RESOLUTION TO REFINANCE CAPITAL LEASES



Objective: To refinance up to $5.1 million, more or less, in

capital leases at terms that are favorable to the University.



Whereas, the University has several capital leases outstanding

with the following vendors: :



International Business Machines in the amount of $2,269,179

more or less, maturing in 1996 and bearing interest at rates

from 8.29% to 11.0%.



AT & T in the amount of $2,203,224 more or less, maturing in

1999 and bearing interest at the rate of 6.78%.



P. C. Paradise in the amount of $633,282 more or less,

maturing in 1999 at the rate of 9.0%.



Whereas, these capital leases can be refinanced under terms that

are more favorable to the University and at a substantial savings

in interest costs;



Whereas the Finance Committee of the Board of Trustees considered

and approved a recommendation of the Administrations to refinance

these capital leases.



NOW THEREFORE BE IT RESOLVED THAT:



1. The President and Vice President for Business and Financial

Affairs are hereby authorized to negotiate and execute a loan

agreement with a local bank in the amount of $5.1 million, more

or less, for the purpose of refinancing capital leases for which

more favorable terms and interest rates can be obtained.



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

University of the Virgin Islands adopted at its meeting on

Saturday, October 1, 1994, as recorded in the minutes of said



~meeting.



Secretary of the Board