xt72v6986g47 https://exploreuk.uky.edu/dips/xt72v6986g47/data/mets.xml Lexington, Kentucky University of Kentucky 1973043 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, 1973-04-apr3. text Minutes of the University of Kentucky Board of Trustees, 1973-04-apr3. 1973 2011 true xt72v6986g47 section xt72v6986g47
Minutes of the Meeting of the Board of Trustees, University of Kentucky,
Tuesday, April 3, 1973
The Board of Trustees of the University of Kentucky met in regular
statutory session at 2:00 p. m. (Eastern Standard Time) on Tuesday, April 3,
1973, in the Board Room, which is Room E, on the 18th floor of the Patterson
Office Tower on the campus of the University, with the following members
present: Mr. Thomas P. Bell, Mr. William R. Black, Mrs. Rexford S. Blazer,
Mrs. Robert 0. Clark, Mr. Albert G. Clay, Mr. Richard E. Cooper, Mr.
Eugene Goss, Mr. Jacob H. Graves, Mr. Garvice D. Kincaid, Professor Paul
Oberst, Mr. Zirl A. Palmer, Professor Paul G. Sears, Mr. William B.
Sturgill, Judge James A. Sutherland, Mr. Scott Wendelsdorf, and Dr. John R.
Woodyard. Absent from the meeting were Mr. Jesse M. Alverson, Jr. , Mr.
Stanley Burlew, and Mr. George W. Griffin. Members of the administration
present were: President Singletary, Vice Presidents Alvin L. Morris, A. D.
Albright, Lewis Cochran, Glenwood L. Creech, Robert Zumwinkle, Peter P.
Bosomworth, Stanley Wall, and L. E. Forgy; Dr. Donald Clapp, Director of
the Budget, and Mr. John Darsie, Legal Counsel. Representatives of the
various news media were also in attendance.
A. Meeting Opened
AlbertG. Clay, as Chairman, called the meeting to order at 2:00 p. m.
The invocation was pronouncedby Judge Sutherland. The Secretary, Mrs.
Blazer, reported a quorum present, and the meeting was declared officiallyopen
for the conduct of business at 2:02 p. m.
B. Minutes Approved
On motion by Mrs. Blazer, seconded by Mr. Sturgill, and passed, the
reading of the Minutes of the March 6, 1973 meeting of the Executive Committee
of the Board was dispensed with and the Minutes were approved as published.
C. Resolution Adopted
Mr. Wendelsdorf read a resolution expressing appreciation to Professor
Robert Lawson for his services while acting as Dean of the College of Law during
the past two years and mo\'ed its adoption. His motion was seconded by Pro-
fessor Oberst, and passed unanimously.
The Chairman then called on Mrs. Clark to read a resolution expressing
appreciation and thanks to Mr. James Hudnall who has made a $100, 000
Challenge Gift to the institution. Following the reading, Mrs. Clark moved its
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adoption. Her motion was seconded by Dr. Woodyard, and passed unanimously.
(See Lawson and Hudnall resolutions at the end of the Minutes. )
D. A Resolution Authorizing the Issuance of $4, 750, 000 Consolidated
Educational Buildings Revenue Bonds, Series E, of the Board of Trustees of
the University of Kentucky
Mr. Forgy explained that the Executive Committee of the Board of
Trustees had authorized the publication of a Notice of Sale of Bonds and the
dissemination of an Official Statement and Official Bid Form, which include the
form of a resolution of the Board of Trustees authorizing $4, 750, 000 of Uni-
versity of Kentucky Consolidated Educational Buildings Revenue Bonds, Series
E, dated May 1, 1973, to be issued for the purpose of furnishing funds which,
together with other funds, will be sufficient to construct a new Biological
Sciences Building, a new Family Practice Facilities Building and to complete
a new Patient Care Facility Addition to the University Hospital. He thereupon
stated that it would be in order for a resolution authorizing such bonds to be
considered. Thereupon, after such resolution had been considered, Mr.
Sturgill introduced, caused to be read and moved the immediate adoption of a
resolution entitled:
A RESOLUTION AUTHORIZING THE ISSUANCE OF $4, 750, 000
CONSOLIDATED EDUCATIONAL BUILDINGS REVENUE BONDS,
SERIES E, OF THE BOARD OF TRUSTEES OF THE UNIVERSITY
OF KENTUCKY,
a true copy of which was presented to the meeting at which such resolution was
proposed, and a true copy of which is attached to these Minutes. The motion
for the adoption of said resolution was seconded by Mr. Cooper. After full
discussion, the Chairman put the question, and upon call of the roll the vote was
recorded as follows.
