xt7d251fjp38 https://exploreuk.uky.edu/dips/xt7d251fjp38/data/mets.xml Lexington, Kentucky University of Kentucky 19530424 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, 1953-04-apr24-ec. text Minutes of the University of Kentucky Board of Trustees, 1953-04-apr24-ec. 1953 2011 true xt7d251fjp38 section xt7d251fjp38 










      Minutes of Called Meeting of the Executive Committee of the Board of Trustees
of the University of Kentucky April 24, 1953.


      The Executive Committee of the University of Kentucky met in called meeting
at 10:30 a. m. Friday, April 24, 1953. The following members were present:
Guy A. Huguelet, Chairman; H. D. Palmore, Harper Gatton and R. P. Hobson.
Absent: J. C. Everett.


      A. Purpose of Meeting.

      The Comptroller stated that the University, with the approval of the State
Property and Building Commission, had applied to the Federal Housing and Home
Finance Agency for a loan to assist in the construction of the women' s residence
hall, to be located north of Patterson Hall.  The application has been approved
for Project No. Ky. 15-C H-4, University of Kentucky. The interest rate on this
loan agreement, which is dated April 1, 1953, if accepted and approved by the
University of Kentucky and executed prior to April 30, 1953, will carry a Federal
Government interest rate of 3. 01% per annum, whereas, if it is approved and
authorized executed thereafter, the government interest rate will be 3. 5% per
annum. Therefore, we wish the Committee to consider the Loan Agreement
which has been prepared by federal authorities.



     B. Federal Government Loan Agreement, Women' 8 Residence Hall.

     The Comptroller referred to the purpose of this meeting and submitted loan
agreement for Project No. Ky. 15-CH-4, University of Kentucky, Contract No.
H-157. He stated that the loan agreement provides for the issuance of 722 bonds
of a denomination of $ 1, 000. 00, negotiable, serial, coupon bonds payable to the
bearer at an interest rate of 3. 01 per annum, payable semi-annually for a period
of forty years.

     This loan agreement is very similar to the loan agreement approved by
the Executive Committee of the Board of Trustees July 18, 1952, for loan to
assist in the construction of a men' s dormitory to be located east of Rose Street.
He called attention to the following changes: (1) The redemption provisions pro-
vide that the bonds be non-callable through May 1, 1963. Bonds maturing May
1, 1964 through May 1, 1993, may be callable on at least 30 days advance notice,
at the option of the borrower, upon any interest payment date in iniverse numerical
order, at the following prices plus approved interest to redemption date:

               May 1, 1964 through May 1, 1968 at 103;

               May 1, 1969 through May 1, 1973 at 102;

               May 1, 1974 through May 1, 1978 at 101 ;

               May 1, 1979 through Mayl, 1983 at 100X,

               May 1, 1984 through May 1, 1993 at 100.




 






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      (2) The bonds will be sold by the University at public sale, the call for bids
specifying that bids will be received and considered on the following basis:

      For (1) the first 20 years of the loan, (2) the first 30 years of the loan,
(3) the entire loan, and (4) the bonds maturing between the 20th and 30th years
of the loan.

      The Loan Agreement was read and ordered copied into the minutes.



                                                           Project No. Ky. 15-CH-4
                                                           University of Kentucky
                                                           Lexington, Kentucky
                                                           Contract No. H-157




                          LOAN AGREEMENT

      THIS LOAN AGREEMENT, dated as of April 1, 1953, by and between the
Board of Trustees of the University of Kentucky, acting for and on behalf of the
University of Kentucky, a public educational institution of higher learning located
at Lexington, Kentucky (herein called the "Borrower"), and the United States of
America (herein called the "Government"), WITNESSETH:

     Section 1. Amount, Purchase Price, and Purpose. Subject to the terms
and conditions of this Agreement, the Borrower will sell and the Government,
acting by and through the Housing and Home Finance Administrator (herein called
the "Administrator"), will purchase $ 722, 000 aggregate principal amount of the
obligations of the Borrower described below (herein called the "Bonds"), or
such lesser amount thereof as the Administrator determines will be required,
together with the Borrower' s funds provided from other sources, to pay the de-
velopment cost of the Project (estimated to be $ 1, 216, 125) hereinafter described,
at a price equal to the principal amount thereof plus accrued interest, the pro-
ceeds of the sale of such Bonds to be used solely for the development of the said
Project.

