AUTHORIZATION TO PARTICIPATE IN COMMONWEALTH OF VIRGINIA 9-C
BOND ISSUE
- The following resolution was adopted:
- WHEREAS, there has been enacted by the General
Assembly of Virginia of 1985 an act entitled "Commonwealth
of Virginia Higher Educational Institutions Bond Act of
1985" (the "Act");
- WHEREAS, subject to the approval of the Governor,
the Treasury Board of the Commonwealth of Virginia shall be
authorized to sell and issue bonds of the Commonwealth of
Virginia in an aggregate principal amount not currently
exceeding $31,109,000 pursuant to the Act, for the purpose
of providing funds, with any other available funds, for paying
the cost of acquiring, constructing and equipping revenue
producing capital projects, including the enlarging and
improving thereof, at institutions of higher learning in the
Commonwealth, all in accordance with the provisions of
Section 9(c) of Article X of the Constitution of Virginia;
- WHEREAS, said revenue producing capital projects
under the Act include the construction of an addition to the
Observatory Dining Hall (the "Dining Hall Project"), the
construction of an addition to Sponsors Hall (the "Sponsors
Hall Project") and the construction of a student activity
building (the "Student Activity Building Project") for the
Rector and Visitors of the University of Virginia (the
"University") at costs now estimated to equal or exceed
$870,000, $2,200,000 and $564,000, respectively (the Dining
Hall Project, the Sponsors Hall Project and the Student
Activity Building Project are collectively called the
"Projects");
- WHEREAS, the Treasury Board proposes to sell a
portion of the above bonds to be designated "Higher Educational
Institutions Bonds, Series 1985" (the "Bonds") which
will include an amount not to exceed $3,634,000 for the
purpose of financing the cost of the Projects;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
VISITORS OF THE UNIVERSITY OF VIRGINIA:
Section 1. The Board of Visitors of the University
of Virginia (the "Board") (a) covenants to fix, revise,
charge and collect food service contract fees for or in
connection with all of the University-owned student dining
facilities, including the Dining Hall Project, and (b)
pledges such fees to the payment of the principal of, premium,
if any, and interest on that portion of the Bonds issued to
finance the Dining Hall Project; provided that the current
expenses of operating all of the University-owned student
dining facilities, including the Dining Hall Project (the
"Dining Facilities Current Expenses") shall be a first charge
on such fees. The Board further covenants that such fees will
be fixed, revised, charged and collected so that the net revenues
received from or for the use of the University-owned student
dining facilities, including the Dining Hall Project, after
payment of the Dining Facilities 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 Dining Hall Project as and when the same become
due, and to pay debt service on any outstanding obligations
that have been previously issued to provide funds for University-owned
student dining facilities, that portion of the Bonds
issued to finance the Dining Hall Project to be secured on
a parity with such obligations. Any such revenues in excess
of the amounts required for the payment of the Dining Facilities
Current Expenses, the payment of the principal of, premium,
if any, and interest on that portion of the Bonds issued to
finance the Dining Hall Project when due, and debt service
on any outstanding obligations that have been issued to provide
funds for University-owned student dining facilities may be
used by the University for any other proper purpose.
Section 2. It is hereby found, determined, and
declared that, based upon responsible engineering and economic
estimates and advice of appropriate officials of the University
as shown on Exhibit A hereto, the anticipated net revenues
received from the food service contract fees pledged above will
be sufficient to pay the Dining Facilities Current Expenses,
the principal of, premium, if any, and interest on that portion
of the Bonds issued to finance the Dining Hall Project as the
same become due, and debt service on any outstanding obligations
that have been issued to provide funds for University-owned
student dining facilities, so long as (i) the effective
true interest cost on the Bonds does not exceed 12% per annum
and (ii) the aggregate amount of debt service actually payable
on that portion of the Bonds issued to finance the Dining Hall
Project from their date of issue to the end of any bond year
does not exceed the estimated aggregate amount of debt service
for the corresponding period as shown on Exhibit A, or the
Vice President for Business and Finance provides the Governor
and the Treasury Board of the Commonwealth of Virginia with
satisfactory evidence that the revenues pledged in Section 1
above will also be sufficient to pay the additional amount of
actual debt service which for any such period exceeds the
estimated amount shown on Exhibit A.
Section 3. The Board (a) covenants to fix, revise,
charge and collect fees and rents, including rents payable
under a lease between the University and the Darden School
Sponsors and a payment due to the University each year from
the Darden School Sponsors for or in connection with the entire
Sponsors Hall facility, including the Sponsors Hall Project,
and (b) pledges said fees and rents to the payment of the
principal of, premium, if any, and interest on that portion
of the Bonds issued to finance the Sponsors Hall Project;
provided that the current expenses of operating the entire
Sponsors Hall facility (the "Sponsors Hall Current Expenses")
shall be a first charge on such fees and rents. The Board further
covenants that such fees and rents will be fixed, revised,
charged and collected so that the net revenues from or for the
use or otherwise received on behalf of the entire Sponsors Hall
facility, including the Sponsors Hall Project, after payment
of the Sponsors Hall 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
Sponsors Hall Project as and when the same become due, and
to pay debt service on any outstanding obligations that have
been previously issued to provide funds for the Sponsors Hall
facility, that portion of the Bonds issued to finance the
Sponsors Hall Project to be secured on a parity with such
obligations. Any such revenues in excess of the amounts
required for the payment of the Sponsors Hall Current Expenses,
the payment of the principal of, premium, if any, and interest
on that portion of the Bonds issued to finance the Sponsors
Hall Project when due, and debt service on any outstanding
obligations issued to provide funds for the Sponsors Hall
facility may be used by the University for any other proper
purpose.
