500

471

The definitive coupon Series E bonds maturing November 1, 1996 to November 1, 2000, inclusive, may be redeemed on any interest payment date prior to their respective maturities, at the option of the Board, from any moneys that may be made available for such purpose, either in whole or in part in the inverse order of their numbers, at the principal amount of the bonds to be redeemed, together with the interest accrued thereon to the date fixed for redemption, without the payment of any redemption premium. Subject to the prior redemption of such bonds, the definitive coupon Series E bonds maturing November 1, 1992 to November 1, 1995, inclusive, may be redeemed prior to their respective maturities, at the option of the Board, from any moneys that may be made available for such purpose, either in whole or in part in the inverse order of their numbers, on any interest payment date after November 1, 1970 at the principal amount of the bonds to be redeemed, together with the interest accrued thereon to the date fixed for redemption, plus a premium of 3% of such principal amount if redeemed on or prior to November 1, 1975, 2 1/2% if redeemed thereafter and on or prior to November 1, 1980, 2% if redeemed thereafter and on or prior to November 1, 1985, 1 1/2% if redeemed thereafter and on or prior to November 1, 1990, and 1% if redeemed thereafter.

Notwithstanding any of the foregoing provisions, if the United States of America or any agency thereof holds any of said bonds, all such bonds so held may be redeemed in the inverse order of their numbers on any interest payment date prior to their respective maturities and without the payment of any redemption premium.

Any temporary bond or bonds without coupons shall be subject to redemption as provided above for the definitive coupon bonds of corresponding series and maturities, except that any redemption in part shall be in the inverse order of the maturity dates of the instalments of principal of such temporary bond or bonds without coupons.

The moneys in the Dormitory System Bond and Interest Sinking Fund Account of 1963 available for the purchase or redemption of bonds outstanding under said resolution of February 24, 1964 shall be applied in the order and manner provided in said resolution.

The interest on said bonds is exempt from all present Federal income taxes and the statute under which said bonds have been authorized expressly provides that the bonds issued under said statute and the income therefrom shall at all times be free from taxation within the State of North Carolina.

Bids will be received and considered for all or any part of said $1,647,000 Series A bonds, said $533,000 Series C bonds, said $1,000,000 Series D bonds and said $1,000,000 Series E bonds, and bids shall be accorded preference on the basis of the largest consecutive number of bonds bid for. No bid shall include, as to any calendar year, less than all of the bonds of a series maturing in such calendar year. Any premium offered will be considered only if two or more bidders offer to purchase the same number of bonds. For the purpose of determining the lowest bidder as between two or more bidders offering to purchase the same number of bonds calculations of net interest cost will exclude the bid of the Housing and Home Finance Agency.

The United States of America, through the Housing and Home Finance Administrator, has entered into a loan agreement with the Board of Trustees of the University of North Carolina, acting for and on behalf of The University of North Carolina at Chapel Hill, pursuant to which the United States of America has agreed to buy, at par and accrued interest, all or any part of said $1,647, 000 Series A bonds bearing interest at 2 3/4% per annum, all or any part of said $533,000 Series C bonds bearing interest at 3 1/2% per annum, all or any part of said $1,000,000 Series D bonds bearing interest at 3% per annum, and all or any part of said $1,000,000 Series E bonds bearing interest at 2 7/8% per annum, providing no other equally favorable bid or bids are submitted.

Each bid, except any bid of the United States of America or the State of North Carolina or any agency thereof, must be accompanied by a certified or bank cashier's or treasurer's check upon an incorporated