xt7k3j390r6g https://exploreuk.uky.edu/dips/xt7k3j390r6g/data/mets.xml Lexington, Kentucky University of Kentucky 19651021 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, 1965-10-sep21. text Minutes of the University of Kentucky Board of Trustees, 1965-10-sep21. 1965 2011 true xt7k3j390r6g section xt7k3j390r6g 











      Minutes of the Meeting of the Board of Trustees of the University of
Kentucky, Tuesday, September 21, 1965.


      The Board of Trustees of the University of Kentucky convened in their
statutory quarterly meeting in the Board Room of the Administration Building
on the campus of the University at 10:00 a. m. , EST, on Tuesday, September
21. 1965, as provided in KRS 164. 170, with the following members present:
Vice Chairman Ralph Angelucci, Dr. Harry Sparks, Dr. Harry Denham, Mr.
Smith Broadbent, Jr., Dr. R. W. Bushart, Mr. Sam Ezelle, Mr. W. F.
Foster, Dr. H. B. Murray, Mr. Gilbert Kingsbury, Mr. Robert Hillenrneyer,
Judge J.A. Sutherland, and the two non-voting faculty members, Professor
Paul Oberst and Dr. Stephen Diachun. The following members were unable to
be present: Governor Edward T. Breathitt, Chairman, and Mr. Wendell P.
Butler, Mr. Clifford E. Smith, and Mr. Floyd Wright. Also present were Dr.
John Oswald, President of the University, Dr. A. D. Albright, Executive Vice
President, Dr. William R. Willard, Vice President-Medical Center, Mr.
Robert F. Kerley, Vice President-Business Affairs, Dr. Glenwood L. Creech,
Vice President-University Relations, and Mr. Robert L. Johnson, Vice
President-Student Affairs. Representatives of the press were also present.


      A. Meeting Opened

      In the absence of both the Chairman and Vice Chairman, Mr. Robert
Hillenmeyer, Chairman of the Real Estate Committee, called the meeting to
order at 10:05 a. m. and the Invocation was pronounced by Judge Sutherland.
Dr. Angelucci arrived and assumed the chair. Following roll call to which
thirteen answered with only four members being absent, the Vice Chairman
announced that a quorum was present for the conduct of business.


      B. Oath of Office Administered to Mr. Smith Broadbent and
Dr. Stephen Diachun

      Judge Sutherland administered the Oath of Office to Mr. Smith
Broadbent, Jr., reappointed by Governor Breathitt for a term ending De-
cember 31, 1968, and to Dr. Stephen Diachun. non-voting faculty member who
was recently elected for a term ending June 30, 1968.


      C. Approval of Minutes

      On motion by Mr. Ezelle, seconded by Mr. Broadbent, and passed
unanimously the reading of the Minutes of the meeting of the Executive Com-
mittee of the Board of Trustees on August 20 was dispensed with and the




 






                                                                          2



Minutes were approved as published.


       D. President's Report on Activities (PR ij

       Dr. Angelucci requested Dr. Oswald to make his monthly report on
activities. Copies of the report are distributed to each member and to repre-
sentatives of the press and are mailed to the faculty and key alumni following
each meeting.

       Before giving his report Dr. Oswald introduced Mr. Winston Miller,
President of Student Congress. and Mr. John O'Brien, Vice President, indi-
cating that he had invited them to attend the meeting of the Board of Trustees
and the luncheon to follow at which time they would give the Board members a
report on Student Congress.

       President Oswald commented briefly on the items contained in his
report on activities and; on motion duly made, seconded, and carried the
report was accepted and ordered filed.


       E. Recommendations of the President (PR 2)

       In advance of each meeting, copies of the President's Recommendations
(PR 2~ are mailed to members of the Board. Thus the Board is familiar with
the contents of the report which contains important but routine items of
business. Dr. Oswald indicated that he wished to make no special comment on
any item in the report and, if there were no questions, recommended the ap-
proval of the report as a whole,

       On motion by Mr. Hillenmeyer; seconded by Dr. Sparks, and without ob-
jection the recommendations of the President as contained in PR 2 were ap-
proved and ordered made a part of the official Mi-nutes of the meeting, (See
PR 2 at the end of the Minutes. )


