xt7kh12v4m9q https://exploreuk.uky.edu/dipstest/xt7kh12v4m9q/data/mets.xml Lexington, Kentucky University of Kentucky 1938-12-aug3. minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1938-12-aug3. text Minutes of the University of Kentucky Board of Trustees, 1938-12-aug3. 1938 1938-12-aug3. 2011 true xt7kh12v4m9q section xt7kh12v4m9q 






     Mitnutes of Called Meeting of the Board of Trustees of the
University of Kentucky, August 3, 1958.


     The Board of Trustees of the University of Kentucky met in
President McVey's ,ffice Wednesday, August 3, 1938, at 10:30 a.m.,
pursuant to a call issued July 21, 1953, by the Chairman of the
Board of Trustees, Governor Albert B. Chandler.   The membero
present were Judge Richard C. Stoll, Chairman of the Executive
Committee, who, in the absence of the Chairman of the Board of
Trustees, acted as Chairman of the meeting; D. D. Stewart, H. S.
Cleveland, James Park, R. Miller Holland, J.C. Newcomb, J. S.
Cooper, Louis E. Hillenmeyer, Harper Gatton, and Marshall Barnes.
Assistant Attorney General, J. W. Jones, Dean James H. Graham,
President Frank L. McVey, and Secretary of the Board, D. H. Peak,
were present.

     The Chairman called the mleeting to order and asked the Secre-
tary to read the letter-of-call, as issued by Governor Albert B.
Chandler under date of July 21, 1938, and mailed to each member
of the Board.   Upon the reading of this letter, it was ordered
to be placed within the minutes of the meeting.

     The letter was signed by Governor Chandler and mailed to
each member of the Board as follows:

     Harper Gatton, Madisonville, Kentucky
     Judge R. G. Gordon, Marion E. Taylor Building, Louisville,
                 Kentuciky
     Louis E. Hillenmeyer, Georgetown Pike, Lexington, Kentucky
     Judge Richard C. Stoll, 602 City Bank Building, Lexington,
                 Kentucky
     James Park, 602 City Bank Building, Lexington, Kentucky
     H. S. Cleveland, Franklinton (Henry County), Kentucky
     D. D. Stewart, 504 West Ormsby Avenue, Louisville, Kentucky
     Judge John Cooper, Somerset, Kentucky
     R. Mliller Holland, Owensboro, Kentucky
     J. C. N'ewc~umab, New Hope, Kentucky
     Marshall Barnes, Beaver Dam, Kentucky
     H. W. Peters, Superintendent of Public Instruction, Frank-
                 fort, Kentucky
     Garth Ferguson, Commissioner of Agriculture, Frankfort,
                 Kentucky
     G. C. Wells, Paintsville, Kentucky.


                                 "Frankfort, Kentucky
                                 July 21, 1938


           A special meeting of the Board of Trustees of the
     University of Kentucky is called herewith to meet at
     10:30 a.m. of August 3, 1938, in the office of President
     Frank L. M.cVey.  The purpose of this meeting is to
     take such action as may be deemed advisable upon propos-
     als for (a) the refinancing of a lease agreement now in
     force, between the University and the Security Trust




 








     Company DIf Lexington, upon the Mien's Dormitories, made
     and executed under the act of the General Assembly of
     1928, and (b) the sale by the University of revenue
     bonds, under the Act ol' the 1934 General Assem bly, fTr
     the T)urpose of constructing a south wince to the w!Dmen's
     residence hall, a building to house the Departrrn.nt of
     Home Economics, College of Agriculture, a building to
     house a cooperative home for women, and the completion
     of the Biologrical Sciences Building; and to app)rove the
     cornstruction of such of these buildings as may be deeied
     advisable.

                         (Signed) Albert B. Chandler
                                  Chairman of the Board )f
                                           Trustees."



