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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, inclusive, 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, or for the right to receive any services therefrom, which will be sufficient, with any other available funds, to pay the cost of maintaining, repairing and operating the Project, including reserves for such purposes, and to pay, when added to certain increased rentals from other dormitory buildings at the College to the extent provided in the Resolution, the principal of and the interest on the bonds as the same shall become due and payable and to provide reserves therefor. The Resolution provides for the creation of a special fund designated "North Carolina State College Dormitory Revenue Bond and Interest Sinking Fund Account of 1961" and for the deposit to the credit of said special fund of a sufficient amount of the revenues of the Project, over and above the cost of such maintenance, repair and operation thereof, and of said certain increased rentals from said other dormitory buildings (such rentals being subject as to each of said other dormitory buildings to the prior payment of the expenses of maintenance, repair and operation thereof to the extent provided in the Resolution) to pay the principal of and the interest on the bonds then outstanding as the same shall become due and to provide a reserve for such purpose, and said special fund is pledged to and charged with the payment of such principal and interest.

Definitive coupon bonds numbered 1,571 to 2,000, inclusive, maturing September 1, 1997 to September 1, 2001, inclusive, maybe 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, definitive coupon bonds numbered 237 to 1,570, inclusive, maturing September 1, 1972