University of Virginia Library

ARTICLE V. REDEMPTION OF BONDS

SECTION 501. Redemption of Bonds.

(a) The Bonds issued under the provisions of this Series Resolution shall not be subject to prior redemption except as provided in this Article V. If less than all of the Bonds shall be called for redemption, the particular Bonds to be redeemed shall be selected by the Paying Agent first, from Bank Bonds; and, second, from all other Bonds in such manner as the University in its discretion may determine.

(b) The Bonds shall be subject to redemption prior to and on the Fixed Rate Date on any Interest Payment Date on or after December 1, 1987, in the case of the 2010 Bonds, December 1, 1988, in the case of the 2014 Bonds and December 1, 1989, in the case of the 2018 Bonds, at the written direction of an Authorized Representative of the University, as a whole or in part, at the principal amount thereof plus accrued interest.

(c) Following conversion to the Fixed Interest Rate, the Bonds shall be subject to optional redemption by the University, on or after December 1 of the Redemption Year in whole at any time or in part on any Interest Payment Date, at the redemption prices set forth below:

    

Period (both dates inclusive)	Redemption Price
December 1 of the Redemption Year, through November 30 of the first year following the Redemption Year	102%
December 1 of the first year following the Redemption Year, through November 30 of the second year following the Redemption Year	101
December 1 of the second year following the Redemption Year, and thereafter	100

(d) The 2010 Bonds shall be subject to mandatory redemption by the University at a redemption price of 100% of the principal amount thereof plus accrued interest on December 1 in each of the years and in the amounts as follows:

          

Year	Amount
2002	$3,270,000
2003	$3,515,000
2004	$3,780,000
2005	$4,065,000
2006	$4,370,000
2007	$4,695,000
2008	$5,045,000
2009	$5,425,000
2010	$5,835,000

The 2014 Bonds shall be subject to mandatory redemption by the University at a redemption price of 100% of the principal amount thereof plus accrued interest on December 1 in each of the years and in the amounts as follows:

     

Year	Amount
2011	$6,680,000
2012	$7,200,000
2013	$7,760,000
2014	$8,360,000

The 2018 Bonds shall be subject to mandatory redemption by the University at a redemption price of 100% of the principal amount thereof plus accrued interest on December 1 in each of the years and in the amounts as follows:

     

Year	Amount
2015	$8,875,000
2016	$9,585,000
2017	$10,355,000
2018	$11,185,000

All Bonds of a stated maturity redeemed at the option of the University pursuant to Section 501(b) or (c) hereof shall be credited at par against the Sinking Fund Requirements for the Bonds of such maturity.

SECTION 502. Notice of Redemption.

(a) Whenever (i) Bonds are to be redeemed under any provision of the Resolution or (ii) in the case of optional redemption, the University shall have deposited with the State Treasurer for deposit in the Redemption Account, not less than 35 days prior to the redemption date, money or Government Obligations sufficient to pay the redemption price of the Bonds to be optionally redeemed on the next redemption date, the Paying Agent shall, not less than 30 days prior to the redemption date, mail notice of redemption to all Holders (as of the Record Date immediately preceding the date of such notice) of all Bonds to be redeemed at their registered addresses. The Paying Agent shall also mail a copy of any such notice of redemption

to the Bank and to Moody's. Any such notice of redemption shall be given in the name of the University, shall identify the Bonds to be redeemed, shall specify the redemption date and the redemption price, and shall state that on the redemption date the Bonds called for redemption will be payable at the principal corporate trust office of the Paying Agent and that from that date interest will cease to accrue. The Paying Agent may use "CUSIP" numbers in notices of redemption as a convenience to Holders, provided that any such notice shall state that no representation is made as to the correctness of such numbers either as printed on the Bonds or as contained in any notice of redemption and that reliance may be placed only on the identification numbers containing the prefix established under the Resolution.

Prior to and on the Fixed Rate Date, the payment of any redemption price shall be effected only with money derived from a drawing by the Paying Agent under the Credit Facility. The Paying Agent shall, no later than 3:00 P.M., New York time, on the Business Day preceding any Redemption Date, submit the necessary draw certificates to ensure that, on such Redemption Date, the Paying Agent shall draw on the Credit Facility in an amount sufficient to pay the redemption price of any Bonds to be redeemed. Any money required to be deposited in the Redemption Account pursuant to subsection (a) above shall be applied as set forth in Section 604 hereof.