Moody’s: Aaa/VMIG1

Standard & Poor’s: AAA/A-1+

(See “Ratings” herein)

NEW ISSUE $117,000,000

DORMITORY AUTHORITY
OF THE STATE OF NEW YORK
COLUMBIA UNIVERSITY
REVENUE BONDS, SERIES 2009A
Dated: Date of Delivery Due: September 1, 2039

Payment and Security: The Columbia University Revenue Bonds, Series 2009A (the “Series 2009A Bonds”) are special obligations of the
Dormitory Authority of the State of New York (the “Authority”), payable solely from, and secured by a pledge of (i) certain payments to be
made under the Loan Agreement dated as of September 27, 2000, as amended and supplemented (the “Loan Agreement”) between The
Trustees of Columbia University in the City of New York (the “University”) and the Authority, and (ii) all funds and accounts (except the
Arbitrage Rebate Fund and any fund established for the payment of the Purchase Price of Option Bonds tendered for purchase) established
under the Authority’s Columbia University Revenue Bond Resolution, adopted September 27, 2000, as amended and supplemented (the
“Resolution”), and the Columbia University Series Resolution Authorizing Series 2009A Bonds, adopted April 29, 2009 (the “Series 2009A
Resolution”).
The Loan Agreement is a general, unsecured obligation of the University and requires the University to pay, in addition to the fees and expenses of
the Authority and the Trustee, amounts sufficient to pay, when due, the principal, Sinking Fund Installments, if any, Purchase Price and Redemption
Price of and interest on all Bonds issued under the Resolution, including the Series 2009A Bonds.
The Series 2009A Bonds will not be a debt of the State of New York (the “State”) nor will the State be liable thereon. The Authority has no
taxing power.
Description: The Series 2009A Bonds will be issued as fully registered Variable Interest Rate Bonds and Option Bonds in denominations of
$100,000 or any integral multiple of $5,000 in excess thereof. For the period commencing on the date of delivery, the Series 2009A Bonds will bear
interest at the Initial Rate for the Initial Rate Period through and including the Tuesday following the date of delivery. Thereafter, the Series 2009A
Bonds will bear interest at Weekly Rates for Weekly Rate Periods until converted to another Rate Period. Each Weekly Rate will be determined on the
Business Day immediately preceding the first day of each Weekly Rate Period, payable in arrears, on the first Business Day of each calendar month,
commencing on June 1, 2009, for as long as the Series 2009A Bonds bear interest at a Weekly Rate.
The method of determining the interest rate to be borne by the Series 2009A Bonds may be changed to other Rate Modes at the times and in the
manner set forth herein. Unless otherwise set forth herein, the descriptions of the Series 2009A Bonds and the related documents included herein
generally relate only to the terms and provisions which are applicable while the Series 2009A Bonds bear interest at a Daily Rate or a Weekly Rate.
The Series 2009A Bonds will be issued initially under a Book-Entry Only System, registered in the name of Cede & Co., as nominee for The
Depository Trust Company (“DTC”). Individual purchases of beneficial interests in the Series 2009A Bonds will be made in book-entry form (without
certificates). So long as DTC or its nominee is the registered owner of the Series 2009A Bonds, payments of the principal, Purchase Price and
Redemption Price of and interest on the Series 2009A Bonds will be made directly to DTC or its nominee. Disbursement of such payments to DTC
participants is the responsibility of DTC and disbursement to beneficial owners is the responsibility of DTC participants. See “PART 3 - THE SERIES
2009A BONDS - Book-Entry Only System” herein.
Manufacturers and Traders Trust Company, Buffalo, New York, will be the Trustee and Tender Agent for the Series 2009A Bonds.
Tenders for Purchase, Redemption and Purchase in Lieu of Optional Redemption: The Series 2009A Bonds are subject to tender for
purchase, optional redemption prior to maturity and purchase in lieu of optional redemption as more fully described herein. No Liquidity Facility will be
in effect upon the issuance of the Series 2009A Bonds.
Tax Exemption: In the opinion of Bond Counsel, under existing law and assuming compliance with the tax covenants described herein, and the
accuracy of certain representations and certifications made by the Authority and the University described herein, interest on the Series 2009A Bonds is
excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”). Bond
Counsel is also of the opinion that such interest is not treated as a preference item in calculating the alternative minimum tax imposed under the Code
with respect to individuals and corporations. Bond Counsel is further of the opinion that, by virtue of the Act, interest on the Series 2009A Bonds is
exempt from personal income taxes of the State of New York and its political subdivisions. See “PART 10 - TAX MATTERS” herein regarding certain
other tax considerations.

