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$1,942,000 bonds designated "University of North Carolina Student Apartment Revenue Bonds of 1962, Series B"" (herein called the "Series B bonds"), numbered 1 to 1,942, inclusive, and maturing in annual instalments in the years 1963 to 1998, inclusive, issued for the combined purpose of refunding University of North Carolina Student Apartments Revenue Bond, Series 1958, No. T-1 (hereinafter called the "1958 bond"), outstanding in the principal amount of $1,942,000, and, with other available funds, paying the cost of thirteen new apartment buildings, with appurtenant facilities, to house approximately 84 married student families (hereinafter collectively called the "Project"), at the University of North Carolina (hereinafter called the "University"), in Chapel Hill, North Carolina.

All of the bonds are issued under and pursuant to a resolution duly adopted by the Board on February 26, 1962, as amended (said resolution of the Board with all resolutions amendatory thereof or supplemental thereto as therein permitted being herein collectively called the "Resolution"). Reference is made to the Resolution for the provisions, among others, with respect to the custody and application of the proceeds of the bonds, the collection and dispostion of revenues, the fund charged with and pledged to the payment of the interest on and the principal of the bonds, the nature and extent of the security, the rights, duties and obligations of the Board and the rights of the holders of the bonds, and, by the acceptance of this bond, the holder hereof assents to all of the provisions of the Resolution.

This bond is issued and the Resolution was adopted under and pursuant to the Constitution and laws of the State of North Carolina, including Sections 116-175 to 116-185 of the General Statutes of North Carolina. The Resolution provides for fixing, charging and collecting rentals and other charges for the facilities furnished by or for the right to use the facilities of the Project and the thirty-four apartment buildings, with appurtenant facilities (hereinafter collectively called the "1958 Facilities"), at the University for which the 1958 bond was issued, or for the right to receive any such services, which will be sufficient, with any other available funds, to pay the cost of maintaining, repairing and operating the Project and the 1958 Facilities, including reserves for such purposes, and to pay the principal of and the interest on the bonds as the same shall become due and to provide reserves therefor. The Resolution provides for the creation of a special fund designated "University of North Carolina Student Apartment Revenue Bonds of 1962 Bond and Interest Sinking Fund Account" (hereinafter called the "Sinking Fund") and for the deposit to the credit of said