399

373

Dormitory System Revenue Bonds of 1963, Series B", dated November 1, 1963, totaling $305,000 in principal amount and scheduled to mature from November 1, 1963, through November 1, 1970, in the same annual amounts of principal as the next mentioned Bonds for all of the then outstanding "University of North Carolina Dormitory System Revenue Bonds of 1960, Series A" dated November 1, 1960, not held by the Government.

(o) The attached Terms and Conditions (GFA-520 4/63) constituting a part of the subject Loan Agreement are amended, modified and revised as follows:

(1) Section 5. Title Evidence is revised to read: "The Borrower shall furnish the Government satisfactory evidence of its ownership of all the dormitory system facilities and the sites thereof."

(2) Section 11. Prerequisites to Loan Disbursements Sub-Section (c) is revised to read: "Prior to disbursing any portion of ihe loan proceeds, the Borrower shall present satisfactory evidence to the Government that it is able to provide the Project site and the sites of the other facilities of the Dormitory System to be established pursuant to the Loan Agreement free from all encumbrances.

(3) Section 12. Construction Account. The last paragraph is revised to read: "Any moneys remaining in the Construction Account on Project CH-NC-73 (D) after all of the costs of the Project have been paid shall be used to the extent possible for the redemption of the "University of North Carolina Dormitory System Revenue Bonds of 1962, Series F", and any residue shall be deposited in the "Dormitory System Bond and Interest Sinking Fund Account of 1963", provided for in the Loan Agreement."

(4) Section 33. Sub-section (b) Boiler Insurance is revised to read: "Immediately upon the acceptance of Project from the contractor, or immediately upon the occupancy of any portion of the facilities of the Dormitory System to be established pursuant to the Loan Agreement, whichever occurs first, the Borrower shall, if such insurance is not already in force, procure and maintain, so long as any of the Bonds are outstanding, Boiler Insurance covering any steam boilers servicing the System in a minimum amount of $50,000."

(5) Section 33. Sub-section (a) The third paragraph is deleted and the following inserted in lieu thereof: "In the event of any damage to or destruction of any said building or buildings, the Borrower shall promptly arrange for the application of the insurance proceeds for the repair and reconstruction of the damaged or destroyed portion thereof, whenever the loss of revenues from such damaged or destroyed building would reduce the revenues and income pledged as security for the Bonds below one and thirty-five hundredths (1.35) times the average annual requirements for principal of and interest on all bonds then outstanding and payable from the net revenues of the Dormitory System and any other revenues pledged as security. The Borrower shall have the right in all other circumstances involving the damage or destruction of any said building to utilize the insurance proceeds for the retirement of outstanding Bonds in lieu of repairing or reconstructing the damaged or destroyed building."

(6) Sub-section (c) Liability Insurance is revised to read: "To the extent permitted by law, immediately upon the receipt of any funds acquired pursuant to the Loan Agreement, or immediately upon the occupance of any portion of the Project or of any portion of the facilities of the Dormitory System to be established pursuant to the Loan Agreement, whichever occurs first, the Borrower shall, if such insurance is not already in force, procure and maintain, so long as any of the Bonds are outstanding, Public Liability Insurance with limits of not less than $100,000 for one person and $300,000 for more than one person involved in one accident to protect the Borrower from claims for bodily injury and/or death which may arise from the Borrower's operations, including any use or occupancy of its grounds, structures and vehicles, to the extent permitted by law."