University of Virginia Library

—Article 2.—

In case default shall have been made in the payment of
any coupon for interest upon the said bonds, or any of them,
and such coupon shall have remained unpaid and in arrears for
the period of ninety days after demand, the principal of such,
and every such of said bonds shall thereupon become and be
immediately due and payable, notwithstanding that the time
limited for the payment thereof may not then have elapsed.
And in such case, or in case default shall be made in the
payment of the principal of the said bonds, or any thereof,
at maturity, and the holders of one-third of the whole amount
then outstanding of the said bonds and coupons upon which default
has been made, in writing so request, it shall be lawful
for the said Trust Company, or its successors, or for the
person or persons who shall for the time being be charged with

the execution of trust hereby created, with the assistance
of any person or persons, and with or without, any proceeding
in, or order or decree of, any court, to enter in and upon
the sail property hereinbefore described, or which may be then
subject to the lien of these presents in any place or places
in which the said property, or any part thereof, may be, and
to take possession of the said property and of all property
whatsoever which may then be subject to the lien created by
these presents, and if need be, to take and carry away the
said personal property, and to sell and dispose of all
said property as a whole or in parcels, by public auction
to the highest bidder at the said University of Virginia, or
elsewhere, at such time or times as the as the said Trust
Company or its successors, shall appoint, and upon such seasonable
terms of sale as the said Trust Company may prescribe
in regard to the time or times for the payment of the purchase
money thereof, and the mode of securing any deferred
installment of such purchase money; but prior to any such sale
the said Trust Company shall give public notice thereof, and
of the time and place at which the same is proposed to be
made by advertisement thereof in one newspaper of general circulation
in each of the cities of Charlottesville and Richmond,
Virginia, the same to be published for at least once a week
for six successive weeks prior to the date at which such sale
shall be advertised to take place. And upon any such sale the
said trustee for the time being shall make, execute and deliver
to the purchaser or purchasers of the property good and sufficient
deeds, bills of sale, or such other and further instruments
as may be requisite to transfer to such pruchaser or
purchasers complete and absolute title to, and property in
and to, the said lands and other estate of whatsoever description
and every part and parcel thereof. And it is hereby
expressly declared and agreed that any sale or sales that may
be made as aforesaid shall be a perpetual bar both at law and
in equity against the said Rector and Visitors, their successors
and assigns, and against any and all persons whomsoever
claiming the property so sold, or any part thereof, by, from,
through, or under, the said Rector and Visitors, their successors
or assigns; and after deducting from the proceeds of
any such sale the amount of all reasonable and proper expenses
and charges which may be made or incurred by the said Trust
Company in taking, acquiring, or retaining possession of the
said property, or any portion thereof, or in managing or controlling
or transporting the same, or in preparing for, making
and completing such sale or sales, and making conveyances to
the purchasers as well as the compensation allowed by the
laws of Virginia to a trustee who sells, the trustee shall
apply the purchase money and proceeds of such sale ratably
and equally amongst all the holders of the bonds and past due
coupons and interest herein secured; except, and taking care
that, if any of the holders of the said bonds have not received
so much interest from the said Rector and Visitors as others,
such bondholders shall, first, and before any distribution is
made, be paid so much as will place them on an equal footing
with the other bondholders; after which all shall share alike,
without discrimination as between principal and interest. And
if after the payment in full of the principal and interest
accrued upon each and all of the said bonds, a surplus of
the proceeds of such sale or sales shall remain in the hands
of the said Trust Company, it shall pay such surplus to the
said Rector and Visitors, or their assigns, or as any court
of competent jurisdiction shall lawfully direct.

And it is hereby expressly declared and agreed that the
said Trust Company, or its officer, agent, or attorney, acting
for it, may, in its or his discretion, adjourn any sale
which they may make at the time and place appointed for such
sale, and if so adjourned, such sale may be made at the time
and place at and to which the same shall have been adjourned,
and without further notice thereof.

And it is further declared and agreed that the receipt
of the Trust Company, or of its officer, or agent, who shall
make such sale, or cause the same to be made, shall be a sufficient
acquittance to the purchaser of the property which
shall be sold as aforesaid for the purchase money; and such
purchaser shall not, after paying such purchase money and receiving
such receipt, be liable in any way to see to the application
of such purchase money upon, or for, the trust or
purposes by these presents provided for, nor shall he be liable
for any loss, or misapplication or non-application of such
purchase money in part or in whole.

And it is further declared and agreed that upon any sale
made under, or by virtue of, these presents, the bonds intended
to be secured hereby, and all overdue coupons thereupon, shall
be received in payment of the purchase money for any property

sold at such sale as equivalent to so much of the said purchase
money as would be payable upon such bonds and overdue
coupons.