     Section 2. Description of Bonds. The Bonds which the Borrower agrees
to sell and the Government agrees to purchase are described as follows:

     (a) Designation: University of Kentucky Dormitory Revenue
                      Bond of 1953.

     (b) Date: May 1, 1953.

     (c) Principal Amount: $ 722, 000, being all of an authorized issue of such
                     Bonds.

     (d) Denomination: $1, 000.

     (e) Type: Negotiable, serial, coupon bonds, payable to bearer.




 






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(f) Interest Rate: 3. 01%per annum, payable semi-annually on May 1
                 and November 1 in each year, first interest payable
                 November 1, 1953.

(g) Maturities: May 1, in years and amounts as follows:



Year

1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974



Amount

$ 10, 000
11, 000
A11, 000
11, 000
12, 000
12, 000
12, 000
13, 000
13, 000
14, 000
14, 000
14, 000
15, 000
15, 000
16, 000
16, 000
17, 000
17, 000
18, 000



Year

1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993



Amount

$ 18, 000
19,000
19,000
20,000
21,000
21,000
22,000
23,000
23,000
24,000
25, 000
25, 000
26, 000
27, 000
28,000
29,000
30,000
30,000
31,000



(ih) Numbers:

(i) Security:












(j) Place and



1 to 722, inclusive, in order of maturity.

Special obligations of the Borrower payable as to both prin-
cipal and interest from and secured by a first lien upon the
gross revenues and income derived from the operation of
the Project to the extent necessary to enable the Borrower
(1) to deposit the sum of $ 20, 000 semi-annually in the
"Bond and Interest Sinking Fund Account" hereinafter pro-
vided for, until such time as the funds in said Account, after
paying the current year' s debt service, shall equal the next
succeeding two years' debt service and, (2) thereafter,
to deposit semi-annually a sum sufficient to pay the current
year' s debt service and maintain the aforesaid reserve of
two years' accumulated debt service.

Medium of Payment: Payable as to both principal and interest
at the office of the Trustee to be designated in the Indenture,
or, at the option of the holder, at a bank or trust company in
the Borough of Manhattan, City and State of New York, in any
coin or currency which, on the respective dates of payment
of such principal and interest, is legal tender for the payment
of debts due the United States of America.



(k) Registerability: Registerable as to principal only.




 





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     (1) Redemption Provisions: Bonds maturing May 1, 1956 through May 1,
                    1963 are to be non-callable. Bonds maturing May 1,
                    1964 through May 1, 1993 may be callable on at least
                    thirty (30) days' advance notice, at the option of the Bor-
                    rower, on any interest payment date in inverse numerical
                    order, at the following prices, plus accrued interest to
                    redemption date:

                    May 1, 1964 through May 1, 1968 at 103;

                    May 1, 1969 through May 1, 1973 at 102;

                    May 1, 1974 through May 1, 1978 at 101;

                    May 1, 1979 through May 1, 1983 at 100k

                    May 1, 1984 through May 1, 1993 at 100.


     Section 3. Sale of Bonds. The Bonds will be sold by the Borrower at public
sale, the call for bids specifying that bids will be received and considered on the
following basis:

     For (1) the first 20 years of the loan, (2) the first 30 years of the loan,
     (3) the entire loan, and (4) the Bonds maturing between the twentieth and
     thirtieth years of the loan.

     The Government will submit its bid for The Bonds and such bid will be for all
of the Bonds at their par value, plus accrued interest, at the rate of three and one
hundredth (3. 01%) per centum per annum or any one or more of the above blocks
of Bonds. In the event any other bidder or bidders offer to purchase all the
Bonds, or any portion of the Bonds in blocks as specified at an interest cost of
not more than three and eleven hundredths (3. 11%) per centum per annum, the
Bonds or any such portion thereof shall be sold to such bidder or bidders. In the
event of a sale of all the Bonds to a purchaser or purchasers other than the Gov-
ernment, this Agreement shall terminate except with respect to obligations here-
under between the Borrower and the Government as of the date of such sale of
the Bonds. In the event any of the Bonds are awarded to the Government, it
is agreed that the obligations hereunder shall continue in the same manner as
if all the Bonds were sold to the Government. In the event no bid is received
from a bidder or bidders other than the Government within the terms herein speci-
fied, all the Bonds shall be sold to the Government. It is agreed and understood
that, if any of the Bonds maturing May 1, 1956 through May 1, 1983 are awarded
to the Government, and so long as any of such Bonds are owned and held by the
Government, then, in such event, the Government will waive (1) the non-callable
provision applicable to the Bonds maturing May 1, 1956 through May 1, 1963;
and (2) the premiums for redemption prior to maturity of those Bonds maturing
May 1, 1964 through May 1, 1983.

