University of Virginia Library

MORTGAGE CORPORATION OF VIRGINIA BONDS - PROPOSAL OF SETTLEMENT:

The following action was taken in this matter:

WHEREAS, this Board has received and considered letters, dated June 15, 1944, from the Mortgage
Corporation of Virginia, to Mortgage Corporation of Virginia Collateral Trust bondholders, of whom the
University of Virginia is one, advising that the University abandon the present plan and now fully complete
the liquidation of said bonds by calling upon the First and Merchants National Bank of Richmond, Virginia,
Trustee, to sell the collateral, which can be done inasmuch as a default exists under the terms of the
Collateral Trust Agreement, and, after selling the collateral, the Trustee would then distribute the net
cash proceeds pro rata to the bondholders as a final payment in the liquidation.

NOW, THEREFORE, BE IT RESOLVED: That this plan of redemption is approved, and that R. Gray
Williams, Rector of the University of Virginia, is authorized and directed to execute, in duplicate,
letters, addressed to First and Merchants National Bank of Richmond, as Trustee, authorizing the Trustee
to sell the collateral at public auction when holders of not less than 20% in unpaid principal amount
of outstanding bonds in Series 1X, Series 2X, Series 4X, Series 9X and Series 14X have so requested.