xt7p5h7bsh3d https://exploreuk.uky.edu/dips/xt7p5h7bsh3d/data/mets.xml Lexington, Kentucky University of Kentucky 1939081 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, 1939-08-aug1-ec. text Minutes of the University of Kentucky Board of Trustees, 1939-08-aug1-ec. 1939 2011 true xt7p5h7bsh3d section xt7p5h7bsh3d
Minutes of the Regular Meeting of the Executive Committee of
the Board of Trustees of the University of Kentucky, August 1,
1939.
The Executive Committee of the Board of Trustees of thle Uni-
versity of Kentucky met in President McVeyls of-fice at the Uni-
versity, Tuesday, August 1, 1939, at 10:30 a.m. The members of
the Committee present were James Park, who was made acting chair-
man, R. P. Hobson and Lee Kirkpatrick. Dean W. S. Taylor, acting
for President McVey, Dean James H. Graham and Secretary D. H. Peak
were present.
1. Approval of Minutes.
The minutes of the meetings of the Executive Committee of
June 10, 1939 and June 29, 1939, were aTDroved as Published.
2. Financial Report
The Business Agent stated that the financial report for the
month of June, 1939, was not ready, due to delay in obtaining in-
voices Lor outstanding purchases. It was ordered that the state-
ment be published in these minutes when it is completed.
Stl ement of Income and Expenditures
Month of June 1939
General Fund Income
Fedcral Appro. - Morrill-
Nelson
Vocational Education
Board
Athletics
State Appro.-Summer
School
Special Agr. Appro.
State Appro.-General
Building Revenue Bond &
Operations Fund
State Appro.-Repairs to
Buildings
Federal Appro.-Bankhead-
Jones
Previously
Reported
42,750.00
33,447.46
35,346.42
8,000.00
22,000.00
709,947.13
65,620.35
Current
Month
Fiscal Year
to date
42,750.00
6,425.44 39,872.90
3,5;7.30 38,914.22
2,000.00
65,044.31
8,000.00
24,000.00
774,991.44
5,059.53 70,679.88
9,916.09 1,783.90 11,699.99
44, 438.21
44,438.21
2.
Student Fees
Student Fees - Summer
School
Student Fees - UH.S.
Student Fees - El, Tr,
School
Student Fees - Univ.
Extension
Misc. Receipts
Rentals
Men' s Dormitories
Library Equipment - Ap-
Dro,
Scientific and Laborato
Equip. - Appro.
Engineering Equipment -
Appro.
Interest on Endowment
Bonds
Interest on Peabody
Endowment
Total
Expenditures
Instruction
Administration, Ex-
pense & Maintenance
Additions and Better-
ments
Total
213,075.65
63,553,09
10,825,00
7,620.00
14,056,87
8,252. 59
2,049.65
19,455,05
20,351,44
53,729.63
53,832.04
8,644,50
2,916,96 215,992.61
1, & 51, 00)
290. 00
20.00
1,897.28
1,471,46
216,00
2,141.35
9,507.56
6,255,502
6,167.54
500.00 _o __
1,447,411.17 113,313.15
919,539.30 103,157.21
367,655,46 26,000.90
124,055.57 23,605.14
1,411,250.33 152,763.25
62,102.09
11,115.00
7,640.00
15,954.15
9,724.05
2,265.65
21,596.40
29,859,00
59,984.65
59,999.58
8,644.50
500.00
1,560,724.32
1,022,696.51
393,656.36
147,660.71
1,564,013.58
Excess of Expenditures
over Income
36.160.84
(39.450.10)
(3.289.26)
Patterson Hall Income
Boa.rd
1iliscell1aneous Receipts
Room Rent-Summer School
Total
Expenditures
ExDense
Additions and Better-
ments
Totals
63,873.52
126.80
279.20
64,1S2. 72
126.,80
1,839.50 2,517.50 4,357.00
65,839 82 2 ?7p6 70 68,6.3 52
50,110,54 8,299,10 58,409.64
2,841.98 _ .0071 5,42.69
52,952.52 10,699,81 63,652.33
3.
