183



RESOLUTION



ESTABLISHMENT OF A FUND FOR PLANT RENEWALS AND REPLACEMENTS



(Board of Trustees Meeting, October 21, 1984)



WHEREAS, it is the recommended practice to fund routine

and recurring repairs to buildings from regular operating funds;

and to finance extraordinary repairs, replacements and renewals

from a special fund established for this purpose;



WHEREAS, the College of the Virgin Islands has had no

established fund for plant renewals and replacements and has been

relying on annual capital appropriations from the Virgin Islands

Government to fund these initiatives;



WHEREAS, the long-term viability of the institution is

being threatened by our failure to receive capital appropriations

for the past three years to carry out extraordinary repairs and

rehabilitation to existing facilities;



WHEREAS, debt service reserves intended for the repayment

of outstanding bond obligations have accumulated a pool of interest

income; and



WHEREAS, it is a requirement of our bond indentures that

the College keep mortgaged facilities in good repair;



NOW, THEREFORE, BE IT RESOLVED that current and future

interest earned on debt service reserves be set aside in a fund

for plant renewals and replacements; that the College seek other

sources of funds to be added to this fund; that the President and

Vice-President for Business and Financial Affairs be authorized to

use these funds for extraordinary repairs to existing facilities



and for other plant renewals and replacements.

Page two



CERTIFICATION



The undersigned does hereby certify that the foregoing

is a true and exact copy of a resolution of the Board of Trustees



of the College of the Virgin Islands adopted at its meeting on



Ze Leber as ,1984, as recorded in the minutes of



said meeting.



DATED: £22 Dcf ZY 4 ¢

Secretary of the Board