xt71g15t7f2c https://exploreuk.uky.edu/dips/xt71g15t7f2c/data/mets.xml Lexington, Kentucky University of Kentucky 19680817 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, 1968-08-sep17. text Minutes of the University of Kentucky Board of Trustees, 1968-08-sep17. 1968 2011 true xt71g15t7f2c section xt71g15t7f2c 











       Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
 Tuesday, September 17, 1968


       As provided under KRS 164. 170 the Board of Trustees of the University of
Kentucky met in regular session on Tuesday, September 17, 1968, at 2:00 o'clock,
Eastern Daylight Time, in the Board Room of the Administration Building on the
campus of the University with the following members present: Governor Louie B.
Nunn, Chairman; Dr. Ralph J. Angelucci, Vice Chairman; Mr. Sam Ezelle,
Secretary; Mrs. Rexford Blazer, Mr. William R. Black, Mr. Smith Broadbent,
Mr. Richard E. Cooper, Dr. Harry Denham, Mr. George Griffin, Mr. Robert
Hillenmeyer, Mr. Robert Miller, Mr. B. Hudson Milner, Dr. N. N. Nicholas, non-
voting faculty members Professor Paul Oberst and Dr. Robert W. Rudd, and non-
voting student member Mr. Wallace Bryan. Former Governor A. B. Chandler and
Mr, Wendell P. Butler were not in attendance. The University administration was
represented by Interim President A. D. Kirwan, Vice Presidents A. D. Albright,
William R. Willard, Glenwood L. Creech, Stuart Forth, and Mr. G. J. Ruschell,
Business Manager, who was representing Vice President Robert F. Kerley. Members
of the news media were present.


       A. Meeting Opened

       Governor Nunn called the meeting to order at 2:00 p.m. and, followingthe
invocation, asked the secretary to call the roll. Mr. Ezelle reported all members
present except Governor A. B. Chandler and Mr. Wendell P. Butler. The meeting
was then declared officially open for the conduct of business.


       B. Minutes Approved

       On motion by Dr. Ang LIu.cci, seconded by Mr. Eze.lle, and passed without
dissent, the reading of the Minutes of the July 19, 1968 Special Meeting of the Board
of Trustees was dispensed witl and the Minutes were approved as published.



      C. President's Report to the Trustees

      President Ki4r-wan indicated that he wvas following the format for meetings of
the Board of Trustees as established under the administration of Dr. Oswald. He
commented briefly on each item contained in PR 1. Mention was made of the ap-
pearance of presidential candidate George C. W~allaceat a Convocation held on the
campus on Saturday. September 14, the first candidate to accept the University's
invitation to speak. Governor Nunnl complimented the student body on their conduct
at the Convocation and commented they had shown themselves to be responsible,




 







2



mature students. He then moved that the Board of Trustees adopt a resolution of
commendation of the student body. His motion was seconded by Mr. Ezelle and
passed unanimously.

       Mr. Ezelle complimented the University on the progress which has been
made in developing its safety program and pointed out that the savings in work-
men's compensation payments for employees should more than pay the director's
salary.

       The Governor accepted the President's Report on activities with thanks and
it was ordered filed.


       D. Recommendations of the President (PR 2)

       Governor Nunrn explained that agenda materials had been mailed to members
of the Board in advance of the meeting and that, unless there was some item which
needed discussion or clarification, he would call for a motion for adoption of PR 2
as a whole. Mr. :ez.le called attention to the length of service given to the Uni-
versity by the three persons recommended for retirement and suggested that the
Board should take cognizance of these people, Dr. Kirwan agreed to work out some
means whereby the Board of Trustees could show its appreciation to persons with
30 years or more of service at the time of their retirement.

       Before the motion was called for Dr. Kirwaan said he wished to mention one
appointment which he had made which did not appear in PR 2. This was the ap-
pointment of Dr. Stuart F_,.Zth, Director of Libraries, as Acting Vice President of
Student Affairs, to serve until a permanent appointment might be made. During
Dr. Forth's service as Vice President of Student Affairs, Mr. Harold A. Gordon
will serve as Acting Director of Libraries.

