Volume 07: May 22, 1961–September 10, 1962

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MINUTES OF MAY 22, 1961, BOARD OF TRUSTEES MEETING CONTINUED

Section 403. For the purposes of this Resolution the cost of the Project shall include, without intending thereby to limit or restrict or to extend any proper definition of such cost under any applicable laws, said Loan Agreement or this Resolution, the following:

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

(b) interest accruing upon the bonds prior to and during construction of the Project;

(c) the cost of any indemnity and surety bonds to secure deposits in the Construction Fund, the fees and expenses of any Depositary of Depositaries of the Construction Fund during construction, taxes or other municipal or governmental charges lawfully levied or assessed during construction upon the Project or any property acquired therefore, and premiums on insurance, if any, in connection with the Project during construction;

(d) 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 construction of the Project or the issuance of bonds therefor;

(e) expenses of administration properly chargeable to the Project, legal expenses and fees, financing charges, cost of audits and of preparing and issuing the bonds, and all other items of expense not elsewhere in this Section specified indident to the construction of the Project and the placing of the Project in operation; and

(f) any obligation or expense heretofore or hereafter incurred by the Board or by any other agency of the State of North Carolina for any of the foregoing purposes, including the payment of any amounts due

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the United States of America under the provisions of the Loan Agreement, dated as of December 1, 1960, by and between the Board and the United States of America hereinbefore mentioned.

Section 404. Payments from the Construction Fund shall be made in accordance with the provisions of this Section.

Before payment of any item of cost shall be made by the Board, there shall be filed with the Treasurer of the Board a requisition for such payment, signed by the Chancellor and the Business Manager of the State College, stating each amount to be paid, the name of the person, firm or corporation to whom payment is due and the purpose for which the obligation to be paid was incurred, and certifying:

(a) that obligations in the stated amounts have been incurred and are a proper charge against the Construction Fund and have not been paid;

(b) that, so far as they are aware, there has not been filed with or served upon the Board or any officer or agent thereof notice of any lien, right to lien or attachment upon, or claim affecting the right to receive payment of, any of the moneys payable to any of the persons, firms or corporations names in such requisition which has not been released or will not be released simultaneously with the payment of such obligation; and

(c) that in so far as any obligation mentioned in such requisition was incurred for work, materials, supplies or equipment in connection with the Project, such work was actually performed, or such materials, supplies or equipment was actually delivered or installed at the site of the Project for that purpose, or delivered for fabrication at a place approved by the Chancellor of State College

Section 405. The Board covenants that no part of the Project will be constructed on lands other than lands owned by the Board of the State of North Carolina in fee simple.

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Section 406. All requisitions received by the Treasurer of the Board as required in this Article shall be retained in his possession, subject at all reasonable times to the inspection of the Board, any other agency or officer of the State of North Carolina, any bondholder and the agents and representatives thereof.

Section 407. When the Project shall have been completed and equipped and placed in operation, as evidenced by a certificate signed by the Chancellor and the Business Manager of the State College and filed with the Secretary of the Board, accompanied by an opinion of the Attorney General of the State of North Carolina that there are no uncancelled mechanics', laborers', contractors' or materialmen's liens against the Project or on file in any public office where the same should be filed in order to be valid liens against the Project, and that, in the opinion of the signer, the time within which such liens can be filed has expired, any balance in the Construction Fund not deemed by the Board or the Executive Committee to be necessary to be reserved and so reserved by it for the payment of any remaining part of the cost of the Project shall forthwith be used for the purchase or redemption of bonds then outstanding under this Resolution; provided, however, that any portion of such balance remaining under $1, 000 shall be transferred to the credit of the Sinking Fund.

ARTICLE V.

Revenues and Sinking Fund.

Section 501. The Board covenants that it will at all times fix, charge and collect rentals and other charges for the facilities furnished by or for the right to use the facilities of the Project, or for the right to receive any such services, and that from time to time and as often as shall appear to be necessary it will revise such rentals and other charges, so that the Revenues of the Project will at all times be sufficient, with any other available funds, to pay the Current Expenses of the Project and provide a sum which will be sufficient to pay the principal of and the interest on the bonds as the same shall become due, to make the deposits required in each fiscal year to the credit of the Maintenance Reserve Fund hereinafter created, and to provide reserves in the Sinking Fund hereinafter created for the payment of the principal of and the interest on the bonds in conformity with the provisions of this Article.