Approval of authority to draw up to $2,500,000 from Revenue Anticipation Note.

Kentucky State University has the power and authority, by legislation, to borrow money in any fiscal year in anticipation of the receipt of current revenues in the form of a Revenue Anticipation note from Fifth Third Bank pursuant to Kentucky's Short Term Borrowing Act (KRS 65.7701, et. seq.).

The Kentucky State University Board of Regents approved a Resolution at the Special Called Board Meeting of July 8, 2021 authorizing the issuance of a revenue anticipation note (the “Note”) in the maximum amount of $5,000,000 for the purpose of paying operating expenses of Kentucky State University during its fiscal year ending June 30, 2022.

If drawn upon, Kentucky State University would need to repay the Note by June 30, 2022 and would pay Fifth Third interest at a variable interest rate per annum set forth in the Note (such interest rate to be based upon a published index or indices plus a credit spread not to exceed 10%) on the outstanding principal in addition to a fee.

Acting President Stamps recommends that the Board of Regents approve authority to draw up to $2,500,000 from Revenue Anticipation Note.

Approve authority to draw up to $2,500,000 from Revenue Anticipation Note.