     Section 4. Description of the Project. The Project shall consist of a
dormitory designed to house approximately 304 women students, including neces-
sary appurtenant facilities (herein collectively called the "Project").



Section 5. Furnishings and Equipment. The Borrower shall provide from




 










sources other than the loan under this Agreement, and from sources and in
a manner which will not jeopardize the security of the Bonds, the furnishings
and equipment necessary to the full enjoyment of the use and occupancy of the
Project.

      Section 6. Project Site. The Project shall be located on lands owned by
the Borrower in fee simple, situate on the campus of the University of Kentucky,
in the City of Lexington, Kentucky, on a site approved by the Government.

      Section 7. Title Evidence.  The Borrower shall furnish the Government
satisfactory evidence of the Borrower, s ownership of a fee simple title in and to
the Project site.

      Section 8. Audit and Inseection Expenses. It is agreed that, in determining
the costs of the Project, the Administrator will include the sum of $ 5, 700 as the
agreed fixed fee to cover the Government' s expense of supervising and inspecting
the work appertaining to the development of the Project and of auditing the books,
records, and accounts pertaining to the Project.  The Government will bill the
Borrower for such expense and the Borrower will promptly make payment to the
Govet-nment therefor, from the first funds received by it in connection with either
the sale of its aforesaid Bonds or as an advance against the sale of such Bonds,
as part of the consideration for the loan hereunder and as a cost incident to the
financing and development of the Project.

     Section 9. Special Conditions. The Government' s obligation to purchase
the Bonds of the Borrower is subject to the following special conditions:

     (a) The Borrower will establish, and maintain so long as any of the Bonds
are outstanding, with the Trustee to be designated in the Indenture, a separate
account (herein called the "Bond and Interest Sinking Fund Account") into which
shall be deposited all accrued interest received from the sale of the Bonds and,
thereafter, as soon as the Project becomes revenue producing, the sum of $ 20, 000
semi-annually from the gross revenues of the Project, until the funds (including
investments therein) accumulated are sufficient to meet the then current year' s
and the next succeeding two years' debt service on the outstanding Bonds, and
thereafter, such sums shall be deposited therein semi-annually from said sources
as are required to meet the then current year' s debt service and to maintain the
aforesaid reserve of two years' accumulated debt service on the Bonds.

     (b) The Borrower shall establish and maintain, throughout the life of the
loan hereunder, such parietal rules, rental rates, and charges for the use of
the Project as are necessary (1) to assure maximum occupancy and use of the
said Project; and (2) to provide debt service on the Bonds, including the reserve
for said debt service as specified in condition (a) above.

     (c) The Borrower shall purchase and carry use and occupancy insurance
on the Project in the amount of $ 40, 000 to insure the Project against loss of
revenue caused by hazards customarily covered by a fire and extended coverage
insurance policy when and so long as moneys on deposit (together with any in-
vested funds thereof) in the Bond and Interest Sinking Fund Account are inadequate
to meet the then current year' s debt service and the next succeeding two years'
debt service on the loan.



(d) Prior to the payment of any proceeds of the loan, and prior to making




 






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of any advance on account of the loan, the Borrower shall deposit the sum of
$ 494, 125 in the Construction Account and shall furnish evidence, satisfactory
to the Government, of its ability to pay the costs of the movable furnishings
and equipment required for the operation of the Project.

      Section 10. Loan Advances. The Borrower, having complied with Section
9 (d) of this Agreement, may requisition advances on account of the loan in an-
ticipation of the authorization, issuance and sale of the Bonds. Such requests,
in the aggregate, shall not exceed twenty,-five (25%) per centum of the amount
of the Bonds to be purchased by the Government, and each such request shall be
supported by a signed certificate of purposes in which must appear in reasonable
detail the purposes for which the requested advance will be used and by such addi-
tional data as the Administrator shall require in order to determine whether such
requisition should be honored in the furtherance of the Project. If, in the de-
termination of the Administrator, any such requisition and supporting data show
that the making of such advance will further the development of the Project, the
Government, at its option, will honor such requisition, in whole or in part.
Such loan advances shall be repaid from the first proceeds derived from the sale
of the Bonds, or any portion thereof, and shall bear interest at the rate of 3. 01%
per annum from the date of such advance to the date of repayment.

