MINUTES OF A MEETING OF THE EXECUTIVE COMMITTEE OF THE BOARD OF VISITORS
OF VIRGINIA COMMONWEALTH UNIVERSITY
January 21, 1982
A meeting of the Executive Committee of the Board of Visitors of Virginia
Commonwealth University was held on Thursday, January 21, 1982, at 11:15 a.m.
in the University Meeting Center.
Present were Messrs. Balfour and Ludeman; Drs. Gayle and Nemuth; and Mrs.
Bemiss. Absent were Messrs. Grey and Wyatt and Mrs. Thalhimer. Also present
were Dr. Ackell; Messrs. Guerdon and Ross; and Mrs. Price.
Mr. Guerdon presented a Resolution dealing with the sale of bonds by the
Commonwealth of Virginia for the University. On motion made and seconded, the
following Resolution was approved:
WHEREAS, pursuant to the provisions of Chapter 481 of the
Acts of the General Assembly of Virginia of 1981, the Treasury
Board was authorized, by and with the consent of the Governor,
to sell and issue bonds of the Commonwealth of Virginia in an
aggregate principal amount not exceeding $23,475,000 for the
purpose of providing funds, with any other available funds, for
paying the cost of acquiring, constructing, and equipping
revenue producing capital projects, including the enlarging and
improving thereof, at institutions of higher learning in the
Commonwealth, all in accordance with the provisions of Section
9 (c) of Article X of the Constitution of Virginia; and
WHEREAS, said revenue producing capital projects include
a low rise dormitory for approximately 513 students (the "Dormitory
Project") and an extension of 13th street to MCV parking facility
(the "Parking Project") for Virginia Commonwealth University at a
cost not to exceed $5,440,000 and $610,000 respectively; and
WHEREAS, the Treasury Board has previously issued and sold
a portion of said bonds in the amount of $4,932,000 to the United
States of America acting by and through the Department of Education
("ED") on November 17, 1981 (the "1981 Bonds") to finance the
construction of the Dormitory Project; and
VIRGINIA COMMONWEALTH UNIVERSITY
WHEREAS, the Treasury Board proposes to sell a portion of
said bonds equal to $12,315,000, designated "Higher Educational
Institutions Bonds, 1982 Series A" (the "1982 Series A Bonds"),
which includes an amount equal to $610,000 for the purpose of
financing the cost of the Parking Project; and
WHEREAS, the Treasury Board proposes to sell a portion of
said bonds equal to $505,000 designated "Higher Educational
Institutions Bonds, 1982 Series B" (the "1982 Series B Bonds")
to finance the equipping of the Dormitory Project;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF VISITORS OF
Section 1. The Board of Visitors of Virginia Commonwealth
University (the "Board") (a) covenants to fix, revise, charge,
and collect fees for or in connection with the use, occupation
or services of the Parking Project and (b) pledges said fees to
the payment of the principal of, premium, if any, and interest
on that portion of the 1982 Series A Bonds issued to finance the
Parking Project; provided that the current expenses of operating
the Parking Project (the "Current Expenses") shall be a first
charge on such fees. The Board further covenants that such fees
will be fixed, revised, charged, and collected so that the net
revenues from the Parking Project after payment of Current Expenses,
will at all times be sufficient to pay the principal of, premium,
if any, and interest on that portion of the 1982 Series A Bonds
issued to finance the Parking Project. Any such revenues in excess
of the amounts required for the payment of Current Expenses and
the payment of principal of, premium, if any, and interest on that
portion of the 1982 Series A Bonds issued to finance the Project may
be used by the University for any other proper purpose.
Section 2. It is hereby found, determined, and declared that,
based upon responsible engineering and economic estimates and advice
of appropriate officials of the University as shown on Exhibit A
hereto, the anticipated net revenues from the Parking Project pledged
above will be sufficient to pay Current Expenses and the principal of,
premium, if any, and interest on that portion of the 1982 Series A
Bonds issued to finance the Parking Project, as the same become due,
so long as the interest rate on the 1982 Series A Bonds does not exceed
12% per annum.
Section 3. The Board covenants that so long as the 1982 Series
of Virginia not less than 30 days before June 1 and December 1 of
each year, beginning June 1, 1982, the amount certified by the Treasurer
of Virginia to be due and payable on such June 1 or December 1 as
principal, premium, if any, and interest on that portion of the 1982
Series A Bonds issued on behalf of the University to finance the Parking
A Bonds are outstanding, the University will pay to the Treasurer
Section 4. The Board (a) covenants to fix, revise, charge,
and collect rates, fees and charges for or in connection with
the use, occupation, or services of the Dormitory Project, and
(b) pledges said rates, fees and charges to the payment of the
principal of, premium, if any, and interest on the 1982 Series
B Bonds on a parity with the 1981 Bonds; provided that the current
expenses of operating the Dormitory Project (the "Current Expenses")
shall be a first charge on such revenues. The Board further
covenants that such rates, fees and charges will be fixed, revised,
charged, and collected so that the net revenues from the Dormitory
Project after payment of Current Expenses, will at all times be
sufficient to make the deposits required by the Loan Agreement among
the Treasury Board, the University and ED (the "Loan Agreement")
pursuant to which the 1981 Bonds were issued and to pay the principal
of, premium, if any, and interest on the 1982 Series B Bonds and the
1981 Bonds. Any such revenues in excess of the amounts required for
the payment of Current Expenses, the deposits required by the Loan
Agreement, and the payment of principal of, premium, if any, and
interest on the 1982 Series B Bonds and the 1981 Bonds may be used
by the University for any other proper purpose.
Section 5. It is hereby found, determined, and declared that,
based upon responsible engineering and economic estimates and advice
of appropriate officials of the University as shown on Exhibit B
hereto, the anticipated net revenues from the Dormitory Project
pledged above will be sufficient to pay Current Expenses and the
principal of, premium, if any, and interest on the 1982 Series B
Bonds and the 1981 Bonds, as the same become due, so long as the
interest rate on the 1982 Series B Bonds does not exceed 12% per annum.
Section 6. The Board covenants that so long as the 1982 Series
B Bonds are outstanding, the University will pay to the Treasurer of
Virginia not less than 30 days before June 1 and December 1 of each
year, beginning June 1, 1982, the amount certified by the Treasurer
of Virginia to be due and payable on such June 1 or December 1 as
principal, premium, if any, and interest on the 1982 Series B Bonds.
Section 7. The Board covenants that the University will pay
from time to time its proportionate share of all expenses incurred
in connection with the sale and issuance of the 1982 Series A Bonds
and the 1982 Series B Bonds and all expenses thereafter incurred
in connection with the payment of the principal of, premium, if
any, and interest on the 1982 Series A Bonds and the 1982 Series
B Bonds all as certified by the Treasurer of Virginia to the University.
.
The meeting was adjourned at 11:30 a.m.
Approved:Harold I. Nemuth, M.D., Secretar
