 | Board of Visitors minutes June 24, 1965 |  |
ARTICLE VI
Particular Covenants
Section 601. The Board covenants that it will promptly pay the principal of and the
interest on each and every bond issued under the provisions of this resolution at the place,
on the dates and in the manner provided herein and in said bonds and in the coupons appertaining
thereto, according to the true intent and meaning thereof. The principal and interest are
payable solely from the revenues derived from the Library Building Fee and said Library Building
Fee and the revenues to be derived therefrom are hereby pledged to the payment thereof in the
manner and to the extent hereinabove particularly specified, and nothing in the bonds or in
this resolution shall be deemed to constitute the bonds a debt of the State of Virginia or a
pledge of the faith and credit of the State, nor shall the bonds ever be or become a charge against
the State of Virginia.
Section 602. The Board covenants that it will forthwith proceed to construct the Project
in conformity with law and all requirements of all governmental authorities having jurisdiction
thereof, and that it will complete such construction with all expedition practicable.
The Board further covenants that it will require each person, firm or corporation with
whom it may contract for labor or materials in connection with the construction of the Project
to furnish a performance bond in the full amount of any contract exceeding Five Thousand
Dollars ($5,000) in amount, and to carry such property damage and builders' risk insurance, if
any, as may be recommended by the Comptroller of the Institution. The Board further covenants
that in the event of any default under any such contract and the failure of the surety to
complete the contract, the proceeds of such performance bond will forthwith, upon receipt of
such proceeds, be deposited to the credit of the Construction Fund and will be applied toward
the completion of the contract in connection with which such performance bond shall have been
furnished.
Section 603. The Board covenants that it will provide and maintain competent and adequate
architectural or engineering services covering the supervision and inspection of the development
and construction of the Project, and will obtain all approvals and permits required by law
as a condition precedent to the construction, development and operation of the Project.
Section 604. The Board covenants that it will establish and enforce reasonable rules and
regulations governing the use of the Project and the operation thereof, that all compensation,
salaries, fees and wages paid by it in connection with the maintenance, repair and operation of
the Project will be reasonable, that it will maintain and operate the Project in an efficient
and economical manner, that it will at all times maintain the same in good repair and in sound
operating condition and will make all necessary repairs, renewals and replacements, that it will
observe and perform all of the terms and conditions contained in the Act, and that it will comply
with all valid acts, rules, regulations, orders and directions of any legislative, executive,
administrative or judicial body applicable to the Project.
Section 605. The Board covenants that it will not create or suffer to be created any
lien or charge upon the Project or any part thereof or upon the revenues derived from the
Library Building Fee ranking equally with or prior to the lien and charge of the bonds secured
hereby upon such revenues, and that, from such revenues or other available funds, it will pay
or cause to be discharged, or will make adequate provision to satisfy and discharge, within
sixty (60) days after the same shall accrue, all lawful claims and demands for labor, material,
supplies or other objects which, if unpaid, might by law become a lien upon the Project or any
part thereof or the revenues derived from the Library Building Fee, provided, however, that
nothing in this Section contained shall require the Board to pay or cause to be discharged, or
make provision for, any such lien or charge so long as the validity thereof shall be contested
in good faith and by appropriate legal proceedings.
Section 606. The Board covenants that if at any time the moneys held for the credit of
the Sinking Fund shall be insufficient for the purpose of paying the interest on and the principal
of the bonds as such interest and principal become due and payable, the Board will deposit
credit of the Sinking Fund, to pay such interest and principal from any moneys available for the use
of the Institution and which are not required by law or by previous binding contract to be devoted
to some other purpose.
Section 607. The Board covenants that from and after the time when the contractors or any of
them engaged in constructing the Project or any part thereof shall cease to be responsible, pursuant
to the provisions of the respective contracts for the construction of the Project or such part, for
loss or damage to the Project or such part occurring from fire or lightening, it will insure and at
all times keep the Project or such part insured with a responsible insurance company or companies,
qualified to assume the risk thereof, against physical loss or damage caused by fire or lightening,
with such exceptions as are ordinarily required by insurers of structures or facilities of similar
type, in an amount not less than eighty per centum (80%) of the replacement value of the Project or
such part, less depreciation, provided, however, that such amount of insurance shall at all times
be sufficient to comply with any legal or contractual requirement which, if breached, would result
in assumption by the Board of a portion of any loss or damage as a co-insurer, and such insurance
may provide for the deduction from each claim for loss or damage (except in case of a total loss)
of not more than two per centum (2%) of the total amount of insurance required by the application
of the co-insurance clause, and provided, further, that if at any time the Board shall be unable
to obtain such insurance to the extent above required, either as to amount of such insurance or
as to the risks covered thereby or the deductible provision thereof, it will not constitute an
event of default under the provisions of this resolution if the Board shall carry such insurance
to the extent reasonably obtainable.
The proceeds of such insurance shall be available for, and shall to the extent necessary
be applied to, the repair, replacement or reconstruction of the damaged or destroyed property.
If such proceeds are more than sufficient for such purpose, the balance remaining shall be
deposited to the credit of the Sinking Fund. If such proceeds, with other available funds, shall
be insufficient for such purpose, such proceeds shall be deposited to the credit of the Sinking
Fund or shall be used to purchase bonds, as the Board by resolution may determine.
Section 608. The Board covenants that it will at all times carry in a responsible insurance
company or companies qualified to assume the risks thereof property damage insurance in such
amount and covering such risks as the Board shall deem to be reasonable and desirable.
Section 609. The Board covenants that no contract or contracts will be entered into or any
action taken by which the rights of the bondholders might be impaired or diminished.
Section 610. The Board covenants that it will keep an accurate record of the total cost
of the Project, of the revenues derived from the Library Building Fee, and of the application
of such revenues. Such records shall be open at all reasonable times to the inspection of all
interested persons.
The Board further covenants that, if so requested in writing by any bondholder within the
month of July after the close of any fiscal year, it will cause the Comptroller of the Institution
to make a report from the books and accounts relating to the Project for the preceding fiscal year.
Within the next two months copies of such report shall be filed with the Secretary to the Board
and the State Treasurer and shall be mailed by the Comptroller to all bondholders who shall have
filed their names and addresses with the Comptroller for such purpose. Each such report shall set
forth in respect of the preceding fiscal year a record of the revenues derived from the Library
Building Fee, the details of all bonds paid, the amount on deposit at the end of such fiscal year
to the credit of each fund created under the provisions of this resolution and the details of any
investment thereof, a schedule of all insurance policies which are then in effect, stating with
respect to each policy the name of the insurer, the amount, number and expiration date, and the
hazards and risks covered thereby, and also the findings of the Comptroller as to whether the
moneys received by the Board under the provisions of this resolution during such fiscal year
have been applied in accordance with the provisions of this resolution and whether the Board is
in default of any of the covenants contained in Section 401 of this resolution.
Section 611. The Board covenants that it will not sell or otherwise dispose of or encumber
the Project or any part thereof and will not create or permit to be created any charge or lien
on the revenues derived from the Library Building Fee ranking equally with or prior to the charge
or lien of the bonds secured hereby on such revenues. The Board may, however, sell or dispose or
permit the sale or disposal by the Institution of any furniture, fixtures, apparatus, tools,
instruments, or other movable property acquired for or in connection with the Project or any
materials used in connection therewith, if the Board shall determine by resolution that such
articles are no longer needed or are no longer useful in connection with the construction of the
Project or the operation and maintenance of the Project. The proceeds of any sale made under the
authority of this Section shall be deposited to the credit of the Sinking Fund.
| Board of Visitors minutes June 24, 1965 | |