Section 4. It is hereby found, determined, and
declared that, based upon responsible engineering and economic
estimates and advice of appropriate officials of the
University as shown on Exhibit B hereto, the anticipated
net revenues received from the fees, rents and payments
pledged above will be sufficient to pay the Sponsors Hall
Current Expenses, the principal of, premium, if any, and
interest on that portion of the Bonds issued to finance the
Sponsors Hall Project as the same become due, and debt service
on any outstanding obligations issued to provide funds for
the Sponsors Hall facility, so long as (i) the effective
true interest cost on the Bonds does not exceed 12% per annum,
and (ii) the aggregate amount of debt service actually payable
on that portion of the Bonds issued to finance the Sponsors
Hall Project from their date of issue to the end of any bond
year does not exceed the estimated aggregate amount of debt
service for the corresponding period as shown on Exhibit B,
or the Vice President for Business and Finance provides the
Governor and the Treasury Board of the Commonwealth of Virginia
with satisfactory evidence that the revenues pledged in Section
3 above will also be sufficient to pay the additional
amount of actual debt service which for any such period exceeds
the estimated amount shown on Exhibit B.
Section 5. The Board (a) covenants to fix, revise,
charge, and collect that component of the comprehensive
student fee known as the "Auxiliary Services Fee" for or in
connection with the Student Activity Building Project and
other auxiliary enterprise facilities supported by the
Auxiliary Services Fee, and (b) pledges the Auxiliary
Services Fee to the payment of the principal of, premium,
if any, and interest on that portion of the Bonds issued
to finance the Student Activity Building Project, provided
that the current expenses of operating the Student Activity
Building Project and the other auxiliary enterprise facilities
supported by the Auxiliary Services Fee (the "Auxiliary
Services Current Expenses") shall be a first charge on such
Auxiliary Services Fee. The Board further covenants that
such Fee will be fixed, revised, charged, and collected so
that the net revenues therefrom, after payment of the Auxiliary
Services 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 Student Activity
Building Project as and when the same become due, and to pay
debt service on any outstanding obligations that have been
previously issued to provide funds for auxiliary enterprise
facilities supported by the Auxiliary Services Fee, that
portion of the Bonds issued to finance the Student Activity
Building Project to be secured on a parity with such obligations.
Any such revenues in excess of the amounts required
for the payment of the Auxiliary Services Current Expenses, the
payment of principal of, premium, if any, and interest on
that portion of the Bonds issued to finance the Student
Activity Building Project when due, and debt service on any
outstanding obligations issued to provide funds for auxiliary
enterprise facilities supported by the Auxiliary Services
Fee may be used by the University for any other proper
purpose.
Section 6. It is hereby found, determined, and
declared that, based upon responsible engineering and
economic estimates and advice of appropriate officials of
the University as shown on Exhibit C hereto, the anticipated
net revenues from the Auxiliary Services Fee pledged above
will be sufficient to pay the Auxiliary Services Current
Expenses, the principal of, premium, if any, and interest on
that portion of the Bonds issued to finance the Student
Activity Building Project as the same become due, and debt
service on any outstanding obligations issued to provide
funds for auxiliary enterprise facilities supported by the
Auxiliary Services Fee, so long as (i) the effective true
interest cost on the Bonds does not exceed 9.5% per annum,
and (ii) the aggregate amount of debt service actually payable
on that portion of the Bonds issued to finance the
Student Activity Building Project from their date of issue
to the end of any bond year does not exceed the estimated
aggregate amount of debt service for the corresponding
period as shown on Exhibit C, or the Vice President for
Business and Finance provides the Governor and the Treasury
Board of the Commonwealth of Virginia with satisfactory evidence
that the revenues pledged in Section 5 above will also
be sufficient to pay the additional amount of actual debt
service which for any such period exceeds the estimated
amount shown on Exhibit C.
Section 7. The Board covenants that so long as
the Bonds are outstanding, the University will pay to the
Treasurer of Virginia not less than 30 days before each
interest or principal and interest payment date, the amount
certified by the Treasurer of Virginia to be due and payable
on such date as principal and interest on that portion of
the Bonds issued on behalf of the University to finance the
Projects.
Section 8. The Board covenants that the University
will pay from time to time its proportionate share of all
expenses incurred in connection with the sale and issuance
of the Bonds and all expenses thereafter incurred in connection
with the payment of the principal of, premium, if
any, and interest on the Bonds all as certified by the
Treasurer of Virginia to the University.