     The Chairman then stated that during the meetings of the Ex-
ecutive Committee of the Board of Trustees on July 20 and 23,
1938, the matter of refinancing the lease agreement between the
University and the Security Trust Company of Lexington and she
question of the sale of the additional University revenue bonds
had been discussed; that it was decided the matter of refinancing
the lease agreement should be placed before the Attorney   general
for his opinion as to its legal phases; that between the two
aforesaid meetings the entire matter had been presented to Hubert
Meredith, Attorney General of the Commonwealth, and that he had
delegated Assistant Attorney General J. W. Jones to handle the
matter and to meet with the Committee and the Board, which he
had done during the meeting of July 28 and had presented a writ-
ten opinion concerning the matter.

     The Chairman then presented and read the aforesaid opinion
of Assistant Attorney General Jones and upon motion made and
seconded this opinion was ordered to be placed within the minutes
of the meeting.

                                   "Frankfort, Kentucky
                                   July 30, 1938

     "To the Board of Trustees,
     University of Kentucky
     Lexington, Kentucky

     "Gentlemen:

          "Your recuest of the Attorney General for the
     official advice of this office as to your right to
     refinance the two dormitories, built on the University
     campus by the Security Trust Company and leased back
     to the University by it, has been referred to the
     writer.




 





3.



     "The land for these dormitories was conveyed by
the University to the Security Trust Company, which,
in turn, erected the dormitories and leased them back,
under the plan'provided for by Chapter 64 of the Acts
of the General Assembly of 1928 (now apoearing as Sec-
tion 45.35 cc-i to 4535 cc-3, inclusive, of the Kentuck:y
Statutes). The constitutionality of that Act of 1928
was upheld, as you doubtless know, by the Court of
Appeais in the case of McDonald v. University of Kon-
tucLy, 225 Kentucky 205, 7 S. W. (2d) 1046 (19;8).

    "When the University conveyed the ground to the
Trust Company under the provisions of that Act of 1928,
the Trust Company agreed to build the dormitories,
and leased them back to the University by lease dated
December 6th, 1928, for the term of one year from
September 1st, 1929, at the rental of 'e"Z792.40 per
year, payable in instalments of $1,982.70 each month,
and in that lease it gave the University an option to
renew the lease from year to year for a total of 19
additional years.   And the above mentioned rental was
calculated so as to cover, in the course of 20 years,
(if the lease should be renewed for 19 years), the
total cost of construction of the dormitories, plus
interest.   And the lease also gave the University
the option to buy back the prooerty at the end of any
lease year, at a fixed price,--the re-purchase price
diminishing each year, and being such an amount as,
with the rentals paid to that date, would likewise
cover the original cost of construction, plus interest
thereon.   Interest was calculated at the then prevail-
ing rate of around 6%.

     "NGfow you ask whether or not the University can
take advantage of lower inter.est rates now prevailing,
and also reduce the amount of each annual payment of
rent by extending the time for a longer period of years;
and, more specifically, you ask whether or not, in
order to obtain these benefits, you can exercise your
option contained in the present lease to re-purchase
the oroperty, and at the same time direct the lessor,
Security Trust Company, instead of re-conveying the
property direct to the University, to convey to your
nominee, with whom you would at the same time enter
into a new lease, for a longer period of time (say an
additional 20 years), and at a reduced rate of Inter-
est.

     "After giving this matter careful study and thought,
I am of the opinion thet you can lawfully and properly
do this, provided only the proposed deed of re-conveyance
from the Security Trust Company, the present holder of
the legal title, to your new lessor   whoever that may
be) shall likewise provide for the option to re-purchase,
by referring to the proposed new lease and requiring




 





4.



    that it (i.e. the new lease) shall give such option
    to the University.   Of course, the deed of reconvey-
    ance from the Trust Company, and the new lease from
    the new legal title holder to the University, would be
    delivered simultaneously, and would both be nut to
    record at the same time.

          "The effect of all this would be merely to extend,
    for another 10 years or so, the time for the amortiza-
    tion of the original cost of the dormitories, and there-
    by permit a corresponding reduction henceforth in the
    amount of the annual rental or amortization payment,
    and all at a considerably lower rate of interest. The
    Act of 1928 puts no limit on the number of years for
    the amortization, but leaves that to the agreement of
    the parties.

