University of Virginia Library

Section 1. The Board of Visitors of the University of Virginia (the "Board") (a) covenants to fix, revise, charge and collect a comprehensive student fee for full-time equivalent students and (b) pledges such fee to the payment of the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Project; provided that the current expenses of operating the Project (the "Current Expenses") shall be a first charge on such fee. The Board further covenants that such fee will be fixed, revised, charged and collected so that the net revenues therefrom, 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 Project as and when the same become due, and to pay debt service on any outstanding obligations, if any, that have been previously issued which are secured by the fee pledged herein, that portion of the Bonds issued to finance the Project to be secured on a parity with such obligations. Any such fees in excess of the amounts required for the payment of Current Expenses, the payment of the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Project when due, and debt service on any outstanding obligations which are secured by the fee pledged herein may be used by the University for any other proper purpose.