       On motion by Mr. H.fillennaey-e-r, seconded by Mr. Ezeile, and carried, the
recommendations made in PR 2 were approved as a whole and ordered made an
official part of the Minutes of the September 1,7, 1968 meeting of the Board of
Trustees. (See PR 2 at the end of the Min-ates.


       E. Two New Derartments Established in the Medical Center (PR 4A and
PR 4B)

       Dr. Willard briefly stated the need for the establishment of a Department of
Oral Biology in the College of Dentistry to provide basic science teaching in the
College of Dentistry in the fields of biochemistry, physiology, biophysics, pharma-.
cology and microbiology. He added that the establishment of such a department had
the approval of the basic science chairman and administrative officers of the College
of Medicine. Dr. Willard further recomn-mended that Dr. Donald E. Knapp, presently




 







3



Associate Professor in the Department of Pharmacology and Oral Surgery. be ap-
pointed as Chairman of the new Department.

       The second department that Dr. Willard recommended be established in the
Medical Center was a Department of Clinical Pastoral Counseling in the School of
Allied Health Professions. Dr. Ralph S. Carpenter, Hospital Chaplain, has been
conducting a training program of some magnitude in the field of hospital counseling
which is worthy of formal recognition within the University framework.

       Dr. Harry DeLnham strongly endorsed both recommendations and moved that
a Department of Oral Biology be established in the College of Dentistry, effective
September 1, 1968; that Dr. Donald E. linapp be named Chairman of the Department
of Oral Biology; and that a Department of Clinical Pastoral Counseling be established
in the School of Allied Health Professions. Mrs. Blazer seconded his motion and,
without discussion, the motion passed without dissent. (See PR 4A and PR 4B at the
end of the Minutes. )


       F. Further Activation of Organizational Plan in the College of
Business and Economics (PR 5)

       Dr. Albright indicated that the recommendation contained in PR 5 was merely
a further implementation of an already approved organizational plan for the College
of Business and Economics and recommended its approval.

       On m-otion by Mr, Hillenmeyer, seconded by Mr. Ezelle, PR 5 was approved
as presented. (See PR 5 at the end of the Minutes.)


       G. Approval of Degree Candidates (PR 6)

       On motion by Mr. Ezelle, seconded, and passed, the list of candidates who
completed work for degrees in August was approved as presented. (See PR 6 at the
end of the Minutes. )


      H, Budget Revisions for 1968-69 (PR 7)

      Noting that the budget revisions recommended in PR 7 resulted from increased
income, Dr. Angelucci moved that they be authorized and approved. His motion was
seconded by Mr. Ezelle, and passed unanirnouslv. (See. PR 7 at the end of the
Minutes.


      I. Appointment of Dr. Harold Earle Swim-i Approved (PR 8)



Dr. Albright indicated that the recommendation that Dr. Harold Earle Swim be




 








4



appointed Professor of Microbiology and Chairman of the Department of Microbiology
was an extremely important one. For the past seven or eight years the development
of Biologicai Sciences in the University has been a prime target for the Medical
Center, the College of Agriculture and the College of Arts and Sciences. The search
for an outstanding person to head up this program has been a long and serious one.
With the appointment of Dr. Swim to serve as Chairman, it will be possible to con-
solidate the present departments of Microbiology and Cell Biology into one department
to be known as the Department of Microbiology. This is one of the most significant
steps in this important field in the past ten years and perhaps in the next six to eight.

       On motion made by Dr. Denham, seconded by Mr. Ezelle, and carried, the
Departments of Cell Biology and Microbiology were consolidated into one department
to be known as the Department of Microbiology and Dr. Harold Earle Swim was named
Professor of Microbiology (with tenure) and Chairman of the Department of Microbi-
ology for a six-year term subject to renewal, effective December 1, 1968. (See PR 8
at the end of the Minutes.


       J. Authorization for Cremation of Paid Bonds and Coupons (FCR 1)

       Dr. Denham indicated that the Finance Committee had met prior to the
meeting of the Board and had discussed and approved all items included on the agenda
under the Finance Committee Report section.

