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       X.    Patent Assignment (FCR 8)

       On motion made by Mr. Hardymon, seconded by Mr. Ulmer and carried,
the patent assignment in FCR 8 was approved.

       Y.    Transfer of Gas Distribution Facilities at Spindleton and Maine
Chance Farms to Columbia Gas of Kentucky. Inc.  (FCR 9)

       Mr. Hardymon moved that the President or his designee be authorized
to execute necessary documents to enable transfer of the University's
ownership of natural gas distribution facilities at Spindletop and Maine
Chance Farms to Columbia Gas of Kentucky, Inc. He said that by transferring
this ownership to Columbia Gas it will relieve the University of the
liability of the maintenance of these facilities. Mrs. Sims seconded the
motion and it passed. (See FCR 9 at the end of the Minutes.)

       Z.    Investment Policy - Endowment Funds (ICR 1)

       Mr. Wilcoxson. Chairperson of the Investment Committee, moved that
the Board rescind the policy prohibiting investment of funds in any
U. S. corporation or bank doing business in the Republic of South Africa.
He provided background information which illustrated that the conditions
existing in 1985 have changed significantly, and said that the Investment
Committee recommends a change in policy. Mr. Reed seconded the motion and
it carried. (See ICR I at the end of the Minutes.)

       Governor Breathitt thanked Mr. Wilcoxson and the members of the
Investment Committee for their outstanding work.

       AA.   Meeting Adjourned

       There being no further business to come before the Board, the meeting
adjourned at 1:54 p.m.

                                       Respectfully submitted,



                                       Lois C. Weinberg
                                       Secretary
                                       Board of Trustees

(PR's 2, 3A, 3B, 3C, 3D, 4A, 5A, 5B, 5C, 5D, and 5E, FCR's 1, 2, 3, 4, 5, 6,
7, 8, and 9 and ICR 1 which follow are official parts of the Minutes of the
meeting.)



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