xt7wpz51gt94 https://exploreuk.uky.edu/dips/xt7wpz51gt94/data/mets.xml Lexington, Kentucky University of Kentucky 19671220 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, 1967-12-nov20-ec. text Minutes of the University of Kentucky Board of Trustees, 1967-12-nov20-ec. 1967 2011 true xt7wpz51gt94 section xt7wpz51gt94 

        Special Called Meeting of the Executive Committee of the Board of Trustees,
Monday, November 20, 1967

        The Executive Committee of the Board of Trustees of the University of
Kentucky met in special called session on Monday, November 20, 1967, at 11:30
a. mn., Eastern Standard Time, in the Board Room of the Administration Building
on the campus for the purpose of considering proposals from prospective bidders
on $31, 400, 000 Revenue Bond Anticipation Notes and to authorize future issue of
Series C and D Bonds for the Lexington campus for academic facilities. Members
of the Executive Committee present were Dr. Ralph Angelucci, Chairman, Dr.
Harry Denham, and Mr. Robert Hillenmeyer. Members absent were Mr. Smith
Broadbent and Mr. Richard Cooper. Mr. Sam Ezelle, Secretary of the Board of
Trustees and ex-officio member of the Executive Committee, was also present as
were President John Oswald, Vice Presidents A. D. Albright, Robert F. Kerley,
Glenwood L. Creech, and Robert L. Johnson. Mr. C. W. Grafton, Bond Counsel,
Mr. Thomas Dupree, Bond Consultant, and Mr. Don Bradshaw, Department of
Finance, were present as were representatives of the news media.

        A. Meeting Opened

        Dr. Angelucci called the meeting to order and, following roll call by the
secretary who reported a quorum present, declared the meeting officially open at
11:32 a.m.

        B. Purpose of Meeting Explained

        Mr. Kerley said that the meeting had been called for the purpose of
considering proposals from prospective bidders on all or part of a $31,400,000
issue of Revenue Bond Anticipation Notes that were to be issued November 20,
1967, and to authorize future issue of Series C and D of the capital construction
bonds for the Lexington campus for academic facilities to retire the notes. At
the time the call was issued for the meeting, it was the opinion of the finance
people that bids would be submitted for at least part, if not all, the $31, 400, 000
of notes. Over the weekend the British government devalued the pound with
repercussions on the money market of the world. The Federal Reserve then
raised the rediscount rate in the United States and created further chaos in the
financial markets. During the morning, potential bidders have indicated by
telephone calls that they will bid if it is the University's wish to go ahead with
the issue but it is their counsel and the counsel of the financial advisers that it
would not be prudent to act at this particular time. Mr. Kerley concluded by
saying that it was his recommendation that no action be taken now. A careful
watch will be kept on the money market which is expected to stablize rather
quickly and, when this occurs, it should be possible to receive reasonable bids--
perhaps within a week or ten days.



        Dr. Angelucci asked whatthe anticipated rate of interest had been and
was told by Mr. Kerley that it had been hoped that an offer somewhere between
4. 25 percent and 4. 5 percent had been anticipated.

        Mr. Thomas Dupree of F. L. Dupree and Company, the financial firm
working with the University, reiterated Mr. Kerley's evaluation of the money
market today and said that it was a great compliment to the University that at
least two of the potential bidders had said they would go ahead if the University
so desired. He felt, however, that they would have to provide protection for
themselves which would affect the interest rate adversely. He agreed that the
market should correct itself rather quickly and endorsed Mr. Kerley's recom-
mendation that the University defer issuing the notes until the market had become

        Mr. Don Bradshaw of the Department of Finance indicated that he had
nothing further to add to what had been said by Mor. Kerley and Mr. Dupree but
that he felt the position which they recommended was the proper approach to take.

        Mr. Ezelle expressed his understanding of the situation and his con-
currence in the recommendation made by Mr. Kerley. The other members
indicating their agreement also, Mr. Ezelle moved, seconded by Mr. Hillenmeyer,
and passed that action be deferred on the $31, 400, 000 Revenue Bond Anticipation
Notes until such time as the market may become stablized and reasonable bids may
be anticipated.

        C. Meeting Adjourned

        Dr. Angelucci thanked the members of the Executive Committee for their
presence at the meeting and'asked that they hold themselves in readiness for
another called meeting in the relatively near future. He announced that luncheon
would be served following the meeting and, upon motion duly made, seconded,
and carried, declared the meeting adjourned at 11:40 a. m.

                                    Respectfully submitted,

                                    Sam Ezelle, Secretary
                                    Board of Trustees