University of Virginia Library

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2607

APPROVAL OF DORMITORY SYSTEM REVENUE BONDS ISSUE

The following resolution was adopted:

• RESOLVED that Dormitory System Revenue Bonds as described below, be and they are hereby approved.
• The Executive Committee is hereby authorized to amend this resolution in such manner as it deems necessary prior to the delivery of the bonds provided however that the Executive Committee shall not amend any provision hereof requiring the authorization of the full Board under the Act including the aggregate authorized amount of the bonds and the maximum interest rate.
• [3] Amount: $11,500,000
• [3]Maturity: 20 Years
• [3]Maximum interest rate: 15%
• [3]Principal repayments: Annually for 20 years based on a 9% amortization schedule
• Security: Revenues of the consolidated housing system
• Underwriters: Goldman Sachs
• Direct Pay Letter of Credit: Sumitomo Bank
• Line of Credit: United Virginia Bank
• Bond Counsel: Mays, Valentine, Davenport & Moore
• Trustee: Commonwealth of Virginia
• Terms: -7 day put by investors
• -30 day call by University
• -provision for conversion to fixed rate bond for remaining term of bond
• -interest bearing reserve fund to be established with the State Treasurer's Office funded from the difference between a 9% interest rate and the actual interest and fee expenses
• Price: Par; interest rate set weekly by remarketing agent; typically set off the J.J. Kinney Index or tax exempt commercial paper rates, currently 5.875%
• Fees: Sumitomo - 1/4 of 1% annually United Virginia Bank - 1/4 of 1% annually Both facilities run for ten years with the right to renew every five years for an additional ten years