Excess of Inonme over
Expenditures
General Fund Income
General Fund Expend-
itures
Excess of General Fund
Income over Ex-
penditures
Excess of Receipts over
Expenditures for
General Ledger ac-
counts
Accounts Payable
Excess of Receipts over
Expenditures for the
fiscal year to date -
General Fund
12,887.30 (7.90;,.11) 4,984,19
,rloO~ss 16,10.9.85 t, t29, e6. .5F--
1,464,202.85 163,463.06 1,627,665.91
49,048.14 (47,353.21) 1,694.93
(19,002.03) 23,164.77 4,162.74
(9,302.96) 15,619.35 6,316.39
20.743.15
(B.659-51)
Excess of Receipts over
Expenditures f or the
fiscal year to date -
General Fund
12.174.06
12,174.06
Cash in Bank July 1, 1938 -
General Fund
82.428. 52
Cash in Bank June 30, 1939-
General Fund
94,602.58
Experiment Station Income
Hatch-Federal Appro.
Milk and Butter - Cash
Receipts
Beef Cattle Sales
Dairy Cattle Sales
Sheep Sales
Swine Sales
Poultry Sales
Farm Produce Sales
Horticultural Sales
Seed Test
Seed Inspection
Rentals
Miscellaneous
Fertilizer - Fees
15,000.00
10,726.92
1,587.10
1,553.28
946.95
2,041.75
1,590.49
3,080,08
904,70
1,410.46
27,602.12
3,383,25
509.47
53,277.00
15,000.00
538.19 11,265.11
1,587.10
1,553.28
946.95
2,041.75
67.30 1.,657.79
3,080.08
904.70
1,410.46
27,602.12
3,383.25
20.75 530.22
53,277,00
4.
Public Service - State
Appropriation
Public Service - Miscel-
laneous
Feeding Stuffs - Fees
Adams - Federal Appro.
Serum - Sales
Serum - Virus Sales
Serum - Supply Sales
Horticultural Appro.
State Appro.
Creamery-License Fees
Creamery - Testers Lic.
Creamery - Glassware Teste(
Robinson- State Appro.
Robinson-tisc. Receipts
West Ky. - State Appro.
West Ky. - Misc. Receipts
Purnell - Fed. Appro.
Bankhead-Jones - Fed.
Appro.
Nursery Inspection - State
Appro.
Nursery Inspection - Fees
Total
18,349.67
298.30
56,009.40
15,000.00
1,668.71
66.95
68,85
7,179.03
44,012.98
8,553.50
2,372.16
d 480.45
12,368.59
3,441.24
12,970.01
5,411.13
60,000.00
2,650.33
15.00
1,913.97
2,735.01
3,987.02
4.50
10.00
16.56
1,631.41
1,029,99
69,070.78
1,766.64
1,810.00
444.5119(
Expenditures
Expense 354,279.7:
Additions and Better-
ments 3.649.4'
Total 357,929,11
Excess of Income over
Expenditures 86,582.71
Accounts Payable (8,853.9i
Excess of Expenditures over
Receipts for General
Ledger accounts (28,845.8
Excess of Expenditures over
Receipts 48,882.9
Excess of Expenditures over
Receipts for the fiscal
year to date - Experiment Station
233.36
21,000.00
313.30
57,923.37
15,,000.00
1,668.71
66.95
68.85
9,914.04
48,000.00
8,558.00
2,382.16
4-97.01
14,000.00
3,441.24
14,000.00
5,411.13
60,000.00
69,070,78
2,000.00
1.810.00
6 14,853.39 459,365.35
L 74,827.99 429,107.70
7 7.660.45 11.309.92
3 8_2,4C044 440,417.62
3
83)
L)
(67,635.05)
8,094.82
18 947 73
t759,16)
3.891.36 (24.954.45)
9 (55.649.87)
Cash in Bank July 1, 1938 - Experiment Station
Cash in Bank June 30, 1939 - Experiment Station
(6.765. 88
(6,765.8B)
31.519.75-
24,753,87
5.
