xt7sj38kdw6m https://nyx.uky.edu/dips/xt7sj38kdw6m/data/mets.xml Lexington, Kentucky University of Kentucky 19860629 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, 1986-06-jul29-ec. text Minutes of the University of Kentucky Board of Trustees, 1986-06-jul29-ec. 1986 2011 true xt7sj38kdw6m section xt7sj38kdw6m 









      MINUTES OF A SPECIAL CALLED MEETING OF THE EXECUTIVE COMMITTEE OF THE
BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY HELD ON JULY 29, 1986, AT
11:00 A.M.


      The Executive Committee of the Board of Trustees of the University of
Kentucky met at 11:00 A.M. (Eastern Daylight Time), on Tuesday, July 29,
1986, in the Board Room on the 18th Floor of the Patterson Office Tower on
the campus of the University in Lexington, Kentucky.

      A. Meeting Opened and Roll Called

      Mr. Robert T. McCowan, Chairman, called the meeting to order at 11:00
a.m. and the invocation was pronounced by Mr. Tracy Farmer.

      The following members of the Executive Committee of the Board of
Trustees were present: Mr. Robert T. McCowan (Chairman), Mr. Albert G.
Clay, and Mr. Tracy Farmer.  The following members were absent:   Mr.
William R. Black and Mr. T, A. Lassetter. The University administration
was represented by President Otis A. Singletary; Mr. James 0. King, Vice
President for Administration; Chancellor Charles T. Wethington; Mr. John C.
Darsie, General Counsel (Assistant Secretary of the Board of Trustees); Mr.
Henry Clay Owen, Controller and Treasurer; Dr. Paul G. Sears, Special
Assistant for Academic Affairs; and Dr. Donald B. Clapp, Executive Vice
Chancellor for Administration, Medical Center, representing Chancellor
Peter P. Bosomworth.

      Members of the various news media were also in attendance. A quorum
being present, the Chairman declared the meeting officially open for the
conduct of business at 11:03 a.m.

      B. Minutes Approved

      On motion made by Mr. Clay, seconded by Mr. Farmer and passed, the
Minutes of the June 25, 1986 meeting of the Board of Trustees were approved
as written.

      C. Resolution of the Executive Committee of the Board of Trustees of
the University of Kentucky Ratifying, Confirming and Approving the Series A
Resolution as Corrected to Reflect the Principal Maturities of the Series A
Bonds to be Issued in the Total Principal Amount of $21,000,000, and
Related Clarifying Language  (PR 3A)

      In accordance with the Series Resolution adopted by the Board of
Trustees of the University of Kentucky on June 25, 1986, entitled:


      A RESOLUTION AUTHORIZING THE ISSUANCE OF $25,000,000 OF UNIVERSITY OF
      KENTUCKY HOSPITAL REVENUE BONDS, SERIES A, OF THE BOARD OF TRUSTEES
      OF THE UNIVERSITY OF KENTUCKY




 




2



(the "Series A Resolution") a special called meeting of the Executive
Committee was called for the purpose of ratifying, confirming and approving
the Series A Resolution as corrected to reflect the principal maturities of
the Series A Bonds to be issued in a total principal amount of $21,000,000,
as determined by Executive Order of the President of the University of
Kentucky, and the clarifying language as to those provisions affected by
the reduction in principal amount of the Series A Bonds to be issued, and
also for the acceptance of the bid for the purchase of the Series A Bonds.

      Thereupon, a Resolution entitled:

      RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES OF THE
      UNIVERSITY OF KENTUCKY RATIFYING, CONFIRMING AND APPROVING THE SERIES
      A RESOLUTION AS CORRECTED TO REFLECT THE PRINCIPAL MATURITIES OF THE
      SERIES A BONDS TO BE ISSUED IN THE TOTAL PRINCIPAL AMOUNT OF
      $21,000,000, AND RELATED CLARIFYING LANGUAGE.

having been presented to this Executive Committee for consideration, it was
moved by Trustee Clay and seconded by Trustee Farmer, that said Resolution
be adopted.

