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, including without
limitation those for room and board, for or in connection
with the University's student housing system, including the
Projects 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 Projects; provided that
the current expenses of operating the University-owned
student housing facilities, including the Projects (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 net revenues therefrom, after payment
of the 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 Projects as and
when the same become due, and to pay debt service on any
outstanding obligations, if any, 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 Projects to be secured on a parity with such obligations
(except the University's $3,000,000 Dormitory Revenue Bonds
(Series 1962) and its $4,100,000 Student Apartment and
Dormitory Buildings Revenue Bonds (Series 1965) which are
secured by a prior right in the revenues to be derived from
those projects). Any such rentals, fees and charges in
excess of the amounts required for the payment of the Current
Expenses, the payment of the principal of, premium, if any,
and interest on that portion of the Bonds issued to finance
the Projects when due, and debt service on any outstanding
obligations which are secured by the rentals, fees and
charges pledged herein may be used by the University for any
other proper purpose.
