428

402

to Five Hundred Twenty Thousand Dollars ($520,000). In the event any bonds are issued under Section 211 of Article II of this Resolution, the maximum amount to be accumulated in the Dormitory System Repair and Replacement Reserve Account of 1963 shall be in the same proportion to the total value of the Dormitory System including the Additional Facilities financed in whole or in part from the proceeds of such bonds as the sum of $520,000 bears to the total value of the Dormitory System exclusing such Additional Facilities, which value is conclusively presumed to be $13,600,000, and beginning with the fiscal year immediately following the fiscal year in which the debt service reserve requirement of any amount sufficient to meet the Principal and Interest Requirements for the next succeeding two (2) fiscal, years on account of all bonds outstanding under this Resolutionm including such bonds issued under said Section 211, set forth in Section 503 of this Article shall first have been met, the annual withdrawals and deposits required by this Section shall be increased in the same proportion.

Nothing herein shall prevent the Board from depositing or causing to be deposited to the credit of the Dormitory System Repair and Replacement Reserve Account of 1963 at any time Net Revenues of the Dormitory System or moneys legally available from any other source in excess of the requirements of this Section.

Section 505. Except as hereinafter provided in this Section, moneys held for the credit of the Dormitory System Repair and Replacement Reserve Account of 1963 shall be disbursed only for paying the cost of unusual or extraordinary maintenance, repairs, renewals or replacements of, to or for the buildings, equipment and furnishings of the Dormitory System not paid for as a part of the ordinary and normal current expense of operation of the Dormitory System.

If at any time the amount (including any investments) held for the credit of the Dormitory System Bond and Interest Sinking Fund Account of 1963 shall include a debt service reserve which is less than an amount sufficient to meet the Principal and Interest Requirements for the next succeeding two (2) fiscal years on account of all bonds outstanding under this Resolution, there shall be withdrawn from the Dormitory System Repair and Replacement Reserve Account of 1963 and deposited to the credit of the Dormitory System Bond and Interest Sinking Fund Account of 1963 an amount sufficient to make up such deficiency.

Section 506. After the maximum requirements for any fiscal year of Sections 503 and 504 of this Article shall have been met or provided for and the required amounts for payment of Current Expenses of the Dormitory and the Current Expenses of the Existing Dormitories shall have been reserved, the Board may use any balance remaining in the Dormitory System Revenue Fund Account of 1963 on January 1 and July 1 of each fiscal year (1) for the redemption on the next interest payment date of bonds then outstanding under this Resolution, provided that any such redemption shall be subject to the provisions of Article III hereof and not less than Five Thousand Dollars ($5,000 in aggregate principal amount of such bonds shall be redeemed at any one time, or (2) for any expenditures, including debt service, in improving or restoring any existing housing and dining facilities or providing any such additional facilities at the Chapel Hill campus, or (3) for the purchase of any movable furniture or equipment required for any portion of the Dormitory System or any Additional Facilities, or (4) for any other lawful purpose.

Section 507. Whenever moneys shall be held for the credit of the Dormitory System Bond and Interest Sinking Fund Account of 1963 in excess of the maximum requirement for the Dormitory System Bond and Interest Sinking Fund Account of 1963 at such time under the provisions of Section 503 of this Article, such excess shall be applied to the purchase or redemption of bonds issued under the provisions of this Resolution as follows:

(a) Subject to the provisions of paragraph (c) of this Section, the Board shall endeavor to purchase any definitive coupon bonds secured hereby and then outstanding on the most advantageous terms obtainable with reasonable diligence.