      The Resolution was read to the members of the Executive Committee in
its entirety and after consideration, a yea and nay vote was taken on the
motion to adopt said Resolution, which resulted as follows:

      Yeas for the Motion                 Nays Against the Motion

      Robert T. McCowan                            None
      Albert G. Clay
      Tracy Farmer

      The Chairman declared that the motion had carried and the Resolution
as corrected was adopted. (See PR 3A at the end of the Minutes.)

      D. Resolution of the Executive Committee of the Board of Trustees of
the University of Kentucky Accepting the Successful Bid for the Purchase of
the University of Kentucky Hospital Revenue Bonds, Series A, Dated August
1, 1986 (PR 38)

      Mr. King called the attention of the members present to the fact that
a Notice of Bond Sale had been published in the LEXINGTON HERALD-LEADER,
THE COURIER-JOURNAL (Statewide Edition) and THE DAILY BOND BUYER, fixing
the deadline for submitting bids for the purchase of the Series A Bonds for
10:30 a.m. on July 29, 1986. Mr. King declared that the bidding on the
Series A Bonds was closed and then produced all the sealed bids which had
been received. The bids were then publicly opened, read and referred to
the Board's financial advisor, M.B. Hilliard, W.L. Lyons Incorporated,
and Mr. Henry Clay Owen, Controller and Treasurer of the University, for
analysis and report as to which bid offered the lowest net interest cost to
the Board of Trustees. (A written report of each of such bids immediately
follows the Minutes of this meeting and is attached hereto and made a part
hereof.)




 





                                   - 3 -




      The Board's financial advisor having finished his analysis of the
bids, his report as to the bid offering the lowest net interest cost to the
Board and recommendation as to the best bid was received.

      Thereupon, a Resolution entitled:

      RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES OF THE
      UNIVERSITY OF KENTUCKY ACCEPTING THE SUCCESSFUL BID FOR THE PURCHASE
      OF THE UNIVERSITY OF KENTUCKY HOSPITAL REVENUE BONDS, SERIES A, DATED
      AUGUST 1, 1986

having been presented to this Executive Committee for consideration, it was
moved by Trustee Farmer and seconded by Trustee Clay, that the bid of Smith
Barney, Harris Upham & Co., Incorporated for the purchase of such Series A
Bonds is hereby accepted and confirmed, said bid being at a price of
$20,536,901.65 at a net interest cost of 7.932090%, for said $21,000,000
principal amount of Series A Bonds, plus accrued interest from August 1,
1986, to date of delivery of the Series A Bonds. That such bid is hereby
determined to be the best bid and with the most favorable net interest cost
to the Board, and the maturities, schedule of mandatory redemption dates,
if any, and the interest rate or rates on such Series A Bonds are hereby
fixed at the rates set out in such successful bid.

      The Resolution was read to the members of the Executive Committee in
its entirety and after consideration, a yea and nay vote was taken on the
motion to adopt said Resolution, which resulted as follows:

      Yeas for the Motion                 Nays Against the Motion

      Robert T. McCowan                            None
      Albert G. Clay
      Tracy Farmer

      The Chairman then declared that the motion had carried and said
Resolution has been adopted. (See PR 3B at the end of the Minutes.)

      E. Report on Self-Insurance Program

      Dr. Clapp reported to the Executive Committee on the self-insurance
program being proposed for the current year in the Medical Center. Copies
of a letter from Chancellor Peter P. Bosomworth to President Singletary
setting forth the program were distributed to members of the Board. This
was an information item only.   (See copy of letter at the end of the
Minutes.)

      F. Resolution Regarding Mr. George W. Griffin

      On motion duly made, seconded and carried, the Executive Committee
adopted an oral resolution wishing Mr. George W. Griffin a speedy recovery
from his recent surgery.




 





- 4 -



      F. Meeting Adjourned

      Thereupon, there being no further business to come before the
Executive Committee of the Board of Trustees, the Chairman adjourned the
meeting at 11:24 A.M., E.D.T.

