University of Virginia Library

SECTION 502. Notice of Redemption.

(a) Whenever (i) Bonds are to be redeemed under any provision of the Resolution or (ii) in the case of optional redemption, the University shall have deposited with the State Treasurer for deposit in the Redemption Account, not less than 35 days prior to the redemption date, money or Government Obligations sufficient to pay the redemption price of the Bonds to be optionally redeemed on the next redemption date, the Paying Agent shall, not less than 30 days prior to the redemption date, mail notice of redemption to all Holders (as of the Record Date immediately preceding the date of such notice) of all Bonds to be redeemed at their registered addresses. The Paying Agent shall also mail a copy of any such notice of redemption

to the Bank and to Moody's. Any such notice of redemption shall be given in the name of the University, shall identify the Bonds to be redeemed, shall specify the redemption date and the redemption price, and shall state that on the redemption date the Bonds called for redemption will be payable at the principal corporate trust office of the Paying Agent and that from that date interest will cease to accrue. The Paying Agent may use "CUSIP" numbers in notices of redemption as a convenience to Holders, provided that any such notice shall state that no representation is made as to the correctness of such numbers either as printed on the Bonds or as contained in any notice of redemption and that reliance may be placed only on the identification numbers containing the prefix established under the Resolution.

Prior to and on the Fixed Rate Date, the payment of any redemption price shall be effected only with money derived from a drawing by the Paying Agent under the Credit Facility. The Paying Agent shall, no later than 3:00 P.M., New York time, on the Business Day preceding any Redemption Date, submit the necessary draw certificates to ensure that, on such Redemption Date, the Paying Agent shall draw on the Credit Facility in an amount sufficient to pay the redemption price of any Bonds to be redeemed. Any money required to be deposited in the Redemption Account pursuant to subsection (a) above shall be applied as set forth in Section 604 hereof.