 | Board of Visitors minutes June 11, 2004 |  |
APPROVAL TO ISSUE COMFORT LETTERS FOR THE UNIVERSITY
OF
VIRGINIA FOUNDATION
WHEREAS, the University of Virginia requested that the University of Virginia Foundation repay $18 million in noninterest bearing debt, and the Foundation has repaid the University the full amount of the debt; and
WHEREAS, the Foundation has borrowed on its line of credit from external lenders in order to repay this amount to the University, and now must find a more permanent solution to placing the debt before the expiration of this line of credit extension on June 30, 2004; and
WHEREAS, banks have offered favorable borrowing options with a comfort letter from the University that does not establish any University exposure to the bank, or guarantee the borrower’s obligations to the bank or the borrower’s liquidity; and
WHEREAS, the resolution approved by the Board of Visitors at the January 2001 meeting pertaining to comfort letters does not allow the University to sign a comfort letter for a credit facility that extends over more than two years;
RESOLVED that the January 2001 resolution entitled “University of Virginia Real Estate Foundation Properties” is rescinded; and
RESOLVED FURTHER that the Executive Vice President and Chief Operating Officer is authorized to enter into comfort letters and other related documents reviewed by the General Counsel for compliance with state laws restricting assumption of debt and lending of state credit, provided such comfort letters and related documents are limited to a duration of not more than five years with respect to private financing secured by the University of Virginia Foundation and provided further the terms thereof do not bind nor legally obligate the University to
| Board of Visitors minutes June 11, 2004 | |