University of Virginia Library

ARTICLE III.

Custody and Application of Proceeds of Bonds.

Section 301. A special fund is hereby created in the State Treasury and designated "Mary
Washington College of the University of Virginia Dormitory Revenue Bonds (Series 1965) Construction
Fund" (herein sometimes called the "Construction Fund"), to the credit of which there shall be
deposited the proceeds of the bonds required to be so deposited by Section 203 of this resolution
The moneys in the Construction Fund shall be held in trust and applied to the payment of the cost
of the Project 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 future security
of such holders until paid out or transferred as herein provided.

Section 302. Payment of the cost of the Project shall be made from the Construction Fund and
from the appropriation and reappropriation referred to in the preambles of this resolution, all as
provided by law.

Section 303. For the purposes of this resolution the cost of the Project shall include,
without intending thereby to limit or restrict or to extend any proper definition of such cost
under any applicable laws of this resolution, the following:

• (a) obligations incurred for labor and materials and to contractors,
  builders and materialmen in connection with the Project,

• (b) interest accruing upon the bonds prior to and during construction
  of the Project,

• (c) taxes or other municipal or governmental charges lawfully levied or
  assessed during construction upon the Project or any property acquired
  therefor, and premiums on insurance, if any, in connection with the
  Project during construction,

• (d) fees and expenses of engineers and architects for surveys and
  estimates and other preliminary investigations, preparation of plans,
  drawings and specifications and supervising construction, as well as
  for the performance of all other duties of engineers and architects
  in relation to construction of the Project or the issuance of bonds
  therefor,

• (e) expenses of administration properly chargeable to the Project,
  legal expenses and fees, financing charges, cost of audits and of
  preparing and issuing the bonds, and all other items of expense not
  elsewhere in this Section specified incident to the construction of the
  Project and the placing of the Project in operation, and

• (f) any obligation or expenses heretofore or hereafter incurred by the
  Board or by any other agency of the State of Virginia for any of the
  foregoing purposes.

Section 304. The Board covenants that no part of the Project will be constructed on lands
other than lands owned by the Board or the State of Virginia in fee simple.

Section 305. When the Project shall have been completed and placed in operation, as
evidenced by a certificate signed by the President or the Bursar of the Institution and filed
with the Secretary of the Board, any balance in the Construction Fund not deemed by the Board
to be necessary to be reserved and so reserved by it for the payment of any remaining part of
the cost of the Project shall be transferred to the credit of the Sinking Fund.