       The first item relative to cremation of paid bonds and coupons was routine and
on motion duly made, seconded, and carried, FCR 1 was approved as presented.
(See FCR 1 at the end of the Minutes.'?



      K. Authorization of Issuance of Community College Educational
Buildings Revenue Bonds

      Dr. Kir.w.axn stated that it \was in order for 'here to be considered a resolution
authorizing the issuance of $11, 650, 000 of "'Comminiunity Colleges Educational
Buildings Revenue Bonds, Series C, " of the Uni;'ersity of Kentucky, which would
finance in part the reconstruction, construcrion and complet-con of 'arious buildings,
with appurtenances, at various Commumn-t\' Colleges and :o declare certain Com-
munity Colleges under The Community Colleges Educational Buildings Project. He
further stated that there would be considered at a later tinme the authorization of
"Community Colleges E&ducational Blildinigs Rc;eanlie Bonds, Series D, " but that
sufficient grants and loan agreements ate '..n affect with goveranmlental agencies to
assure the successful completion of the Project whikch is to be financed in part by such
$11,650,000 of bonds,

      Thereupon, Dr. Harry Denham introduc-ed and cause-d to be read in full a
resolution entitled "A RESOLUTION AUTHORIZING THE ISSUANCE OF $11, 650, 000




 







                                                                         5



'COMMUNITY COLLEGES EDUCATIONAL BUILDINGS REVENUE BONDS, SERIES C,
OF THE BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY, " a true copy
of which resolution was presented to the meeting at which such resolution was adopted,
and a true copy of which resolution is attached to such minutes. Such member of the
Board of Trustees thereupon moved that all rules be suspended and that such reso-
lution be adopted, which motion was duly seconded by member Sam Ezelle , and said
motion having been duly considered, the Chairman of the Bo.:ard of Trustees put the
question, and upon the roll being called the following voted AYE,


      Governor Louie B. Nunn, Dr. Ralph J. Angelucci, Mr. Sam Ezelle,

      Mrs. Rexford Blazer, Mr. William R. Black, Mr. Smith Broadbent,

      Mr. Richard E. Cooper, Dr. Harry Denham, Mr. George Griffin,

      Mr. Robert Miller, Mr. B. Hudson Milner, Dr. N. N. Nicholas

      Mr. Robert Hillenmeyer


NAY: None. Whereupon, the Chairman of the Board of Trustees declared that such
resolution had been duly adopted.




 









   A RESOLUTION AUTHORIZING THE ISSUANCE OF $11, 650, 000
   "COMMUNITY COLLEGES EDUCATIONAL BUILDINGS REVENUE
   BONDS, SERIES C, " 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 EIDUCATIONAL BUILDINGS PROJECT OF THE
   UNIVERSITY OF KENTUCKY; CREATING 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 Resolution authorizes the issuance by said Board

of said Bonds in one or more series pursuant to a resolution authorizing

such series; and by a certain resolution adopted on April 2, 1963 (the

"Series A Resolution"), said Board authorized the initial series, being

$1, 200, 000 "Community Colleges Educational Buildings Revenue Bonds,



Series A, " dated May 1, 1963 (the "Series A Bonds"), and the same




 










were thereafter sold and delivered and are outstanding in the a mount of

$1, 070, 000, without default, and without deficiency in the amount re-

quired by the Resolution and the Series A Resolution to be paid into the

"Community Colleges Educational Buildings Project Bond and Interest

Sinking Fund" (the "Bond Fund"); and

       WHEREAS, by a certain resolution adopted on June 12, 1964

(the "Series B Resolution"), said Board authorized the second series,

being $1, 000, 000 "Community Colleges Educational Buildings Revenue

Bonds, Series B," dated May 1, 1964 (the "Series B Bonds"), and the

same were thereafter sold and delivered and are outstanding in the

amount of $919, 000, without default, and without deficiency in the

amount required by the Resolution and the Series B Resolution to be

paid unto the "Community Colleges Educational Buildings Project Bond

and Interest Sinking Fund" (the "Bond Fund"); and

       WHEREAS, the Board has determined that it is in the best interests

of the Board to issue at this time an additional series of Bonds to be

designated "Community Colleges Educational Buildings Revenue Bonds,

Series C" (the "Series C Bonds"); and it has been ascertained that the

average of the annual Revenues from the Community Colleges Educational

Buildings Project (the "Project"), for the two Fiscal Years immediately

preceding the proposed issuance of the Series C Bonds (being the income




 