$117,000,000 Series 2009A Bonds Due September 1, 2039, Price 100%, CUSIP (1) 649905DF0
The Series 2009A Bonds are offered when, as, and if issued and received by the Underwriter. The offer of the Series 2009A Bonds may be subject
to prior sale, or withdrawn or modified at any time without notice. The offer is subject to the approval of legality by Nixon Peabody LLP, New York,
New York, Bond Counsel, and to certain other conditions. Certain legal matters will be passed upon for the University by its General Counsel and by
Hawkins Delafield & Wood LLP, New York, New York. Certain legal matters will be passed upon for the Underwriter by its counsel, Squire, Sanders &
Dempsey L.L.P., New York, New York. The Authority expects to deliver the Series 2009A Bonds in definitive form in New York, New York, on or about
May 14, 2009.

J.P. Morgan
May 7, 2009
1 CUSIP data herein are provided by Standard & Poor’s, CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. CUSIP numbers have been assigned by an
independent company not affiliated with the Authority and are included solely for the convenience of the holders of the Series 2009A Bonds. The Authority is not responsible for
the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the Series 2009A Bonds as a result of various subsequent actions including,
but not limited to, a refunding in whole or in part of the Series 2009A Bonds.
 No dealer, broker, salesperson or other person has been authorized by the Authority, the University or the Underwriter to give any information or to
make any representations with respect to the Series 2009A Bonds, other than the information and representations contained in this Official Statement. If
given or made, any such information or representations must not be relied upon as having been authorized by the Authority, the University or the
Underwriter.
This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be a sale of the Series 2009A Bonds by
any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale.
Certain information in this Official Statement has been supplied by the University and other sources that the Authority believes are reliable. Neither the
Authority nor the Underwriter guarantee the accuracy or completeness of such information, and such information is not to be construed as a representation
of the Authority or of the Underwriter. The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has
reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as
applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.
The University has reviewed the parts of this Official Statement describing the University, the 2009A Project, the Estimated Sources and Uses of Funds
and Appendix B. It is a condition to the sale of and the delivery of the Series 2009A Bonds that the University certify to the Underwriter and the Authority
that, as of the date of this Official Statement and of delivery of the Series 2009A Bonds, such parts do not contain any untrue statements of a material fact
and do not omit to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which the statements
are made, not misleading. The University makes no representation as to the accuracy or completeness of any other information included in this Official
Statement.
References in this Official Statement to the Act, the Resolution, the Series 2009A Resolution and the Loan Agreement do not purport to be complete.
Refer to the Act, the Resolution, the Series 2009A Resolution and the Loan Agreement for full and complete details of their provisions. Copies of the
Resolution, the Series 2009A Resolution and the Loan Agreement are on file with the Authority and the Trustee.
The order and placement of material in this Official Statement, including its appendices, are not to be deemed a determination of relevance, materiality
or importance, and all material in this Official Statement, including its appendices, must be considered in its entirety.
Under no circumstances shall the delivery of this Official Statement or any sale made after its delivery create any implication that the affairs of the
Authority and the University have remained unchanged after the date of this Official Statement.
IN CONNECTION WITH THE OFFERING OF THE SERIES 2009A BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT
TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICES OF THE SERIES 2009A BONDS AT LEVELS ABOVE THOSE WHICH
MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

