xt70rx937x26 https://exploreuk.uky.edu/dips/xt70rx937x26/data/mets.xml Lexington, Kentucky University of Kentucky 1971068 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, 1971-06-jun8-ec. text Minutes of the University of Kentucky Board of Trustees, 1971-06-jun8-ec. 1971 2011 true xt70rx937x26 section xt70rx937x26
Minutes of the Mleetir.g of the Executive Committee of the Board of
Trustees of the University of Kentucky, Tuesday, June 8, 1971
The Executive Committee of the Board of Trustees of the University of
Kentucky met in regular session at 2:00 p. m. (Eastern Daylight Time) on
Tuesday, June 8, 1971, in the Board Room of the Administration Building on
the University campus with the following members present: Mr. Albert G.
Clay, Mr. Thomas P. Bell, Mr. Richard E. Cooper, Mr. Eugene Goss, and
M r. George W. Griffin. Also present was Mrs. Rexford S. Blazer, Secretary
of the Board of Trustees and Ex Officio Secretary of the Executive Committee.
The administration personnel of the University present were: President Otis
A. Singletary; Vice Presidents Alvin L. Morris, Lewis W. Cochran, A. D.
Albright, Glenwood L. Creech. Stanley Wall, Robert Zumwinkle, and Lawrence
E. Forgy; Dr. William R. Willard; Dr. Donald Clapp; and Mr. John Darsie.
The various news media also had representatives present.
A. Meeting Opened
Mr. Clay, Chairman, called the meeting to order at 2:15 p. m. Follow-
ing the invocation by, Mr. Clay, Mrs. Blazer reported that all members of the
Executive Committee were present and Mr. Clay declared the meeting officially
open for the conduct of business at 2:17 p. m.
B. Minutes Approved
On motion duly made, seconded, and carried, the reading of the Minutes
of the M4a\y 4, 1971 meeting of the Board of Trustees was dispensed with and the
Minutes were approved as published.
C. Minutes of March lb. 1971 Corrected
Mr. Griffin pointed out that there was a typographical error in the
published Minutes of the March 16 meeting of the Board of Trustees and in
order to correct this error officially, he moved that the Minutes of the meeting
of March 16, 1971 be corrected on page 7 to reflect that Mr. Goss seconded
Mr. Clay's motion to accept the bids on the Community College Bonds. His
motion was seconded by Mir. Cooper and passed. The Chairman instructed the
Secretary to see that this correction was made in the official copy of the Minutes
of the March 16, 1971 meeting of the Board of Trustees.
D. President's Report to the Trustees
President Singletary called attention to PR 1, President's Report to the
2
Trustees, saying that because of the full agenda for the meeting, he would not
take the time to discuss the items in the report but recommended that the report
be accepted. Mr. Clay accepted the report and ordered it filed.
E. Recommendations of the President and Supplemental
Recommendations of the President (PRs 2 and 3)
President Singletary suggested that since PR 3, Supplemental Recom-
mendations of the President, was merely an extension of PR 2 and that the items
in both reports were routine in nature, they be considered together. However,
he called attention to three recommended administrative appointments which he
thought would be of particular interest to members of the Board--Mr. Robert C.
Toll as Executive Director of the Office of Development; Mr. James C. Shires
as Director of the Maysville Community College; and Mr. Jerry L. Stevens as
Assistant to the Vice President for Student Affairs for Minority Students.
Mr. Clay, first determining that there were no questions relative to the
recommendations in PRs 2 and 3, called for a motion for approval. Mr. Cooper
so moved. His motion being duly seconded, and all present voting "aye", PRs 2
and 3 were approved as a whole and ordered made an official part of the Minutes
of the June 8, 1971 meeting. (See PRs 2 and 3 at the end of the Minutes.
F. Office of Business Development and Government Services
Established (PR 4)
President Singletary said the rationale for the recommendation to es-
tablish an Office of Business Development and Government Services was set
forth in the background statement of PR 4. He indicated that Dr. Cochran would
be glad to answer any questions and recommended approval of PR 4.
On motion by Mr. Goss, seconded by Mr. Griffin, and passed without
dissent, PR 4 was approved as presented. (See PR 4 at the end of the Minutes.
