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CLINCH VALLEY COLLEGE FACULTY HOUSING LOAN

The President stated that a preliminary application for a loan of $150,000.00 had been made
to the federal Housing and Home Finance Agency on May 30, 1956, on behalf of Clinch Valley
College for the erection of seven buildings to provide ten faculty housing units. It was
planned to erect one apartment house of four units which will include a community room and
laundry and storage facilities, and six single family homes. It was felt that these seven
buildings could be erected at a cost not to exceed the amount of the loan. The University was
advised under date of July 24, 1956, that the preliminary application had been approved by the
federal Housing and Home Finance Agency and a reservation of funds in the amount of $150,000.00
had been made. Final application with all supporting date must be filed with the Agency not
later than October 23, 1956, although if absolutely necessary, the University might obtain an
extension of time within which to complete the full application. Among other supporting data
to be filed with the final application a resolution of the Board authorizing the making of the
loan application was required.

The proposed loan for $150,000.00 would probably be evidenced by bonds aggregating that
amount bearing interest at the rate of 2-7/8% per annum and would be amortized over a period of
40 years. However, as the first principal payment would not become due until two years after
the signing of the loan agreement the loan would be actually amortized over a 38 year period.
The annual payment for principal and interest for each $1000.00 of the loan at 2-7/8%
amortized over a period of 38 years would be approximately $43.60. It was proposed that the
University would pledge the net revenues to be derived from the operation of the comtenplated
facilities as security for the loan.

President Darden advised that under the provisions of Title 23 Chapter 3 of the Code of
Virginia, 1950, as amended, the University of Virginia was one of the educational institutions
which had power, with the consent of the Governor first obtained, to issue bonds, to finance
such a project as that outlined, pledging the revenues to be derived from the operation of the
facilities to be created as security therefor.

After careful consideration and full discussion of the proposal, upon motion duly made and
seconded, it was

RESOLVED, by the Board of Visitors of The Rector and Visitors of the University of Virginia,
a corporation created and existing under the laws of the State of Virginia, that Vincent Shea,
Comptroller of said body corporate, be and he hereby is authorized to make, in the name and on
behalf of The Rector and Visitors of the University of Virginia, final application to the
federal Housing and Home Finance Agency for loan assistance under Title IV of the Housing Act
of 1950, in the amount of $150,000.00 for the erection at Clinch Valley College of the
University of Virginia, of ten faculty housing units, consisting of one apartment house of four
units and six single family homes, said application being numbered Va. 44-CH-9(D), and to file
the same with said Housing and Home Finance Agency.