Voting"Aye": Mr. Bell, Mr. Black, Mrs. Blazer, Mrs. Clark, Mr. Clay,
Mr. Cooper, Mr. Goss, Mr. Graves, Mr. Kincaid, Professor Oberst, Mr.
Palmer, Professor Sears, Mr. Sturgill, Judge Sutherland, Mr. Wendelsdorf,
and Dr. Woodyard.
Voting "Nay": None.
E. A Resolution Accepting the Successful Bid on $4, 750, 000 of
University of Kentucky Consolidated Educational Buildings Revenue Bonds,
Series E
Thereupon, the bids which had been received for the $4, 750, 000 of Uni-
versity of Kentucky Consolidated Educational Buildings Revenue Bonds, Series E,
dated May 1, 1973, were opened, fully considered and the best bid determined.
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Bids were submitted by John Nuveen & Co. , Inc.; Morgan Guaranty Trust
Company of New York; Lehman Brothers, Inc. ; Smith Barney & Co. , Inc.
Blyth Eastman Dillon & Co., Inc.; Halsey, Stuart & Co., Inc.; Wilson White,
Belf, Lake Rochlin & Co.; Bear, Stearns & Company. Copies of the said bids
are attached to the Minutes.
Thereupon, Mr. Kincaid introduced, caused to be read and moved the
immediate adoption of a resolution entitled:
A RESOLUTION ACCEPTING THE SUCCESSFUL BID ON $4, 750, 000
OF UNIVERSITY OF KENTUCKY CONSOLIDATED EDUCATIONAL
BUILDINGS REVENUE BONDS, SERIES E,
a true copy of which was presented to the meeting at which such resolution was
proposed, and a true copy of which is attached to these Minutes. The motion
on the adoption of said resolution was seconded by Mr. Bell. After full dis-
cussion, the Chairman put the question, and upon call of the roll the vote was
recorded as follows:
Voting "Aye": Mr. Bell, Mr. Black, Mrs. Blazer, Mrs. Clark, Mr. Clay,
Mr. Cooper, Mr. Goss, Mr. Graves, Mr. Kincaid, Professor Oberst, Mr.
Palmer, Professor Sears, Mr. Sturgill, Judge Sutherland, Mr. Wendelsdorf,
and Dr. Woodvard.
Voting "Nay: None.
The Chairman then announced that the resolution had been duly adopted
and was in full force and effect.
F. Report to the Trustees
President Singletary discussed certain items in PR 1, President's
Report to the Trustees, and closed his comments by mentioning that the Uni-
versity was losing two of its top admninistrators--Dr. Glenwood L. Creech,
Vice President for University Relations, and Dr. Stuart Forth, Director of
Libraries. He said both men had made major contributions to the University
and that they would be missed.
Mr. Clay, after expressing regrets on behalf of the Board that Dr.
Creech and Dr. Forth would be leaving and extending to both good wishes in
their new positions, accepted the President's Report and ordered it filed.
G. Recommendations of the President (PR 2)
There being no questions relative to the appointments and other staff
changes recommended in PR 2, on motion by Mr. Cooper, seconded and passed,
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PR 2 was approved as a whole and ordered made an official part of the Minutes
of the meeting. (See PR 2 at the end of the Minutes.
H. Commonwealth Stadium Named (PR 3)
President Singletary recommended that the Board of Trustees approve a
recommendation made to it by the Board of Directors of the Athletics Association
that the new stadium be named Commonwealth Stadium. He introduced Dr. Daniel
Reedy, a faculty member on the Athletics Associate Board, who explained that it
was that Board's feeling that this namne would recognize the fact that the stadium
actually belonged to the Commonwealth and was merely leased to the University
of Kentucky and, further, that it belonged to all the people.
Without discussion, on motion by Mr. Graves, seconded by Judge
Sutherland, and passed, the Board of Trustees approved the name Commonwealth
Stadium for the stadium presently under construction. (See PR 3 at the end of
the Minutes. )
I. Honorary Degree Recipients Approved (PR 4)
The members of the Board of Trustees having received the names of
persons recommended to receive honorary degrees at the commencement exer-
cises on May 12 in advance of the meeting and there being no questions, on
motion by Mr. Graves, seconded by Mr. Palmer, and passed, the recommen-
dation of honorary degree recipients as given in PR 4 was approved. (See PR 4
at the end of the Minutes. )
J. Health Sciences Learning Center (PR 5)
President Singletary said that in order to meet the demand for additional
health manpower, it is necessary to provide additional facilities. Before these
can be constructed approval must be obtained from appropriate state agencies,
and he requested that he be authorized to take the necessary steps to obtain such
approval.
