 | Board of Visitors minutes October 23, 1936 |  |
RESOLUTION NO. 2
AUTHORIZING THE ISSUANCE OF UNIVERSITY OF VIRGINIA LIBRARY BONDS IN THE
AGGREGATE PRINCIPAL AMOUNT OF $523,000.00, DETERMINING THE FORM THEREOF, AND THE TERMS
AND CONDITIONS UNDER WHICH SAID BONDS ARE TO BE ISSUED AND SECURED
Section 1. Bonds of The Rector and Visitors of the University of Virginia
(hereinafter referred to as the "Institution"), each to be known as "University of Virginia
Library Bond", are hereby authorized to be issued in the aggregate principal amount
of $523,000.00, pursuant to provisions of the Constitution of Virginia and an Act of the
General Assembly of Virginia, entitled. "An Act to authorize and empower educational institutions
of the State to erect buildings and to make other improvements to their plants
and for such purpose to borrow or accept money under the provisions of an Act of the Congress
of the United States, known as the National Industrial Recovery Act, approved June
16th, 1933, and any Acts amendatory thereof and any acts supplemental thereto and revisions
thereof, and any further act of the Congress of the United States, and to issue
bonds and certificates of indebtedness and other obligations, to provide funds for the
payment of the principal of and the interest on the same and to secure such payment, and
to authorize and empower said institutions to lease with or without the privilege of
purchase buildings and projects constructed pursuant to the provisions of said National
Industrial Recovery Act and any acts amendatory thereof and any acts supplemental thereto
and revisions thereof, and any further act of the Congress of the United States, and to
acquire and convey such real estate or other property as shall be required for such
buildings and projects", approved September 12th, 1933, constituting Chapter 49 of the
Acts of the General Assembly passed at the Extra Session of 1933, as amended by an Act of
the General Assembly of Virginia of 1936, for the purpose of financing the construction and
equipment of a new Library Building to house the general library of the University of Virginia,
as provided in Section 3 hereof.
Section 2. Said bonds shall be dated January 1st, 1938, shall bear interest at
the rate of 4% per annum, payable on the first day of July, 1938, and semi-annually thereafter
on the first days of January and July in each year until maturity, shall be in denominations
of $1000.00 each, numbered from o to 523, inclusive, in order of maturity,
shall be coupon in form, registerable at the option of the holder as to principal only at
the office of the Treasurer of the Commonwealth of Virginia, in Richmond, Virginia, shall
be payable only out of the funds hereinafter in this Resolution provided, shall be payable
at the office of the Treasurer of the Commonwealth of Virginia, in Richmond, irginia in
any coin or currency which is, on the respective dates of payment of interest on and
principal of such bonds, legal tender for the payment of public or private debts, and
shall mature in the principal amounts of $6000.00 on January 1st, 1943; $8000.00 on
July 1st, 1943, $8000.00 on the first days of January and July in each of the years 1944
to 1948, both inclusive; $8000.00 on January 1st, 1949, $9000.00 on July 1st, 1949,
$9000.00 on the first days of January and July in each of the years 1950 to 1955, both
inclusive, $10,000.00 on the first days of January and July in each of the years 1956
to 1967, both inclusive, and $10,000.00 on January 1st, 1968. Said bonds shall be substantially
in the following form:
UNITED STATES OF AMERICA.
NUMBER
_____
$1000.00
NUMBER
_____
$1000.00
COMMONWEALTH OF VIRGINIA
THE RECTOR AND VISITORS OF THE
UNIVERSITY OF VIRGINIA
UNIVERSITY OF VIRGINIA LIBRARY BOND.
THE RECTOR AND VISITORS OF THE UNIVERSITY OF VIRGINIA, a state institution in
the Commonwealth of Virginia, for value received, promises to pay to the Bearer of this
bond, or, if it be registered, to the registered holder, solely from the Bond and
Interest Sinking Fund Account hereinafter mentioned (hereinafter called the "sinking
Fund"), and not otherwise, the sum of
—ONE THOUSAND DOLLARS—
($1000.00) on the first day of __________, 19__, and solely from said Sinking Fund and
not otherwise, to pay interest thereon at the rate of four per centum(4%) per annum, on
the first day of July, 1938, and semi-annually thereafter on the first days of January and
July in each year from the date of this bond until it matures, upon presentation and
surrender as they severally mature of the coupons therefor annexed hereto. Subject to
the terms and conditions hereinabove provided, both principal of and interest on this
bond will be paid in any coin or currency which, on the respective dates of payment of
the principal of and interest on this bond, is legal tender for the payment of public or
private debts, at the office of the Treasurer of the Commonwealth of Virginia, in the
City of Richmond, Virginia.