       F. Supplemental Recommendations of the President (PR 3)

       Each month some important but routine matters reach the President's
Office too late for inclusion in PR 2. Attention was called to PR 3, copies of
which were available to all those present. The Board members took a few
moments to familiarize themselves with the items in the report and Dr. Oswald
then called particular attention to the following sections of it:

       Section 1'1. Request for authorization to appropriate and expend
$558, 300 from fund balances in Auxiliary Services for the purpose of reno-
vation and replacement of furniture and equipment in University Housing-Dining




 






3



facilities, and the Student Center. Mr. Kerley explained that the $50, 000 ap-
propriated last spring to replace and refurbish furnishings in the dormitories
and provide additional furniture in the Cooperstown Apartments which were
being converted to single student housing had been expended to good purpose
and that the request for $558, 300 additional was the second phase in a program
to upgrade all living-dining facilities so that each might be able to produce the
revenue required under the University of Kentucky Housing and Dining System
Revenue Bonds. The expenditures deemed necessary to bring these facilities
up to standard are outlined in detail in Section III of PR 3, a copy of which is
appended to the Minutes. Mr. Kerley emphasized that the money w as available
from fund balances in Auxiliary Services.

       Section V. Injuries Report. Dr. Oswald explained that this was the
last such report to be presented to the Board since, effective September 1,
1965, the University of Kentucky would operate under Workman's Compensation
on a self-insured basis. In answer to a question by Mr. Ezelle relative to
safety standards at the University, Mr. Kerley indicated that there were such
standards but that the whole program needed to be improved and strengthened.

       Dr. Angelucci called for a motion for approval of PR 3 as a whole. Dr.
Bushart so moved. His motion was seconded by Mr. Foster and, without ob-
jection the Supplemental Recommendations of the President were approved and
ordered made a part of the official record of the meeting. (See PR 3 at the end
of the Minutes. )


       G. Sale of $640, 000 "Student Housing Bonds of 1964"

       The President of the University reminded the members of the Board
that at the regular meeting held on April 7, 1964, a Resolution had been adopted,
authorizing the issuance of $64, 000. 00 of the Board's "Student Housing Bonds
of 1964, " to provide the costs (not otherwise provided) of four small dormitory
buildings, therein identified, under lease arrangements with certain fraternities
and sororities. He exhibited to the Board a copy of the "Notice of Sale of Bonds,"
together with affidavits from employees of the Bond Buyer, New York City, and
The Courier-Journal, Louisville, Kentucky, showing publication thereof on
September 7, 1965, and September 4, 1965, respectively. He also exhibited a
copy of the "Statement of Terms and Conditions of Bond Sale, " together with a
"Statement of Essential Facts, " which he reported had been furnished to all
interested parties upon request.

       On motion of Judge Sutherland, seconded by Dr. Murray, and unanimously
adopted, it was ordered that these instruments be preserved by the Secretary as
permanent records of the Board relating to the proper public solicitation of
purchase bids, but without reproducing the same as parts of the Minutes of the
meeting.




 





4



      The Vice-Cha rrman then announced 'hat the tirne established for the
opening and consideration of bids for the purchase of said Bonds had arrived,
and that the bidding was closed. The Secretary then produced the only sealed
bid theretofore recedved and the same was opened and given consideration.

      it was noted that in conformity with the Unive7rslty's Loan Agreement a
bid was receised from Housing and Home FinMance Agency of the United States
Government, offering to purchase the entire Bond issue, or such lesser
arnount of the Bonds as might be awarded to it if one or more equal or better bid
or bids should be received in conformity with the prescrIbed terms and con-
ditions, such bid being at a price of par or face value plus accrued interest upon
condition that all Bonds awarded to sa d Housing and Home Finance Agency be
caused to bear interest at the rate of three and three-eights per cent (3-3/8%o
per annum.

      it was noted that no other bids were received. Exarnl'nationrk of the bid
disclosed that it was subm-tted in conformity with the HHFA Loan Agreement and
with prescribed terms and conditions of the offering and was not required to be
accompanied by a certified or bank cashier's check to be held as evidence of
good faith.

      Thereupon Dr. Murray intr-oduced and moved immediate adoption of a
Resolution; as follows.

