USVI Public Records

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RESOLUTION AUTHORIZING THE FINANCING OF CERTAIN INSURANCE PREMIUMS WHEREAS, The University of the Virgin Islands (the "University") is currently insured by Cigna for liability and excess insurance coverage (Policy Nos. RC026993 and RC026994, respectively) with an outstanding insurance premium due of $257,382 (the "Insurance Premium") ; WHEREAS, Hurricane Marilyn caused extensive damage in the United States Virgin Islands and to the University, resulting in significant reconstruction costs to the Government of the Virgin Islands and the University and a temporary decline in the University’s revenues and a cash shortfall; and WHEREAS, AFCO Credit Corporation ("AFCO") has agreed to lend the University $257,382 for the payment of such Insurance Premium for a term not to exceed 12 months from the date of closing of such loan at an interest rate of 5.669% per annum payable on the first day of each month commencing on November 1, 1996, all pursuant to the terms set forth in the Commercial Premium Finance Agreement dated as of October 1, 1996 by and between Theodore Tunick & Co., as Agent (the "Agent") and the University (the "Finance Agreement") ; WHEREAS, the University intends to enter into a commercial premium finance agreement in substantially, similar form as the Finance Agreement, for the financing of the University’s property and content insurance premium which insurance is currently provided by Lloyds of London (Policy and Prefix No. 2331 Binder (JJ703310)), in a principal amount not to exceed $2,500,000 fora term not to exceed twelve months from the date of closing of such loan at an interest rate not less then 4% or greater than 6% per annum payable on the first day of each month (the "Property Insurance Finance Agreement") ; WHEREAS, the Board of Trustees of the University has considered and approved the recommendation of the Administration of the University to enter into the Finance Agreement and the Property Insurance Finance Agreement ; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE UNIVERSITY THAT: fhe The President and the Vice President for Business and Financial Affairs of the University are hereby authorized to borrow the sum of $257,382 or such lesser amount, for the payment of the Insurance Premium, upon such terms and conditions as the 130273.2 012808 RES 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 October 19, T1996; as recorded in the minutes of said meeting. LL Secretary of the Board 130273.2 012808 RES