Extension Division Income
Federal Bankhead-Jones
Federal Smith-Lever
Federal Supplementary
Federal Capper-Ketch-an
Staute Smith-Lever
County and Other
Total
Expenditures
Expense
Excess of Income over
Expenditures
405,170.68
148,308.76
13,272.77
36,800.97
110,231.51
18,978. 57
9,768. 4'9
4.476.18
405,170 .68
148,308.76
13. 272. 77
36,80o. 97
120, Y0 .00
23, 454.75
_732,763.26 14,244.67 747.007,93
_ 651,306.78 90,785.85 742,092.63
81,456,48 (76,541.18) 4.915.30
Excess of Income over Ex-
penditures for the fiscal
year to date - Extension
Division
Cash in Bank MIy 1, 1938 -
Extension Division
Cash in Bank June 30, 1939 -
Extension Division
A,915. 30
2.688.11
_7 ,603.41
Trust Fund Income
Student Loan Fund
Student Notes Paid
Total Receipts
Expenditures
Expense
Student Notes
Genoral Ledger accounts
Total Expenditures
1,736.02
3.910.12
177.84
405.96
1,913.86
4.316.08
5,646.14 _ 583.80 _6229.94
544'. 10 188.40 732.50
1,253.20 50.00 1,303.20
10,500.00 ___ 10,500.00
.12,297.30 238. 't_ 12.535.70-
Excess of Expenditures over
Receipts =
(66,651.15)
345- 40 (6.,a5.7-6
Excess of Expenditures over Re-
ceipts for the fiscal year
to date - Trust Fund
Cash in Bank July 1, 1938 - Trust Fund
(6,305.76)
9,578.17
Cash in Bank June 30, 1939 - Trust Fund
-- - __. __
_
Summary
General Fund Income
Experiment Station In-
come
Extension Division Income
Trust Fund Income
Total
General Fund Expenditures
Experiment Station Ex-
penditures
Extension Division Expendi-
tures
1,513,250.99
444,511,96
732,763,26
1,736.02
2. 692.26 .23
1,464,202,85
357,929.18
651,306.78
116,109.85
14,853.39
14-L,244.67
177.84
145. 385. 75
163,463.06
82,488.44
90,785.85
1,629,360.84
*'159,365.35
747,007.93
_ 1,913,a6
2.837.647.98
1,627,665.91
440,417,62
742,092.63
Trust Fund Expenditures 544.10 188.40 732 50
Total 2,473,982.91 336,925.75 2.810.908,66
Excess of Income over Ex-
penditures 218,279.32 (191,510.00) 26,739.32
Excess of Expenditures over
Receipts for General
Ledger accounts (58,347.84) 27,056.13 (31,291,71)
Accounts Payable (18,156.94) 23,714.17 5,557.23
Student Lonn Fund Notes 2,656.92 355.96 3.012,88
Excess of Receints over Ex-
penditures for the fiscal
year to date - Combined
Fund 144,431.46 (140.413.74) 4,017.72
Excess of Receints over Ex-
penditures for the fiscal
year to date - Combined Fund
Cash in B,..nk and on hand July 1,
1938 - Combined Fund
Cash in Bank and on hand June 30,
1939 - Combined Fund
43?17.72
128.414.55
1 3n,13 2 7
7.
Abstract of item showrn on Statement
of Income and Expenditures, as
"Excess of Expenditures over Receipts
for General Ledger accounts $31,291.711"
Debit
Accounts Receivable
Credit
44,3&0. 64
Sundry accounts
44, O80. 64
13,088,93
31,291.71
135.08893
3. College Federal Funds.
The Business Agent stated that hne had received a letter from
the State Treasurer which is copied as follows:
OFFICE OF STATE TREASURER
Frankfort
July 24, 1939
Mr. D. H. Peak
University of Kentucky
Lexington, Ky.
Dear Mr. Peak:
Enclosed is U. S. Treasury check No, 5,858,553
dated July 20, 1939, for $101,974.51, covering
8.
settlement of claim #08551(20), for "further endow-
ment of Colleges of Agriculture and the Mechanic
Arts, Office of Education, 1940."
Kindly acknowledge receipt of this check, and
oblige
Yours very truly,
(Signed) Jno. E. Buckingham,
Treasurer
GFB
Encl.check
& Notice.