G. Office of Instructional Resources Established (PR 5)
Approval of PR 5 would result in the consolidation of several disparate
public information units into one office headed by a Director and under the Dean
of Undergraduate Studies. President Singletary recommended approval and on
motion by Mr. Cooper, seconded by Mr. Bell, and passed, the recommendation
in PR 5 was approved as presented. (See PR 5 at the end of the Minutes.
H. e sons for 1971-72 Approved (PR 6)
The budget revisions recommended in PR 6 being of a routine nature and
3
there being no questions, on motion duly made, seconded, and carried, the
budget revisions recommended in PR 6 were authorized and approved. (See
PR 6 at the end of the Minutes. )
I. President Authorized to Take Action to Protect University's
Interests in Robinson Forest
President Singletary indicated that he would like to request guidance
from the Executive Committee on the position which the University should take
relative to a threat to the Robinson Forest posed by the issuance of a permit on
Tuesday, June 1, 1971 to Vols Cloal, Inc. by the Kentucky Division of Strip
Mining and Reclamation to operate a strip mine on Hurricane Creek in Knott
County about four miles front the forest. He explained that surface mining in
this area would undoubtedly cause ecological changes in the headwaters above
the forest and would thereby endanger the research potential of the Robinson
Forest area. He continued that three previous requests for permits have been
turned down and he did not know at this point why the permit had been issued nor
the exact degree to which the proposed strip mining would affect the University's
holdings; however, he felt that the University could not wait for another meeting
of the Board before taking action and requested that the Board give him adminis-
trative authority to take whatever steps would be necessary, up to and including
legal action if that is the only relief available.
Mr. Goss asked if the President could give the Board members some idea
of what the University is doing in this area. President Singletary said the Uni-
versity has a $400, 000 planned investment in the study of the watershed area and
has requested $250, 000 in Federal funds for additional work there. The forest
is the primary research laboratory for the University's Department of Forestry
and it is irreplaceable as the source for watershed, wildlife, ecology and
forestry products studies. He added that this is the one place left in this part of
the world where such research can be done for the Buckhorn has not been polluted
as yet.
Mr. Goss then moved that the President be authorized and directed to give
further study to the problem and that he be empowered to take whatever action is
reasonably necessary to protect the University's interests. His motion was
seconded by Mr. Cooper and all present voted "aye".
J. Chairman Authorized to Execute Contracts with President and
Vice Presidents
Mr. Clay said that in accordance with past practice the Chairman of the
Executive Committee executes contracts with the President and the Vice Presi-
dents and requested authorization from the Executive Committee to execute the
contracts with these individuals for the 1971-72 fiscal year. On motion duly made,
seconded, and carried, it was so ordered.
4
K. Finance Committee Reports (FCRs 1, 2, and 3)
Mr. Griffin, Chairman of the Finance Committee, said that the recom-
rliendations in FCRs 1, 2, and 3 were routine in nature and the Finance Committee
recommended approval of each. Mr. Cooper moved that FCR 1, FCR 2, and FCR 3
be approved as presented. His motion being duly seconded, and passed, the
interim financial report was accepted (FCR 1); purchase of the property in
Caldwell County was approved (FCR 2); and the Assistant Treasurer and Controller
were authorized to cremate certain paid bonds and coupons (FCR 3). (See FCRs 1,
2, and 3 at the end of the Minutes. )
L. $34, 700, 000 "Consolidated Educational Buildings Revenue Bonds,
Series D, " to be Dated May 1, 1971
The Presiding Officer reminded the Executive Committee that
in accordance with authority duly conferred upon the Executive Committee
by the Board of Trustees of the University, the Executive Committee
bested, on November 27, 1967, a certain resolution (the "Series C
and Series D Resolution"), which is identified by its title or caption,
as follows:
A RESOLUTION AUTHORIZING THE ISSUANCE OF $4,393,000
CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE BONDS,
SERIES C, AND $29,250,000 CONSOLIDATED EDUCATIONAL
BUILDINGS REVENUE BONDS, SERIES D, OF THE BOARD OF
TRUSTEES OF THE UNIVERSITY OF KENTUCKY
AND
IN ANTICIPATION OF THE ISSUANCE OF SAID BONDS,
AUTHORIZING THE ISSUANCE, JOINTLY WITH THE STATE
PROPERTY AND BUILDINGS COMMISSION OF KENTUCKY, AND
SUBJECT TO THE APPROVAL AND CONCURRENCE OF SAID
COMISSION, OF REVENUE BOND ANTICIPATION NOTES IN
THE MANNER AUTHORIZED BY KRS 56.513, THE SAME TO BE
PAYABLE (A) AS TO PRINCIPAL SOLELY FROM THE PROCEEDS
OF THE CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE
BONDS, SERIES C AND SERIES D, HEREIN AUTHORIZED, WHEN
SAID BONDS ARE SOLD AND DELIVERED (OR FROM THE PROCEEDS
OF RENEWAL NOTES), AND (B) AS TO INTEREST FROM THE
SOURCES HEREIN PROVIDED THEREFOR; AND REQUESTING
APPROVAL AND CONCURRENCE OF THE SAID COMMISSION.