TABLE OF CONTENTS
Part Page Part Page
1. INTRODUCTION .................................................................................. 1 Government Grants and Contracts .................................................... 25
Purpose of the Official Statement ........................................................ 1 Private Gifts and Grants .................................................................... 26
Purpose of the Issue ............................................................................. 1 Endowment ........................................................................................ 26
Authorization of Issuance .................................................................... 1 Capital Expenditures and Budgeting................................................. 27
The Authority ....................................................................................... 1 Future Facilities ................................................................................. 27
The University...................................................................................... 2 Outstanding Indebtedness; Existing Liens ........................................ 28
The Series 2009A Bonds ..................................................................... 2 Liquidity ............................................................................................ 29
Payment of the Series 2009A Bonds ................................................... 2 Pension Plans ..................................................................................... 29
Security for the Series 2009A Bonds................................................... 2 Insurance ............................................................................................ 30
Covenants ............................................................................................. 3 LITIGATION ........................................................................................... 30
The 2009A Project ............................................................................... 3 5. THE 2009A PROJECT ........................................................................... 30
2. SOURCE OF PAYMENT AND SECURITY 6. ESTIMATED SOURCES AND USES OF FUNDS .............................. 31
FOR THE SERIES 2009A BONDS .................................................... 3 7. THE AUTHORITY ................................................................................ 31
Payment of the Series 2009A Bonds ................................................... 3 Background, Purposes and Powers ...................................................... 31
Security for the Series 2009A Bonds................................................... 4 Outstanding Indebtedness of the Authority (Other than
Covenants ............................................................................................. 5 Indebtedness Assumed by the Authority) .......................................... 32
Events of Default and Acceleration ..................................................... 5 Outstanding Indebtedness of the Agency Assumed
Issuance of Additional Bonds .............................................................. 6 by the Authority ................................................................................. 33
General ................................................................................................. 6 Governance .......................................................................................... 34
3. THE SERIES 2009A BONDS ................................................................ 6 Claims and Litigation ........................................................................... 37
General ................................................................................................. 6 Other Matters ....................................................................................... 37
Description of the Series 2009A Bonds .............................................. 7 8. LEGALITY OF THE SERIES 2009A BONDS
Certain Considerations Affecting Sales of Variable Rate Bonds........ 10 FOR INVESTMENT AND DEPOSIT ................................................ 38
Redemption and Purchase in Lieu of Redemption Provisions ............ 11 9. NEGOTIABLE INSTRUMENTS .......................................................... 38
Book-Entry Only System ..................................................................... 12 10. TAX MATTERS..................................................................................... 38
Principal and Interest Requirements .................................................... 16 Federal Income Taxes .......................................................................... 38
4. THE UNIVERSITY ................................................................................ 17 State Taxes ........................................................................................... 39
GENERAL INFORMATION .................................................................... 17 Ancillary Tax Matters .......................................................................... 39
Introduction ....................................................................................... 17 Changes in Tax Law and Post Issuance Events................................... 39
University Properties ......................................................................... 17 11. STATE NOT LIABLE ON THE SERIES 2009A BONDS ................... 39
Governance ........................................................................................ 18 12. COVENANT BY THE STATE .............................................................. 40
Administration ................................................................................... 19 13. LEGAL MATTERS ................................................................................ 40
Affiliation with New York-Presbyterian Hospital ............................ 21 14. UNDERWRITING ................................................................................. 40
Employee Relations ........................................................................... 21 15. CONTINUING DISCLOSURE.............................................................. 40
OPERATING INFORMATION................................................................. 22 16. RATINGS ............................................................................................... 40
Enrollment and Admissions .............................................................. 22 17. MISCELLANEOUS ............................................................................... 41
Tuition and Fees ................................................................................ 22 Appendix A - Definitions .............................................................................. A-1
Financial Aid ..................................................................................... 23 Appendix B - Financial Statements of Columbia University
Faculty ............................................................................................... 23 and Independent Auditors’ Report ......................................... B-1
ANNUAL FINANCIAL STATEMENT INFORMATION .............................. 24 Appendix C - Summary of Certain Provisions of the Loan Agreement ....... C-1
University Finances ........................................................................... 24 Appendix D - Summary of Certain Provisions of the Resolution ................ D-1
Patient Care Revenues and Expenses ................................................ 25 Appendix E - Form of Approving Opinion of Bond Counsel ...................... E-1
DORMITORY AUTHORITY - STATE OF NEW YORK 515 BROADWAY, ALBANY, N.Y. 12207
PAUL T. WILLIAMS, JR. – EXECUTIVE DIRECTOR GAIL H. GORDON, ESQ – CHAIR