The Business Agent stated that distribution of these funds
in former years was in the ratio of 85.5 per cent to University
of Kentucky and 14.5 per cent to State Industrial School for Col-
ored Persons. The distribution is supposed to be made on the
basis of white and colored population of the state, and the
above stated ratio of distribution was made years ago in the
distribution of Morrell-Nelson Appropriation. When the Bankhead-
Jones Appropriation was first paid, the question of distribution
was raised and the Board of Trustees decided that although the
ratio of population had changed it was not advisable to change
the ratio of distribution at that time.
The Business Agent stated that the question was submitted
to President McVey and he advised referring it to the Executive
Committee. Thereupon, on motion and second, unanimously car-
ried, it was ordered that the distribution of the appropriation
for year 1939-40 be made on the ratio of 85.5 per cent to the
University of Kentucky and 14.5 per cent to the State Industrial
School for Colored Persons, The Business Agent was directed to
return the check to the State Treasurer wi th following inform-a-
tion:
Aurcust 1, 1939
Mr. John Buckingham
State Treasurer
Frankfort, Kentucky
Dear Mr. Buckingham:
I an returning U. S. Treasury check No.
5858553 dated July 20, 1939, for $101,974.51.
The question -;f distribution of these funds
was referred to the Executive Cormittee of the
9'
University of Kentucky at meeting today and it was
decided to request that distribution be made on
the sane basis on which it has heretofore been made;
that is, in ratio of 14i per cent to the State In-
dustrial School for Colored Persons and 85.,l per cent
to the University of Kentucky. This distribution,
according to our figures, will be as follows:
University of Kentucky
Morrill-Nelson Fund
Bankhead-Jones Fund
State Industrial School for
Colored Persons
Morrill-Nclcl'n Fund
Bankhcad-Jones Fund
$42,750.00
4,438.21
87,188.21
7,250,00
_ 7,536.30
14,786.30
I will appreciate your r.making the proper pay-in-
voucher or vouchers for the University on these two
funds.
Very truly yours,
D. H. Perlk
Business Assent
Encl.
4. Insurance.
The Business Agent presented schedules of insurance of
the University and Experiment Station propcrty, submitted to
hirn by the State Division of Insurance, stating that the
schedules were not comploto,atnd the Business Agent was direct-
ed to present the schedules to the Cormmittce when changes
and corrections have been made.
The schedules show the amounts of pnrrmiurms as follows:
10.
College Premiura
Tornado $3,333.64
Fire 8.339.10
$11,671.74
Experiaent Station
Tornado $ 1,272.02
Fire 2,140.81
$ 3,412.83
Robinson Sub-Station
Tornado $ 90.80
Fire 464.35
$ 555.15
Princeton Sub-Station
Tornado $ 235.94
Fire 391.35
$ 627.29
5. Bill for Well Drilling.
The following bill for well drilling was presented.
THE STANEOPE WIEDEMIAN C02LAINY, INC.
To University of Kentucky
Lexington, Kentucky.
July 12, 1939.
To drilling 70 feet at $2.00 - - $140.00
To pulling tubing 28.75
$168.75
The Board of Trustees authorized this vork, to be done by
resolution at the meeting of M1arch, 1939 (See section 12).
On notion and second the bill was ordered Daid, and the Bus-
iness Agent was directed to submit it for' pay;-ent to State De-
partment of Finance in usual manner and form.
11.
6. Audit.
Mr. Hobson reported that acting on the resolution of the
Executive Committee at meeting of June 29, 1939, he had received
from the Secretary of the Board data relative to University audit;
that he had examined the data and that he had presented the
question to Attorney General Meredith by letter. At the time of
this meeting he had no response from the Attorney General.
7. Home Management House Lease.
On motion and second duly carried Dean Cooper was authorized
to renew the lease of Home Management House at 162 Bonnie Brae
Avenue; the renewal to be made with M:rs. May Duncan for one year
from August 1, 1939, on same terms as last year at rate of $65.00
per month.
