University of Virginia Library

ARTICLE III.

Custody and Application of Proceeds of Bonds.

Section 301. A special fund is hereby created in the State Treasury and designated "The
Rector and Visitors of the University of Virginia Student Apartment and Dormitory Buildings
Revenue Bonds (Series 1965) Construction Fund" (herein sometimes called the "Construction Fund"),
to the credit of which there shall be deposited the proceeds of the bonds required to be so
deposited by Section 203 of this resolution. The moneys in the Construction Fund shall be held
in trust and applied to the payment of the cost of the Project and, pending such application,
shall be subject to a lien and charge in favor of the holders of the bonds issued and outstanding
under this resolution and for the future security of such holders until paid out or
transferred as herein provided.

Section 302. Payment of the cost of the Project shall be made from the Construction Fund
as provided by law.

Section 303. For the purposes of this resolution the cost of the Project may include,
without intending thereby to limit or restrict or to extend any proper definition of such cost
under any applicable laws or this resolution, the following:

• (a) obligations incurred for labor and materials and to contractors,
  builders and materialmen in connection with the Project,

• (b) interest accruing upon the bonds prior to and during construction
  of the Project,

• (c) taxes or other municipal or governmental charges lawfully levied
  or assessed during construction upon the Project or any property acquired
  therefor, and premiums on insurance, if any, in connection with the Project
  during construction,

• (d) fees and expenses of engineers and architects for surveys and
  estimates and other preliminary investigations, preparation of plans, drawings
  and specifications and supervising construction, as well as for the performance
  of all other duties of engineers and architects in relation to construction
  of the Project or the issuance of bonds therefor,

• (e) expenses of administration properly chargeable to the Project, legal
  expenses and fees, financing charges, cost of audits and of preparing and
  issuing the bonds, and all other items of expense not elsewhere in this
  Section specified incident to the construction of the Project and the placing
  of the project in operation,

• (f) any obligation or expense heretofore or hereafter incurred by
  the Board or by any other agency of the State of Virginia for any of the
  foregoing purposes.

Section 304. The Board covenants that no part of the Project will be constructed on
lands other than lands owned by the Board or the State of Virginia in fee simple.

Section 305. When the Project shall have been completed, as evidenced by a certificate
signed by the President or the Comptroller of the Institution and filed with the Secretary
to the Board, any balance in the Construction Fund not deemed by the Board to be necessary
to be reserved and so reserved by it for the payment of any remaining part of the cost of
the Project shall be transferred to the credit of the Sinking Fund.