OFFICIAL STATEMENT RELATING TO

$117,000,000
DORMITORY AUTHORITY OF THE STATE OF NEW YORK
COLUMBIA UNIVERSITY
REVENUE BONDS, SERIES 2009A

PART 1 – INTRODUCTION
Purpose of the Official Statement
The purpose of this Official Statement, including the cover page and appendices, is to provide information
about the Authority and the University, in connection with the offering by the Authority of $117,000,000 principal
amount of its Columbia University Revenue Bonds, Series 2009A (the “Series 2009A Bonds”).
The following is a brief description of certain information concerning the Series 2009A Bonds, the Authority
and the University. A more complete description of such information and additional information that may affect
decisions to invest in the Series 2009A Bonds is contained throughout this Official Statement, which should be
read in its entirety. Certain terms used in this Official Statement are defined in Appendix A hereto. Unless
otherwise set forth herein, the descriptions of the Series 2009A Bonds and the related documents included herein
generally relate only to the terms and provisions that are applicable while the Series 2009A Bonds bear interest at a
Daily Rate or a Weekly Rate.

Purpose of the Issue

The Series 2009A Bonds are being issued (i) to pay the Costs of the 2009A Project, and (ii) to pay certain
Costs of Issuance of the Series 2009A Bonds. See “PART 5 - THE 2009A PROJECT,” and “PART 6 -
ESTIMATED SOURCES AND USES OF FUNDS.”

Authorization of Issuance
The Series 2009A Bonds will be issued pursuant to the Resolution, the Series 2009A Resolution and the Act.
In addition to the Series 2009A Bonds, the Resolution authorizes the issuance of additional Series of Bonds to pay
costs of one or more projects, to pay the Costs of Issuance of such Series of Bonds and to refund all or a portion of
Outstanding Bonds or other notes or bonds of the Authority issued for the benefit of the University. The Bonds
permitted to be issued under the Resolution include Capital Appreciation Bonds, Deferred Income Bonds, Option
Bonds and Variable Interest Rate Bonds. All Bonds issued under the Resolution rank on a parity with each other
and are secured equally and ratably with each other.

The Authority
The Authority is a public benefit corporation of the State, created for the purpose of financing and constructing
a variety of public-purpose facilities for certain educational, governmental and not-for-profit institutions. See
“PART 7 – THE AUTHORITY.”
The University
The University is a private, non-sectarian, non-profit institution of higher education chartered by the State
Legislature. The University has two campuses in New York City; its main campus in Morningside Heights and its
Health Sciences campus in Washington Heights. See “PART 4 - THE UNIVERSITY” and “Appendix B -
Financial Statements of Columbia University and Independent Auditors’ Report.”

