University of Virginia Library

APPROVAL OF INTENT TO ISSUE BONDS FOR CAPITAL PROJECTS

WHEREAS, the University intends to undertake the following capital project with bond financing as a funding source:

• Medical Center Bed Expansion Project to increase inpatient bed capacity.

WHEREAS, the United States Department of the Treasury has promulgated final regulations in Section l.l50-2 of the Treasury Regulations (“the Regulations”) governing when the allocation of bond proceeds to reimburse expenditures previously made by a borrower shall be treated as an expenditure of the bond proceeds; and

WHEREAS, the Regulations require a declaration of official intent by a borrower to provide evidence that the borrower intended to reimburse such expenditures with proceeds of its bonds; and

WHEREAS, the Board of Visitors of the University of Virginia desires to make such a declaration of official intent as required by the Regulations; and

WHEREAS, the University may be required to provide short-term financing to this project prior to issuing long-term debt in order to implement an efficient and timely construction schedule; and

WHEREAS, the University has funding mechanisms to accommodate short-term financing needs, defined as a period of less than sixty months; and

WHEREAS, the authority for the University to issue long-term bonds for this project listed is not included in this resolution and will be addressed in a future bond issuance resolution; and

WHEREAS, if the University arranges short-term financing for a particular project, and if the project is not ultimately completed, or if the project utilizes funding sources other than bonds, then the appropriate school or unit remains responsible for refunding the short-term obligation;

RESOLVED that, pursuant to the terms of the Regulations, the University of Virginia declares its intent to reimburse expenditures in accordance with the following:

• 1. The University reasonably expects to reimburse expenditures incurred for this project from the issuance of tax-exempt bonds to be issued by the University;


• 2. This resolution is a declaration of official intent under Section 1.150-2 of the Regulations;


• 3. The maximum principal amount of bonds expected to be issued for the purpose of reimbursing expenditures relating to this project is $60 million, excluding costs of issuance and premiums or discounts; and

RESOLVED FURTHER, that this project is a separate enterprise independent of other projects, and that the authorization for funding relates to this individual project; and

RESOLVED FURTHER, funds may be borrowed for this project on a short-term basis, but only if the following conditions are met:

• 1. The Board of Visitors approves this resolution;


• 2. A comprehensive and detailed financial plan for the school/unit project is submitted;


• 3. Short-term financing shall not exceed sixty months in maturity; and


• 4. The school or unit remains responsible for refunding any debt obligations incurred for this project regardless of the status of the capital project or whether or not a bond issuance actually occurs.