5
The Presiding Officer further reminded the members of the
Executive Committee that in accordance with authority properly vested
in the Executive Committee by the Board, and acting in accordance
with statutory authority of KRS 56.513, the Executive Committee, or
the Board itself, acting from time to time, has taken, accomplished
and completed certain steps, as follows:
(a) In the first instance, there were authorized by the
aforesaid "Series C and Series D Resolution" the issuance by the
Board, on behalf of the University, of the University's $4,393,000
"Consolidated Educational Buildings Revenue Bonds, Series C," and
$29,250,000 "Consolidated Educational Buildings Revenue Bonds,
Series D"; and, in anticipation of the future issuance thereof, and
in accordance with KRS 56.513, there were authorized and subsequently
issued, with the approval and concurrent authorization of the State
Property and Buildings Commission of Kentucky (the "Commission"),
certain "Revenue Bond Anticipation Notes" (the "Notes"), in the prin-
cipal amount of $31,400,000, being the joint obligations of the Board
and of the Commission, the same being dated December 11, 1967,
maturing December 13, 1968;
(b) Said Notes have been renewed from time to time as
permitted by KRS 56.513;
- ii -
6
(c) At the proper time the "Consolidated Educational
Buildings Revenue Bonds, Series C," were sold and delivered in the
principal amount of $4,290,000 and the proceeds thereof (together
with moneys provided by the University from available funds in lieu
of the issuance of $103,000 of said Series C Bonds which had matured
and could not be issued), were duly applied in reduction of the
aforesaid Notes, as promised and agreed;
(d) There are outstanding at this time $28,100,000 "Revenue
Bond Anticipation Notes of 1970" (the "1970 Renewal Notes"), dated
December 11, 1970, to mature December 14, 1971, bearing interest at
the respective rates as in each of said Notes provided, and without
privilege of prior redemption; the total amount of the obligations
of the Board and of the Commission with regard thereto consisting of
the principal amount of $28,100,000, together with interest from date
to maturity aggregating $1,056,985.43; thus amounting in the aggre-
gate, both principal and interest to maturity, to the sum of
$29,156,985.43;
(e) Meanwhile, and during the progress of the foregoing
proceedings, the Series D Bonds, originally in the principal amount
of $29,250,000, as authorized in and by the said resolution adopted
November 27, 1967, have not been sold or issued, and by reason of the
passage of some three and one-half years certain details thereof have
- iii -
7
been overtaken by events, and by reason thereof it has been brought
to the attention of the Executive Committee, acting under full author-
ity previously vested in it by the Board, that it is proper and in
order to amend the Series C and Series D Resolution (but only insofar
as the Series D Bonds are concerned; and without in any manner amending,
altering or repealing any provisions thereof pertaining to the Series C
Bonds which were also authorized therein and which have subsequently
been sold and delivered) by (i) adding to the "Undertakings" to be
financed in part through the issuance of the said Series D Bonds
two new and additional educational buildings projects, (ii) increasing
the principal amount of the Series D Bonds to $34,700,000, (iii) up-
dating the Series D Bonds to May 1, 1971, in order to avoid the
necessity for accounting for interest coupons which would already be
past due if said Bonds were issued under date of September 1, 1967,
(iv) substituting a new and realistic up-dated schedule of principal
maturities, and (v) a re-statement of the redemption provisions; all
of which actions have been approved and authorized by the Commission
in a resolution adopted on May 13, 1971; and by reason of such events
and happenings, it is appropriate and consistent to adopt, and re-state
in amended form, the prescribed text of the Series D Bonds;
(f) It has been the opinion and judgment of the Executive
Committee that there should be no further renewals of the Revenue Bond
- iv -
8
Anticipation Notes; but that the Series D Bonds, in amount, form and
substance substantially as hereinafter authorized, should be offered
at an advertised competitive sale in the manner required by law; that