          "The Court of Appeals has shown a great liberality
     in construing such plans for financing educational build-
     ings and the like,--not only in the McDonald case above
     mentioned, but in a long line of cases therein cited
     and relied upon, and most recently in the case of Scott
     County Board of Education v. McMillan 270 Ky.. 483, 109
     S. W. (2d) 1201 (1938). And, as the plan now proposed
     is clearly for the best interests of the University,
     I think it comes within the spirit and the meaning of
     the Act of 1928, as construed by the Court of Appeals,
     and that you, as the Board of Trustees, may lawfully
     and properly vote to carry it into effect.

                                Very truly yours,

                                    HUBERT MEREDITH
                                      ATTORNEY GENERAL

                      By (Signed) J. W. Jones
     J.W.J.                         Assistant Attorney General


     The President thereupon stated further that several security
bankers had presented bids for performing the aforestated re-
financing and that two such bids had been received, opened and
considered during the Executive Committee meeting of July 28, and
that these bids had been held for presentation and the action of
the Board of Trustees.

     The Chairman then presented and read the bids as made by the
two groups of bankers as follows:

     Security and Bond Company, Lexington, Kentucky
     Almstedt Brothers, Louisville, Kentucelky
     Bankers Bond Company, Louisville, Kentucky
     J. J. B. Hilliard & Sons, Louisville, Kentucky
     Stein Bros. & Boyce, Louisville, Kentucky




 





5.



     J. D. Van Hooser & Company, Lexington, Kentucky
     'W E. Hutton & Company, Cincinnati, Ohio
     Weil, Roth & Irvingr Company, Cincinnati, Ohio
     Charles a. Hinsch & Company, Cincinnati, Ohio
     Holton, Foster & Company, Lexington, Kentucky.

     After an explanation and discussion of the bids as received
and filed with the Executive Committee it was decided that the
bid of the group composed of J. D. Van Hooser & Company, Lexing-
ton, Kentucky; W. E. Hutton & Company, Cincinnati, Ohio; `.Weil,
Roth & Irving Company, Cincinnati, Ohio; Charles A. Hinsch & Com-
pany, Cincinnati, Ohio, and Holton, Foster & Company, Lexington,
Kentucky, was the best bid offered for the aforestated refinancing
of the lease agreement.

     The Chairman then stated that in accord with the aforestated
opinion of the Attorney General, the Executive Committee had au-
thorized and directed its Chairman to notify the Security Trust
Company of Lexington, Kentucky, that the University of Kentucky
would not extend the lease between the Security Trust Com-pany and
the University of Kentucky, dated December 6, 1928, beyond Sep-
tember 1, 1938; and that such notification had been made in due
course and acknowledged by the Security Trust Company through
its President, C. N. MPanning.

     Upon motion duly made and seconded, it was ordered that this
letter be placed within the minutes of the meeting:


                                "Lexington, Kentucky
                                July 30, 1938


     "Security Trust Company,
     Lexington, Kentucky

     "Gentlemen:

         "As is provided in the lease between the University
    of Kentucky and Security Trust Company, dated December 6,
    1928, the University of Kentucky hereby notifies you
    that it will not extend the said lease beyond September
    1, 1938, and that on that day it will exercise its option
    to purchase from you the real estate and building described
    in said lease and will pay to you the purchase price then
    remaining unpaid.

         "The University of Kentucky will advise you on or
    before September 1, 1938, to whom it wishes the property
    to be conveyed.

                               Yours very truly,

                                    UNIVERSITY OF KENTUCKY
                               By (Signed) Richard C. Stoll
    RC S: SM                       Chairman of Executive ComirIt1tee.1"




 




6.



                                   "Lexington, Kentucky
                                   August 3, 1938


   "Hon. Richard C. Stoll,
   Chairman of the Executive Committee
     of the University of Kentucky,
     Lexington, Kentucky.

     Dear Judge Stoll:

          "We acknowledge receipt of your letter dated July
    30, 1938, notifying this Company that the University
    of Kentucky will not extend the lease between the Securi-
    ty Trust Company and the University of Kentucky, dated
    December 6, 1928, beyond September 1, 1938, and that on
    the latter date it will exercise its option to purchase
    from this Company the real estate and building described
    in said lease and will pay to us the purchase price then
    remaining unpaid.