                                   Respectfully submitted,



                                   John C. Darsie
                                   Assistant Secretary
                                   Board of Trustees



(PR 3A and PR 3B; a copy of each of the three Bid Forms; and Chancellor
Peter P. Bosomworth's letter which follow are official parts of the Minutes
of the Meeting.)

1646




 





                                             Office of the President
                                             July 29, 1986

                                             PK 3A




Members, Executive Committee of the Board of Trustees:

        RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD
        OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY, RATIFYING,
        CONFIRMING AND APPROVING THE SERIES A RESOLUTION AS
        CORRECTED TO REFLECT THE PRINCIPAL MATURITIES OF THE
        SERIES A BONDS TO BE ISSUED IN THE TOTAL PRINCIPAL
        AMOUNT OF $21,000,000, AND RELATED CLARIFYING LANGUAGE

RecoDmmendation:  That the Executive Committee of the Board of
Trustees approve a resolution incorporating the maturity schedule for
the authorized principal amount of $21,000,000 of the University of
Kentucky Hospital Revenue Bonds, Series A, and related clarifying
language into the Series A Resolution which was adopted by the Board
of Trustees on June 25, 1986.

Background: The Series A Resolution was adopted for the issuance of
the Series A Bonds in a principal amount of $25,000,000 or less. It
has been determined by Executive Order of the President of the
University as authorized by the Board of Trustees that the Series A
Bonds should be issued in the amount of $21,000,000. Therefore,. it
is now necessary to have the principal maturities for the authorized
$21,000,000 of Series A Bonds and related clarifying text incorporated
in the series A Resolution.











Action:  Approved      __     Disapproved             Other_

Date: July 29, 1986




 











                  RESOLUTION  OF  THE  EXECUTIVE  COMKITrEE  OF  THE  BOARD  OF
                  TRUSTEES  OF   THE   UNIVERSITY   OF   KENTUCKY,   RATIFYING,
                  CONFIRMING  AND  APPROVING   TEE  SERIES   A  RESOLUTION   AS
                  CORRECTED TO REFLECT THE PRINCIPAL MATURITIES OF THE
                  SERIES A BONDS TO BE ISSUED IN THE TOTAL PRINCIPAL AMOUNT
                  OF $21,000,000, AND RELATED CLARIFYING LANGUAGE.

                  WHEREAS, the Board of Trustees of the University of Kentucky, on

       June 25, 1986, adopted a Resolution entitled:

                  A RESOLUTION AUTHORIZING THE ISSUANCE OF $25,000,000 OF
                  UNIVERSITY OF KENTUCKY HOSPITAL REVENUE BONDS, SERIES A,
                  OF THE BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY,

       (the "Series A Resolution") which Resolution provided that the actual principal

       amount of Series A Bonds to be issued and the date of sale for said Series A

       Bonds should be determined by Executive Order of the President; and

                   WHEREAS, by Executive Order of the President of the University of'

       Kentucky, it has been determined that the Series A Bonds shall be issued in the

       principal amount of $21,000,000 and that the date of sale of said Series A

       Bonds shall be July 29, 1986; and

                   WHEREAS, it has been determined that the Series A Resolution should

        be clarified as to those provisions affected by the reduction in the authorized

        principal amount of the Series A Bonds to be issued.

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

                   Section 1.  That the principal maturities of the Series A Bonds in
        the authorized principal amount of $21,000,000 be incorporated into the Series
        A Resolution as shown on the attached Exhibit A.

                   Section 2.  That the Series A Resolution be clarified as to those
        provisions shown on the attached Exhibit A.

                   Adopted July 29, 1986.
        (Seal)                                _  _  E  _  /   _  /  _  _  _   /    _/
                                                               Chairman
        Attest:,


As  tant Secretary, Board of Trustees

            A,,                             ~~~~~~~~~-1-




 










CERTIFICATION



           I, the undersigned, do hereby certify that I am the duly qualified
and acting Assistant Secretary of the Board of Trustees of the University of
Kentucky, and as such officer I further certify that the foregoing is a true,
correct and complete copy of a Resolution duly adopted by the members of the
Executive Committee of the Board of Trustees on July 29, 1986, has been duly
executed and is now in full force and effect.