provisions should be made for the deposit from the proceeds of the
Series D Bonds, immediately upon receipt of the same, of a sufficient
portion of such proceeds to fulfill all obligations of the Board and
the Commission with reference to the aforesaid outstanding $28,100,000
of 1970 Renewal Notes, in all respects in accordance with the coven-
ants and agreements of the Board and the Commission with reference
thereto; and to make proper provision for disposition of the remain-
ing proceeds of said Series D Bonds; and all of said actions have been
approved and authorized by the Commission in its aforesaid resolution
adopted on May 13, 1970; and
(g) The Executive Committee has received the advice of the
Fiscal Agent and of Bond O~unsel, has consulted with the Commissioner
of Finance of the Commonwealth, and has determined to its satisfaction
that funds available from all sources (including grants from Agencies
of the United States Government, funds of the University lawfully
available, and the proceeds of the Series D Bonds) are sufficient to
defray all anticipated costs of the Undertakings (as up-dated and re-
stated), intended to be financed in part through the issuance of said
Series D Bonds, and has determined to its satisfaction that the av-
erage of the defined Revenues of the Consolidated Educational Buildings
- v -
9
Project for the two Fiscal Years immediately preceding the issuance
and delivery of the said Series D Bonds has been sufficient to meet
the requirements set forth in Section 7.10 of Article VII of the
Resolution of September 20, 1960, wherein conditions and restrictions
were prescribed with reference to the issuance of parity bonds from
time to time; and the Executive Committee is fully advised in the
premises.
The Presiding Officer further reminded the Executive Committee
that by reason of the extreme difficulty of obtaining the presence of a
quorum at special meetings of the Executive Committee, it had been
determined in conferences in person or by telephone that the details,
as recited above, with reference to the "Consolidated Educational
Buildings Revenue Bonds, Series D," as recommended by the Business
Staff of the University, with the concurrence of the Fiscal Agent and
Bond Counsel, and with advance approval by the Commissioner of Finance
of the Commonwealth and by the State Property and Buildings Commission --
all as cast in the form of a certain bond-authorizing resolution pre-
pared and submitted by Bond Counsel with the concurrence and approval
of all other parties referred to, should be assumed to be the basis
upon which the Executive Committee, acting on behalf of the Board and
the University, should offer at public sale its $34,700,000 "Consoli-
dated Educational Buildings Revenue Bonds, Series D," to be dated
- vi -
10
May 1, 1971; and that on that basis the Fiscal Agent should be author-
ized to advertise, in advance, public notice that the Executive
Committee of the Board, at the occasion of this special meeting of
June 8, 1971, would receive, consider and act upon sealed competitive
bids for the purchase of such Series D Bonds. In that connection, he
reported that the Fiscal Agent proceeded to act in causing to be pub-
lished the submitted and recommended form of "Notice of Sale of Bonds,"
and there were tendered to the Secretary for the permanent records of
the Executive Committee and of the Board (i) a copy of an Affidavit
of a proper representative of The Daily Bond Buyer, a financial journal
published in New York, New York, and affording nation-wide coverage,
(ii) an Affidavit of an authorized representative of The Courier-Journal,
Louisville, Kentucky, a daily newspaper published in the Commonwealth
of Kentucky and affording state-wide coverage; (iii) evidence of publi-
cation in each of said media of a certain "Supplement" to such published
"Notice of Sale of Bonds" affirming the commitment of the Executive
Committee, on the part of the Board and of the University, that the
Series D Bonds are guaranteed to be delivered to the purchaser or pur-
chasers thereof within forty-five (45) days after the date of sale,
and (iv) a copy of the "Official Statement" prepared and disseminated
by the Fiscal Agent, in consultation with the Business Staff of the
University, the Commissioner of Finance, and Bond Counsel.