      A RESOLUTION OF THE BOARD OF TRUSTEES OF THE
      UNIVERSITY OF KENTUCKY ACCEPT:CNG THE ONLY BAD
      ,RECEIVED FOR THE PURCHASE OF $640,, 000.00 "STUDENT
      HOtJS7NG BONDS OF 1964, " AS AUTHORIZED BY A RESO-
      LUTION ADOPTED BY THE BOARD OF TRUSTEES ON
      APRIL 7, 1964, AND ESTABLISHING THE INTEREST RATE
      TO BE M-ADE APPLICABLE TO SAID BONDS.

      BE IT RESOLVED BY THE BOARD OF' TRUSTEES OF THE UNIVERSITY
OF KENTUCKY, AS FOLLOWS-

      Section 1. It is herebv determined and declared th.at the only bid re-
ceived prior to 10:30 A.M. I Eastern Standard Time, on September 21, 1965, for
the purchase of the University's $640, 000. 00 ;'Student Housing Bonds of 1.964. "
as authorized by a Resolution adopted by the Board on AprAl 7, 1.964; was and is
the bid of Housing and Home Finance Agency of the United States Govenrnment,
offering to purchase the same at a price of $640 000.00 'with accrued interest to
delivery) upon condition that all of said Bonds be .aused to beat interest at a
single uniform rate of three and three-eighths per cent i3 - 3/8%', per annum from
the date thereof to maturity.

       It is hereby determined that sand bid conforms En all. respects to the pre-
scribed terms and conditions of the sale offering and is acceptable as to both




 






                                                                          5




price and interest coupon rate. Said bid is hereby accepted in the name and on
behalf of the Board; and, together with this Resolution of acceptance, shall
constitute a firm contract for the purchase and sale of said identified Bonds.

       Section 2. Said Bonds shall bear interest from their date until paid at
the interest rate set forth in Section 1 of this Resolution, and the printer may
be instructed to proceed with the preparation of the Bonds in accordance there-
with; and Housing and Home Finance Agency shall be requested to advise
whether it desires that the Bonds be prepared in Coupon Form or in the Form
of a single and "Fully Registered Bond" for which provision has alternatively
been made in the "Trust Indenture. "

       Section 3. This Resolution shall be in full force and effect from and
after its adoption.

                            * * * *

       Said Resolution was read in full. The motion for the adoption thereof was
seconded by Dr. Bushart. After full discussion, the Vice-Chairman put the
question and the motion and Resolution were unanimously carried. The Vice-
Chairman then announced that said Resolution had been duly adopted and was in
full force and effect.


       H. Leases with Sigma Nu, Sigma Alpha Epsilon, Phi Kappa Tau, and
Delta Gamma Authorized

       Mr. Kerley explained that with the sale of the "Student Housing Bonds of
1964", it would be necessary to execute leases with the groups involved and pre-
sented the following recommendation and background statement:

       Recommendation: that the Chairman of the Executive Committee be
authorized to execute leases with the Sigma Nu, Sigma Alpha Epsilon, and Phi
Kappa Tau fraternities and the Delta Gamma sorority upon such terms as will
provide for rental payments by the fraternities and sorority in amounts sufficient
to provide for the payment of the interest and principal of the "Student Housing
Bonds of 1964" as the same become due.

       Background: On April 7, 1964 a Resolution adopted by the Board author-
ized the issuance of $640, 000. 00 of the Board's "Student Housing Bonds of 1964"
to provide the costs of four small dormitory buildings to be leased to fraternities
or sororities. This Resolution authorizes the formal execution of leases with the
aforesaid student groups whereby the groups will lease the dormitories at rentals
sufficient to retire the bonds as they become due.

       On motion by Dr. Murray, seconded by Dr. Bushart, and unanimously
carried the recommendation as presented above was approved.




 






6



      I. Summary of the Creation of the University of Kentucky Housing and
Dining System

      Dr. Oswald stated that the next item on the agenda relative to the Universi-
ty of Kentucky Housing and Dining System Revenue Bonds had been discussed with
Mr. Clifford Smith, Chairman of the Finance Committee, and had his endorse-
ment. In order to give the members of the Board of Trustees a complete back-
ground prior to requesting authorization of these bonds, Mr. Kerley read in its
entirety PR 5. a copy of which is appended. (See PR 5 at the end of the Minutes.

