 | 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 ownership or operation of the Project and from the student
building fee, which revenues 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 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 public liability, property damage and builders' risk insurance, if any,
as may be recommended by the Bursar of the Institution. The Board further covenants that in the
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 from the revenues derived from the Project and from the student building fee,
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 therefrom or from the student 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, materials, supplies or other objects which, if unpaid, might
by law become a lien upon the Project or any part thereof or the revenues derived therefrom or from
the student 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 becomes due and payable, the Board will deposit to the
credit of the Sinking Fund an amount sufficient, together with the amount then held for the 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. Notwithstanding any other provision of this resolution, nothing herein shall be
construed to prevent the Board from paying all or any part of the Current Expenses from any funds
available to the Board for such purpose.
Section 608. 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 Projector 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 609. 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 610. 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 611. The Board covenants that it will keep an accurate record of the total cost of
the Project, of the fees and other revenues collected, and of the application thereof. 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 Bursar 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 of the Board
and the State Treasurer and shall be mailed by the Bursar to all bondholders who shall have filed
their names and addresses with the Bursar for such purpose. Each such report shall set forth in
respect of the preceding fiscal year an income and expense account for the Project, a record of
the revenues derived from the student 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
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 612. 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 therefrom or from the student 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 | |