derived by the Board and the University during the two Fiscal Years

immediately preceding such issuance, from the source established in

the Resolution for the Revenues of the Project, as specifically per-

mitted by the provisions of Section 7. 10 of the Resolution), as adjusted

in the authorized manner, was equal to more than 1. 25 times the maxi-

mum Aggregate Principal, Interest and Bond Fund charges (a defined

term), in any succeeding twelve month period ending May 1, on the

Series A Bonds, the Series B Bonds and the Series C Bonds herein-

after authorized, and a statement to that effect will be filed with the

Trustee by the Treasurer of said Board prior to the time of the issuance

of the Series C Bonds, thereby complying with the conditions and re-

strictions set forth in Section 7. 10 of the Resolution permitting the

issuance of Bonds ranking on a basis of parity and equality with the

Series A Bonds and the Series B Bonds as to security and source of

payment, and in all other respects,

       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 C Resolution") is adopted in accordance with Article II, Section

2. 03 of the Resolution.



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       SECTION 1. 02. All terms which are defined in Article I of the

Resolution shall have the same meanings, respectively, in this Series C

Resolution as such terms are given in said Article of the Resolution.

       (B) In this Series C Resolution, Series C Bonds shall mean

the Bonds authorized by Article II of this Series C Resolution,

       SECTION 1. 03. This Series C. Resolution is adopted pursuant

to the provisions of Section 162. 340, et seq. , of the Kentucky Revised

Statutes and the Resolution,

ARTICLE II - Authorization of Series C Bonds,

       SECTION 2, 01, Pursuant to the provisions of the Resolution

there is hereby authorized to be issued by the Board of Trustees of the

University of Kentucky in its corporate capacity, a series of Bonds in

the aggregate principal amount of Eleven Million Six Hundred and Fifty

Thousand Dollars ($11, 650, 000, 00). Such Bonds shall be designated

as "University of Kentucky Comm-unity Colleges Educational Buildings

Revenue Bonds, Series C. " Said Series C Bonds are hereby declared

to have been authorized under the Resolution and in conformity with

the provisions of Section 7, 10 of the Resolution.

       SECTION 2. 02. Said Series C Bonds are bilng issued for the

purpose of paying the costs (to the extent not otherwise provided) of



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reconstructing, erecting and completing one or more educational buildings

with necessary appurtenances in the establishment of a Community College

at or near 109 East Broadway in Louisville, Kenrtuck.y, which is known as

the Jefferson Community College and is hereby added to and constituted

a part of the "Community Colleges Educational Buildings Project' as

permitted by the terms and provisions of the Resolution, of erecting and

completing one or more educational buildings with necessary appurtenances

in the establishment of a Community College in or adjacent to the City of

Hazard in Perry County, Kentucky, and in the establishment of a Com-

munity College in or adjacent to the City of Maysville in Mason County,

Kentucky, both of which Community Colleges will, when erected and

completed, constitute parts of such Project, of erecting and completing

one or more educational buildings with necessary appurtenances in the

establishment of a new Community College plant on 'the new campus in

or adjacent to the City of Ashland in Boyd County, Kentucky, which new

building or buildings and new Community College plant will, when erected

and completed, constitute parts of such Project, of erecting and com-

pleting one or more educational buildings and necessary appurtenances

at the existing Community Colleges in or adjacent to the City of Elizabeth-

town in Hardin County, Kentucky, in or adjacent to Henderson, in Hender-"



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son County, Kentucky, in or adjacent to Prestonsburg in Floyd County,