The Series 2009A Bonds

The Series 2009A Bonds will be dated the date of delivery, will mature on September 1, 2039, will bear interest
from such date at the Initial Rate for the Initial Rate Period ending on the Tuesday following the date of delivery
and thereafter will bear interest in the Weekly Rate Mode until converted to another Rate Mode. The Weekly Rate
will be determined on the Business Day preceding the beginning of each Weekly Rate Period and will be paid on
the first Business Day of each month. At the election of the Authority with the consent of the University, the Series
2009A Bonds, or a portion thereof, may be converted to bear interest in another Rate Mode, including the Fixed
Rate Mode, determined and payable as described in the Bond Series Certificate. See “PART 3 - THE SERIES 2009
BONDS - Description of the Series 2009A Bonds.”
The Series 2009A Bonds are subject to tender for purchase at the option of the Holders on any Business Day
during a Weekly Rate Period, and mandatorily upon conversion to another Rate Mode (other than to a Daily Rate
Mode or from a Daily Rate Mode to a Weekly Rate Mode) or upon the expiration or termination of any Liquidity
Facility then in effect, in each case at a Purchase Price equal to the principal amount of the Series 2009A Bonds to
be purchased, plus, except as described herein, accrued interest, if any, to the Purchase Date. Such purchases are
payable from proceeds of the remarketing of the Series 2009A Bonds, from moneys obtained under a Liquidity
Facility, if any, then in effect for the Series 2009A Bonds and from moneys furnished by or on behalf of the
University in accordance with the Resolution and Loan Agreement. There will be no Liquidity Facility in effect
upon the issuance of the Series 2009A Bonds. However, the University may provide a Liquidity Facility at any
time. (See “PART 2 - SOURCE OF PAYMENT AND SECURITY FOR THE SERIES 2009 BONDS – Payment of
the Series 2009A Bonds - Liquidity Facility”). J.P. Morgan Securities Inc. has been appointed as the Remarketing
Agent for the Series 2009A Bonds.
For a more complete description of the Series 2009A Bonds, the determination of interest rates, conversion to
another Rate Mode and optional and mandatory tenders, see “PART 3 - THE SERIES 2009 BONDS - Description
of the Series 2009A Bonds.”

Payment of the Series 2009A Bonds

The Series 2009A Bonds and all other Bonds issued under the Resolution are special obligations of the
Authority payable solely from the Revenues which consist of certain payments to be made by the University under
the Loan Agreement, which payments are pledged and assigned to the Trustee. The Loan Agreement is a general,
unsecured obligation of the University. See “PART 2 - SOURCE OF PAYMENT AND SECURITY FOR THE
SERIES 2009A BONDS - Payment of the Series 2009A Bonds.”

Security for the Series 2009A Bonds

The Series 2009A Bonds are secured equally with all other Bonds which have been and may be issued under the
Resolution by the pledge of the Revenues, the proceeds of the Bonds and, except as otherwise provided in the
Resolution, all funds and accounts established by the Resolution and any Series Resolution other than the Arbitrage
Rebate Fund and any fund established for the payment of the Purchase Price of Option Bonds tendered for
purchase.
The Loan Agreement is a general, unsecured obligation of the University. No security interest in any revenues
or assets of the University has been granted by the University to the Authority under the Loan Agreement.
However, the University has granted security interests in certain revenues and assets of the University to secure
certain of the University’s outstanding indebtedness other than the Bonds. In addition, pursuant to the Loan
Agreement, the University may incur Debts secured by a lien and pledge of revenues of the University without
granting to the Authority any security interest in any revenues to secure the University’s obligations under the Loan
Agreement. See “PART 2 - SOURCE OF PAYMENT AND SECURITY FOR THE SERIES 2009A BONDS -
Security for the Series 2009A Bonds” and “ - Issuance of Additional Bonds” and “PART 4 - THE UNIVERSITY -
ANNUAL FINANCIAL STATEMENT INFORMATION - Outstanding Indebtedness; Existing Liens.”

2
 The Series 2009A Bonds will not be a debt of the State nor will the State be liable thereon. The Authority has
no taxing power. Neither the State nor the Authority has any responsibility to make payments with respect to the
Series 2009A Bonds except for the Authority’s responsibility to make payments from moneys received from the
University pursuant to the Loan Agreement and from amounts held in the funds and accounts under the Resolution
and pledged therefor.