      J. Establishment of the Board's "Housing and Dining System" at the Main
Campus; Authorization of "Housing and Dining System Revenue Bonds"; Exchange
of Certain Bonds with HHFA; Public Sale of Certain Bonds

      Mr. Broadbent introduced, caused to be read, and moved immediate
adoption of a proposed resolution, as follows:

      A RESOLUTION OF THE BOARD OF TRUSTEES OF THE UNIVERSITY
      OF KENTUCKY (A) PROVIDING FOR THE ESTABLISHMENT OF A
      "HOUSING AND DINING SYSTEM" CONSISTING OF ALL EDUCATIONAL
      BUILDINGS AT THE MAIN CAMPUS OF THE UNIVERSITY FOR
      HOUSING, DINING AND STUDENT UNION PURPOSES, WITH RELATED
      AUXILIARY ENTERPRISES AND APPURTENANT FACILITIES:
      (B.' AUTHORIZING THE ISSUANCE OF THE BOARD'S "HOUSING AND
      DINING SYSTEM REVENUE BONDS, "t IN VARIOUS SERIES FROM
      TIME TO TIME; (C) PROVIDING THAT SUCH BONDS SHALL BE
      PAYABLE AS TO PRINCIPAL AND INTEREST SOLELY FROM DEFINED
      REVENUES OF SUCH SYSTEM; (D) PROVIDING THAT SUCH DEFINED
      REVENUES SHALL BE COLLECTED, SEGREGATED AND DISTRIBUTED
      INTO VARIOUS SPECIAL FUNDS; (E; AUTHORIZING AN EXCHANGE
      OF CERTAIN BONDS WITH HOUSING AND HOME FINANCE AGENCY
      OF THE UNITED STATES; (F) AUTHORIZING THE PUBLIC SALE
      OF CERTAIN BONDS; oG0, MAKING PROVISION FOR THE FUTURE
      ISSUANCE OF ADDITIONAL BONDS PAYABLE FROM SUCH DEFINED
      REVENUES ACCORDING TO SPECIFIED CONDITIONS AND LIMITATIONS:
      (H) APPROVING THE PROPOSED FORM OF TRUST INDENTURE FOR
      SECURING SUCH BONDS, AND AUTHORIZING EXECUTION THEREOF;
      AND (I) VESTING IN THE EXECUTIVE COMMITTEE OF THE BOARD
      PROPER AUTHORITY TO TAKE NECESSARY ACTION IN THE
      COMPLETION OF THE TRUST INDENTURE AND IN THE ADVERTISE-
      MENT AND SALE OF CERTAIN BONDS


      WHEREAS, this Board, as the governing body of the University of Kentucky,
is authorized-in and by Sections -162i 340 tc 162, 380 of the Kentucky Revised Statutes
(KRS' to erect buildings and appurtenances to be used in connection with the insti-
tution for educational purposes, and to finance the costs thereof, in whole or in




 






7



part, through the issuance by the Board, in its corporate capacity and as an edu-
cational institution and agency of the Commonwealth, of bonds which are and will
be payable as to principal and intervest solely from the income and revenues
which are and will be derived from the operation of such educational buildings
and appurtenant facilities; and in pursuance of such statutory authority the Board
has heretofore caused to be erected upon the Main Campus of the University in
Fayette County, Kentucky, certain educational buildings and appurtenant fa-
cili.ties for housing, dining and Student Union purposes, with related auxiliary
enterprises and necessary appurtenant facilities, and has heretofore authorized
and issued from time to time its revenue bonds according to such statutory
authority, such buildings being identified as Bowman Hall, Donovan Hall,
Keeneland Hall, the apartment buildings known as Cooperstown, Holmes Hall,
the apartment buildings known as Shawneetown, Haggin Hall, Blazer Hall, and
the Student Union 'or Student Center" Building, and certain revenue bonds of each
of the issues relating thereto remain outstanding and unpaid at this time, but
without default on the part of the Board in the payment of principal or interest; and

       WHEREAS, certain educational buildings of like character and purpose
exist on the Main Campus of the University, free and clear of liens and financial
encumbances, the same being ident-fied as Patterson Hall, Boyd Hall, Jewell Hall,
Kinkead Hall, Bradley Hall, and Breckinr-idge Hall; and