Kentucky, in or adjacent to Hopkinsville in Christian County, Kentucky,

in or adjacent to Somerset in Pulaski County, Kentucky, and in or ad-

jacent to Cumberland inl Harlan County, Kentucky, in erecting and com-

pleting one or more prefabricated and movable academic buildings which

may be used at any Community College and which may be moved from

one Community College to any other or others, and in reimbursing for

funds advanced in connection with completing the educational buildings

at Hopkinsville and Somerset, Kentucky, which were financed in part by

the issuance of $1, 000, 000 of Series B Bonds dated May 1, 1964. With

reference to the aforesaid prefabricated and movable educational build-

ings, it is covenanted that although such prefabricated and movable

buildings are intended to be such as may be moved from Community

College to Community College as needs arise, nevertheless the same,

at whatsoever Community College the same may be located on a tem-

porary basis from time to time, shall at all times continue to constitute

parts of said "Community Colleges Educational Buildings Project,

during the useful life thereof,

       SECTION 2. 03. The Series C Bonds shall be dated November 1,




 










1968, and bear interest payable May 1, 1969, and thereafter semiannually



on November 1 and May 1 of each year at a coupon rate or coupon rates

not exceeding the statutory maximum of six and one-half per cent (6 1/2%o)

per annum, the exact rate or rates of interest for said Series C Bonds to

be fixed as a result of advertised sale and competitive bidding for said

Series C Boads, as hereinafter provided. Said Series C Bonds shall be

numbered and scheduled to become due and payable in numerical order

on May 1 of the respective years as follows:


Bonds Numbered                                            Date of
   (Inclusive)             Principal Amount              Maturity

      1-25                 $ 125,000                  May 1, 1970
      26-51                   130, 000                 May 1, 1971
      52-79                   140,000                  May 1, 1972
      80-108                  145, 000                 May 1, 1973
    109-139                  155, 000                 May 1, 1974
    140-171                  160, 000                 May 1, 1975
    172-205                  170, 000                 May 1, 1976
    206-241                   180, 000                May 1, 1977
    242 -279                  190; 000                May 1, 1978
    280- 319                 200, 000                 May 1, 1979
    320-362                  215, 000                 May 1, 1980
    363-407                  225, 000                 May 1, 1981
    408-455                  240, 000                 May 1, 1982
    456- 505                 250, 000                 May 1, 1983
    506-558                  265,000                  May 1, 1984
    559-614                  280,000                  May 1, 1985
    615-673                   295, 000                May 1, 1986
    674-735                   310,000                 May 1, 1987
    736-800                   325, 000                May 1, 1988
    801-869                   345, 000                May 1, 1989



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Bonds Numbered
   (Inclusive)

   870-942
   943-1019
   1020-1100
   1101-1186
   118 7-1 4176
   1277-1371
   1372-1472
   1473- 1578
   1579-1690
   i691-1808
   1809-1932
   1933-2063
   2064-2196
   2197-2330



Principal Amount

$ 365, 000
   385, 000
   405, 000
   430, 000
   450, 000
   475, 000
   505, 000
   530, 000
   560, 000
   590, 000
   620, 000
   655, 000
   665, 000
   670, 000



  Date of
  Maturity

May 1, 1990
May 1, 1991
May 1, 1992
May 1, 1993
May 1, 1994
May 1, 1995
May 1, 1996
May 1, 1997
May 1, 1998
May 1, 1999
May 1, 2000
May 1, 2001
May 1, 2002
May 1, 2003



       SECTION 2. 04. Said Series C Bonds shall be issued. in coupon form,

in the denomination of $5, 000. 00, and shall be registerable as to principal

only,

       SECTION 2. 05. The principal of and interest on said Series C

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 Company 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 C Bonds and coupons at the principal offices of



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The Northern I rust Company, in the City of Chicago. Illinois, or of

Chemical Bank New York Trust Cornpapy, in the City of New York,

which are hereby appointed Paying Agents for the Series C Bonds.

       SECTION 2, 06, The Series C Bonds maturing May 1, 1979, and

thereafter (being the Bonds numbered 280 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 mathrity to

be selected by lot), on any interest payment date on or after November 1,

1978. 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.


