Board of Visitors minutes :: February 9, 2007 :: University of Virginia Library

(b) To a special account created with the Custodian for each Program for the payment of expenses incident to the issuance of the Notes for such Program, as it may be directed by the Authorized Officer of the University at the time the Notes are issued. Any amounts remaining in the special account on that date which is one year from the Program Issuance Date shall be deposited in the Debt Service Fund and applied to pay interest on such Notes on their next payment date.

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Section 4.2 Construction Fund.

A special fund is hereby created in the office of the Custodian as the Construction Fund, to the credit of which there shall be deposited a portion of the proceeds of the Notes. There may also be deposited to the credit of the Construction Fund any moneys received from any other source for paying the Cost of the Projects (herein defined), provided if Series A (Tax-Exempt) Notes are outstanding, only if the University shall have received a Favorable Opinion of Bond Counsel with respect to such deposit. The moneys in the Construction Fund shall be held in trust and applied to the payment of the Cost of the Projects, as defined in Section 4.3, and, pending such application, shall be subject to a lien and charge in favor of the holders of the Notes and for the future security of such holders until paid out or transferred as herein provided.

Section 4.3 Items of Cost of the Projects.

For the purposes of this Resolution the Cost of the Projects shall include, without intending thereby to limit or restrict or to extend any proper definition of such costs under the Act or this Resolution, any or all of the following:

(a) obligations incurred for labor and materials and to contractors, builders and materialmen in connection with the Projects;

(b) the cost of acquiring by purchase, if such purchase shall be deemed expedient, and the amount of any award or final judgment in or any settlement or compromise of any proceeding to acquire by condemnation, such lands, property, rights, rights of way, franchises, easements and other interests as may be deemed necessary or convenient by the Board for the construction and operation of the Projects, options and partial payments thereon, and the amount of any damages incident to or consequent upon such construction and operation;

(d) interest on the Notes, prior to and during construction of each component of the Projects and for up to one (1) year thereafter;

(e) taxes or other municipal or governmental charges lawfully levied or assessed during construction upon the Projects or any property acquired therefor, and premiums on insurance, if any, in connection with the Projects during construction; fees and expenses of engineers and architects for surveys and estimates and other preliminary investigations, preparation of plans, drawings and specifications and supervising construction, as well as for the performance of all other duties of engineers and architects in relation to the planning and construction of the Projects or the issuance of Notes therefor;

(f) expenses of administration properly chargeable to the Projects, legal expense and fees, fees and expenses of consultants, financing charges, cost of audits and of preparing and issuing the Notes, and all other items of expense not elsewhere in this Section specified incident to the planning, construction, development and equipping of the Projects and the placing of the Projects in operation; and

(g) any obligation or expenses heretofore or hereafter incurred by the University, any agent of the University or by any other agency of the Commonwealth of Virginia in connection with the Projects for any of the foregoing purposes.

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Section 4.4 Payments from Construction Fund.

Payment of the Cost of the Projects shall be made from the appropriate account of the Construction Fund and other available funds, all as provided by law. All payments from the Construction Fund shall be subject to the provisions and restrictions set forth in this Article, and the Board covenants that it will not cause or permit to be paid from the Construction Fund any sums except in accordance with such provisions and restrictions.

Moneys in the Construction Fund shall be paid out by the Custodian to be issued on vouchers of the University, all in accordance with the Act, the amounts stated in such vouchers to be certified by the University to be necessary for paying items of Cost of the Projects.

The vouchers shall be in substantially the form of Exhibit B hereto (or in such other form required by the Custodian) and shall state each amount to be paid, the appropriate account from which funds should be used, the name of the person, firm or corporation to whom each such payment is due and the purpose for which the obligation to be paid was incurred, and shall certify that the goods or services specified have been received, or performed, payment therefor has not been previously authorized and that the expenditure is a proper charge to the appropriation for the Construction Fund.

The University shall keep accounts of the Costs of the Projects which have been, and are expected to be, spent for each component of the Projects to ensure that such Costs of the Project shall not exceed the maximum authorized amount for each such component.

Section 4.5 Disposition of Balance in Construction Fund.

When the Projects shall have been completed and placed in operation, as evidenced by a certificate signed by the Chief Financial Officer and filed with the Secretary of the Board and the Custodian, any balance in the Construction Fund not deemed by the Board to be necessary to be reserved for the payment of any remaining part of the Cost of the Projects shall be deposited to the credit of the Debt Service Funds for the Notes, and used to pay interest on the Notes on their next interest payment date.