University of Virginia Library

APPROVAL OF PARTICIPATION OF THE HEALTH SCIENCE CENTER
GARAGE AND THE ADDITION TO THE NATIONAL RADIO ASTRONOMY
OBSERVATORY BUILDING IN THE UNIVERSITY’S COMMERCIAL
PAPER PROGRAM

WHEREAS, the University intends to undertake the Health Science Center Garage and the National Radio Astronomy Observatory Addition (the “Projects”) with bonds as a financing source; and

WHEREAS, the United States Department of the Treasury has promulgated final regulations in Section l.l50-2 of the Treasury Regulations (the "Regulations") governing when the allocation of bond proceeds to reimburse expenditures previously made by a borrower shall be treated as an expenditure of the bond proceeds; and

WHEREAS, the University officially declared its intentions to issue debt in accordance with the Regulations in October 2001, and March 1999, respectively; and

WHEREAS, the Commonwealth of Virginia has granted authority for debt financing for each of these in the following legislation:

• a. Health Science Center Garage (207-16559): Initial Authorization 2001, Chapter 1073, Item Number 4-4.01m; Supplemental Authorization 2002-2004, Chapter 899, Item C-40


• b. National Radio Astronomy Observatory (207-16280): Initial Authorization 1999, Chapter 935; Supplemental Authorization 1998-2000, Chapter 1072; and

WHEREAS, the University may be required to provide short-term financing to the Projects prior to issuing long-term debt in order to implement an efficient and timely construction schedule; and

WHEREAS, if the University arranges short-term financing for a particular project, and if the project is not ultimately completed, or if the project utilizes funding sources other than bonds, then the appropriate school or unit remains responsible for refunding the short-term obligation;

RESOLVED that, pursuant to the Regulations and prior Board actions, the University of Virginia may utilize its existing commercial paper program to provide short-term financing to these two projects under the following conditions:

• 1. This resolution confirms the prior declarations of official intent under Section l.l50-2 of the Regulations, in October 2001, and March 1999;


• 2. The Commonwealth of Virginia has authorized these projects with:
  
  
  • a. Health Science Center Garage (207-6559): Initial Authorization 2001, Chapter 1073, Item Number 4-4.01m; Supplemental Authorization 2002-2004, Chapter 899, Item C-40
  
  
  • b. National Radio Astronomy Observatory (207-16280): Initial Authorization 1999, Chapter 935; Supplemental Authorization 1998-2000, Chapter 1072; and


• 3. The applicant projects must submit a comprehensive and detailed financial plan;


• 4. The Executive Vice President and Chief Operating Officer, the Vice President for Finance, the Vice President for Management and Budget and the appropriate area Vice President will approve the financial plan;


• 5. Short-term financing shall not exceed twenty-four months in maturity for each of these projects;


• 6. The school or unit remains responsible for any debt obligation incurred regardless of the status of the capital project or whether or not a bond issuance actually occurs.