University of Virginia Library

Search this document 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
expand section
 
 
 
 
 
 
 
 
 
collapse section
 
 
 
 
 
ARTICLE V COVENANTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


2057

ARTICLE V
COVENANTS

Section 501. Covenants. The University hereby particularly covenants and agrees with the Noteholders, and makes provisions which shall be a part of the contract with such holders, to the effect and with the purpose as follows:

(A) The University shall duly and punctually pay or cause to be paid, but only from the sources herein provided, the principal of and interest on the Notes at the date and place and in the manner mentioned in the Notes, according to the true intent and meaning thereof.

(B) Upon the date of issuance of any of the Notes, all conditions, acts and things required by the Constitution or statutes of the Commonwealth of Virginia or the United States of America, or this Note Resolution to exist, to have happened and to have been performed precedent to or in the issuance of such Notes shall exist, have happened and have been performed.

(C) The University shall do and perform or cause to be done or performed all acts and things required to be done or performed by or on behalf of the University under the provisions of this Note Resolution in accordance with the terms of such provisions.

(D) The University shall undertake punctually all steps required under the Act to issue, sell and deliver bonds of the University in an amount sufficient when taken together with other moneys which may be available therefor, to pay the principal of the Notes as the same become due.

(E) The University shall keep full and complete records of all deposits to and withdrawals from the Note Account and of all other transactions relating to such Account and all investments and reinvestments of moneys in such Account and the interest and gain derived therefrom.

(F) The University covenants that it will do any and all things necessary to assure that interest on the Notes will be exempt from federal income taxation.