University of Virginia Library

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4922

AUTHORIZATION TO EFFECT CAPITAL ADVANCES TO THE
UNIVERSITY OF VIRGINIA REAL ESTATE FOUNDATION

The following resolution was adopted:

• WHEREAS the guidelines for the University of Virginia's Consolidated Endowment provide for loans to the University of Virginia Real Estate Foundation of up to 10% of the total Endowment; and
• WHEREAS the total Endowment as of March 31, 1994, had a market value of $654 million; and
• WHEREAS the University of Virginia Real Estate Foundation seeks to borrow an additional $2 million from the Endowment, and such amount, in combination with the $33 million in non-interest bearing loans and the $4 million in interest bearing loans currently committed falls below the 10% cap; and
• WHEREAS the interest rate on the proposed $2 million in additional loans will be variable and based on short-term interest rates; and
• WHEREAS the cash collateral of the Consolidated Endowment's security lending program is invested in securities with similar interest rates and therefore the proposed loans would be attractive investments for such collateral;
• RESOLVED that the Board of Visitors approves and authorizes the Executive Vice President and Chief Financial Officer to effect capital advances to the University of Virginia Real Estate Foundation in an amount not to exceed two million dollars ($2,000,000.00), for use by the Foundation consistent with its purpose as stated in the Foundation's Articles of Incorporation;
• RESOLVED FURTHER that the obligation of the Foundation to repay such advances from the University shall be evidenced by Promissory Note(s) (Attachment A), provided that the Executive Vice President and Chief Financial Officer is authorized, at his discretion, to revise, amend, alter or supplement the terms of such Promissory Note(s) in order to preserve and advance the University's interests in these investment transactions.