Section 1. The Board of Visitors of the University of
Virginia (the "Board") (a) covenants to fix, revise, charge
and collect rentals, fees and charges for or in connection
with the use, occupation and services of the Project and (b)
pledges such rentals, fees and charges to the payment of the
principal of, premium, if any, and interest on 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 rentals, fees and charges.
The Board further covenants that such rentals, fees and
charges will be fixed, revised, charged and collected so that
the revenues therefrom, after payment of Current Expenses,
will at all times be sufficient to pay the principal of,
premium, if any, and interest on the bonds issued to finance
the Project as and when the same become due, and to pay debt
service on any outstanding obligations that have been previously
issued which are secured by the rentals, fees and
charges pledged herein, that portion of the bonds issued to
finance the Project to be secured on a parity with such
obligations. Any rentals, fees and charges pledged herein
in excess of the amounts required for the payment of Current
Expenses, the payment of the principal of, premium, if any,
and interest on the bonds issued to finance the Project when
due, and debt service on any outstanding obligations which
are secured by such rentals, fees and charges may be used by
the University for any other proper purpose.
