University of Virginia Library

PURCHASE OF UNIVERSITY GARDEN APARTMENT PROPERTY

The President reported that the Finance Committee of the Board, at its meeting on 12 May 1961,
had adopted a resolution recommending to the Board the purchase of the University Gardens from University
Manor Corporation, subject to the recommendation of the Buildings and Grounds Committee as to
the desirability of acquiring the property, and that, subsequently, the Buildings and Grounds Committee
had also recommended the purchase of the property.

The President stated that negotiations had been conducted with University Manor Corporation, owner
of the University Gardens property, for its purchase and a price of $530,000.00 had been tentatively
agreed upon, subject to the approval of the Board, terms of payment to be as follows

Since the University, in the opinion of Mr. Minor, its Special Counsel, was not authorized, under
the provisions of Section 23-65 of the Code of Virginia, 1950, to assume payment of any indebtedness
secured as a lien on the property, the University would take title to the property subject to, but
would not assume payment of, the amount due at date of settlement of the transaction upon an existing
indebtedness held by New York Life Insurance Company secured by deed of trust constituting a first lien
on the property. As of 31 May 1961, the principal balance on said indebtedness amounted to $419,941.66.
The balance of the purchase price, subject to adjustments, would be payable in cash at date of settlement
of the transaction.

The loan made by New York Life Insurance Company is F. H. A. insured and the consent of the Federal
Housing Commissioner is necessary to the acquisition of the property by the University. This will
involve the execution by the University of certain regulatory agreements with the Federal Housing Commissioner

The President then presented a tentative draft of a contract of sale and purchase of the property
to be executed by the University and University Manor Corporation, which draft was examined by the members
of the Board.

After full discussion and careful consideration, upon motion duly made and seconded, it was
unanimously,

RESOLVED, that the President be and he is hereby authorized and empowered to execute in the name
and on behalf of The Rector and Visitors of the University of Virginia (hereinafter referred to as
The Rector and Visitors), a contract, substantially in the form submitted to this meeting, for the
purchase of the property of University Manor Corporation, known as University Garden Apartments, situated
on the east side of U. S. Highway No. 29, in the City of Charlottesville, Virginia, together with
certain tangible personalty situated therein or thereon, the consideration for such purchase to be the
sum of $530,000.00, terms of payment to be as follows

Title to said real and personal property is to be conveyed to The Rector and Visitors subject to,
but said The Rector and Visitors shall not assume payment of, the amount due at date of settlement of the
transaction upon an existing indebtedness held by New York Life Insurance Company secured by record deed
of trust constituting a first lien on the property to be conveyed, and the balance of the purchase price,
subject to adjustments, is to be payable in cash at date of settlement of the transaction, and that the
Secretary of the Board be and he is hereby authorized and empowered to affix the corporate seal of The
Rector and Visitors to such contract and attest the same,

RESOLVED, FURTHER, that the President, Comptroller and Secretary of the Board be and they hereby
are authorized and empowered to execute in the name and on behalf of The Rector and Visitors such regulatory
or other agreements not contrary to law, as may be necessary or required, with the Federal Housing
Commissioner, and/or Federal Housing Administration, in order to secure approval of the purchase by The
Rector and Visitors of said property, real and personal,

RESOLVED, FURTHER, that the President, Comptroller and Secretary of the Board be and they are hereby
authorized and empowered to execute all other necessary documents, and, to do all things and perform all
other acts necessary and proper as may be needful or advisable to consumate the purchase of said property,
real and personal,

Provided, however, that no contract, agreement or other document shall be executed unless and until
it has been approved as to form and substance by C. Venable Minor, Special Counsel for The Rector and
Visitors