*' vii -
I1
The Presiding Officer then submitted to the members of the
Executive Committee that the first question to be considered was whether
or not the aforesaid resolution authorizing the issuance of the Series D
Bonds in the principal amount of $34,700,000, dated May 1, 1971, should
be adopted at this time; and that if such action should be taken, the
second question should be whether or not the actions previously taken
by the Fiscal Agent, the Business Staff of the University and Bond
Counsel (acting with the advance approval of the Commissioner of Finance
and of the State Property and Buildings Commission), should be adopted,
ratified and confirmed; and that if both of such proposals should be
approved -- then it would be proper to call for the submission of
purchase bids which might have been received in response to the public
advertisement, for the purchase of the Board's "Consolidated Educational
Buildings Revenue Bonds, Series D," as above recited.
The Presiding Officer pointed out to the members of the
Executive Committee that copies of all these documents were available
before them for examination and discussion.
After full discussion, Executive Committee Member Griffin
introduced, caused to be read in full, and moved immediate adoption
of a certain proposed resolution of the Executive Committee of the
Board of Trustees of the University, in the following text:
- Viii -
12
A RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE
BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY
AMENDING IN CERTAIN MATERIAL RESPECTS (WITH ADVANCE
APPROVAL OF THE STATE PROPERTY AND BUILDINGS COMMIS-
SION OF KENTUCKY), THE AMOUNT, PURPOSES, DATE, MATURITY
SCHEDULE AND REDEMPTION PROVISIONS WITH RESPECT TO
CERTAIN "CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE
BONDS, SERIES D," ORIGINALLY AUTHORIZED BY RESOLUTION
ADOPTED ON NOVEMBER 27, 1967, BUT WHICH BONDS HAVE
NOT BEEN SOLD, ISSUED OR DELIVERED; PROVIDING THAT
SAID SERIES D BONDS SHALL BE OFFERED AT PUBLIC SALE
AFTER DUE ADVERTISEMENT ACCORDING TO LAW; PROVIDING
THAT FROM THE PROCEEDS THEREOF PROPER PROVISION SHALL
BE MADE FOR THE PAYMENT OR PURCHASE OF $28,100,000
"REVENUE BOND ANTICIPATION NOTES OF 1970"; AND MAKING
PROPER PROVISION FOR THE DISPOSITION OF THE REMAINING
PROCEEDS OF SAID SERIES D BONDS.
WHEREAS, at a meeting held on November 27, 1967, the statutory
Executive Committee of the Board of Trustees of the University of
Kentucky (the "Executive Committee") acting under proper authority
from the Board of Trustees of the University of Kentucky (the "Board"),
adopted a certain resolution (the "Series C and Series D Resolution"),
which is identified by its title or caption, as follows:
"A RESOLUTION AUTHORIZING THE ISSUANCE OF $4,393,000
CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE BONDS,
SERIES C, AND $29,250,000 CONSOLIDATED EDUCATIONAL
BUILDINGS REVENUE BONDS, SERIES D, OF THE BOARD OF
TRUSTEES OF THE UNIVERSITY OF KENTUCKY
AND
IN ANTICIPATION OF THE ISSUANCE OF SAID BONDS,
AUTHORIZING THE ISSUANCE, JOINTLY WITH THE STATE
PROPERTY AND BUILDINGS COMMISSION OF KENTUCKY, AND
SUBJECT TO THE APPROVAL AND CONCURRENCE OF SAID
COMMISSION, OF REVENUE BOND ANTICIPATION NOTES IN
THE MANNER AUTHORIZED BY KRS 56.513, THE SAME TO BE
PAYABLE (A) AS TO PRINCIPAL SOLELY FROM THE PROCEEDS
- 1 - (UK; Consolidated; Series D)
13
OF THE CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE BONDS,
SERIES C AND SERIES D, HEREIN AUTHORIZED, WHEN SAID
BONDS ARE SOLD AND DELIVERED (OR FROM THE PROCEEDS
OF RENEWAL NOTES), AND (B) AS TO INTEREST FROM THE
SOURCES HEREIN PROVIDED THEREFOR; AND REQUESTING
APPROVAL AND CONCURRENCE OF THE SAID COMMISSION.";
and
WHEREAS, with the approval, concurrence and authorization of
the State Property and Buildings Cormnission of Kentucky (the "Commission")
and pursuant to KRS 56.513 and the aforesaid Series C and Series D
Resolution (a) there were duly authorized, sold and delivered certain
"Revenue Bond Anticipation Notes" (the "Notes") in the principal