          "We further note that the University of Kentucky
     will advise us on or before September 1, 1938, to whom
     it wishes the property to be conveyed.

                               Very truly yours,

                                    SECURITY TRUST COMPANY

                                    By (Signed) C. N. Manning
     CNM:MG                                     President."


     After a general discussion of the whole matter as heretofore
presented and upon motion made by Mr. H. S. Cleveland and seconded
by Mr. D. D. Stewart, it was resolved:-

     Whereas, under the provisions of Chapter 64 of the Acts of
1928 (Section 4535 cc-l to 4535 cc-3 inc.,Ky. St.) the Univer-
sity in the year 1928 conveyed a part of the campus to Securi-
ty Trust Company, for the eection thereon of two dormitories, and
took back from said Trust Company a lease of said property, dated
December 6, 1928, for the term of one year, with the right in
the lessee to renew the lease from year to year for a total of
19 additional years; and the annual rental under said lease is
823,792.40, and is calculated to amortize the original cost of
construction of the dormitories, and interest thereon at 6%, in
20 years; but said lease also gives the University an option to
repurchase the prooerty at the end of any lease year at a price
therein fixed,--such re-purchase price diminishing from year to
year, and being such an amount as, with the rentals previously
paid, likewise amortizes the cost of construction, with 6% in-
terest; and whereas in order to exercise said option to re-purchase,
the University must give the Security Trust Company at least 30
days notice before the end of any lease year, and the end of the
current lease year will be at the end of August, 1938; and




 





7.



     Whereas it is desirable, and is for the best interests of
the University, to extend the period for the completion of the
amortization payments for an additional eleven years from Septem-
ber 1, 1938, so as to make a corresponding reduction henceforth
in the amount of each amortization payment; and a new arrangement
can now be entered into with some other lessor for such an exten-
sion of time, and with the additional benefit of a reduction in
the interest rate from 6/ to approximately 4.54$, by exercising
the above mentioned option to repurchase from the Security Trust
Company and by directing the Security Trust Company, instead of
re-conveying the Vroperty direct to the University, to convey it
to the University s nominee, that is, to such other person or cor-
poration as will agree to such extension of time and to such re-
duction in the interest rate;

     Now, therefore, be it resolved that the University shall not
renew the above mentioned lease from and after the end of the cur-
rent term, i.e., the end of August, 1938, but shall exercise its
option to re-purchase the property from the Security Trust Com-
pany on September 1, 1938, at the price of .8174,261.44, as fixed
in the current lease; and

     Be it further resolved that the action of the Executive Com-
mittee of the Board of Trustees of the University of Kentucky, in
directing Richard C. Stoll, its Chairman, to so notify the Securi-
ty Trust Company, and the action of said Stoll, as Chairman, in
giving such notice to said Security Trust Company on the 30th day
of July, 1938, be, and it hereby is, ratified, aplroved and con-
firmed; a copy of said notice to said Security Trust Company is
attached to this resolution.

     Be it further resolved that the Executive Committee of the
Board of Trustees, be, and it hereby is, authorized to furnish
to said Security Trust Comnany on or before August 31, 1938, the
name of the pmerson or corporation to whom, as the nominee of the
University, the re-conveyance of said property shall be made, and
to direct said Trust Company to make the conveyance to said nom-
inee# and to request said Trust Company to include in its deed of
conveyance of the property a provision that the grantee shall
simultaneously lease the pronerty back to the University on terms
substantially similar, so far as may be, to the above mentioned
lease of December 6, 1928,--except as tb the lengthened time, and
the reduced interest rate, -- and nartiuularly to include an op-
tion to the University to re-purchase the Property, similar to the
option in the existing lease; and

    Be it further resolved that the Executive Committee be, and it
hereby is, authorized and directed to cause a new lease to be
prepared, under date the first day .- September, 1938, from the
person or corporation to whom the prooerty is to be conveyed, leas-
ing the property back to the University on terms substantially
similar, so far as may be, to the existing Lease of Decemlbler 6,
1928,--except as to the extended time, which shall run for a total
of 21 years, and except as to the reduced interewt rate, which
shall be approximately 4.54%-,   and to cause such lease to be




 






8.



executed and delivered for and on behalf of the University, as
lessee, by Richard C. Stoll, the Chairman of the Executive Commit-
tee, or, in his absence or inability to act, by such other member
of the Executive Committee of the Board of Trustees as the Execu-
tive Committee may designate.