The Board recognizing the need for the construction of a Health Sciences
Learning Center, on motion by Mr. Black, seconded by Mrs. Blazer, and
passed, authorized President Singletary to take the necessary steps to obtain the
approval of the appropriate state agencies of the construction of a Health Sciences
Learning Center. (See PR 5 at the end of the Minutes, )
K. Gift and Challenge from the Eleanor and John Y. Brown, Jr.
Foundation (PR 6)
After explaining the nature of the gift and challenge recently given to the
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University of Kentucky by the Eleanor and John Y. Brown, Jr. Foundation,
President Singletary asked that the Board formally accept it for the institution.
On motion by Mr. Bell, seconded by Mrs. Clark, and passed, the recommen-
dation in PR 6 was approved.
Noting that the University rarely received gifts of such a size, Mr. Clay
asked Judge Sutherland and Mr. Black to draft a resolution for presentation at
the May meeting expressing appreciation to the Browns for their generosity.
(See PR 6 at the end of the Minutes. )
L. Budget Revisions for 1972-73 (PR 7)
The recommendations for budget revisions for 1972-73 being of a routine
nature and there being no questions, on motion duly made, seconded, and
carried, the recommended budget revisions in PR 7 were authorized and ap-
proved. (See PR 7 at the end of the Minutes. )
M. Internal Budget for 1973-74 Approved (PR 8)
President Singletary in presenting the internal budget noted that copies
had been made available to members of the Board in advance of the meeting in
order that they might have an opportunity to examine it prior to its presentation.
He said that it was the largest budget in the University's history and represented
an increase from $130, 260, 100 in 1972-73 to $136, 290, 700 for 1973-74. He
pointed out that, in spite of this nearly $6 million increase, it was a difficult
budget to prepare because there are two currents at play--the prospect of re-
duced federal funds for program support and increased costs resulting from
recent federal legislation. Among the latter are the additional costs to cover
employees under the provision of the Federal Employment Security Act (Un-
employment Compensation), increases in the rate and base for calculating social
security taxes, and proposed changes in the minimum wage. The social security
increase alone will amount to nearly $1 million annually. If President Nixon's
budget is enacted as it is now, the University would be affected in at least three
areas: agricultural research and agricultural extension; the Medical Center;
and student aid.
The largest portion of the increased funds available in this budget are
allocated for salary increases which will average approximately 4. 5%, including
salary adjustments for certain wom-en and minority employees. This budget
includes approximately $180, 000 for such adjustments.
The budget reflects the increased student fee set by the Council on Public
Higher Education last year. The percentage of the total budget support from
student fees continues to increase as the portion supported by state appropriation
decreases. We must accompany these fee increases with dramatic increases in
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student aid if claims of equal educational opportunity are to have any substance.
Hence, $40, 000 has been put into student aid by the University in order to have
matching dollars available for federal funds.
In conclusion, the President stated that the budget he was recommending
for approval was one that hasn't made anybody happy but it does represent the
best judgment as to how funds of this institution should be appropriated next year.
Mr. Clay thanked the President and Dr. Clapp and his staff for the
excellent job they had done in preparing the budget document. He then asked if
there were any questions from members of the Board. There being none, on
motion by Judge Sutherland, seconded by Mr. Black, and passed without dissent,
the recommendation for approval of the budget as presented in PR 8 wasapproved.
(See PR 8 at the end of the Minutes. )
N. Interim Financial Reports Accepted (FCR 1A and IB)
Mr. Sturgill, acting in the absence of Mr. Griffin, Chairman of the
Finance Committee, recommended approval of the two financial reports included
on the agenda--one for the period ending January 31, 1973 and the other for the
period ending February 28, 1973.