8. Liquor Dispensaries.
The President presented the following letter from the Dev-
ereux Dispensaries:
DEVEREUX DITSPENSARIES
July 10, 1939
Board of Trustees
University of Kentucky
Lexington, Kentucky
Gentlemen:
The Kentucky Court of Appeals, in a decision handed
down on June 20, 1939, in the case of Joe Dougherty,
et al vs. Kentucky Alcoholic Control Board, held that
an erroneous construction had been placed upon Section
75 of the Alcoholic Beverage Control Law of 1938 (Sec-
tion 2554b-177 of the 1938 Supplement to Carroll's
Kentucky Statutes) by the Board as set out in its Rogu-
lation LC-24 from the Department of Revenue. The
Court said, in effect, that, if any part of the land
or the building from which the liquor and beer business
is conducted is on the same street, highway, or road
and within 200 feet of the grounds of a church, school,
or hospital, the license is void. This revision has
made it necessary for my brother and me to got the
approval of you, the Board of Trustees of the University
of Kontucky, before we will be granted nermits to operate
a Retail Package Liquor Store at 379 Rose Street and to
12.
sell beer at The Paddock Restaurant at 381 Rose Street.
The previous interpretation mile by the Alcoholic
Control Board granted 7ermits to those applicants desir-
ing permits within the restricted area if their premises
was not facing on the same street as that upon which a
church, school or hospital faced. Our Business is
not situated facing the same street as that of the
University and we were granted licenses for the f is-
cal year, 1938. The present inter)retation is to the
effect that no license shall be granted for any prem-
ises, the property line of which is within 200 feet
of the property line of a premises upon which there
is located a protesting church, school, or hospital.
The property line upon which our premises is situated
is within 200 feet of the property line upon which
the University athletic stadium is situated,
Our package liquor store at 379 Rose Street has
been operated in a very orderly manner since August,
1934; The Paddock Restaurant has likewise been op.
erated since September, 1936. Never has there been
a complaint from the University of Kentucky about
the operation o1f these two establishments. The Pad-
dock, in particular, has always been an active and
loyal supporter of the activities and objectives of
the University. The existing conditions described
above make it necessary that we obtain from you a
letter to the Kentucky Alcoholic Beverage Control
Board stating that the University of Kentucky does
not protest the granting of permits allowing us to
continue our business. In behalf of my brother,
John R. Devereux, and myself, I rmAke this urgent
appeal that you grant us this courtesy and, in so
doing, I assure you that we will continue to conduct
our business in the future in such a manner that
will not cause the University any necessity of corn.
plaint.
Respectfully yours,
(Signed) J. B. Devereux
Partner
Devereux Dispensaries
The Paddock Restaurant
J. B. Devereux:
WMB
The letter was read in open meeting and the question dis.
cussed, No action was taken, but reference is made to the action
of the Board of Trustees at the meeting of June 3, 1938, Sec. 16.
13.
9. Degrees, Summer Commencement - Committee.
On motion and second, carried, the Chairman appointed Lee
Kirkpatrick, Louis Hillenmeyer and Dean W. S. Taylor as a commit-
tee to act for the Board of Trustees in approval of the recommenda-
tions of the University Senate of candidates for degrees to be
conferred at Midsummer Commencement, August 18, 1939.
10. Financing Improvements - Kinkead and Breckinridge Halls.
Dean Graham referred to a resolution of the Board of Trus-
tees under date of June 2, 1939, wherein Judge Richard C. Stoll,
Chairman, was authorized to execute, on behalf of the University,
a supplemental lease upon Kinkead and Breckinridge Halls, where-
under the University agreed to pay an increase in the annual
rental upon these Halls in return for the conversion of the ground
floors of these buildings into living quarters for additional
students, by the owners, acting by and through their Trustee, the
Security Trust Company of Lexington, Kentucky.
In accord with the aforesaid resolution, the Trusteeshad pre-
pared and had presented a supplemental lease, which was executed
by Judge Stoll Just prior to his leaving upon his vacation and
which he had forwarded to Dean Graham, with instructions as fol-
lows:
Colonel James H. Graham
University of Kentucky
Lexington, Kentucky
Dear Colonel:
Enclosed herewith you will find three copies of supple-
mentary lease between Security Trust Cor.mpany and the Universi-
ty which Mr. Harbison sent r.me today. I have signed all three
of the leases and acknowledged them but before delivering them
I wish you would look there over and see that they are all right.
If they are not, I imagine at a- meeting of the Executive Commit-
tee, which will shortly be held, the lease changed as you think
it should be changed can be authorized, if you think this one
does not fill the bill.
I am also sending you Mr. Harbisonts letter to me.