           I further certify that said meeting held on July 29, 1986, was held
in accordance with all applicable requirements of Kentucky law, including KRS
61.810, 61.815, 61.820 and 61.825, that a quorum was present at said meeting,
that said Resolution has not been modified, amended, revoked or repealed, and
that same is now in full force and effect.

           WITNESS my hand this 29th day of July, 1986.



-2-




 
















               SERIES RESOLUTION

                    OF THE

BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY



              AUTHORIZING THE ISSUANCE OF

UNIVERSITY OF KENTUCKY HOSPITAL REVENUE BONDS, SERIES A




 










Year of Maturity



             1990                                 $ 625,000
             1991                                    670,000
             1992                                     725,000
             1993                                    785,000
             1994                                     845,000

             1995                                    915,000
             1996                                     990,000
             1997                                   1,065,000
             1998                                   1,150,000
             1999                                   1,245,000

             2000                                   1,345,000
             2001                                   1,450,000
             2002                                   1,565,000
             2003                                   1,690,000
             2004                                   1,830,000

             2005                                   1,975,000
             2006                                   2,130,000

           Section 2.04  Place and Manner of Payment of the Bonds.

           Each Series A Bond shall bear interest from      the Interest Payment
Date to which interest has been paid next preceding the date on which such
Series A Bond is authenticated unless it is authenticated on an Interest
Payment Date to which interest has been paid, in which event it shall bear
interest from such date, or if it is authenticated prior to the first Interest
Payment Date, it shall bear interest from the date of issue, until maturity or
earlier redemption of such Series A Bond.

           The principal of and redemption premium, if any, on any Series A
Bond shall be payable upon maturity or prior redemption to the Owner or his
assigns upon surrender of the Series A Bond to the Trustee at the principal
corporate trust office of the Trustee.   The interest on any Series A Bond, when
due and payable, shall be paid to the Owner registered as the Owner on the
Record Date, by check or draft mailed to such Owner at such Owner's address
last appearing on the registration books of the Registrar or at such other
address as is furnished to Trustee in writing by such Owner.      All payments of
principal, redemption premium, if any, and interest on the Series A Bonds shall
be payable in lawful money of the United States of America.

           Section 2.05. Execution; Limited Obligation,

           The Series A Bonds shall be executed in the name and on behalf of
the Issuer by the manual or facsimile signature of its Chairman and the seal of



-4-



Principal Amount




 







of the Principal Account, an amount equal to the principal of all Outstanding
Series A Bonds due on the next ensuing August 1;

           (c)  (i) beginning on the twenty-fifth day, or if such day is not a
Business Day on the next succeeding Business Day, of the month following any
month in which money is transferred from the Reserve Account to the Interest
Account or the Principal Account to cure a deficiency therein, and on the
twenty-fifth day of each month thereafter, to the credit of the Equity
Subaccount, one-twelfth (1/12) of the amount or amounts so transferred until
the amount then on deposit in the Reserve Account is equal to the Reserve
Account Requirement and (ii) beginning in the month following a valuation made
in accordance with the Series A Resolution in which a loss resulting from a
decline in the value of investments held for the credit of the Reserve Account
is computed, and on the twenty-fifth day of each month thereafter, into the
Equity Subaccount one-twelfth (1/12) of the amount of such loss until the
amount of such loss is reimbursed.

           Section 5.03.  Application of Money in Reserve Account;
                          Replenishment of Reserve Account.

           Simultaneous with the delivery of the Series A Bonds, an amount
equal to the Reserve Account Requirement shall be deposited in the Reserve
Account. Any funds contributed by the Board for deposit to the credit of the
Reserve Account shall be deposited in the Equity Subaccount, and any of the
proceeds of the Series A Bonds deposited to the credit of the Reserve Account
shall be deposited to the credit of the Proceeds Subaccount.