Mr. Sturgill so moved and his motion was seconded by Mr. Palmer. All
present voted "aye" and the financial reports were accepted and ordered made a
part of the Minutes of the meeting. (See FCR 1A and lB at the end of the
Minutes. )
0. External Auditors for 1972-73 Approved (FCR 2)
Mr. Sturgill recommended that the firm of Lybrand, Ross Bros. &
Montgomery be engaged to perform an examination of the accounts of the Uni-
versity of Kentucky and its affiliated corporations for the fiscal year ending
June 30, 1973 for the fee and under the conditions stated in the recommendation
in FCR 2. On motion by Mr. Sturgill, seconded by Mr. Goss, and passed, it
was so ordered. (See FCR 2 at the end of the Minutes. )
P. Mr. Wendelsdorf's Recommendations Heard
Mr. Wendelsdorf requested permission to read three recommendations
into the record, acknowledging that he did not expect any action since he had not
presented them 10 days prior to the meeting. Mr. Clay agreed that he might do
so with the clear understanding that no action could or would be taken relative
to them. Mr. Wendelsdorf then read recommendations which he had prepared
on the following items: (1) an amendment to the Governing Regulations relative
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to executive sessions of the Board, the Executive Committee, and all committees
of the Board; (2) a charge to the Finance Committee to develop proposals to
alleviate financial burdens on students; and (3) the abolition of the athletics fees
presently assessed all full-time students. Copies of these three recommen-
dations appear at the end of the Minutes.
Q. Meeting Adjourned
There being no further business to come before the meeting, on motion
duly made, seconded and carried, the meeting adjourned at 3:00 p. m.
Respectfully submitted,
Lucile T. Blazer
Secretary, Board of Trustees
University of Kentucky
(The resolutions on Dean Lawson and Mr. Hudnall; the resolutions authorizing
and accepting the bids of Series E Bonds and accompanying materials; PRs
2, 3, 4, 5, 6, 7 and 8; FCRs IA, lB, and 2; and recommendations from Mr.
Wendelsdorf which follow are official parts of the Minutes of the meeting of the
Board of Trustees on Tuesday, April 3, 1973. )
RESOLUTION
The Board of Trustees fully appreciates the fact that the University is
only as great as its component parts and that the faculty is one of the most
important components of the whole. Among the faculty are many great and
talented individuals who bring honor and renown to the University through their
teaching, research and service. Without such individuals the institution would
be unable to achieve national eminence but their contributions would not be
possible without other equally talented individuals who are willing to sacrifice
their own personal ambitions to help carry on the day-to-day operation of the
institution. One such individual is Dr. Robert Lawson, who has served as
Acting Dean of the College of Law since the retirement of Dr. W. L. Matthews
in 1971.
His appointment came at a time in his career when it would have been of
greater benefit to him personally to have continued his teaching and research
activities without the added burden of an administrative assignment. He realized,
however, that someone must accept the leadership of the college and so he acceded
to the wishes of his colleagues and the administration that he become acting dean
until a permanent dean should be named, little knowing that his tenure would last
for two years.
In spite of his reluctance to undertake the deanship, Robert Lawson gave
unstintingly of his time and effort to the job at hand and, in the process, was able
to better the relationships within the college and between the college and the Bar
Association. Although always a popular and well liked member of the faculty,
as acting dean he has earned for himself even greater respect and admiration
throughout the University community and the community at large.
Although Dean Lawson has no interest in continuing in administration at
this time, it is the hope of this Board that his experience as acting dean will stand
him in good stead in the future and that he will have received some personal. benefit
and satisfaction from knowing that he did a most creditable job and that his hard
work and sacrifice are recognized and appreciated by the President and the Board
of 'Trustees of the institution which he serves so efficiently and well. Now, there-
fore, be it
RESOLVED that the Board of Trustees, meeting in statutory session on the
campus of the University on this the third day of April, 1973, officially recognize
the unselfish and dedicated service rendered by Professor Robert G. Lawson during
his tenure as Acting Dean of the College of Law, and express its thanks and ap-
preciation to him for the excellence of his administration and for the personal
sacrifices he made in carrying out his duties as chief administrative officer of the
college. And be it further
RESOLVED that this Resolution be adopted, ordered spread upon the Minutes
of the meeting, and a copy sent to Professor Lawson.
