Board of Visitors minutes :: June 1, 1962 :: University of Virginia Library

Section 401. The Board covenants that it will at all times fix, charge and collect fees, rents
and charges for or in connection with the use, occupation or services of the Project, and that from
time to time and as often as it shall appear to be necessary it will revise such fees, rents and
charges in order that such fees, rents and charges will at all times be sufficient to provide for
the payment of the Current Expenses and to provide for making deposits to the credit of the Sinking
Fund in each fiscal year under the provisions of Section 404 of this Article of an amount equal to one
hundred ten per centum (110%) of the interest which will become due and payable on December 15 of
such fiscal year and of the principal and interest which will become due and payable on June 15 of
such fiscal year

Section 402. The Board covenants that, notwithstanding any other facilities which may now or
hereafter be available for the housing of students at the Institution, it will require a sufficient
number of students at the Institution to use and occupy the Project and will adopt and enforce such
parietal and other rules and regulations as will assure that the Project will be fully utilized at
all times during the regular school session at the Institution and will be utilized to the fullest
extent practicable at all times during any summer school session at the Institution. The Board
further covenants that there shall be no free student occupancy of the Project, with the exception
of a reasonable number of resident proctors and student advisors

Section 403. A special fund is hereby created in the State Treasury and designated "The Rector
and Visitors of the University of Virginia Dormitory Revenue Bonds (Series 1962) Revenue Fund"
(hereinafter sometimes called the "Revenue Fund"). The Board covenants that all fees, rents,
charges and other revenues derived from the operation or ownership of the Project will be collected
by the Board and deposited to the credit of the Revenue Fund. Payment of Current Expenses shall be
made from the Revenue Fund as provided by law

Section 404. A special fund is hereby created in the State Treasury and designated "The Rector
and Visitors of the University of Virginia Dormitory Revenue Bonds (Series 1962) Interest and
Sinking Fund" (herein sometimes called the "Sinking Fund"). The Board covenants that, on or before
the 5th day of December in each fiscal year, it will provide for the transfer from moneys held for
the credit of the Revenue Fund to the credit of the Sinking Fund of an amount equal to one hundred
ten per centum (110%) of the interest which will become due and payable on December 15 of such
fiscal year and that, on or before the 5th day of June in each fiscal year, it will provide for the
transfer from moneys held for the credit of the Revenue Fund to the credit of the Sinking Fund of
an amount equal to one hundred ten per centum (110%) of the principal and interest which will
become due and payable on June 15 of such fiscal year, provided, however, that if the amount so
transferred to the credit of the Sinking Fund in any December or June shall be less than the
required amount, the requirement therefor shall nevertheless be cumulative and the amount of any

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deficiency in any December or June shall be added to the amount otherwise required to be transferred
in each December or June thereafter until such time as such deficiency shall have been made up, and
provided, further, that when the moneys held for the credit of the Sinking Fund shall equal the
principal of the outstanding bonds and the interest which will become due and payable thereon to
their respective maturities, no further transfer need be made to the credit of the Sinking Fund. The
balance in the Revenue Fund, if any, after making any transfer under the provisions of this Section
shall be used for the purposes of the Institution as provided by law

Section 405. Subject to the provisions of this resolution, moneys held for the credit of the
Sinking Fund shall be held in trust and applied (a) to the payment of interest upon the bonds as
such interest becomes due and payable, or (b) to the payment of the principal of the bonds at their
respective maturities, and such moneys are hereby pledged to and charged with the payments mentioned
in this Section

Section 406. The moneys in the Revenue Fund and the Sinking Fund shall be held in trust and
applied as hereinabove provided and, pending such application, shall be subject to a lien and charge
in favor of the holders of the bonds issued and outstanding under this resolution and for the further
security of such holders until paid out or transferred as herein provided

Section 407. All bonds and interest coupons shall be cancelled upon their payment. Such bonds
and coupons may be cremated by the State Treasurer, who shall execute a certificate of cremation in
duplicate describing the bonds and coupons so cremated except that the numbers of the bonds to which
such coupons appertain may be omitted unless otherwise directed by the Board, and one executed
certificate shall be filed with the Comptroller of the Institution and the other executed certificate
shall be retained by the State Treasurer.