amount of $31,400,000, being the joint obligations of the Board and
of the Commission, the same being dated December 11, 1967, maturing
on December 13, 1968, (b) the same have been renewed from time to
time as permitted by KRS 56.513, (c) at the proper time the "Consoli-
dated Educational Buildings Revenue Bonds, Series C," were sold and
delivered in the principal amount of $4,290,000, and the proceeds
thereof (together with monies provided by the University from available
funds in lieu of the issuance of $103,000 of said Series C Bonds which
had matured and could not be issued) were duly applied in reduction
of the outstanding Notes, as promised and agreed, and (d) there are
outstanding at the time of adoption of this resolution $28,100,000
"Revenue Bond Anticipation Notes of 1970" (the "1970 Renewal Notes"),
dated December 11, 1970, to mature December 14, 1971, bearing interest
at the respective rates in each of said Notes provided, and without
privilege of prior redemption; and
- 2 - (UK; Consolidated; Series D)
14
WHEREAS, the Series D Bonds in the principal amount of
$29,250,000 as authorized in said resolution adopted November 27, 1967,
have not been sold or issued, and by reason of the passage Of some
three and one-half years certain details thereof have been overtaken
by events, and it is the purpose of the Executive Committee, acting
under full authority previously vested in it by the Board, to amend
the Series C and Series D Resolution (but only insofar as the Series D
Bonds are concerned; and without in any manner amending, altering or
repealing any provisions thereof pertaining to the Series C Bonds
which were also authorized therein), by (a) adding to the "Undertakings"
to be financed in part through issuance of said Series D Bonds, two new
and additional educational building projects, (b) increasing the
principal amount of the Series D Bonds to $34,700,000, (c) up-dating
the Series D Bonds to May 1, 1971, in order to avoid the necessity
of accounting for interest coupons which would already be past due
if said Bonds were issued under date of November 1, 1967, (d) substi-
tuting a new and realistic up-dated schedule of principal maturities,
and (e) a re-statement. of the redenkption provisions; all of which
actions have been approved and authorized by the Commission in a
Resolution adopted on May 13, 1971; and by reason of such amendments
it is appropriate and consistent to re-state, in amended form, the
prescribed text of the Series D Bonds; and
WHEREAS, it is the opinion and judgment of the Executive
- 3 - (UK; Consolidated; Series D)
15
Committee that there should be no further renewals of the Revenue Bond
Anticipation Notes; but that the Series D Bonds, in amount, form and
substance as hereinafter authorized, should be offered at an advertised
competitive sale in the manner required by law; that provisions should
be made for the deposit from the proceeds of the Series D Bonds,
immediately upon receipt of the same, of a sufficient portion of such
proceeds to fulfill all obligations of the Board and the Commission
with reference to the aforesaid outstanding $28,100,000 of 1970
Renewal Notes, in all respects in accordance with the covenants and
agreements of the Board and the Commission with reference thereto; and
to make proper provision for disposition of the remaining proceeds of
said Series D Bonds; and all of said actions have in like manner been
approved and authorized by the Commission in its aforesaid Resolution
adopted on May 13, 1970; and
WHEREAS, the Executive Committee has received the advice of
the Fiscal Agent and of Bond Counsel, has consulted with the Commis-
sioner of Finance of the Commonwealth, and has determined to its aatis-
faction that funds available from all sources (including grants from
Agencies of the United States Government, funds of the University law-
fully available, and the proceeds of the Series D Bonds) are sufficient
to defray all anticipated costs of the Undertakings intended to be