RESOLUTION
OF THE
UNIVERSITY OF KENTUCKY
BOARD OF TRUSTEES
WHEREAS, private gift support increasingly enables the University of
Kentucky to achieve a dimension of academic excellence otherwise unattainable,
and
WHEREAS, the University of Kentucky Development Council has been
and remains a key element in channeling such support to the University, and
WHEREAS, Mr. James S. Hudnall, a University of Kentucky alumnus
who resides at Tvler, Texas, has been a member of the Development Council
since its inception in 1966, and
WHEREAS, he has established the Hudnall Scholarship Fund at his
Alma Mater to provide scholarships for students in geology, and
WHEREAS, he has further established the Hudnall Challenge Gift of
$100, 000 in support of the 1973 UK Annual-Giving Fund, and
WHEREAS, this Challenge Gift will match every gift received in 1973
from University of Kentucky alumni who did not contribute to the Annual-
Giving Fund in 1972, and will further match any 1973 increase in the gifts of
donors who are recorded as having given in 1972, and
WHEREAS, such gifts stimulate the level of private giving that enhances
the ability of the University to fulfill its educational missions, now therefore
BE IT RESOLVED, that the Board of Trustees of the University of
Kentucky expresses its deep appreciation to Mr. James S. Hudnall for the
remarkable loyalty and extraordinary generosity he has displayed toward his
Alma Mater over the span of many years.
A RESOLUIION AUTHORIZING THE ISSUANCE OF $4,750,000 CON-
SOLIDATED EDUCATIONAL BUILDINGS REVENUE BONDS, SERIES E,
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 Consolidated
Educational Buildings Project of the University of Ken-
tucky; creating and establishing an issue of Consoli-
dated Educational Buildinqs Revenue Bonds of the Board
of Trustees of the University of Kentucky; providing
for the issuance from time to time of said bonds; pro-
viding 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 September 20, 1960 (hereinafter referred to as the "Resolution"),
has created and established an issue of Consolidated Educational Buildings
Revenue Bonds of the Board of Trustees of the University of Kentucky; and
W1MEREAS, the Resolution authorizes the issuance by said Board of
said Bonds in one or more series pursuant to a resolution authorizing such
series; and
WHEREAS, there have heretofore been issued pursuant to such Res-
olution Series A Bonds in the original face amount of $8,000,000 in 1960,
of which $5,400,000 face amount are still outstanding, Series B Bonds in
the original face amount of $7,500,000 in 1963, of which $5,730,000 face
amount are still outstanding, Series C Bonds in the original face amount
of $4,290,000 in 1970, of which $3,965,000 face amount still remain out-
standing, and Series D Bonds in the original face amount of $34,700,000,
of which $34,500,000 face amount still remain outstanding; and
WHEREAS, the Board has determined that it is in the best inter-
ests of the Board to issue at this time a series of Bonds to be designated
"Consolidated Educational Buildings Revenue Bonds, Series E";
NOW, THEREFORE, THE BOARD OF TRUSTEES OF THE UNIVERSITY OF KEN-
TUCKY HEREBY RESOLVES AS FOLLOWS:
ARTICLE I - Definitions and Authority.
Section 1.01. This resolution (hereinafter referred to as the
"tSeries E Resolution") is adopted in accordance with Article II, Section
2.03, of the Resolution.
Section 1.02. (A) All terms which are defined in Article I of
the Resolution shall have the same meanings, respectively, in this Series E
Resolution as such terms are given in said Article of the Resolution.
(B) In this Series E Resolution, Series E Bonds shall mean the
Bonds authorized by Article II of this Series E Resolution.
Section 1.03. This Series E 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 E 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 Four Million Seven Hundred Fifty Thousand Dollars
($4,750,000 ). Such Bonds shall be designated as "University of
Kentucky Consolidated Educational Buildings Revenue Bonds, Series E." Said
Series E Bonds are hereby declared to have been authorized under the Reso-
lution and in conformity with the provisions -of Section 7.10 of the Reso-
lution.
Section 2.02. Said Series E Bonds are being issued for the pur-
pose of paying the costs (to the extent not otherwise provided) of erecting
three educational buildings with necessary appurtenances upon the property
of the University in Fayette County, Kentucky, consisting of a new Biologi-
cal Sciences Building, a new Family Practice Facilities Building and a new
Patient Care Facility Addition to the University Hospital, which, when
erected, will become and constitute parts of the Consolidated Educational
Buildings Project of said University.
