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fraternity discontinued operation at UNC; (9) submission of plans for improvements to the Buildings and Grounds Committee of the University and the University Trustees, and compliance with the Building Regulations of the Town of Chapel Hill and the Town Planning Board. Also, that the improvements would contain quarters for a housemother; (10) the maintenance of the property and improvements according to University standards; (11) the observance by the lessee of rules pertaining to fraternity government stipulated by the University; (12) termination of the lease after notice of default for 30 days; and,

WHEREAS, Alphi Pi of ZBT applied to several lending agencies for a first mortgage loan and has not been successful in obtaining a loan because it holds a leasehold which is subject to cancellation upon failure of the fraternity to comply with the terms of the lease, and because of the other restrictions contained in the lease which would limit the market ability of the property in case of default in the payment of the mortgage indebtedness; and

WHEREAS, after several conferences attended by representatives of the lessee, the University, the Department of Administration, and a lending agency, the conclusion has been reached that the Lease and Agreement entered into between the State of North Carolina and Alpha Pi of ZBT Foundation, Inc. , should be cancelled and a new approach made to the problem which will make it possible for fraternities using the said area to secure financing;

NOW, THEREFORE, BE IT RESOLVED that the following procedure, which has been approved by the University Administration and the University Committee on the Use and Disposition of Real Property, is approved and the University administration is authorized to request the Department of Administration to dispose of the said lots to fraternities accordingly:

1. The State will convey the proposed building lot to the fraternity house corporation in fee simple.
2. The fraternity house corporation will give a mortgage on the property and improvements located thereon.
3. The fraternity house corporation will reconvey the property and improvements located thereon to the State subject to the mortgage.
4. The State will lease the property and improvements to the fraternity house corporation on terms agreeable to the State and the house corporation.
5. The fraternity house corporation may (if additional financing is needed) secure a second mortgage on the leasehold subject to the prior incumbrances, restrictions, and agreements affecting the leasehold of the lessee.

On motion of Mr. Hill, seconded by Mr. Umstead the foregoing resolution was adopted by unanimous vote.

Authorization to purchase property for the Woman's College

The following resolution was unanimously adopted:

WHEREAS, certain pieces of real estate in Greensboro located at 1101 Spring Garden Street and 210 Mclver Street have been offered for sale to the College; and

WHEREAS, both of the aforesaid properties are adjacent to the Woman's College campus and have been identified as needed for the long range campus development; and