 | Board of Visitors minutes May 24, 1991 |  |
RESOLUTION OF THE
RECTOR AND VISITORS OF THE UNIVERSITY OF VIRGINIA
WHEREAS, there has been passed by the General Assembly of Virginia an act entitled "Commonwealth of Virginia Higher Educational Institutions Bond Act of 1991" (the "Act") which has been signed by the Governor;
WHEREAS, pursuant to the Act, the Treasury Board of the Commonwealth of Virginia (the "Treasury Board") is authorized, by and with the consent of the Governor, to sell and issue bonds of the Commonwealth of Virginia for the purpose of providing funds, with other available funds, for paying the cost of acquiring, constructing, renovating, enlarging, improving and equipping certain revenue-producing capital projects at certain institutions of higher learning of the Commonwealth and for paying issuance costs, reserve funds and other financing expenses (the "Financing Expenses"), all in accordance with the provisions of Section 9(c) of Article X of the Constitution of Virginia;
WHEREAS, such revenue-producing capital projects include a dining facility (Capital Outlay Project Number 15013) (the "Project") for the Rector and Visitors of University of Virginia (the "Institution"), which will be a component of the Institution's dining facilities system (the "System"); and
WHEREAS, the Treasury Board is proposing to sell and issue bonds pursuant to the Act for such revenue-producing capital projects, in one or more series;
NOW, THEREFORE, BE IT RESOLVED BY THE RECTOR AND VISITORS OF UNIVERSITY OF VIRGINIA:
Section 1. The Board of Visitors of the Institution (the "Board") requests the Treasury Board to sell and issue bonds in an aggregate principal amount not to exceed $4,872,030 to finance all or a portion of the cost of the Project plus Financing Expenses (the "Project Bonds"). The Project Bonds will be identified by amount and maturities by the State Treasurer upon issuance of any bonds.
Section 2. The Board (a) covenants to fix, revise, charge and collect rates, fees and charges, including without limitation student dining fees, for or in connection with the use, occupation and services of the System and (b) pledges such rates, fees and charges remaining after payment of the expenses of operating the System ("Net Revenues") to the payment of the principal of, premium, if any, and interest on the Project Bonds. The Board further covenants that it will fix, revise, charge and collect such rates, fees and charges in such amounts so that Net Revenues will at all times be sufficient to pay, when due, the principal of, premium, if any, and interest on the Project Bonds and on any other obligations secured by Net Revenues (such payments collectively the "Required Payments"). The Project Bonds shall be secured on a parity with such other obligations so secured by Net Revenues (other than any obligations secured by a prior right in Net Revenues). Any Net Revenues pledged herein in
Section 3. It is hereby found, determined and declared that, based upon responsible engineering and economic estimates and advice of appropriate officials of the Institution, as shown on the Financial Feasibility Study attached hereto as Exhibit A, the anticipated Net Revenues pledged herein will be sufficient to pay the Required Payments so long as the aggregate amount of net debt service on the Project Bonds actually payable in any bond year does not exceed the amounts assumed in the Financial Feasibility Study.
Section 4. The Board covenants that the Institution will furnish the Treasury Board its general purpose financial statements within 30 days of their issuance and receipt, audited by a firm of certified public accountants or the Auditor of Public Accounts which shall include a schedule of revenues and expenditures for auxiliary enterprise systems. At the same time, the Institution will furnish the Treasury Board a certificate of the chief financial officer of the Institution stating whether Net Revenues were sufficient to pay Required Payments during the period covered by such financial statements. If Net Revenues were insufficient to pay Required Payments during such period, such certificate shall include the Institution's plan to generate Net Revenues sufficient to make Required Payments in the future.
Section 5. The Board covenants that so long as any of the Bonds are outstanding, the Institution will pay to the State
Section 6. The Board covenants that the Institution will pay from time to time its proportionate share of all expenses incurred in connection with the sale and issuance of any series of bonds that includes Project Bonds (the "Bonds") and all expenses thereafter incurred in connection with the Bonds, all as certified by the State Treasurer to the Institution.
Section 7. The Board covenants that the Institution will proceed with due diligence to undertake and complete the Project and that the Institution will spend all of the available proceeds derived from the sale of the Project Bonds for costs associated with the Project and appropriated for the Project by the General Assembly.
Section 8. The Board covenants that for so long as any of the Bonds are outstanding, the Institution will not sell or dispose of all or any part of the Project without first obtaining the written approval of the State Treasurer.
Section 9. The officers of the Institution are authorized and directed to execute and deliver all certificates and instruments and to take all such further action as may be considered necessary or desirable in connection with the sale and issuance of the Bonds.
Section 10. The Board acknowledges that the Treasury Board will rely on the representations and covenants set forth herein in issuing the Bonds, that such covenants are critical to the security for the Bonds, that the Board will not repeal, revoke, rescind or amend any of such covenants without first obtaining the written approval of the Treasury Board, and that such covenants will be binding upon the Board so long as any of the Bonds are outstanding.
Section 11. This resolution shall take effect immediately.
| Board of Visitors minutes May 24, 1991 | |