University of Virginia Library

APPROVAL OF ADDITIONAL SWAP TRANSACTIONS

The following resolution was adopted:

WHEREAS, it is in the best interest of the University to provide for its officers to execute and deliver contracts, agreements and other documentation which relate to its endowment involving selling shares short, option contracts, and/ or swap agreements; and

WHEREAS, such contracts and agreements may constitute a borrowing and/or pledge of securities, assets and rights held by the endowment as authorized by Virginia Code 23-30.01 with at least two-thirds vote of the Board of Visitors and approval of the Governor; and

WHEREAS on January 11, 2000, the Board of Visitors authorized the execution of a swap agreement under certain terms and conditions, which was amended by its Resolution of February 16, 2000 in order to extend the time for executing the contemplated transactions; and

WHEREAS, the University of Virginia Investment Management Company has recommended further authorization to undertake additional swap transactions as hereafter provided;

RESOLVED, subject to the approval of the Governor, the Board of Visitors hereby approves additional swap transactions with an investment banking firm or financial institution in order to protect the endowment fund against market correction, provided that such agreements are executed on or before June 30, 2000, do not exceed a term of more than one year and shall not affect more than ten stocks held within the University's venture capital portfolio;

RESOLVED FURTHER, The Treasurer of the University of Virginia, or such other University officer as the Board of Visitors may direct, is authorized to execute and deliver such related contracts and documents as necessary or advisable to complete the swap transactions, provided such documents shall not constitute a pledge of the full faith and credit of the Commonwealth, the University or the Governor of Virginia. Any such agreements executed by the University Treasurer, or such other authorized officer, shall be reported to the Board of Visitors at its next regular meeting. The University shall forthwith seek the approval of the Governor of Virginia so as to protect the significant gains in the new technology stocks held in the University's endowment.