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Governor's Office Raleigh, N. C. July 10, 1933.
The Executive Committee of the Board of Trustees of the University of North Carolina met at 10:30 a. m. on the above date, Governor Edringhaus presiding, the following members being present: Messrs Whedbee, Foe, Weil, Alexander, Murphy, John Sprunt Hill, and Miss Easdale Shaw. Vice-Presidents Brooks and Foust, Executive Secretary R. B . House and Comptroller C. T. Woollen were also present.
At the request of Dr. Brooks, Prof. T. S. Johnson explained the details of financial and contract matters in connection with the erection of a stadium at State College, with funds to be borrowed from the Reconstruction Finance Corporation.
The Bond Purchase Contract between the University of North Carolina and the Reconstruction Finance Corporation was read and explained to the Executive Committee by Prof. Johnson, after which Mr. Whedbee moved the adoption of the following resolution:
WHEREAS, there has been presented by the Reconstruction Finance Corporation to the Board of Erustees of the University of North Carolina a certain Bond Purchase Contract, dated July 2, 1933, providing for the purchase by the R. F. C. of, not to exceed Forty Thousand ($40,000), aggregate of Principal amount of the bonds of the University of North Carolina and the said Bond Purchase Contract is in agreement with the loan application of the Board of Trustees;
THEREFORE, be it resolved that the terms of this contract are hereby approved and the Governor, Chairman Ex-officio, and the Secretary of the Board of Trustees are hereby authorized and directed to execute the same, for and in behalf of the Board of Trustees and are further authorized to deliver the same when executed in proper form to the proper authorities of the Reconstruction Finance Corporation.
The motion to adopt the resolution was seconded and carried, all members voting in the affirmative, none in the negative. The following resolution authorizing the issuance of bonds for financing of the stadium, was read and upon motion by Mr. Whedbee, duly seconded, was adopted by the affirmative vote of all members present.
WHEREAS, by an act of the General Assembly of North Carolina,
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ratified April 21, 1933, and entitled "An Act to Authorize the Trustees of the University to construct and finance an athletic stadium for North Carolina State College, out of funds other than general revenue of the State," The University of North Carolina (hereafter referred to as the "University") was authorized to borrow a sum not exceeding $50,000, for the purpose of enlarging and improving the athletic stadium facilities on the grounds of the North Carolina State College of Agriculture and Engineering of The University of North Carolina (hereinafter referred to as "State College"), and was also authorized to pledge, appropriate and pay such sums , out of the athletic receipts of State College, as may be required to repay the money so borrowed, with interest thereon, it being expressly provided in said act that no part of the payments for the principal or interest charges on said loan shall be met out of the general revenues of the State of North Carolina, and
WHEREAS, by resolution adopted on June 3, 1933, the Board of Trustees of the University approved an application to the Reconstruction Finance Corporation for a loan of $40,000, pursuant to the said act, and it is deemed advisable to make furtner provision with respect to said loan: NOW THEREFORE,
BE IT RESOLVED, by the Board of Trustees of the University of North Carolina :
1. That, pursuant to the said act ratified April 21,1933, there shall be borrowed by the University, from the Reconstruction Finance Corporation, the sum of $40,000, for the purpose of building an athletic stadium on the campus of State College, at Raleigh.
2. That bonds of the University of North Carolina, payable exclusively from the special fund hereinafter referred to, shall be issued for the money so borrowed, in order to evidence the indebtedness so incurred.
3. That the said bonds shall be coupon bonds of the denomination of $1,000 each, dated June 1, 1933, and payable serially, as follows, vix.: One bond on December 1st in each of the years 1933 to 1937, inclusive, two bonds on December 1st in each of the years 1938 to 1947, inclusive, and three bonds on December 1st in each of the years 1948 to 1953, inclusive. The bonds shall bear interest from their date at the rate of five and onehalf per centum (5½%) per annum, payable semi-annually on
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June 1st and December 1st. The principal and interest shall be payable at the Bankers Trust Company, in the City of New York, or, at the office of the State Treasurer in Raleigh, at the option of the holder, in such funds as are then legal tender.
4. That said bonds shall be Issued in substantially the following form:
No..... UNITED STATES OF AMERICA $1,000
THE UNIVERSITY OF NORTH CAROLINA
ATHLETIC STADIUM BOND
The University of North Carolina, a body politic and corporate, for value received, hereby promises to pay to the bearer, solely from the special fund hereinafter referred to, the sum of
ONE THOUSAND DOLLARS ($1,000)
on the first day of December, 19..., with interest from the date
of this bond, at the rate of five and one-half per centum (5½%) per annum, payable semi-annually on June 1st and December 1st in each year, upon presentation and surrender of the annexed interest coupons as they severally fall due. Both principal and interest of this bond are payable at the Bankers Trust Company, in New York City, or at the office of the State Treasurer, in Raleigh, at the option of the holder thereof, solely out of a special fund, known as the Athletic Stadium Fund, created by a resolution adopted by the Board of Trustees of the University of North Carolina on July 10, 1933, and derived exclusively from athletic receipts; and the said bonds are not a debt of the State of North Carolina or of the University of North Carolina, and neither the State nor the University is liable thereon, except that the University agrees to pay certain athletic receipts into said special fund, as provided in said resolution, and to apply the moneys in said fund to the payment of said principal and interest.
This bond is one of an issue of not exceeding forty bonds of like date and tenor, except as to maturity, numbered from 1 to 40, inclusive, issued pursuant to an act of the General Assembly of Notth Carolina entitled "An Act to Authorize the Trustees of the University of North Carolina to Construct and Finance an Athletic Stadium for North Carolina State College out of funds other than General