     Be it further resolved that the Executive Committee be, and
it hereby is, authorized and directed to execute and deliver all
such documents, papers and the like, and to do and perform any
and all such acts and things, as may in its judgment be necessary
or proper in the premises, for the purpose of carrying the above
outlined plan of re-financing into effect.

     Be it further resolved that if a new lease, as herein provid-
ed for, can be made with the Security Trust Company, which now
holds the title to the real estate herein referred to, then the
deed herein referred to to be made by the Security Trust Company
to another, shall not be executed and the new lease shall be
made with the Security Trust Company.

     Be it further resolved that the bid of J. D. Van Hooser &
Company, Lexington, Kentucky; W. E. Hutton & Company, Cincinnati,
Ohio; Weil, Roth & Irving Company, Cincinnati, Ohio; Charles A.
Hinsch & Company, Cincinnati, Ohio; and Holton, Foster & Company,
Lexington, Kentucky, dated July 20, 1938, be accepted as follows:

          "In the event, for legal reasons or otherwise, 'the
     holding company' set-up is not acceptable to you, then
     as an alternate, we will agree to acquire from the Securi-
     ty Trust Company, Trustee, the dormitory and site, as per-
     mitted under the terms of the option extended to you in
     the lease contract dated December 6, 1928.    Upon acquisi-
     tion of the property, we will lease same to you for a
     period approximating twenty-one (21) years, the form of
     lease to be substantially the same as the lease with
     the Security Trust Company, Trustee, above referred to,
     the rental charges averaging approximately thirteen
     thousand, five hundred dollars (313,500) per year, the
     exact amount of the rental being a schedule to be prep
     Dared by you and ourselves that would be sufficient to
     figure 4% (interest) rental and extinguish an issue of
     land trust certificates during the life of the lease (21
     years), the amount of the land trust certificates to be
     a par amount that when sold for $950.1( per $1,000 cer-
     tificate will produce $174,261.44.

          "The form of lease and the form of land trust cer-
     tificate are to be anproved by Messrs. Woodward, Dawson
     & Hobson, Louisville, Kentucky.




 




9.



          "This bid is for prompt acceptance and prompt com-
     pliance.  Subject 0 receipt of P. W. A. grant on the
     larger issue.

                          J. D. VAN HOOSER & COMPANY
                          Lexington, Kentucky

                          W. E. HUTTON & COMPANY
                          WEIL, ROTH & IRVING COMPANY,
                          CHARLES A HINSCH & COMPANY,
                          Cincinnati, Ohio

                          HOLTON, FOSTER & COMPANY
                          Lexington, Kentucky

                 (Signed) J. D. Van Hooser
                          Joint Agent"


     The following is the maturity schedule submitted with the
above bid, and approved:

  Date       Balance      Retirement       Interest      Total

3-1 1939   $183,000        $13,660                      $3,660
9-1 1939    183,000                         3,660        3,660
3-1 1940    180,000        3,000            3,660        6,660
9-1 1940    177,000        3,000            3,600        6,600
3-1 1941    174,000        3,000            3,540        6,540
9-1 1941    171,000        3,000            3,480        6,480
3-1 1942    168,000        3,000            3,420        6,420
9-1 1942    165,000        3,000            3,360        6,360
3-1 1943    162.000        3,000            3,300        6,300
9-1 1943    158,000        4,000             3,240       7,240
3-1 1944    154,000        4,000             3,160       7,160
9-1 1944    150,000        4,000             3,080       7,080
3-1 1945    146,000        4,000             3,000       7,000
9-1 1945    142,000        4,000             2,920       6,920
3-1 1946    138,000        4,000             2,840       6,840
9-1 1946    134,000        4,000             2,760       6,760
3-1 1947    130,000        4,000             2,680       6,680
9-1 1947    126,000        4,000             2,600       6,600
3-1 1948    122,000        4,000             2,520       6,520
9-1 1948    118,000        4,000             2,440       6,440
3-1 1949    114,000        4,000             ?,360       6,360
9-1 1949    109,000        5,000             2,280       7,280
3-1 1950    104,000        5,000             2,180       7,190
9-1 1950     99,000        5,000             2,080       7,080
3-1 1951     94,000        5,000             1,980       6,980
9-1 1951     89,000        5,000             1,880       6,880
3-1 1952     84,000        5,000             1,780       6,780
9-1 1952     79,000        5,000             1,680       6,680
3-1 1953     74,000         5,000            1,580       6,580
9-1 1953     69,000        5,000             1,480       6,480
3-1 1954     64,000         5,000            1,380       6,3-580
9-1 1954     58,000        6,000             1,")80      7,80




 






10,



  Date                Balance    Retirement    Interest    Total

3-1 i955             $52,000      $6,000       $1,160    $7,160
9-1 1955              46,000       6,000        1,040     7,040
3-1 1956              40,000       6,000          920     6,920
9-1 1956              34,000       6,000          800     6,800
3-1 1957              28,000       6,000          680     6,680
9-1 1957              22,000       6,000          560     6,560
3-1 1958              16,000       6,000          440     6,440
9-1 1958              10,000       6,000          320     6,320
3-1 1959               5,000       5,000          200     5,200
9-1 1959                           5,000          100     5,100
                                $183,000      $91,080  $274,080

     Average Life 12.4 Years, Money Cost 4.53%


     Thereupon President McVey presented the Chairman with a tel-
egram, signed by H. T. Cole, Regional Director P. W. A., for the
Administrator and dated July 29, 1938, at Atlanta, Georgia, and
also a confirmatory letter of the same dating, advising the Uni-
versity of Kentucky that a "grant" in the sum of 8247,500 had been
allotted to the University for the construction of certain build-
ings upon the campus of the University in accord with a "Certif-
icate of Purpose" stated within an application for a grant made
by the University under date of June 17, 1938, and now designated
as Docket No. KY-1305-F.

     Upon motion duly made and seconded the aforesaid telegram
and letter were ordered to be placed within the minutes of the
meeting.


                                 "Atlanta, Georgia
                                 July 29, 1938


     Colonel James H. Graham
     Dean, College of Engineering
     University of Kentucky
     Lexington, Kentucky

          "Allotment made your Docket No. Ky-1305 college
     buildings grant $247,500.   Complete plans and speci-
     fications so as to get construction under way as soon
     as possible.   Formal offer follows.

                                 H. T. Cole, Regional Director
                                           P. W. A.
                                 For the Administrator."




 




11.



               "Federal Emergency Administration
                         of Public Works
                         Hurt Building
                         Atlanta, Georgia
                         July 29, 1938

                                       ADMIN. JLMI: ebs
                                       Docket No. KY-1305
                                       College Buildings
                                       Lexington, Ky..

    "Colonel James H. Graham
    Dean, College of Engineering
    University of Kentucky
    Lexington, Kentucky

    "Dear Sir:

         "You have been notified by wire of the allotment
    on your project

                    GRANT: $247,500.00

    The formal offer will be mailed you within the next few
    days.

         "The main nurpose of the Public Works Adminis-
    tration is to create employment quickly on worth-
    while projects and we urge your cooperation.

                               Yours very truly,

                                   H. T. COLE
                                   Regional Director, Region No. 3

                              By: (Signed) J. L. M. Irby
                                    Asst.  Regional Director

                                  For the Administrator".


