University of Virginia Library

ARTICLE IV.

Revenues and Funds

Section 401. The Board covenants that it will at all times fix, charge and collect fees,
rents and charges for or in connection with the use, occupation or services of the Project, and
that from time to time and as often as it shall appear to be necessary it will revise such fees,
rents and charges in order that such fees, rents and charges will at all times be sufficient to
provide for the payment of the Current Expenses and to provide for making deposits to the credit
of the Sinking Fund in each fiscal year under the provisions of Section 404 of this Article of an
amount equal to one hundred ten per centum (110%) of the principal and interest which will become
due and payable on October 1 of such fiscal year and of the interest which will become due and
payable on April 1 of such fiscal year

Section 402. Notwithstanding any other facilities which may now or hereafter be available for
the housing of students at the Institution and subject to the parietal rules now in effect at the
Institution as set forth in Section 402 of the resolution, adopted by the Board on June 1, 1962
(Minute Book, University of Virginia, No. 12, 1 June 1962, p. 339), authorizing the issuance of
$3,000,000 The Rector and Visitors of the University of Virginia Dormitory Revenue Bonds (Series
1962), the Board covenants that it will require a sufficient number of students at the Institution
to use and occupy the Project and will adopt and enforce such parietal rules and other regulations
as will assure that the Project will be fully utilized at all times during the regular school
session at the Institution and will be utilized to the fullest extent practicable at all times
during any summer school session at the Institution. The Board further covenants that there shall
be no free student occupancy of the Project

Section 403. A special fund is hereby created in the State Treasury and designated "The
Rector and Visitors of the University of Virginia Student Apartment Buildings Revenue Bonds (Series
1962) Revenue Fund" (hereinafter sometimes called the "Revenue Fund"). The Board covenants that
all fees, rents, charges and other revenues derived from the operation or ownership of the Project
will be collected by the Board and deposited to the credit of the Revenue Fund. Payment of Current
Expenses shall be made from the Revenue Fund as provided by law.

Section 404. A special fund is hereby created in the State Treasury and designated "The
Rector and Visitors of the University of Virginia Student Apartment Buildings Revenue Bonds (Series
1962) Interest and Sinking Fund" (herein sometimes called the "Sinking Fund"). The Board
covenants that, on or before the 20th day of September in each fiscal year, it will provide for the
transfer from moneys held for the credit of the Revenue Fund to the credit of the Sinking Fund of
an amount equal to one hundred ten per centum (110%) of the principal and interest which will
become due and payable on October 1 of such fiscal year and that, on or before the 20th day of
March in each fiscal year, it will provide for the transfer from moneys held for the credit of the
Revenue Fund to the credit of the Sinking Fund of an amount equal to one hundred ten per centum
(110%) of the interest which will become due and payable on April 1 of such fiscal year, provided,
however, that if the amount so transferred to the credit of the Sinking Fund in any September or
March shall be less than the required amount, the requirement therefor shall nevertheless be
cumulative and the amount of any deficiency in any September or March shall be added to the amount
otherwise required to be transferred in each September or March thereafter until such time as such
deficiency shall have been made up, and provided, further, that when the moneys held for the credit
of the Sinking Fund shall equal the principal of the outstanding bonds and the interest which will
become due and payable thereon to their respective maturities, no further transfer need be made to
the credit of the Sinking Fund. The balance in the Revenue Fund, if any, after making any transfer
under the provisions of this Section shall be used for the purposes of the Institution as provided
by law

Section 405. Subject to the provisions of this resolution, moneys held for the credit of the
Sinking Fund shall be held in trust and applied (a) to the payment of interest upon the bonds as
such interest becomes due and payable, or (b) to the payment of the principal of the bonds at their
respective maturities, and such moneys are hereby pledged to and charged with the payments mentioned
in this Section

Section 406. The moneys in the Revenue Fund and the Sinking Fund shall be held in trust and
applied as hereinabove provided and, pending such application, shall be subject to a lien and
charge in favor of the holders of the bonds issued and outstanding under this resolution and for
the further security of such holders until paid out or transferred as herein provided

Section 407. All bonds and interest coupons shall be cancelled upon their payment. Such
bonds and coupons may be cremated by the State Treasurer, who shall execute a certificate of
cremation in duplicate describing the bonds and coupons so cremated except that the numbers of the
bonds to which such coupons appertain may be omitted unless otherwise directed by the Board, and
one executed certificate shall be filed with the Comptroller of the Institution and the other
executed certificate shall be retained by the State Treasurer.