This bond may be registered at the option of the holder, as to principal only,
on the book kept for that purpose in the office of the Treasurer of the Commonwealth of
Virginia, in Richmond, Virginia, in accordance with the provisions endorsed on the back
hereof.
This bond is one of an issue, the authorized principal amount of which is Five
Hundred and Twenty-three Thousand Dollars (523,000.00), the bonds of which are of like
tenor, except as to numbers and maturity, and is issued pursuant to the Constitution of
the Commonwealth of Virginia, and an Act of the General Assembly of the Commonwealth of
Virginia, entitled: "An Act to authorize and empower educational institutions of the
State to erect buildings and to make other improvements to their plants and for such
purpose to borrow or accept money under the provisions of an act of the Congress of the
United States, known as the National Industrial Recovery Act, approved June 16th, 1933,
and any acts amendatory thereof and any acts supplemental thereto and revisions thereof,
and any further act of the Congress of the United States, and to issue bonds and certificates
of indebtedness and other obligations, to provide funds for the payment of the
principal of and the interest on the same and to secure such payment, and to authorize and
empower said institutions to lease with or without the privilege of purchase buildings
and projects constructed pursuant to the provisions of said National Industrial Recovery
Act and any acts amendatory thereof and any acts supplemental thereto and revisions thereof,
and any further act of the Congress of the United States, and to acquire and convey such
real estate or other property as shall be required for such buildings and projects",
approved September 12th, 1933, constituting Chapter 49 of the Acts of the General Assembly
of the Commonwealth of Virginia, Extra Session of 1933, as amended by an Act of the General
Assembly, approved March 6th, 1936, constitution Chapter 123 of the Acts of the General
Assembly of the Commonwealth of Virginia of 1936, and by virtue of a Resolution of the
Board of Visitors of said Institution entitled. - "Resolution authorizing the issuance of
University of Virginia Library Bonds in the aggragate principal amount of $523,000.00, and
determining the form thereof and the terms and conditions under which said bonds are to be
issued and secured", duly and finally adopted on October 23rd, 1936, and approved by the
Governor of the Commonwealth of Virginia on October , 1936.
The issue of bonds of which this bond is one is authorized for the purpose of
financing the construction and equipment of a new library building to house the general
library of the institution (hereinafter called the "Project"). It is hereby convenanted
and agreed that the institution, upon the completion of said project and acceptance thereof
will charge and collect for or in connection with the use, facilities or services of
the project and replacements thereof, or services rendered therein, such fees and charges
as the Board of Visitors of the institution shall deem proper so that the project shall
always have sufficient receipts and revenues determined as provided by sub-section(e) of
Section 6 of said Act to provide for the payment of all expenses of operation and maintenance
of the project (including insurance) but not including salaries of the Executive
incurred in connection with the project. And that a part of any such fees and
charges so collected, sufficient to pay the principal of and interest on the bonds of said
issue as such principal and interest respectively become due, will annually be set aside
in the said Bond and Interest Sinking Fund Account in the manner and to the extent provided
in said resolution. Said Sinking Fund is hereby irrevocable pledged to the payment
of the principal of and interest on the bonds of said issue as they severally become
due, and the institution shall not be liable to make such payment out of any other fund
or moneys whatsoever.
In the event of default in Section Seven of said Act, the holders of twenty-five
per centum (25%) in aggregate principal amount of the bonds then outstanding of the
issue of which this bond is one, may appoint a Trustee and the principal of all the bonds
may be declared due and payable before the maturity thereof and a Receiver may be appointed
on the conditions, in the manner, at the time and with the effect provided in Section
Seven of said Act. Said bonds shall not be in any way a debt of the Commonwealth of Virginia,
and shall not create or constitute any indebtedness or obligation of the Commonwealth,
either legal, moral or otherwise. Neither the Governor of the Commonwealth of
Virginia, nor the members of the Board of Visitors of the Institution, nor any person
executing said bonds shall be liable personally of the bonds, or be subject to any personal
liability or accountability by reason of the issuance thereof.
It is hereby certified and recited that all conditions, acts and things required
by the Constitution and Statutes of the Commonwealth of Virginia to exist, to have
happened, and to have been performed precedent to and in the issuance of this bond exist,
have happened and have been performed, and this bond does not constitute an indebtedness
within the constitutional or general statutory limitations of the Commonwealth, or any public body.
IN WITNESS WHEREOF, The Rector and Visitors of the University of Virginia has
caused this bond to be signed in its name by its President, and its corporate seal to be
hereunto affixed and attested by the Secretary of its Board of Visitors, and the interest
coupons hereto attached to be authenticated by the facsimile signature of its Bursar,
and this bond to be dated the first day of January, 1938.
THE RECTOR AND VISITORS OF THE UNIVERSITY
OF VIRGINIA
By, ____________________
President.
