University of Virginia Library

INVESTMENT IN STOCK CORPORATION

The following resolution was adopted:

• WHEREAS the Board of Visitors established a Special Committee on Fraternity and Sorority Housing to consider various means of improving the existing housing; and
• WHEREAS the Special Committee after considering various alternatives, has determined that the limited partnership approach is the most feasible; and
• WHEREAS the City of Charlottesville has, on its own initiative, sought to establish a historic district which includes most of the fraternity and sorority housing system; and
• WHEREAS it is in the best interest of the University that its endowment funds participate as an investor in the formation of limited partnerships for the purpose of renovating fraternity and sorority houses;
• NOW THEREFORE BE IT RESOLVED that there shall be created a stock corporation under Virginia law to act as General Partner of such partnerships; and

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• FURTHER RESOLVED that the University's Endowment Fund shall contribute the necessary capital, not to exceed three hundred thousand dollars ($300,000) to such corporation in exchange for all its outstanding stock; and
• FURTHER RESOLVED that the University's Endowment Fund shall guarantee the leasehold obligations of fraternity or sorority organizations who may lease renovated fraternity or sorority houses from such limited partnerships, and pledge its assets for the security thereof, provided however that such guarantees shall be limited with respect to each fraternity or sorority leasehold obligation to one hundred thousand dollars ($100,000); and
• FURTHER RESOLVED that the officers of the University are hereby authorized to take such actions in furtherance of the foregoing as to them may seem necessary or desirable, including executing in the name of the University all necessary documents.