       WHEREAS, the Board has heretofore determined that all of such buildings
and facilities are, in the aggregate, grossly inadequate to provide for the present
and foreseeable future needs for the accommodation of students presently enrolled
and anticipated to be enrolled for educational instruction at the Main Campus of the
University; has heretofore authorized the planning, undertaking and financing of
what is presently known and identified as the Board's "First Housing Complex
Project;" consisting in general terms of eight (8" three-story dormitory buildings
designed to accommodate 176 students each; together with two {21 twenty-three-
story dormitory buildings designed to accommodate approximately 652 students
each, with dining, lounge, recreational and other auxiliary enterprises, and all
necessary appurtenant facilities; and it is apparent that the undertaking and fi-
nancing of further and additional educational buildings and facilities for similar
purposes will be and become necessary in the future in order to accommodate the
reasonably anticipated continuing growth of student enrollment; and

       WHEREAS, it has been caused to appear to the satisfaction of the Board
that by reason of currently prevailing construction costs and the relation thereto
of rentals and other changes which may economically and feasibly be exacted for
the use thereof, the Board w ll be unable to erect and finance the said "First
Housing Complex Project," or future educational bue dings and appurtenances for
like purposes, unless action is taker to combine and consolidate in the establish-
ment of a single "Housing and Dining System " all of the said named buildings and
facilities together with said "First Housing Complex Project," with provision for
the orderly discharge by the Board of all of its contractual obligations to the
owners and holders of all of said revenue bonds heretofore issued and presently




 






8



outstanding, in order that the aggregate income and revenues derived therefrom
may be freed and made available for pledging as the security and source of pay-
ment of the Board's new issue of its "Housing and Dining System Revenue Bonds";
but that such necessary purposes may be accomplished in the event such action is
taken; and

       WHEREAS, in order to provide for the establishment of such "Housing and
Dining System" and for the authorization, issuance, security and payment of such
proposed "Housing and Dining System Revenue Bonds, " Series A to I, inclusive,
there has now been tendered for consideration by the Board a proposed form of
"Trust Indenture" to be executed by the Board with Farmers Bank & Capital Trust
Company, Frankfort, Kentucky, as Trustee, approved as to all material elements
of the text thereof by the Housing and Home Finance Agency of the United States
(HHFA), including provisions that upon the establishment of such System and
authorization of such Revenue Bonds HHFA will effect an exchange of bonds with
the Board to the full extent of the HHFA holdings of such previously issued and
outstanding revenue bonds, bearing interest at the same respective rates, without
premium or penalty, and with adjustments which will prevent duplication of the
payment of interest on the part of the Board and no loss of interest to HHFA; thus
permitting the Board to make other financially feasible and legally permissible
arrangements for the payment at maturity of all of said outstanding revenue bonds
which are held otherwise than by HHFA; and it is the considered opinion and
judgment of the members of the Board, with the concurrence of the Commissioner
of Finance of the Commonwealth and the State Property and Buildings Commission,
and upon recommendation of the Business Staff of the University and of Financial
Advisors employed in that connection, that all such action should be taken at this
time, that the submitted form of Trust Indenture should now be approved, that the
Board's "Housing and Dining System Revenue Bonds, " Series A to I, inclusive,
should be authorized as therein provided, and that necessary future action in
certain respects should be delegated by the Board, as permitted by law, to its
Executive Committee established and existing according to authority of KRS
164. 190; and the Board is fully advised in all respects,

       NOW, THEREFORE, THE BOARD OF TRUSTEES OF THE UNIVERSITY
OF KENTUCKY DOES HEREBY RESOLVE, AS FOLLOWS:

       Section 1.  There is hereby established, effective upon the issuance of the
Board's "Housing and Dining System Revenue Bonds," Series A to I, inclusive, as
hereinafter authorized, the Board's "Housing and Dining System," (a) initially
comprising the housing, dining and Student Center buildings, appurtenant facilities,
and related auxiliary enterprises, which are identified with particularity in the
preamble of this Resolution and in the form of Trust Indenture hereinafter referred
to and approved, (b) including the educational buildings, appurtenant facilities and
auxiliary enterprises of the aforesaid "First Housing Complex Project," and 1c)
such educational buildings for like purposes as may be erected in the future at the
Main Campus of the University in Fayette County, Kentucky; but expressly excluding




 







9



from such System (i) any such educational buildings and facilities as the Board
has erected or may erect in the future in connection with any of its present or
future Community Colleges and (ii) any such buildings as the Board may have
erected and leased, or may hereafter erect and lease, to fraternities, sororities
or other similar student groups, except as provided in said Trust Indenture with
reference to the inclusion of sone or all thereof under described circumstances.