Section 2.03. The Series E Bonds shall be dated May 1, 1973, and
bear interest payable semiannually on November 1 and May 1 of each year at
a coupon rate or coupon rates, the exact rate or rates of interest for said
Series E Bonds to be fixed as a result of advertised sale and competitive
biddina for said Series E Bonds, as hereinafter provided. Said Series E
Bonds shall be numbered and scheduled to become due and payable in numer-
ical order on May 1 of the respective years as follows:
Bonds Numbered Principal Date of
(Inclusive) Amount Maturity
1-2 $ 10,000 1978
3-5 15,000 1979
6-8 15,000 1980
9-12 20,000 1981
13-17 25,000 1982
18-22 25,000 1983
23-27 25,000 1984
28-32 25,000 1985
33-38 30,000 1986
39-74 180,000 1987
75-112 190,000 1988
113-152 200,000 1989
153-194 210,000 1990
195-239 225,000 1991
240-286 235,000 1992
287-336 250,000 1993
337-389 265,000 1994
390-446 285,000 1995
447-506 300,000 1996
507-570 3-0,000 1997
571-638 340,000 1998
639-713 375,000 1999
714-789 380,000 2000
790-868 395,000 2001
869-950 410,000 2002
Section 2.04. Said Series E Bonds shall be issued in coupon form,
in the denomination of $5,000 and shall be registrable as to principal only.
Section 2.05. The principal of and interest on said Bonds shall
be payable in any coin or currency of the United States of America, which
at the time of Series E payment therefor is legal tender for the payment of
public and private debts, at the principal office of First Security National
Bank and Trust Company of Lexinqton, in the City of Lexinqton, Kentucky,
Trustee (or successor Trustee appointed pursuant to the provisions of the
Resolution), or at the option of the holders of the respective Series E
Bonds and coupons at the principal office of Chemical Bank, in the City of
New York, New York, which are hereby appointed Paying Agents for the Ser-
ies E Bonds.
Section 2.06. The Series E Bonds maturing May 1, 1984, and there-
after (being the Bonds numbered 23 and upwards) shall be subject to redemp-
tion by the Board in whole or from time to time in part in the inverse or-
der 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, 1983, at the redemp-
tion 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, 1983, and prior to May 1, 1988 ....... 103%
On and after May 1, 1988, and prior to May 1, 1993 ....... 102%
On and after May 1, 1993, and prior to May 1, 1998 ....... 101%
On and after May 1, 1998, and prior to final maturity .... 100%
Section 2.07. Said Series E Bonds shall be executed on behalf of
said Board with the reproduced facsimile signature of the Chairman or Vice-
Chairman of the Board and attested by the manual signature of the Secretary
of the Board, and the facsimile of the corporate seal of said Board shall
be imprinted thereon. Interest on said Series E Bonds falling due on and
prior to maturity shall be represented by appropriate interest coupons to
be attached to each of said Series E Bonds, which coupons shall be executed
with the facsimile of the official signatures of said Chairman or Vice-
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 E Bonds and to secure for the
benefit of all the holders of said Series E Bonds the faithful performance
of the covenants and provisions contained in the Resolution in the manner
and to the extent permitted and provided in the Resolution and in Sections
162.340 et seq. of the Kentucky Revised Statutes, First Security National
Bank and Trust Company of Le;:ington, in ;.e Cicy of Lexington, Kentucky, is
hereby designated as Trustee undcr the Rc-solution for the holders of all of
said Sories E Bonds, with the powers and duties set forth in the Resolution
and vrith no liability in connection .ith any action or omission to act un-
der the Resolution except for its on;a ncgligence or willful breach of trust.
Execution of the autlhe..tication. certificate o.F the Trustee on the back of
the respective Series E aonds shall conclusively establish the acceptance
as to such Series E Bor.&s by the Trustee of the trusts and provisions with
respect thereto as set forth in the Resolution.
Section 2.O0G. The Series E Bonds and. coupons and provisions for
registration appertaining the:-eto and the certificate of the Trustee to be
endorsed on said Series E Bonds shall be ir. substantially the following
respective forms, to-w.it:
( or~ of Bond)
UINITED STIATEES OF A:. E-,' ICA
CO."v.;S.ALTfq 0?
UNIVEMSITY OF iKEi'JUC:KY
CONSOLIDATED EDUCATTIONAL BUILDIENGS RILV&raJE BOND
1 EI: tIES E
No. $5,000.00
The Board o-f- Trustees of the University of K(entucky, a body corpor-
ate, as an educational institution and agency of the Comm.-3onwealth of Kentucky,
for value recc-ived, hereby promises to pay, solely from the special fund pro-
vided tlherefor, as her~e inafter set forth, to the bearL-:- or, ,f this Bond be
recistered, to the registcred ;:wner haxizof3 as hereina-Fter provided, the su..
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 November and May in each year, 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 matur-
ity date of this Bond to be paid only upon presentation and surrender of