      Section 11. Payment for Bonds. The Borrower will promptly initiate and
prosecute to completion all proceedings necessary to the authorization, issuance,
and sale of the Bonds and to the security thereof.  When the said proceedings
have been completed to the point of but not including the delivery of the Bonds to
the Government, and (unless all of the Bonds are delivered to the Government at
one time) from time to time thereafter 4s proceeds from the sale of the Bonds
are required to pay the costs of the development of the Project, the Borrower
will file its requisition or requisitions requesting the Government to take up and
pay for Bonds. Each such requisition shall cover at least twenty-five per centurm
(2574 of the principal amount of Bonds to be purchased by the Government, and
shall be supported by a signed certificate of purposes in which must appear in
reasonable detail the purposes for which the proceeds of the Bonds covered by
the particular requisition are to be used, and by such additional data as the Ad-
ministrator shall require in order to determine whether it is obligated under the
provisions of this Agreement to honor such requisition or requisitions. If the
Government is so obligated it will promptly take up and pay for the Bonds covered
by each such requisition, within the limitations, however, of Section 1 hereof.

     Section 12. Opinion of Bond Counsel.  Simultaneously with the delivery
of any of the Bonds to the Government, the Borrower will furnish the Government
the approving opinion of bond counsel of recognized national standing in the fi-
nancial markets of the United States and covering generally all of the Bonds and,
specifically and unqualifiedly, the Bonds then being delivered to the Government.

     Section 13. Construction Account. The Borrower will set up in a bank or
banks which are members of the Federal Deposit Insurance Corporation a separate
account or accounts (herein collectively called the "Construction Accounts' ) into
which shall be deposited its separate funds in the amount of $ 494, 125, together
with all proceeds from the sale of the Bonds (except accrued interest payments)
and the additional funds required by the provisions of this Agreement to be furnish-
ed by the Borrower in order to assure the payment of all costs of the development
of the Project.  Moneys in the Construction Account shall be expended only for




 






7



such purposes as shall have been previously specified in a signed certificate of
purposes filed with and approved by the Administrator. In the event the total
cost of the development of the Project shall be less than $ 1, 216, 125, moneys
remaining in the Construction Account, after all costs of the Project have been
paid, equal to the difference between such total costs and $ 1, 216, 125 shall be
promptly used for the redemption of Bonds: Provided, however, that any por-
tion of such funds in an amount less than $ 1, 000 shall be deposited in the Bond
and Interest Sinking Fund Account described in Section 9 hereof.

      Section 14. Payment of Costs  Additional Funds. The Borrower will pay
all costs of the development of the Project, and furnish from sources other than
the Government, and from sources and in a manner which will not jeopardize
the security of the Bonds, the additional funds which, with such proceeds of the
Bonds, will be sufficient to finance the total development costs of the Project.
Such additional funds shall be deposited into the Construction Account by the Bor-
rower on its own initiative, and, in any event, promptly upon the request of the
Government.

      Section 15. Legal Matters. The Borrower will furnish the Government a
transcript of proceedings for the authorization, issuance, sale, and security of
the Bonds, showing to the satisfaction of counsel for the Government that the
Bonds, when delivered and paid for, will constitute binding and legal obligations,
secured in accordance with their tenor, and that all proceedings for financing
the acquisition, construction, and development of the Project preliminary to the
delivery of the Bonds to the Government have been had and adopted in due time,
form and manner as required by law.

      Section 16. Security. The Borrower will include in the proceedings for
the authorization, issuance, sale, and security of the Bonds, provisions for the
payment of the principal of and interest on the Bonds and for the security there-
of of the nature required to assure such payment and to safeguard the loan here-
under, including, in case the Bonds are payable in whole or in part from any
special sources of revenues, provisions designed to secure the production of such
revenues and the application thereof to the extent required for the payment and
security of the Bonds and interest thereon, including the maintenance of reason-
able reserves.

     Section 17. Approvals and Permits. The Borrower will obtain all approvals
and permits required by law as a condition precedent to the acquisition, construc-
tion, development, and operation of the Project.

     Section 18. Supervision and Inspection.  The Borrower will provide and
maintain on its own behalf competent and adequate architectural or engineering
services covering the supervision and inspection of the development and construc-
tion of the Project.

