University of Virginia Library

ARTICLE VII
DEFEASANCE OF 1980 NOTES

Section 701. Payment from Note Account. On or before November 6, 1981, the Depository shall pay over from the Note Account to United Virginia Bank, as depository under a resolution adopted by the Executive Committee of the Board on May 5, 1980, $7,500,000, to be

applied to the payment of the principal of the University's $7,500,000 Bond Anticipation Notes of 1980 (the "1980 Notes") at their maturity on November 6, 1981.

Section 702. Disposition of Amounts Held in 1980 Note Account. After provision for the payment of all principal of and interest on the 1980 Notes at their maturity on November 6, 1981, United Virginia Bank, as depository under a resolution adopted by the Executive Committee of the Board on May 5, 1980, shall pay over to the Depository for deposit in the Note Account, the excess of $7,500,000 above the amount theretofore expended (other than as interest on the 1980 Notes) in issuing the 1980 Notes and in acquiring and installing a new telephone communications system for the University. All other moneys and assets held by United Virginia Bank as such depository shall be paid over and delivered to the University and held as part of its Unrestricted Quasi-Endowment Funds.

Section 703. System Note. Upon defeasance of the 1980 Notes, the Comptroller of the University shall execute the University's $7,500,000 special obligation promissory note in form presented to this meeting and substitute the same for the University's $7,500,000 note dated May 6, 1980 and held in the University's Endowment Fund.