance of this Bond, the holder hereof assents to all of
the provisions of the Resolution, Under authority of the statutes pursuant to




 






1I



which this Bond is issued, this Bond shall have all the qualities and incidents
of a negotiable instrument, and subject to the provisions for registration endorsed
hereon and contained in the Resolution, nothing contained in this Bond or in
the Resolution shall affect or impair the negotiability of this Bond.

        The holder of this Bond shall have no right to enforce the provisions
of the Resolution or to institute action to enforce the covenants -therein, or
to take any action with respect to any default under the Resolution, or to
institute, appear in or defend any suit or other proceedings with respect thereto,
except as provided in the Resolution.  The Resolution provides for fixing,
charging and collecting fees for the services of said Project, which fees will
be sufficient to pay the principal of and the interest on said Bonds as the same
become due and to provide reserves for such purposes and also to pay the
costs of operation and maintenance of the Project to the extent the same are not
otherwise provided.  The Resolution provides for the creation of a special
account designated "Community Colleges Educational Buildings Project Bond
and Interest Sinking Fund" (herein called the "Bond Fund") and for the deposit
to the credit of said Bond Fund of a fixed amount of the gross Revenues of
said Project to pay interest on the Bonds as the same become due and to pay
or retire the principal of the Bonds at or prior to the maturity thereof, and
to provide a reserve for such purpose, which Bond Fund is pledged to and
charged with the payment of said principal and interest.

       The issue of Series A Bonds of which this Bond is one and all other
Bonds as may be outstanding from time to time under the Resolution, are
payable only from a fixed amount of the gross Revenues derived from the
operation of said Project which will be set aside in said Bond Fund, and this
Bond does not constitute any indebtedness of the University of Kentucky or of
its Board of Trustees or of the Commonwealth of Kentucky within the meaning
of any provisions or limitations of the Constitution of the Commonwealth of
Kentucky.

       The Series A Bonds maturing May 1, 1974, and thereafter (being the
Bonds numbered 326 and upwards) shall be subject to redemption at the option
of the Board of Trustees in whole or from time to time in part in the inverse
order of their maturities (less than all of a single maturity to be selected by
lot), on any interest payment date on or after May 1, 1973, at the redemption
prices, expressed in percentages of principal amount, with respect to each
Bond as set forth below, plus in each case accrued interest to the date of
redemption:

           If Redeemed                               Redemption Price

On and after May 1, 1973 and prior to May 1, 1978 ..........  e  103%
On and after May 1, 1978 and prior to May 1, 1983 ................  102%
On and after May 1, 1983, but prior to final maturity ..............  101%




 





I2



       In the event the Bcard cf Trustees shall exercise its option to redeem
any of the Series A Bonds of which this Bond is a part, notice of such redemp-
tion identifying the Bonds to be redeemed will be given to the Trustee at least
forty-five (45) days prior to the specified redemption date and such notice
shall be published at least once not less than thirty (30) days prior to the
specified redemption date in a newspaper or financial journal of general cir-
culation published in each of the Cities of Louisville, Kentucky, and New York,
New York. Any Bonds called for redemption and for the payment of which
funds are deposited with said Trustee on the specified redemption date shall
cease to bear interest on said redemption date.

       This Bond shall pass by delivery unless registered as to principal on
the books of said Board of Trustees at the office of the Trustee under the Reso-
lution, and such registration noted hereon, after which no valid transfer hereof
shall be effective unless made on said books and similarly endorsed hereon at
the written request of the registered holder or his duly authorized representa-
tive, but this Bond may be discharged from registration by being in like manner
registered to bearer whereupon full negotiability and transferability by delivery
shall be restored but may again from time to time be registered as aforesaid.
Such registration, however, shall not affect the negotiability of the interest
coupons which ahall always remain payable to bearer and transferable by
delivery merely.  The Board of Trustees, the Trustee, and the Paying Agents
may treat the bearer of this Bond, if not registered as to principal, and the
bearer of any coupon hereto appertaining, whether or not this Bond be so
registered, or if this Bond be registered as herein authorized, the person in
whose name the same is registered, as the abs