     Section 19. Submission of Proceedings and Contract Documents.  The
Borrower will submit to the Government:

     (a) two copies of the proposed resolutions or ordinances for the authoriza-
tion and issuance of the Bonds, including any supplements or amendments thereto,
prior to the adoption or enactment of any such resolutions or ordinances;



(b) two copies of all proposed contracts and proposed contract documents




 






8



relating to the Project, prior to the invitation of bids thereon;

      (c) a written statement concerning the proposed execution or award of
each contract relating to the Project, before such execution and before the award
thereof is approved;

      (d) all proposed wage rates pursuant to the provisions of Section 23 hereof;

      (e) one set of executed contract documents relating to the Project and four
sets of conformed copies thereof, before any work, service, material or equip-
ment is performed or furnished thereunder;

      (f) a written statement concerning the proposed assignment of any interest
in or part of any contract relating to the Project, before an assignment thereof
is approved;

      (g) a written statement concerning each proposed amendment, or proposed
extra, change, or additional work order intended to affect any contract relating
to the Project, before such amendment, or extra, change, or additional work
order is executed, or issued; and

      (h) such other data, reports, records, and documents relating to the
Project as the Government may require.

      Section 20. Construction by Contract. The Borrower covenants that, except
as otherwise authorized in writing by the Administrator, all work on the Project
will be done under contract; and that it will give every opportunity for free, open,
and competitive bidding for each and every construction, material, and equipment
contract.  The Borrower agrees to give such publicity by advertisements or
calls for bids by it for the furnishing to it of work, labor, materials, and equip-
ment as will provide adequate competition; and agrees that the award of each
contract therefor will be made to the lowest responsible bidder as soon as
practicable: Provided, that in the selection of equipment or materials the Bor-
rower may, in the interest of standardization or ultimate economy, if the ad-
vantage of such standardization or such ultimate economy is clearly evident,
award a contract to a responsible bidder other than the lowest in price.

     Section 21. Contract Security. The Borrower will require that each con-
struction contractor shall furnish a bond in an amount at least equal to 100 per
cent of his contract price as security for the faithful performance of his contract
and for the payment of all persons performing labor and furnishing materials in
connection therewith: Provided, that if applicable State law requires a separate
bond for the protection of laborers and materialmen, the Borrower will require
that each such contractor shall furnish a bond in the amount above stated for
the faithful performance of his contract and a separate bond in an amount at
least equal to 50 per cent of his contract price for the payment of all persons
performing labor and furnishing materials in connection with his contract.

     Section 22. Contractors' Insurance.  The Borrower will require that each
of its construction contractors shall maintain during the life of his contract in-
surance as follows:

     (a) Compensation Insurance. Adequate Compensation Insurance for all
of such contractor' s employees who will be engaged in work at the site of the




 





9



Project, and, if any part of such contractor' s contract is sublet, the contractor
will require his subcontractor to maintain such insurance for all of the subcon-
tractor' s employees who will be so engaged unless the latter' s employees are
protected by the principal contractor' s Compensation Insurance.

      (b) Liability Insurance. Adequate Public Liability and Property Damage
Insurance to protect such contractor and all of his construction subcontractors
from claims for damages for personal injury, accidental death, and to property,
which may arise from operations under his contract, whether such operations
be by himself or by any such subcontractor or by anyone directly or indirectly
employed by either of them

      Section 23. Wage Rates. The Borrower will require all of its contractors
engaged in work on the Project to comply with any applicable State law governing
the payment of minimum rates of pay to workmen employed on the Project. In
the absence of any such State law, the Borrower will compile, and submit to the
Administrator for his approval, a list of prevailing rates of pay for all laborers
and mechanics to be employed on the construction of the Project (which list shall
be based upon the wage rates prevailing for the same classes of laborers and
mechanics employed in construction activities, similar in character to the Project,
in the area in which the Project is to be constructed). Upon obtaining the Ad-
ministrator' s approval of any such proposed minimum wage rates, the Borrower
will include such list in all contracts calling for work on the Project and r equire
adherence thereto. The Borrower will also require of its contractors that all
such lists shall be posted at appropriate conspicuous points on the site of the
Project. Unless otherwise required by law, wage rates need not be listed for
non-manual workers, including executive, supervisory, administrative and
clerical employees.