           The Trustee shall use amounts in the Reserve Account,Ato the extent
necessary to pay interest on and principal (whether at maturity or by accelera-
tion) of the Series A Bonds, whenever and to the extent (i) that the money on
deposit in the Interest Account and the Principal Account is insufficient for
such purposes or (ii) the funds in the Reserve Account are sufficient to pay
all the principal and accrued interest due on the Series A Bonds Outstandingly
Amounts on deposit to the credit of the Proceeds Subaccount shall be exhausted
prior to the transfer of any amount on deposit to the credit of the Equity
Subaccount.

            Subject to the provisions of the Master Resolution, the Board shall
cause the State Treasurer to transfer from the Revenue Fund to the Equity
Subaccount,  in  twelve  (12) equal monthly    installments,  the  amount  of any
transfer made from the Reserve Account pursuant to the preceding paragraph.

            Subject to the provisions of the Master Resolution, the Board shall
cause the State Treasurer to transfer from the Revenue Fund to the Equity
Subaccount, in twelve (12) equal monthly installments, the amount of any loss
resulting from a decline in the value of investments held for the credit of the
Reserve Account computed following a valuation made in accordance with the
Series A Resolution.

            The Board may at any time withdraw amounts on deposit to the credit
of the Proceeds Subaccount for its general purposes so long as, simultaneously
therewith, it shall deposit an equal amount of its funds to the credit of the
Equity Subaccount.



15-




 






           The investments of the Reserve Account shall be valued on August 1
of each year at the lower of cost, market or amortized value exclusive of
accrued interest, except that investments with a maturity of one year or less
shall be valued at par.   Whenever the amount on deposit in the Reserve Account
on any August 1 valuation date exceeds the Reserve Account Requirement, such
excess amount shall be transferred by the Trustee to the Revenue Fuad as soon
as practicable.

           All Investment Income of the Reserve Account, as and when received,
shall be deposited into the Interest Account, except as provided in Section
5.04 hereof.

           Section 5.04 Investments.

           Money held for the credit of the various funds and accounts held by
the Trustee shall be invested at the direction of the Board in Permitted
Investments.  Any investments held for the credit of the Interest Account, the
Principal Account and the Series A Redemption Account shall mature or be
subject to redemption not later than the respective dates when the money held
for the credit of such funds and accounts will be required for the purposes
thereof.  Any  investment  of money on deposit in the Reserve Account        shall
mature not later than the final maturity of the Series A Bonds.

           Obligations so purchased as an investment of money in any such fund
or account, and any interest bearing time deposits made with respect to such
money, shall be deemed at all times to- be a part of such fund or account, and
the interest received thereon and any profit realized from such investment
shall be credited to such fund or account, and any loss resulting from such
investment shall be charged to such fund or account; provided, however, that
the interest accruing thereon and any profit realized or any loss realized upon
the maturity or disposition of such investments prior to the completion of the
Series A Hospital Project financed through the issuance of the Series A Bonds,
shall be credited to, or charged against, the Series A Construction Account and
the Trustee shall remit the net amount thereof no less often than once during
each bond year to the State Treasurer for deposit to the Series A Construction
Account.  The Trustee shall sell at the best price obtainable or present for
redemption any obligations so purchased whenever it shall be necessary so to do
in order to provide moneys to meet any payment or transfer from any such fund
or account.   Neither the Trustee nor the Board shall be liable or responsible
for any loss resulting from any such investment.

           ARTICLE VI. FINANCIAL COVENANTS.

           Section 6.01. Limitations on Additional indebtedness.

           The Board agrees that it will not incur any Additional Indebtedness
other than Additional Indebtedness consisting of one or more of the following:

                 (a)  Long-Term  Indebtedness   if  prior  to  incurrence  of  such
           Indebtedness one of the followlng conditions is met:

                         (1)  there is delivered to the Trustee and the State
                 Treasurer an Officar's Certificate (accompanied by the report
                 of the Auditor of the Commonwealth or an independent certified

                                      -16-




 






                                                Office of the President
                                                July 29, 1986



                                                P13 313



Members, Executive Committee of the Board of Trustees:

        RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD
        OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY, ACCEPTING
        THE SUCCESSFUL BID FOR THE PURCHASE OF THE UNIVERSITY
        OF KENTUCKY HOSPITAL REVENUE BONDS, SERIES A, DATED
        AUGUST 1, 1986

Recommendation: That the Executive Committee of the Board of
Trustees approve.a resolution accepting the successful bid for the
purchase of the Series A Bonds.

