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.
