University of Virginia Library

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2101

BOND AUTHORIZATION - FOOD SERVICE CENTER AND MEDICAL CENTER
PARKING GARAGE

The following resolution was adopted:

• WHEREAS, pursuant to the provisions of Chapter 481 of the Acts of the General Assembly of Virginia of 1981, the Treasury Board was authorized, by and with the consent of the Governor, to sell and issue bonds of the Commonwealth of Virginia in an aggregate principal amount not exceeding $23,475,000 for the purpose of providing funds, with any other available funds, for paying the cost of acquiring, constructing, and equipping revenue producing capital projects, including the enlarging and improving thereof, at institutions of higher learning in the Commonwealth, all in accordance with the provisions of Section 9 (c) of Article X of the Constitution of Virginia; and
• WHEREAS, said revenue producing capital projects include medical center parking facilities and food service building (the "Projects") for the University of Virginia at a cost not to exceed $1,925,000 and $850,000, respectively; and
• WHEREAS, the Treasury Board proposes to sell a portion of said bonds equal to $12,315,000, designated "Higher Educational Institutions Bonds, 1982 Series A" (the "Bonds"), which includes an amount equal to $2,700,000 for the purpose of financing the cost of the Projects:
• NOW THEREFORE BE IT RESOLVED BY THE RECTOR AND VISITORS OF THE UNIVERSITY OF VIRGINIA:
• Section 1. The Rector and Visitors of the University of Virginia (the "University") (a) covenants to fix, revise, charge, and collect rates, fees and charges (including rentals for space and food service revenues) for or in connection with the use, occupation, or services of the Projects, and (b) pledges said rates, fees and charges to the payment of the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Projects; provided that the current expenses of operating the Projects (the "Current Expenses") shall be a first charge on such rates, fees and charges. The University further covenants that such rates, fees and charges will be fixed, revised, charged and collected so that the net revenues from the Projects, after payment of Current Expenses, will at all times be sufficient to pay the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Projects. Any such revenues in excess of the amounts required for the payment of Current Expenses and the payment of principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Projects may be used by the University for any other proper purpose.

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• Section 2. It is hereby found, determined, and declared that, based upon responsible engineering and economic estimates and advice of appropriate officials of the University, the anticipated net revenues from the Projects pledged above will be sufficient to pay Current Expenses and the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Projects, as the same become due, so long as the interest rate on the Bonds does not exceed 12 percent per annum.
• Section 3. The University covenants that so long as the Bonds are outstanding, the University will pay to the Treasurer of Virginia not less than 30 days before June 1 and December 1 of each year, beginning June 1, 1982, the amount certified by the Treasurer of Virginia to be due and payable on such June 1 or December 1 as principal, premium, if any, and interest on that portion of the Bonds issued on behalf of the University to finance the Projects.
• Section 4. The University covenants that it will pay from time to time its proportionate share of all expenses incurred in connection with the sale and issuance of the Bonds and all expenses thereafter incurred in connection with the payment of the principal of, premium, if any, and interest on the Bonds all as certified by the Treasurer of Virginia to the University.