Attest:
____________________
Secretary, Board of Visitors
FORM OF COUPON
Subject to the terms and conditions expressed in the bond hereinafter mentioned,
THE RECTOR AND VISITORS OF THE UNIVERSITY OF VIRGINIA will, upon surrender hereof, pay to
Bearer on the first day of _____, 19__, the sum of Twenty Dollars ($20.00), in any coin
or currency which on said date is legal tender for payment of public or private debts, at
the office of the Treasurer of the Commonwealth of Virginia, in the City of Richmond,
Virginia, being six (6) months' interest then due on its University of Virginia Library
Bond, dated January 1, 1938, and bearing NO._____
_______________
Bursar.
CERTIFICATE OF REGISTRATION
I hereby certify that upon the written request of the holder, the within bond
was this day registered in the name of the first registered holder indicated below, on
the book kept in the office of the Treasurer of the Commonwealth of Virginia, in Richmond,
Virginia, and is transferable only upon siad books upon presentation to the said Treasurer
of Virginia, with written assignment duly acknowledged or proved, at which time the name
of the assignee shall be entered thereon and in siad book by said Treasurer, and in payable
to the registered holder, assignee, successor of legal representative, at the time
and place stated in the bond. This bond may be discharged from registration by being in
like manner transferred to bearer, after which transferability by delivery shall be restored,
but it may, from time to time, again be registered or transferred to bearer as
before. No such registration shall affect the negotiability of the coupons which shall
continue to pass by delivery.
IN WITNESS WHEREOF, I have hereunto set my hand this _____day of _____, 19.
____________________
Treasurer of the commonwealth of Virginia.
| DATE OF REGISTRATION | NAME OF REGISTERED HOLDER | TREASURER |
PANEL ON BACK OF BOND:
NUMBER
_____
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
THE RECTOR AND
VISITORS OF THE
UNIVERSITY
OF VIRGINIA
UNIVERSITY OF VIRGINIA
LIBRARY BOND
$1000.00
PRINCIPAL DUE
_____1, 19__
INTEREST DUE
JANUARY 1 and JULY 1
Principal and Interest Payable at the
office of the Treasurer of the Commonwealth
of Virginia, in the City
of Richmond, Virginia.
Section 3. The proceeds derived from the sale of said bonds, and the funds
received from the United States of America pursuant to its Offer dated September 22,
1936, accepted by resolution adopted October 1, 1936, shall be used for and are hereby
appropriated to the purpose of paying the cost of construction and equipment of a new
library building to house the general library of the University of Virginia (hereinafter
called the "project"), in accordance with the plans and specifications prepared by Messrs.
Taylor & Fisher of Baltimore, Maryland, approved by the State Art Commission and heretofore
filed with the Federal Emergency Administration of Public works, and any amendments
and revisions thereof, including the repayment with interest at the rate of four per centum
per annum of any unrestricted funds of the University in the consolidated fund account
which may after the sale but prior to the delivery of said bonds be applied to temporarily
financing such cost under authority of a resolution adopted Jun 26, 1936. It is hereby
determined that interest during the period of construction on moneys applied to such
temporary financing, and the cost of issuance of said bonds, shall be deemed a part of
the cost of construction and equipment of said project. It is also hereby determined
that the construction and equipment of such project as hereinabove described, is a purpose
for which bonds may lawfully be issued under the provisions of the act hereinabove
referred to.
Section 4. Said bonds shall be special obligations of the institution, payable
only from the revenues and receipts of the project and secured by a first and exclusive
pledge of the Bond and Interest Sinking Fund Account, as hereinafter in Section
6 provided.
Section 5. The Institution shall during the term of said bonds fix and collect
fees and charges for the use and facilities of said Library Building so that the
revenues and receipts to be deemed as derived directly or indirectly from the project
shall be sufficient at all times to pay the interest on and principal of said bonds as
and when the same become due and to provide the reserve for contingencies hereinafter
described, and to pay the cost of operation and maintenance (including insurance) of
the project. Pursuant to said Act, it is hereby determined for the periof hereinafter
stated that
(a) The revenues and receipts to be deemed as derived directly or indirectly
from the project are the fees and charges, in the nature of Library Fees, for the use,
services and facilities of the project to be charged to and collected from students of
the institution and others dueing and in respect of all or any part of the calendar year
beginning on the first day of the month next ensuing after the completion of the project,
but shall not include any funds received or receivable from the Commonwealth of Virginia.
(b) The costs and expenses of the operation and maintenance of the project
are the reasonable expenses of the institution (in so far as they constitute a new or
added expense of the institution) for the operation and maintenance of the project up to
the end of the calendar year beginning on the first day after the completion thereof,
including, without limiting the generality of the foregoing, charges for heating, lighting,
power, janitor service, water, telephone, supplies (not including books, periodicals,
magazines and other forms of reading materials) maintenance, repairs and insurance (but not including salaries of the Executive Staff).
