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LINE OF CREDIT INCREASE

WHEREAS, The University as part of its operating budget receives monthly payments from the Commonwealth of Pennsylvania which based upon its 2002-2003 most recent fiscal year averaged approximately one million dollars per month; and

WHEREAS, The General Assembly of the Commonwealth of Pennsylvania has not voted to approve the budget for the 2003-2004 fiscal year as of this date and it is anticipated that such approval may not occur for a matter of some months in the future; and

WHEREAS, The University has an immediate need to address the shortfall in its operational budget which has occurred through no fault or action on the part of the University and is a direct consequence of the University not receiving its monthly budget payment from the Commonwealth, recognizing that the General Assembly is not scheduled to reconvene until late September 2003; and

WHEREAS, The Board has determined that it is in the interest and advantage of the University that it pursue an increase in the Line of Credit to a maximum of Eight Million Dollars ($8,000,000) with Fulton Bank, (the “Lender”); and
 
WHEREAS, The Board of Trustees (the “Board”) of Lincoln University is familiar with the terms of a certain loan agreement by and between Fulton Bank (the “Lender”) and the University (“Loan Agreement”) and certain other agreements, documents, and instruments, including, without limitation, a certain promissory note executed in connection therewith (collectively, with the Loan Agreement, the “Loan Documents”) which evidences the existence of a Four Million Dollar Line of Credit for the University (the “Line of Credit”), as authorized by Board Resolution 020, approved by the Board of Trustees on April 17, 1999; now, therefore it is

RESOLVED, That the University is hereby authorized to borrow on an unsecured basis under the Credit Documents and all agreements, instruments and documents related thereto, and to incur liability under the terms and conditions of the Credit Documents and all agreements, instruments and documents related thereto, and that the President and Vice President of Fiscal Affairs of Lincoln University are each hereby jointly and expressly authorized and empowered to make such borrowings and incur such liabilities, as well as execute and deliver certificates under the Credit Documents on behalf of the University; and further

RESOLVED, That the amendments and modifications to the terms and conditions of the Loan Documents and such related agreements, instruments and documents as the Lender may require in connection with the increase in the Line of Credit shall be expressly approved and executed on behalf of Lincoln University by its President and Vice President of Fiscal Affairs and that upon execution thereof are hereby approved and adopted without further resolution on the part of this Board (all of the foregoing collectively with the Loan Documents, the “Credit Documents”); and further

RESOLVED, That the University be, and it hereby is, authorized and directed to enter into, deliver and perform its obligations and undertakings under each of the Credit Documents on the terms and subject to the conditions set forth therein provided however that the University shall be authorized an increase in its line of credit up to the amount of $8,000,000 until December 31, 2003 and thereafter the line of credit for the University shall revert back to the amount of $4,000,000 as established by Board Resolution 020 as approved by the Board of Trustees on April 17, 1999; and further

RESOLVED, That the form of resolutions, if any, required by the Lender to be adopted by the University in connection with the Credit Documents are hereby ratified, approved and adopted and are incorporated herein by reference as if set forth herein verbatim provided that a copy of such resolutions are attached hereto; and further

RESOLVED, That any and all actions heretofore and hereafter taken on behalf of the University in connection with the documents referred to in these resolutions and the transactions contemplated thereby are hereby ratified, confirmed and approved as the act and deed of the University.
 
 
 
 

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