       Section 2. The Board hereby establishes an issue of its "Housing and
Dining System Revenue Bonds, " initially consisting of nine (9) Series which shall
be identified as Series A to Series I, inclusive, and with reservation of right on
the part of the Board to issue one or more additional Series thereof from time to
time subject to the terms, provisions, conditions and limitations which are pre-
scribed in that connection in the form of Trust Indenture which is hereinafter
referred to and approved.

       Such Bonds of Series A to Series I, inclusive shall be dated as of June 1,
1965, shall be in the denomination of Five Thousand Dollars ($5, 000. 00), shall
mature as to principal serially on June 1 of the respective years as set forth (or
in the cases of Series H and Series I to be set forth) according to said Trust
Indenture, as the same is hereinafter authorized to be completed, and shall other-
wise be in the substance, form and text, and be issued according to the covenants,
terms and provisions substantially as set forth in the form of said Trust Indenture.

       The Bonds of the respective Series A to Series G, inclusive, shall be in
the respective principal amounts and shall bear interest at the respective rates as
set forth in the following schedule:

   IDENTIFICATION OF SERIES PRINCIPAL AMOUNT RATE OF INTEREST

     SERIES A BONDS                $1, 000, 000              3. 01%
     SERIES B BONDS                    275, 000              3. 01%
     SERIES C BONDS                    955, 000              2-3/4%
     SERIES D BONDS                  1 835, 000              2-3/4%
     SERIES E BONDS                  1, 580, 000             2-7/88%
     SERIES F BONDS                  1.,155,000              3-1/8 %
     SERIES G BONDS                  1, 375, 000       3-1/2% & 3-3/8%

       All of the aforesaid Series A Bonds are hereby authorized to be delivered
to HHFA upon HHFA's surrender for cancellation of a like principal amount of the
Board's previously issued "Dormitory Revenue Bonds of 1952, " dated July 1,
1952 (the Donovan Hall Bonds"; HHFA being the owner and holder of all of said
outstanding Donovan Hall Bonds,

       All of the aforesaid Series B Bonds are hereby authorized to be delivered
to HHFA upon HHFA's surrender for canceliation of a like principal amount of the
Board's previously issued "Dormitory Revenue Bonds of 1954, " dated May 1, 1.954




 






10



(the Keeneland Hall Bonds,; being all of the outstanding bonds which mature in the
years 1985 to 1994, inclusive, iprovision being otherwise made for payment at
maturity of the outstanding Keeneland Hall Bonds maturing in the years 1966 to
1984, inclusive, as hereinafter provided`.

       All of the aforesaid Series C Bonds a-re hereby authorized to be delivered
to HHFA upon HHFA's surrender for cancellation of a like principal amount of the
Board's previously issued and outstanding "Dormitory Revenue Bonds of 1956,
Holmes Hall, " dated June 1, 1956; such bonds being outstanding in the principal
amount of $956, 000, and provision being made for the payment of $1, 000 thereof,
in order that the Series C Bonds may be issued in a multiple of $5, 000.

       All of the aforesaid Series D Bonds are hereby authorized to be delivered
to HHFA upon HHFA's surrender for can1cellation of a like principal amount of the
Board's previously issued and outstanding "Housing Revenue Bonds of 1.956,
Shawneetown," dated October 1, 1956, HHFA being the holder of all of such out-
standing bones in the principal amount of $1., 839, 000, and provision being made
for payment of $4, 000 thereof in order that the Series D Bonds may be issued in a
multiple of $5, 000.

       All of the aforesaid Series E Bonds are hereby authorized to be delivered
to HHFA upon HHFA's surrender for cancellation of a like principal amount of
the Board's previously issued and outstanding "Housing Bonds of 1958, ': dated
March 1, 1958 {the Haggin Hall Bonds); HHFA being the holder of all of such out-
standing bonds in the principal amount of $1, 582, 000, and provision being made
for the payment of $2, 000 thereof in order that said Series E Bonds may be issued
in a multiple of $5, 000.

