 | Board of Visitors minutes June 14, 1958 |  |
FACULTY HOME MORTGAGES
President Darden initiated a discussion of the plan by which the University has been able to
increase its mortgage loans to its professors and administrative officers from 60 per cent to 80
per cent by means of a 20 per cent guarantee by the Alumni Board of Trustees. Mr. Darden pointed
out that the $50,000 limitation on guarantees by the Alumni Board had now been reached, and the
Finance Committee now wishes to have authority from the Board to make loans up to 70 per cent provided
the Alumni Board will make an additional commitment for guarantees of 10 per cent, so that loans at
80 per cent can be continued
After general expressions of approval of the plan and of hope that the Alumni Board of Trustees
would continue to cooperate and to participate in it, the Board adopted the following resolution
WHEREAS, the Finance Committee of this Board has heretofore been authorized and empowered to
make loans to members of the faculty and administrative officers of the University of Virginia,
secured as first liens on residences owned by such faculty and staff, not to exceed, however, 60%
of the appraised value of such residential properties, and,
WHEREAS, the Alumni Board of Trustees of the University of Virginia Endowment Fund has heretofore
adopted the following resolution
"RESOLVED, by the Alumni Board of Trustees that it agrees to guarantee loans on faculty and
administrative officers residences up to 20% of the appraised value of such homes, provided
no single guarantee exceeds $6000.00, it being understood that this 20% to be in addition to
the 60% which the Board of Visitors now lends to staff members, but in no case is the total
Alumni Board of Trustees at any one time shall not exceed $50,000, nor shall this Board be
called upon to provide any funds except in case of default. It is further resolved that
in the repayment of these loans, all payments shall first be applied to liquidate that part
of the loan underwritten by the Board.", and
WHEREAS, subsequent to the adoption of said resolution by said Alumni Board of Trustees, the
Finance Committee of this Board was authorized and empowered to make such loans up to 80% of the
appraised value of the security offered, such loans up to 60% of the appraised value of the
security being made at the risk of The Rector and Visitors of the University of Virginia and the
balance up to 80% of such appraised value, although made from funds of said The Rector and
Visitors, being guaranteed in accordance with said resolution of said Alumni Board of Trustees,
and,
WHEREAS, acting under the authority heretofore granted it by this Board, and pursuant to
the resolution of the Alumni Board of Trustees herein set forth, the Finance Committee of this
Board has made loans and commitments for loans up to but not exceeding 80% of the appraised
values of the properties on which said loans are secured as first liens, and,
WHEREAS, the total commitment of the Alumni Board of Trustees has now reached $50,000.00,
so that the maximum amount of any loan has had to be reduced to 60% of the appraised value of the
security, and,
WHEREAS, the Finance Committee has received and is receiving numerous applications for loans
up to 80% of the appraised value of the securities offered, and
WHEREAS, in the opinion of this Board loans to faculty members and administrative officers
of the University of Virginia up to 80% of the appraised value of the security offered should
not be curtailed but should be continued
NOW THEREFORE, BE IT RESOLVED, by the Board of Visitors of the University of Virginia
that the authorization heretofore granted its Finance Committee to make loans to faculty
and administrative officers of the University of Virginia, to be secured as first liens
on residences owned by such faculty and staff, be increased from 60% of the appraised
value of the security offered to 70% of such appraised value without guarantee, provided,
however, such authorization shall not be effective unless and until the Alumni Board of
Trustees of the University of Virginia Endowment Fund adopts a resolution, satisfactory
in form and substance to the Finance Committee of this Board, guaranteeing, up to a
maximum of $50,000, over and above its previous total commitment, an additional 10% of the
appraised value of the security offered, to the end that such loans may continue to be
made on the basis of 80% of the appraised value of the security offered
RESOLVED FURTHER, that all such loans shall be made upon such terms and conditions and
subject to such regulations as the Finance Committee of this Board may, from time to
time, see fit to impose and promulgate.
| Board of Visitors minutes June 14, 1958 | |