financed in part through the issuance of said Series D Bonds, and has
determined to its satisfaction that the average of the defined Revenues
of the Consolidated Educational Buildings Project for the two Fiscal
- 4 - (UK; Consolidated; Series D)
16
Years immediately preceding the issuance and delivery of the said
Series D Bonds has been sufficient to meet the requirements set forth
in Section 7.10 of Article VII of the Resolution of September 20, 1960,
wherein conditions and restrictions were prescribed with reference
to the issuance of parity bonds from time to time; and the Executive
Committee is fully advised in the premises,
NOW, THEREFORE, THE EXECUTIVE COMMITTEE OF THE BOARD OF
TRUSTEES OF THE UNIVERSITY OF KENTUCKY HEREBY RESOLVES, AS FOLLOWS:
PART ONE
OFFICIAL RECOGNITION AND ACKNOWLEDGMENT OF STEPS
PREVIOUSLY TAKEN; SPECIAL RECOGNITION AND ACKNOWL-
EDGMENT OF THE BOARD'S PREVIOUS FAILURE (BY INADVER-
TENCE) TO INCLUDE, IN THE BOARD'S OFFICIAL AND PUBLIC
STATEMENTS, FROM TIME TO TIME, THE REVENUES OF THE
CONSOLIDATED EDUCATIONAL BUILDINGS PROJECT AS RELATED
TO THE STUDENT REGISTRATION FEES DERIVED FROM AND
ORIGINATED BY THE EXTENSION PROGRAM OF THE UNIVERSITY
(GENERATED FROM THE EXTENSION PROGRAM OF THE UNIVER-
SITY, IN LEXINGTON, KENTUCKY, AS DISTINGUISHED FROM
ANY POSSIBLE SIMILAR PROGRAM RELATING TO THE COMMUNITY
COLLEGES SYSTEM); AUTHORIZATION OF RETROACTIVE
CORRECTION OF SUCH INADVERTENT OMISSION.
Section I. Acknowledgment of Steps Previously Taken Since
the Effective Date of the "Series C and Series D Resolution."
The Executive Committee, acting under authority duly vested
in it by the Board in accordance with statutory authority, hereby
recognizes and acknowledges that subsequent to the adoption of the
aforesaid Series C and Series D Resolution on November 27, 1967, and
specifically as set forth in a certain resolution which was adoptedby
- 5 - (UK; Consolidated; Series D)
17
the Board of the University on October 20, 1970, identified by its
title or caption, as follows:
"A RESOLUTION OF THE
BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY
AUTHORIZING THE ISSUANCE, JOINTLY WITH THE STATE
PROPERTY AND BUILDINGS COMMISSION OF KENTUCKY, AND
SUBJECT TO THE APPROVAL AND CONCURRENCE OF SAID
COMMISSION, OF ITS $28,100,000 "REVENUE BOND ANTICI-
PATION NOTES OF 1970" ACCORDING TO AUTHORITY OF KRS
56,513, PAYABLE AS TO PRINCIPAL AND INTEREST SOLELY
AS HEREINAFTER PROVIDED, AND NOT CONSTITUTING GENERAL
OBLIGATIONS OF THE UNIVERSITY, THE BOARD, OR THE
COMMONWEALTH; AND REQUESTING APPROVAL AND CONCURRENCE
OF THE SAID COMMISSION.";
the Board of the University (i) recognized and acknowledged certain
changes in the public policy of the Commonwealth as evidenced by
legislation duly adopted by the General Assembly of the Commonwealth
of Kentucky, (ii) amended the aforesaid Series C and Series D Resolu-
tion to conform thereto (but only insofar as the Series D Bonds were
concerned), and (iii) recognized and acknowledged that by reason of
the passage of time certain original determinations as set forth in
the aforesaid Series C and Series D Resolution had been overtaken by
events, and effect was given thereto, as follows:
(a) It was recognized and acknowledged that by legislation
duly adopted by the General Assembly of Kentucky in 1968, and again
in 1970, all interest rate limitations previously controlling the
issuance of revenue bonds and revenue bond anticipation notes of the
Board of the University were effectively rescinded in such manner as
that the Board and the University are no longer subject to previously
existing statutory interest rate limitations;
- 6 - (UK; Consolidated; Series D)
18
(b) It was recognized and acknowledged that the aforesaid
Series C and Series D Resolution recited the necessity of the Board's
construction of three parking structures having estimated capacity to
accommodate approximately 2,000 motor vehicles; whereas, in adjusting
to the developing factual situation,it had subsequently been determined
that only two of such parking structures should be erecte