                PRedeemedl                      Redemption Price

       On and after November 11, 1978, and
              prior to November L, 1983,                104%
       On and aftir November 1. 1983. arnd
              prior to November 1, 1988                 103%
       On and aft(er November 1, 1988, and
              prior to November 1, 1993                 1027o
       On and after November 1, 1993,. but
              prior to filual matul ty                  101%


       SECTION 2, 07, Said Seric-s C Bonds sha",i b.e e xecuteld on

behalf of said Board with the reprodured facsimim e sign'ture of the

Chairman of the Board and attested by the mantial signature of the

Secretary of the Board. and the facsimie of the corporate seal of said

Board shall be imprinted !Thwreon.  trest on said Series C Bonds




 










falling due on and prior to maturity shall be represented by appropriate

interest coupons to be attached to each of said Series C Bonds, which

coupons shall be executed with the facsimile of the official signatures

of said Chairman and Secretary.

       SECTION 2. 08. For the purpose of securing the payment of both

the principal of and interest on all the Bonds (Series A Bonds, Series B

Bonds, Series C Bonds and any additional parity Bonds which may here-

after be issued and outstanding pursuant to the conditions and restrictions

set for th in Section 7. 10 of the Resolution), and to secure for the benefit

of all the holders of said Bonds the faithful performance of the covenants

and provisions 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, was designated

in the Series A Resolution as Trustee under the Resolution for the holders

of all of said Bonds, and such designation is now reaffirmed, with the

powers and duties set forth in the Resolution and with no liability in

connection 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 C Bonds



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shall conclusively establish the acceptance as to such Series C Bonds by



the Trustee of the trusts and provisions with respect thereto as set

forth in the Resolution.

       SECTION 2. 09. The Series C Bonds and coupons and provisions

for registration appertaining thereto and the certificate of the Trustee

to be endorsed on said Series C Bonds shall be in substantially the

following forms, to-wit:

                          (FORM OF BOND)

                    UNITED STATES OF AMERICA
                  COMMONWEALTH OF KENTUCKY
                     UNIVERSITY OF KENTUCKY
 COMMUNITY COLLEGES EDUCATIONAL BUILDINGS REVENUE BOND
                             SERIES C

No.                                                           $5, 000. 00

       The Board of Trustees of the University of Kentucky, a body cor-
porate, 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 Five Thousand Dollars ($5, 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 (         %) per annum, such interest being payable semiannually
on the first days of May and November in each year, commencing May 1,
1969, except as the provisions hereinafter set forth 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 currency of the United
States of America which at the time of payment thereof is legal tender for the



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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 The Northern
Trust Company, 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 "Community Colleges Educational Buildings Revenue Bonds" (herein-
after referred to as the "Bonds") issued and to be issued under and in
full compliance wiit-h the Constiltution and Statutes of the Commonwealth
of Kentucky, including among others, Sections 162, 350 to 162. 380, in-
clusive, 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 C Resolution adopted by the Board of Trustees on September
17, 1968.

       As provided in tht Resolution, the Bonds may be issued from time
to time pursuant to separate resolutionrs 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 herein, except as otherwise expressly provided or permitted in the
Resolution.

       This Bond is one of a Series of Bonds of various maturities
designated as "Community Colleges Educational Buildings Revenue. Bonds,
Series C," (herein called Itne "Series C Bonds") issued in the aggregate
amount of $11, 650, 000 under the R esolution for the purpose of financing
the costs (to the ex-tent not Otilerwise provided) of erecting and completing
educational buildings and netcessary appurtenances as parts of the Comr-
munity Colleges Eduicafio-inal Buildings Project of said University (herein-
after referred to as thie "Project"). Copies of the Resolution, the Series A
Resolution., the Scrie s B R- solution and the Series C Rte-\solution 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 hold-
er hereof assents to all of the provisions of the Resolution, Under author-
ity of the statutes pursuant to which this Bond is issued, this Bond shall
have all the qualities and incidents of a negotiable instrument, and sub-
ject 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 R