Yours truly,
(SIGNED) Richard C. Stoll
RGS:FPJ
Enclo sure.
Dean Graham then stated further that as the title to the two
buildings in question was not vested in the University, and that
as the supplemental lease, as executed, named the Works Progress
14.
Administration as a participant in the proposed conversion work,
it had become necessary to advise the State Director of the Works
Progress Administration as to these facts; and that this had
been done, with the result that the State Director had advised
that, under the conditions pertaining, the University or the own -
ers of the buildings must be liable for the whole cost of the
work involved, as the regulations of Works Progress Administration
would not permit any participation within other than public prop-
erties.
Dean Graham then presented a revised draft of suppleraentary
leases prepared by the Trustee, wherein the rental payments by
the University are increased in accord with the total estimated
cost of the proposed work, or, in terms of dollars, an increase
of from 89000 to $12,000 in total cost and from $8,540 to $11,400
in construction cost, to the owners.
After discussion, the follow!ing resolution was offered and
unanimously adopted:
1. That the revised supplementary lease from Security Trust
Company for the annual use and occupancy of Kinkead and Breckin-
ridge Halls by the University of Kentucky, in lieu of a supple-
mentary lease signed and executed by Judge Richard C. Stoll on
July 20, 1939, but not delivered, be and is hereby approved and
ordered spread upon the minutes of this meeting:
THIS SUPPLEMENTARY LEASE, made and entored into this 1st day
of August, 1939, by and between SECURITY TRUST COMPANY, a corpora-
tion organized under the laws of the State of Kentucky and having
its principal office in the City of Lexington, Kentucky, party of
the first part, hereinafter called the nLessor", and the Universi-
ty of Kentucky, a corporation organized under the laws of the
State of Kentucky and having its principal office in the soae city
of Lexington, party of the second part, hereinafter called the
"Lessee", witnosseti that:
Whereas by a certain lease dated September 1, 1938, and re-
corded in Deed Book 303, page 455, in the Foyette County Clerkis
Office, the within Lessor leased to the within Lessee the premises
situated on the campus of the Lessee in Lexington, Kentucky, and
containing the two (2)dormitory buildings known as Kinkead Hall
and Breckinridge Hall, hereinafter called Buildings "B" and IIC";
and
Whereas it has now been determined that by the making of cer-
tain alterations and renovations and improvements on the ground
floors of said two buildings, additional dormitory rooms can be
provided for rental to students, with a consequent additional rev-
enue from that source; and
Whereas It is provided that the Lessor shall raine, through
the sale of Twelve Thousand Dollars (12,000.00), face amount of
Land Trust Certificates, the sum of Eleven Thousand Four Hundred
15.
($11,400.00) Dollars, which will suffice to make the said altera-
tions, renovations and improvements, and shall cause the said sum
of $11,400.00 to be expended in the making of said alterations,
renovations and improvements, all as shown by plans and specifi-
cations which have been prepared, and which are identified by the
signatures of the Lessor and the Lessee thereon:
NOW, THEREFORE, for and in consideration of the additional
rents and the covenants hereinafter stipulated to be paid and ner-
formed by the Lessee, the Lessor doth hereby execute this modified
or supplemental lease, and doth hereby lease, demise and let unto
the Lessee all the above-mentioned real estate, which is fully
described in the lease of September 1, 1938, above mentioned:
TO HAVE AND TO HOLD the said demised Dremises unto the Lessee
for and during the term of one (1) year beginning the 1st day of
August, 1939, and ending the 31st day of July, 1940, upon the
terms herein expressed or provided for.
This lease is not intended to, and does not, supplant, or in
any way modify or affect, the above-mentioned lease of September 1,
1938, save only in that it provides for additional improvements
and facilities to be added to the leased premises, and additional
rent on that account; and this lease is In no sense in derogation
of the rights of the holders of the Land Trust Certificates issued
by the Lessor under the Declaration of Trust which it executed
simultaneously with said lease of September 1, 1939, and which is
recorded in the office of the Fayette County Clerk in Deed Book
303, page 461; and the making of this leause shall in nowise affect
the said Declaration of Trust or the rights of the parties there-
under, but this lease is subordinate and inferior to the said
earlier lease and to the rights of the parties under said Declara-
tion of Trust.
