Board of Visitors minutes :: April 8, 1961 :: University of Virginia Library

Section 701. In case the time for the payment of any coupon shall be extended, whether or not
such extension be by or with the consent of the Board, such coupon shall not be entitled in case
of default hereunder to the benefit or security of this resolution except subject to the prior payment
in full of the principal of all bonds then outstanding and of all coupons the time for the payment
of which shall not have been extended.

Section 702. Each of the following events is hereby declared an "event of default", that is
to say. If

(a) payment of the principal of any of the bonds shall not be made when the same shall
become due and payable, or

(b) payment of any instalment of interest shall not be made within thirty (30) days after
the same shall become due and payable, or

(d) the Project or any part thereof shall be destroyed or damaged and shall not be promptly
repaired, replaced, or reconstructed (whether such failure promptly to repair, replace or
reconstruct the same be due to the impracticability of such repair, replacement, or reconstruction
or to lack of funds therefor or for any other reason), or

(e) final judgment for the payment of money shall be rendered against the Board as a result
of its ownership or operation of the Project and any such judgment shall not be discharged
within sixty (60) days from the entry thereof or an appeal shall not be taken therefrom or
from the order, decree, or process upon which or pursuant to which such judgment shall have
been granted or entered, in such manner as to stay the execution of or levy under such judgment,
order, decree, or process or the enforcement thereof, or

(f) an order or decree shall be entered, with the consent or acquiescence of the Board,
appointing a receiver or receivers of the Project or any part thereof or of the revenues thereof,
or if such order or decree, having been entered without the acquiescence or consent of the Board,
shall not be vacated or discharged or stayed on appeal within sixty (60) days after entry thereof, or

(g) the Board shall default in the due and punctual performance of any other of the covenants,
conditions, agreements and provisions contained in the bonds or in this resolution on the part of
the Board to be performed, and such default shall continue for thirty (30) days after written
notice specifying such default and requiring same to be remedied shall have been given to the
Board by any bondholder.

Section 703. Upon the happening and continuance of any event of default specified in Section
702 of this Article, then and in every such case any bondholder may proceed, subject to the provisions
of Section 705 of this Article, to protect and enforce the rights of the bondholders by a suit, action
or special proceeding in equity or at law, either for the specific performance of any covenant or agreement
contained herein or in aid or execution of any power herein granted or for the enforcement of any
proper legal or equitable remedy as such bondholder shall deem most effectual to protect and enforce
such rights.

Section 704. In case any proceeding taken by any bondholder on account of any default shall have
been discontinued or abandoned for any reason, then and in every such case the Board and the bondholders
shall be restored to their former positions and rights, respectively, and all rights and remedies of the
bondholders shall continue as though no such proceeding had been taken.

Section 705. No holder of any of the bonds shall have any right in any manner whatever to affect,
disturb, or prejudice the security of this resolution or to enforce any right hereunder, except in the
manner herein provided, and all proceedings at law or in equity shall be instituted, had and maintained
for the equal benefit of all bondholders.

Section 706. No remedy herein conferred on the bondholders is intended to be exclusive of any other
remedy or remedies, and each and every remedy conferred shall be cumulative and shall be in addition to
every other remedy given hereunder or now or hereafter existing at law or in equity or by statute.

Section 707. No delay or omission of any bondholder to exercise any right or power accruing upon
any default occurring and continuing as aforesaid shall impair any such right or power or shall be construed
to be a waiver of any such default or an acquiescence therein, and every power and remedy given
by this Article to the bondholders may be exercised from time to time and as often as may be deemed
expedient.