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      The Board's financial advisor having finished his analysis of the
bids, his report as to the bid offering the lowest net interest cost to the
Board and recommendation as to the best bid was received.

      Thereupon, a Resolution entitled:

      RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES OF THE
      UNIVERSITY OF KENTUCKY ACCEPTING THE SUCCESSFUL BID FOR THE PURCHASE
      OF THE UNIVERSITY OF KENTUCKY HOSPITAL REVENUE BONDS, SERIES A, DATED
      AUGUST 1, 1986

having been presented to this Executive Committee for consideration, it was
moved by Trustee Farmer and seconded by Trustee Clay, that the bid of Smith
Barney, Harris Upham & Co., Incorporated for the purchase of such Series A
Bonds is hereby accepted and confirmed, said bid being at a price of
$20,536,901.65 at a net interest cost of 7.932090%, for said $21,000,000
principal amount of Series A Bonds, plus accrued interest from August 1,
1986, to date of delivery of the Series A Bonds. That such bid is hereby
determined to be the best bid and with the most favorable net interest cost
to the Board, and the maturities, schedule of mandatory redemption dates,
if any, and the interest rate or rates on such Series A Bonds are hereby
fixed at the rates set out in such successful bid.

      The Resolution was read to the members of the Executive Committee in
its entirety and after consideration, a yea and nay vote was taken on the
motion to adopt said Resolution, which resulted as follows:

      Yeas for the Motion                 Nays Against the Motion

      Robert T. McCowan                            None
      Albert G. Clay
      Tracy Farmer

      The Chairman then declared that the motion had carried and said
Resolution has been adopted. (See PR 3B at the end of the Minutes.)

      E. Report on Self-Insurance Program

      Dr. Clapp reported to the Executive Committee on the self-insurance
program being proposed for the current year in the Medical Center. Copies
of a letter from Chancellor Peter P. Bosomworth to President Singletary
setting forth the program were distributed to members of the Board. This
was an information item only.   (See copy of letter at the end of the
Minutes.)

      F. Resolution Regarding Mr. George W. Griffin

      On motion duly made, seconded and carried, the Executive Committee
adopted an oral resolution wishing Mr. George W. Griffin a speedy recovery
from his recent surgery.