     Section 24. Computation of Wages on 8-Hour Day. The Borrower will
require of its contractors (a) that the wages of every laborer and mechanic en-
gaged in work on the Project shall be computed on a basic day rate of eight hours
per day, eight hours of continuous employment, except for lunch periods, con-
stituting a day' s work when a single shift is employed, and seven and one-half
hours of continuous employment, except for lunch periods, constituting a dayt s
work when two or more shifts are employed, and (b) that work in excess of eight
hours per day shall be permitted upon compensation, when a single shift is
employed, at one and one-half times the basic rate of pay for all hours worked
in excess of eight hours on any one day, or at any time during the interval from
5 P. M. Friday to 7 A. M. Monday, or on holidays, and, when two or more
shifts are employed, at one and one-half times the basic rate of pay for all hours
worked in excess of seven and one-half hours on any one day or at any time dur-
ing the interval from Friday midnight to Sunday midnight.

     Section 25. Pavment-of Employees. The Borrower will require of its
contractors that all employees engaged in work on the Project shall be paid in
full (less deductions made mandatory by law) not less often than once each week.

     Section 26. Wage Underpayment and Adjustments. The Borrower will
require of each of its contractors that, in cases of underpayment of wages by the
contractor, the Borrower may withhold from such contractor out of payments
due, an amount sufficient to pay workers employed on the work covered by his
contract the differmnce between tlie wages required to be paid under the contract
and the wages actually paid such workers for the total number of hours




 






10



worked and may disburse such amounts so withheld by it for and on account of
the contractor to the respective employees to whom they are due.

      Section 27. Accident Prevention. The Borrower will require of its con-
tractors that precaution shall be exercised at all times for the protection of
persons (including employees) and property, and that hazardous conditions be
guarded against or eliminated.

      Section 28. Audit and Inspection. The Borrower will require of its con-
tractors that the Administrator, or his authorized representatives, be permitted,
and it will itself permit them to inspect all work, materials, payrolls, records
of personnel, invoices of materials and other relevant data and records apper-
taining to the work on the Project; and will permit the Government to audit the
books, records, and accounts of the Borrower appertaining to the development
of the Project.  The Borrower will cause to be provided and maintained during
the construction of the Project adequate facilities at the site thereof for the use
of the Administrator' s representatives assigned to the Project.

      Section 29. Reports, Records and Data. The Borrower will submit, and
shall require each contractor and subcontractor on the Project to submit, to the
Government such schedules of quantities and coats, progress schedules, payrolls,
reports, estimates, records and miscellaneous data as may be required under
applicable Federal Statutes or rules and regulations promulgated thereunder.

     Section 30. Payments to Contractors.  Not later than the fifteenth day of
each calendar month, the Borrower will make a partial payment to each construc-
tion contractor on the basis of a duly certified and approved estimate of the work
performed during the Ireceding calendar month by the particular contractor, but
shall retain until final completion and acceptance of all work covered by the
particular contract a reasonable amount, specified in the contract, sufficient
to insure the proper performance of the contract.

     Section 31. Convict Made and Foreign Materials. The Borrower will
require of its contractors that (a) no materials manufactured or produced in a
penal or correctional institution be incorporated into the Project; and (b) that
only such unmanufactured articles, materials or supplies as have been mined
or produced in the United States of America, and only such manufactured articles,
materials, or supplies as have been manufactured in the United States of America
substantially all from articles, materials or supplies mined, produced, or manu-
factured, as the case may be, in the United States of America, shall be employed
in the construction of the Project. Exceptions to the foregoing shall be made
only through a change in the contract covering such exception.

     Section 32. Kick-back Statute. The so-called Kick-back Statute, Public
Law No. 3Z4, 73d Congress, approved June 13, 1934 (48 Stat. 1948), and the
regulations issued pursuant thereto, are a part of this Agreement, and the
Borrower shall comply, and require each of its contractors employed in the
construction, prosecution, or completion of the Project to comply therewith, and
to cause his subcontractors to do likewise.

     Section 33. Retention of Title. So long as any of the Bonds are outstand-
ing, the Borrower covenants and agrees that it will not dispose of its title
to the Project or to any useful part thereof, including any facility necessary




 






I1



to the operation and use of the Project and the lands and interests in lands
comprising the site of the Project.

      Section 34. Signs. The Borrower will cause to be erected at the site of
the Project signs identifying the Project, and indicating that the Government is
participating in the development of the Project.

      Section 35. Interest of Third Parties. This Agreement is not for the
benefit of third parties, including the holders from time to time of any of the
Bonds, and the Government shall be under no obligation to any such parties,
whether or not indirectly interested in this Agreement, to pay any charges or
expenses incident to compliance by the. Borrower with any of its duties or obliga-
tions hereunder.

      Section 36. Bonus or Commission. The Borrower represents that it has
not paid and, also, agrees not to p