University of Virginia Library

Section 2.1 Authorized Indebtedness; Authorization of the Notes; Establishment of Programs.

(a) The incurrence of short-term indebtedness in the form of commercial paper notes of the University is hereby authorized to finance all or any portion of the costs of any Projects. For the purpose of providing such funds, together with other available funds, there shall be issued, under the authority of the Act, Notes of the University. The Notes shall be designated "The Rector and Visitors of The University of Virginia Commercial Paper General Revenue Pledge Notes." The Notes shall be issued from time to time, in one or more Programs, in accordance with the Note Orders and Program Orders given to the Issuing and Paying Agent in accordance with Sections 2.2, 2.3 and 2.10. The Notes shall carry the designation of either "Series A (Tax-Exempt)" or "Series B (Taxable)", as appropriate. For the purposes of internal accounting and recordkeeping, each Note may be further designated to indicate the Program of which it is a part. For example, the internal designations may be "Series A-1 (Tax-Exempt)" and "Series B-1 (Taxable)" for the initial Program, "Series A-2 (Tax-Exempt)" and "Series B-2 (Taxable)" for the second Program and so forth. The University hereby covenants that no Notes shall be issued hereunder unless on the date of issuance thereof, there is in full force and effect authority for the issuance of such Notes in accordance with the Act. For all purposes of this Resolution, in computing the aggregate principal amount of Notes outstanding on any date, there shall be excluded the amount of any Original Issue Discount on any Note.

(b) The initial Program was established as of June 15, 2006, with the Notes issued at that time. From time to time, the University may establish a new Program hereunder as set forth in Section 2.10 hereof.