Section 6. The institution shall set aside as collected and deposit a portion
of the library fees and charges aforesaid in a "Bond and Interest Sinking Fund Account"
(herein referred to as the "Sinking Fund"), to the extent only as hereinafter in this
section profided. So long as any of said bonds shall remain outstanding the money in the
Sinking Fund shall be exclusively pledged to and used solely for the purpose of paying
the interest on and the principal of such bonds. During each period of six months beginning
six months prior to the date of the first maturity of said bonds and continuing
up to and including the period of six months beginning January 1, 1942, there shall be so
set aside and paid into said Sinking Fund out of the fees and charges aforesaid an amount
equal to 110 per centum of the amount required to pay all interest and principal payments
falling due on or before the next date when any of the bonds mature. The amount by which
such payments into the Sinking Fund exceed the aggregate amount of interest and principal
falling due on or before such dates shall be held in the Sinking Fund as a reserve for
contingencies and shall be used only in accordance with the provisions of this resolution
During each period of six months beginning July 1, 1942, and continuing so long as any of
said bonds shall remain outstanding, there shall be so set aside and paid into such Sinking
Fund out of said fees and charges an amount equal to the amount required to pay all
interest and principal falling due on or before the next date when any of the bonds
mature, provided, however, that no further payments need be made into said Sinking Fund
when the amount of money held in said Sinking Fund (including the reserve for contingencies)
equals the amount of interest and principal that will be payable at the time of the
fail to pay into the Sinking Fund the full amount hereinabove stipulated, then an amount
equal to the amount of such deficiency shall be set aside and paid into the Sinking Fund
out of the First such fees or charges available in the following period, without, however,
abating the amount required hereunder in such following period. If the institution shall
fail to make such payment into the Sinking Fund, as aforesaid, during any such period, any
funds then held in the Sinking Fund as a reserve for contingencies as above provided shall
be used for the payment of any portion of the interest on or principal of the bonds on
which there would otherwise be a default, but the amount by which such reserve is so reduced
by such payment shall be replaced from the first such fees or charges available
in the following period or periods, in excess of the required payment for the then current
period.
Section 7. The institution shall keep complete and accurate accounts of all
sums of money received and disbursed in connection with the construction, equipping,
operation and maintenance of the project, including, without limiting the generaligy of
the foregoing, a complete and accurate record of all such fees or charges charged or collected,
and all sums disbursed for payment of the interest on and principal of said bonds.
Within sixty days after the close of each fiscal year, beginning with the fiscal year which
closes June 30, 1939, the institution shall prepare and furnish to the holder or holders
of any of said bonds who may request the same, complete operating and income statements
of the project, covering the prededing fiscal year in reasonable detail and certified by
the Bursar of the University. Such operation and income statements shall be certified
by an independent auditor (at the expense of the Institution) if demand for such independent
audit be made by the holder or holders of twenty per centum (20%) of the bonds
at any time outstanding.
Section 8. So long as any of said bonds remain unpaid, the Institution shall
maintain the project in good condition and operate the same in an efficient manner and
at a reasonable cost, and shall maintain insurance upon said New Library Building of a
kind and in an amount which usually would be carried by a private corporation operating
a similar project, the policies of insurance to be made payable to "The Rector and Visitors
of the University of Virginia". The proceeds of any such insurance in event of loss
shall be used only for—(a) replacements or repairs, or, at the option of the Institution,
(b) payments into the Sinking Fund. Nothing in this section whall be construed or operate
as requiring the Institution to pay the costs of operation and maintenance of the project
out of any other funds than the revenues and receipts derived directly or indirectly from
the project.
Section 9. So long as any of said bonds shall remain outstanding the Institution
shall not issue any additional bonds of any other authorized issue or other evidences
of indebtedness payable from the revenues and receipts of said project unless the lien
and security of such additional bonds or evidences of indebtedness of such receipts and
revenues are made junior and subordinate in all respects to the lien thereon of the bonds
hereinbefore described.
Section 10. The holders of said bonds are, and shall be, entitled to all the
benefits of and subject to the provisions of Section 7 of the Act referred to in Section
1 of this Resolution, and any Trustee appointed by the holders of bonds pursuant to said
Section 7 of said Act shall have the powers provided by sub-division (e) of said Section
7 of said Act.
Section 11. The provisions of Section 5 to Section 9, both inclusive, of
this Resolution shall be a part of the cont act with the holder or holders of the bonds,
and the President or Bursar, or other Executive or Financial Officers of the Institution,
shall be, and they are hereby, authorized and empowered to do any and all things necessary,
proper or convenient in order to fully carry out and perform the agreements on the
part of the Institution to be carried out and performed pursuant to said Sections.
| Board of Visitors minutes October 23, 1936 | |