Background: On June 25, 1986, the Board adopted a Master Resolution
and a Series Resolution authorizing the issuance of the Series A
Bonds. Pursuant to Executive Order of the President, as authorized
by the Board of Trustees, a-Notice of Bond Sale was published on
July 21, 1986, as required by law for submission of bids for the
$21,000,000 of University of Kentucky Hospital Revenue Bonds, Series
A, on July 29, 1986, at 10:30 a.m.

Three bids were received and tabulated as follows:



Smith Barney, Harris Upham & Co., Incorporated
J.J.B. Hilliard, W.L. Lyons, Inc. & Associates
Drexel Burnham Lambert Inc.



$20,536,901.65
$20,527,500.00
$20,535,732.00



Action:  Approved _____

Date:  July 29, 1986



Di s approved



7.932090 %
7.9699916%
8.052360 %



Other




 










           RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD OF
           TRUSTEES OF THE UNIVERSITY OF KENTUCKY ACCEPTING THE
           SUCCESSFUL BID FOR THE PURCHASE OF THE UNIVERSITY OF
           KENTUCKY HOSPITAL REVENUE BONDS, SERIES A, DATED AUGUST 1,
           1986.

           WHEREAS, notice of the sale of the $21,000,000 of University of

Kentucky Hospital Revenue Bonds, Series A, dated August 1, 1986, has heretofore

been advertised as required by law; and

            WHEREAS, a11 bids received for the purchase of said Series A Bonds

from  the Board of Trustees of the University of Kentucky have been duly con-

sidered; and

            WHEREAS, the matter of which bid is the most advantageous and with

 the most favorable net interest cost to the Board has been sufficiently

 con idered.

            NOW, T1EREFORE, THE EXECUTIVE COMSITTEE OF THE BOARD OF TRUSTEES OF

 TEE UNIVERSITY OF KENTUCKY, DOES HEREBY RESOLVE AS FOLLOWS:

            Section 1.   That the bid of Smith Barney, Harris Upham & Co., Inc..

 for the purchase of such Series A Bonds is hereby acclepted and confirmed, said

 bid  being  at a price of $ 20,536,901.65             at a net interest cost of

;;7.932090 %, for said $21,000,000 principal amount of Series A Bonds, plus

accrued interest from August 1, 1986, to date of delivery of the Series A

Bonds.  That such bid is hereby determined to be the best bid and with the most

favorable net interest coat to the Board, and the maturities, schedule of

mandatory redemption dates,   if any,  and the interest rate or rates on such

Series A Bonds are hereby fixed at the rates set out in such successful bid.

            Section 2.  That all other bids are hereby rejected, and the Board

 Clerk is hereby ordered to deposit the good faith check of the successful



-1-




 










      bidder in accordance with the published Notice of Bond Sale and the Official

      Terms and Conditions of Sale of Bonds, and to return the other checks to the

      respective unsuccessful bidders immediately.

                 Section 3. That said bid is accepted subject to the condition that

      such acceptance subjects the Board to no liability if for any reason the Board

      is unable to obtain the final approving legal opinion of the firm of Rubin &

      Rays, Municipal Bond Attorneys, Louisville, Kentucky, as to said Series A

      Bonds, or if said Series A Bonds should be subject to ad valorem taxation by

      the Commonwealth of Kentucky, or if the receipt of interest on said Series A

      Bonds should be subject to income taxation by the federal government or the

      Commonwealth of Kentucky prior to or on the delivery date of said Series A

      bonds; and the purchaser shall not be required to take delivery of said

      Series A Bonds without the final approving opinion of Rubin & Rays, Municipal

      Bond Attorneys, Louisville, Kentucky, accompanying said Series A Bonds, or if

      said Series A Bonds or the interest thereon should become so subject to

      taxation prior to such delivery.