       A].l of the aforesaid Series F Bonds are hereby authorized to be delivered
to HHFA upon HHFA's surrender for cancellation of a like principal amount of the
Board's previously issued and outstanding "Housing and Dining Hall Bonds of
1961, " dated April 1. 1961 (the Blazer Hall Bonds"; HHFA being the holder of all
of said outstanding bonds maturing in the years 1972 to 2001, inclusive, in the
principal amount of $1,158, 000, and provision being made for the payment of
$3, 000 thereof in order that said Series F Bonds may be issued in a multiple of
$5, 000.

       All of said Series G Bonds are hereby authorized to be delivered to HHFA
upon HHFA's surrender for cancellation of a like principal amount, in the aggre-
gate, of the Board's previously issued and outstanding "Student Union Bonds of
1962, Series A and Series B," dated Julv 1, 1962 ithe Student Union Bonds); HHFA
being the owner and holder of all of said Series A Bonds maturing in 1.933 to 1994,
inclusive, -.n the principal amount of $700, 000. and all of said Series B Bonds in
the principal amcount of $675, 000 Sprovision being otherwise made for payment at
maturity of the outstanding Student Union Bonds maturing in the years 1966 to
1982, inclusive, as hereinafter p-rovided.,




 






I1



       The said Series H Bonds shall be in such aggregate principal amount as
will be sufficient ' aA   to provide for payment and retirement in full, both principal
and interest, of all of the revenue bonds of the Board heretofore issued and out-
standing, and which are payable from income and revenues of any of the buildings
initially comprising the "Housing and Dining System" except such revenue bonds
as are held by HHFA; such pri-vately held bonds being identified as the outstanding
"Dormitory Revenue Bonds of 1946,1" dated June 1, 1946 (the Bowman Hall Bonds);
$342, 000 principal amount of "Dormitory Revenue Bonds of 1954, Ad dated May 1,
1954 (the Keeneland Hall Bonds), maturing in the years 1966 to 1984, inclusive;
all of the "Dormitory Revenue Bonds of 1955," dated June 1, 1955 (the Cooperstown
Bonds); $129, 000 of the 'Housing and Dining Hall Bonds of 1961," dated April 1,
1961 (the Blazer Hall Bonds), maturing -n the years 1966 to 1971, inclusive; and
$624, 000 of the "Student Union Bonds of 1962, Series A, " dated July 1, 1962 (the
Series A Student Union Bonds, maturing in the years 1966 to 1982, inclusive; and
ib) to provide for payment of all those po-tions of the costs of the "First Housing
Complex Project" as are not eligible or allowable in the expenditure of Government
funds according to prevailing statutes, rules and regulations in that respect.
Determination of the amount of the Series H Bonds, and of the respective serial
maturities thereof, is hereby delegated to and vested in the Executive Committee of
this Board; and such determinations may be made by the Executive Committee and
inserted in the form of Trust Indenture hereinafter referred to, whenever in the
discretion of said Executive Committee, and upon consultation with the Commission-
er of Finance of the Commonwealth, the Business Staff of the University, and the
Financial Advisors, it is proper that such determinations be made.

       The Series I Bonds shall be in such aggregate principal amount as will be
sufficient to provide for payment of all those portions of the costs of the "First
Housing Complex Project" as are eligible or allowable in the expenditure of
Government funds therefor according to prevailing statutes, rules and regulations
in that respect, including the agreed HHFA fee for engineering inspection and for
review and audit of disbursements: together with provision for payment of interest
on such Series 1 Bonds during the period estimated to be required for construction
and development of said First Housing Complex Project (not to exceed in this
respect the statutory limit set forth in KRS 162. 350 and 162. 200, inclusive); such
costs otherwise to be determined according to the provisions of the Trust Indenture
hereinafter referred to and approved. Determination of the amount of the Series I
Bonds, and of the respective serial maturities thereof, is hereby delegated to and
vested in the Executive Committee of this Board; and such determinations may be
made by the Executive Committee and inserted in the form of Trust Indenture
hereinafter referred to, whenever in the discretion of said Executive Committee,
and upon consultation with the Commissioner of Finance of the Commonwealth, the
Business Staff of the University, and the Financial Advisors, it is proper that such
dete rminations be made.

       Section 3. in order that a formal record may be made of the establishment
of the Board's aforesaid Housing and Dining System; the dates, maturity schedules,
redemption provisions, forms of issuance, places of payment of principal and




 





12



interest, provisions for registration, and other details of said "Housing and
Dining System Revenue Bonds, " Series A to I, inclusive; to prescribe and de-
fine the terms, provisions, co