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first mortgage would be secured by a mortgage on the fee interest and any second mortgage would be secured by a mortgage on the leasehold interest of the fraternity house corporation;

NOW, THEREFORE, BE IT RESOLVED that the said resolution adopted by the Executive Committee on November 12, 1962, be retained as the general procedure to be followed in such cases unless specifically amended by the Executive Committee of the Board of Trustees to meet the fact situations and problems which arise in specific cases, and that in the particular case of the Alpha Pi of ZBT Foundation, Inc. , the said procedure be amended and changed to follow the procedure stated below:

PROCEDURE

1. The State will convey the proposed building lot to the Fraternity House Corporation in fee simple, provided the steps hereinafter listed are agreed to in advance by all interested parties:

a. The Fraternity House Corporation will record a mortgage for a construction loan not to exceed $120,000.

b. The Fraternity House Corporation will record a permanent first mortgage lien (deed of Trust) not to exceed $75,000 for a period not to exceed 25 years, provided funds are not paid except toward the satisfaction of the construction loan and at the completion of the construction.

c. The Fraternity House Corporation will record a second mortgage to NPRF Corporation not to exceed $45,000 for a period not to exceed ten years, provided funds are not paid except toward the satisfaction of the construction loan and at the completion of the construction. Provided, however, the NPEF Corporation shall execute and deliver to the State of North Carolina a binding document giving the State the option to take possession and title to the property upon payment to the parties legally entitled thereto of an amount of money in excess of the balance of the first mortgage but not more than the fair market value of the property and improvements, which shall be determined as provided for in paragraphs 10 and 11 of the proposed lease between the State of North Carolina and the Fraternity House Corporation.

2. The Fraternity House Corporation will reconvey the property and improvements thereon to the State, subject to the mortgages referred to in a, b and c above.

3. The State will lease the property and improvements to the Fraternity House Corporation on terms agreeable to the State and the Fraternity House Corporation.

Mr. Hill moved that the above resolution be adopted. The motion was duly seconded and the resolution was unanimously adopted.

Gift to the University by Mr. Hill

President Friday stated that on December 27, 1962, Mr. and Mrs. George Watts Hill delivered to the University a deed for an undivided one-sixth interest in Quail Roost Farm as a gift to the University at Chapel Hill. Quail Roost Farm consists of three tracts which jointly comprise 92.41 acres. Located thereon are the Quail Roost House with its swimming pool, pool house, barn, well-house and pump, 140, 000 gallon water tank and fire protection system, two servants' houses, greenhouse and gardener's cottage.