     The President then reminded the Board that the 1928 lease
agreement upon the Men's Dormitories was costing the University
the sum of approximately 824,000 per year and that under the re-
financing plan just apn-roved, by lowering the annual interest
rate and extending the time of the principal payments, these an-
nual rentals would be reduced to approximately 113,000, thus mak-
ing available the sum of $11,000 to service largely an issue of
the University's revenue bonds in order to provide the funds in
the sum of ]302,500 necessary to offset and secure the payments
of the aforesaid P. W. A. "grant" in the sum of $247,500; and
that the remainder of the necessary service funds, additional to
this $11,000, would accrue safely from the added income to be
derived from the prooosed Women's Dormitory addition.   Therefore,
in order to benefit from the aforestated "offer of a grant" by




 





12.



P. W. A., the bankers, as heretofore listed, had been asked to
submit bids for the purchase of UniverAty of Kentucky revenue
bonds in sufficient number to provide the needed 8302,500, and
that two such bids had been received and offered during the meeting
of the Executive Committee on July 20, 1938, and held thereafter
for the consideration and action of the Board of Trustees.

     Thereupon the two bids, signed and executed by the same par-
ties as had signed the aforestated refinancing bids, were read,
explained and discussed.   As both bids followed the same set-up
to bear a coupon rate of 3% per annum and a serial maturity rate
based upon an average maturity of seventeen years and eight months,
it was found that the bid of the Security & Bond Company, Lexing-
ton, Kentucky; Almstedt Brothers, Louisville, Kentucky; Bankers
Bond Company, Louisville, Kentucky; J. J. B. Hilliard & Sons, Louis-
ville, Kentucky, and Stein Bros & Boyce, Louisville, Kentucly, was
the best bid submitted, disclosing an average life of bonds of
17-3/4 years, coupon rate 3%, nrice bid per bond $960.00, net in-
terest cost 3.30%,--and this bid, upon motion duly made cnd second-
ed was declared to be the best bid and was ordered to be n1aced
upon the minutes of the meeting.

     "'Al Trustees' Revenue Bonds

         "We offer to Purchase a sufficient amount of the
     Trustees' Revenue Bonds to produce approximately 8302,500.00
     under the following conditions:

         "(1) The bonds shall be dated on or about September 1,
     1938, and shall mature in accordance with the maturity
     schedule hereto attached which is marked 'Schedule At,

       "(WVe will retain our own counsel to cooperate with your
     counsel in the working out of the legal details and will
     pay the expense of such counsel.    The University shall
     furnish evidence satisfactory to our counsel that the nroo-
     erty to be improved is owned in fee simple by the Universi-
     ty and shall take such action as may be necessary to the
     legal issuance of said bonds.

        "(3) The bonds shall be passable at the office of the
     Treasurer of the Board of Trustees or at the option of
     the holder of the bonds at some bank in New York to be
     designated by you in the bonds.

        "(4) SubJect to the approving legal opinion of our
     counsel, we will pay for such bonds such a price as will
     make the net yield to the average maturity thereof 3.30%
     per annum, in accordance with the standard tables of bond
     values, plus accrued interest on said bonds at the rate
     set out therein if delivery is made after the issuance
     date.




 




13.



                        SECURITY & BOND COMPANY, Lexington, Ken-
                                                 tucky
                        ALMSTEDT BROTHERS, Louisville, Kentucky
                        BANKERS BOND COMPANY, Louisville, Kentucky
                        J.J. B. HILLIARD & SONS, Loutsville, Ken-
                                                 tucky
                        STEIN BROS. & BOYCE, Louisville, Kentucky

                        By: (Signed) W. R. Springate
                            Group Manager"

    The following is the maturity schedule submitted with the
above bid, and approved:



Bond Balance

$316,000
  316,000
  316,000
  316,000
  313,000
  310,000
  307,000
  304,000
  300,000
  296,000
  292,000
  288,000
  284,000
  280,000
  276,000
  272,000
  268,000
  264,000
  260,000
  256,000
  252,000
  248,000
  244,000
  240,000
  236,000
  231,000
  226,000
  221,000
  216,000
  211,000
  206,000
  201,000
  196,000
  191,000
  186,000
  181,000
  175,000
  168,000



Bond Retirement   Interest Payment



$ ---____-

3,000
3,000
3,000
3,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,00