                  Section 4.  That all Resolutions, or parts      thereof,  in conflict

       herewith, be and the same are hereby amended or repealed to the extent of such

       conflict, and this Resolution shall be effective immediately upon its adoption.

                  Adopted July 29, 1986.


                                                                   -,1
                                                             Chairman
       (Seal)

       At t es t


ssistant st-retary, Board of Trustees




 










CERTIFICATION



           I, the undersigned, do hereby certify that I am the duly qualified
and acting Assistant Secretary of the Board of Trustees of the University of
Kentucky, and as such officer I further certify that the foregoing is a true,
correct and complete copy of a Resolution duly adopted by the members of the
Executive Committee of the Board of Trustees on July 29, 1986, has been duly
executed and is now in full force and effect.



           I further certify that said meeting held on July 29,
in accordance with all applicable requirements of Kentucky law,
61.810, 61.815, 61.820 and 61.825, that a quorum was present at
that said Resolution has not been modified, amended, revoked or
that same is now in full force and effect.



1986, was held
including KRS
said meeting,
repealed, and



WITNESS my hand this 29th day of July, 1986.



As s an



it Secretary  Board of Trustees



-3-




 






                                 BID FORM
           Subject to the terms and conditions set forth in a Resolution of the
Board of Trustees of the University of Kentucky, providing for the sale of
$21,000,000 of University of Kentucky Hospital Revenue Bonds, Series A, dated
August 1, 1986, and in accordance with the Notice of Bond Sale, as advertised,
and in accordance with the Of f icial Terms and Conditions of Sale of Bonds, to
all of which the undersigned agrees, the undersigned hereby submits the
following offer to purchase such Bonds.

           We  hereby  bid  the  total  sum  of  $o,63s.73,.2(not     less  than
$20,527,500 (97-3/4%) plus accrued interest from August 1', 1986 to the date of
the delivery of the Bonds, at the following annual interest rate(s);

        Bond Year
        Ending                     Principal                   Interest
        August I                   Maturing                    Rate(s)
        1990                       $  625,000                     7,,o   Z
        1991                          670,000                     Lev
        1992                          725,000                     v Ir _
        1993                          785,000                     7 tr
        1994                          845,000                     7. :r

        1995                          915,000                     7.50
        1996                          990,000                     v _-D
        1997                        1,065,000                     7, 70
        1998                        1,150,000                     .&0 _
        1999                        1,245,000                   _7_ I___

        2000                         1,345,000                    R.
        2001                        1,450,000
        2002                        1,5652000
        2003                        1,690,000                     R. o  
        2004                        1,830,000                    e. 0-V

        2005                         1,975,000                    Poo
        2006                        2,130,000                     0.cnP

            It Is understood that the Bonds are offered for sale on the basis of
 the interest on the Bonds not being subject to Federal or Kentucky income
 taxation on the date of delivery of the Bonds and of the principal of the Bonds
 not being subject to Kentucky ad valorem taxation, and that the Board will
 furnish the final, approving legal opinion of Rubin 6 Rays, Suite 300, 209
 South Fifth Street, Louisville, Kentucky.     A certified or a bank cashier's
 check in the amount of $210,000 (1%), payable to the Board of Trustees of the
 University of Kentucky is enclosed, with the understanding that if we are the
 successful bidder, such check is to be Immediately deposited by the Board of
 Trustees and credited (without interest) against the purchase price at the time
 of the delivery of the Bonds.

                                       Respectfully submitted,
                                         Drexel Burnham Lambert Inc.



                                       ByA




 











Total interest cost from August 1, 1986,
  to final maturity
b4s en4tiom or plus discount, if any, bid
Net interest cost
Net interest rate



s ; P, da a S, J7.0
$ ZIP  E4 ok  
R        S Ads. -



           The  above  computation   of  net  interest  cost   is  submitted  for
information only and is not a part of this Bid. T