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67

Lease of Lot in Fraternity Court - Chapel Hill

President Friday also asked the adoption of the following resolution
authorizing lease to the Phi Mu Fraternity:

RESOLUTION

WHEREAS, on November 12, 1962, the Executive Committee of
the Board of Trustees of the University of North Carolina adopted a
resolution providing for the disposition of certain University property
located on the Mason Farm to fraternities for housing purposes; and

WHEREAS, the University of North Carolina at Chapel Hill has
recently approved the establishment of a chapter of the Phi Mu
Fraternity, a women's social fraternity, on its campus; and

WHEREAS, the Phi Mu Fraternity has requested that the
University lease lot No. 2 of the Fraternity Court located on the
Mason Farm to the Phi Mu Fraternity for construction of a chapter
house; and

WHEREAS, the Phi Mu Fraternity has indicated that it will need
to borrow a portion of the money needed for the construction of the
said chapter house; and

WHEREAS, the various lending agencies have stated that loans
are not available on leaseholds in which there are restrictions which
affect the marketability of the title to the property; and

WHEREAS, the University, under the terms of the Mason will,
which devised the property to the University, does not wish to alienate
the said property in fee simple, but does desire to grant leases of not
more than 99 years to property approved fraternities for construction
of chapter houses; and

WHEREAS, the University and the State Department of Administra-
tion approved the following procedure for the leasing and construction
of the Zeta Beta Tau Fraternity house on Lot No. 1 of the said
fraternity court:

1. The State will convey the proposed building lot to the
Fraternity House Corporation in fee simple.

a. The Fraternity House Corporation will record
a first mortgage loan on the property, the amount of the
loan and length of time for repayment being previously
approved by the University at Chapel Hill.

b. If necessary, the Fraternity House Corporation
will record a second mortgage, not to exceed an amount
approved by the University at Chapel Hill, provided that
the second mortgagee will 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 the lease between the State of North
Carolina and the Fraternity House Corporation.

2. The Fraternity House Corporation will re-convey the
property and improvements located thereon to the State, subject
to the mortgages mentioned in 1a, and 1b, above.

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