This lease is upon the same terms and conditions as said lease
of September 1, 193B, and all the terms and provisions of said
lease are hereby ratified, adopted and made a part hereof, as fully
as if written out herein, save only as herein otherwise provided.
The Lessor shall promptly furnish to the Lessee upon the execu-
tion hereof the sum of Eleven Thousand Four Hundred Doilars
(11,400.00) for use in improving the premises as hereinabove in-
dicated.
The Lessor hereby grants to the Lessee the right to extend or
renew the term hereof for an additional period of one (1) year,
and also from year to year to extend or renew such extended or
renewed term for an additional year, until the term hereof shall
have been extended for a total of eloven (11) years from the 31st
day of July, 1940, each such extension being upon the same terms
as are provided for herein, and with the are provision for no-
tice and the like as is provided in the ab-ove-mentioned lease of
September 1, 1938.
16.
The rental herein reserved is in such amounts that if paid
for the original one-year term hereof and also for eleven (11)
additional, or extended, terms, it will complete the amortization
of the sum of Twelve Thousand Dollars (812OOO.00), the total cost
(including legal and financing charges) of the alteration renova-
tion and improvement to the two said Buildings "B" and "C4 as here-
inabove indicated, in Twelve (12) years, with interest at the rate
of 4% per annum, so that at the end of each year from the date
hereof the Lessor may pay 4% upon all the outstanding Trust Certif-
icates to be issued against said rental, and may also redeem One
Thousand Dollars ($1,000.00), face amount, of said Trust Certifi-
cates; thus, the rent for the term hereby granted shall be the
sum of Fourteen Hundred and Eighty Dollars ($1,480.00), payable
in cash in twelve (12) equal monthly instalments on the first
day of each month during the term; and the rent for the first ex-
tended term shall be the sum of Fourteen Hundred and Forty Dollars
($1,440.00), payable in cash in twelve (12) equal monthly instal-
ments on the first day of each month during the term; and so on,
for each extended term thereafter, provided the term be extended
under the provisions hereof; so that for each successive extended
term the rent shall be the sum of One Thousand Dollars ($1,000.00)
plus 4% of the amount of the then unamortized part of the original
principal sum of $12,000.00.
The rent herein reserved is to be paid in addition to the rent
reserved by the above-mentioned lease of September 1, 1938, and
thus may properly be termed "additional rent." And said addition-
al rent is proposed to be obtained by the Lessee from its sub-
letting of the additional rooms planned to be built into the said
Buildings "B" and "C" as hereinabove indicated.
When all the additional rent herein provided for shall have
been paid in full, and all the obligations of the Lessee hereunder
shall have been performed, then this supplementary lease, as extend-
ed, shall cease and terminate, and the promises shall thenceforth
be held under the above-mentioned lease of September 1, 1938, only.
An option was granted to the Lessee by the above-mentioned
lease of Soptember 1, 1938, to re-purchase the demised promises
at any first day of September during the term of the original
lease, at the purchase price fixed in said lease for the date in
question, said purchase price diminishing each year by the amount
of amortization of the original principal required to have been
paid within that year. Said option is hereby amended as follows:
after the additional investment of the $12,000.00 in the leased
premises shall have been made by the Lessor as herein promised,
the re-purchase price, as fixed in said original lease, at any
first day of September from September 1, 1939, to September 1,
1951, both inclusive, shall be increased by the amount of the prin-
cipal of the said $12,000,00 of additional investment that may
then be ou standing and unamortized.
17.
IN TESTIUONY OF ALL WHEREOF, the Lessor and the Lessee have
respectively caused their names to be subscribed and their re-
spective corporate seals to be affixed and atstested, by their
proper officers, respectively, therounto duly authorized, all on
or as of the 1st day of August, 1939.
SECURITY TRUST COMPANY
(Signed) B C. N. Manning
Pro sident
ATTEST:
(Signed) S. A. Wallace
Security
UNIVERSITY OF KENTUCKY
(Signed) By Janes Park
Acting Chairman of Executive
Committee of its Board of
Trustees.
ATTEST:
(Signed) D. H. Peak
Secretary.
STATE OF KENTUCKY)
)SCT
COUNTY OF FAYETTE)
I, GCean Petrie, a Not