Covenants
The Loan Agreement presently contains certain financial covenants relating to the maintenance of a certain
ratio of the University’s Available Assets to its General Liabilities and to the amount of unencumbered and
unrestricted assets required to be available on certain dates which are described in detail in “Appendix C - Summary
of Certain Provisions of the Loan Agreement.” However, the Authority and the University expect to enter into an
Amended and Restated Loan Agreement which will contain certain amendments to the Loan Agreement that, when
and if they become effective, would eliminate the requirement that the University maintain a certain ratio of
Available Assets to General Liabilities, eliminate the covenant that requires the University to maintain securities in
connection with its outstanding Short-Term Debt, modify a covenant relating to the engagement of a Management
Consultant under certain circumstances and remove the covenants restricting the University’s rights to encumber its
assets to secure indebtedness. Other miscellaneous amendments to the Loan Agreement will also be made. In order
for the amendments to the Loan Agreement contained in the Amended and Restated Loan Agreement to become
effective, the consent of the holders of a majority in principal amount of Outstanding Bonds must be obtained. The
Underwriter will consent to the Amended and Restated Loan Agreement on behalf the holders of the Series 2009A
Bonds, as permitted by the Resolution and the Authority intends to seek consents from the holders of other Bonds as
hereinafter described. Since the Series 2009A Bonds do not constitute a majority of the Outstanding Bonds, the
amendments contained in the Amended and Restated Loan Agreement will not become immediately effective.
Although it is not possible to predict when the consent of the majority of holders will be obtained, prospective
purchasers should assume that such amendments will become effective during the term of the Series 2009A Bonds.
For a discussion of the proposed amendments to the Loan Agreement and the conditions to their becoming effective,
see “PART 2 - SOURCE OF PAYMENT AND SECURITY FOR THE SERIES 2009A BONDS - Covenants -
Proposed Amendments” and “Appendix C - Summary of Certain Provisions of the Loan Agreement.”

The 2009A Project

A portion of the proceeds from the Series 2009A Bonds will be used to finance various construction and
renovation projects throughout the Columbia University system. See “PART 5 - THE 2009A PROJECT” for a
description of the most significant components of the 2009A Project.

PART 2 – SOURCE OF PAYMENT AND SECURITY FOR THE SERIES 2009A BONDS
Set forth below is a narrative description of certain contractual provisions relating to the source of payment of
and security for the Series 2009A Bonds. These provisions have been summarized and this description does not
purport to be complete. Reference should be made to the Act, the Loan Agreement, the Resolution, the Series
2009A Resolution and the Series 2009A Bond Series Certificate. Copies of the Loan Agreement, the Resolution, the
Series 2009A Resolution and the Series 2009A Bond Series Certificate are on file with the Authority and the
Trustee. See also “Appendix C - Summary of Certain Provisions of the Loan Agreement” and “Appendix D -
Summary of Certain Provisions of the Resolution” for a more complete statement of the rights, duties and
obligations of the parties thereto.

Payment of the Series 2009A Bonds

General
The Series 2009A Bonds and all other Bonds which have been and may be issued under the Resolution will be
special obligations of the Authority. The principal, Sinking Fund Installments, if any, and Redemption Price of and
interest on the Series 2009A Bonds and all other Bonds which may be issued under the Resolution are payable
solely from the Revenues, which consist of payments to be made by the University pursuant to the Loan Agreement
on account of the principal, Sinking Fund Installments, if any, and Redemption Price of and interest on the Bonds.
The Revenues and the right to receive them have been pledged to the Trustee for the benefit of the Bondholders.
The Purchase Price of the Series 2009A Bonds is payable solely from (i) proceeds of remarketing of the Series

3
2009A Bonds, (ii) moneys obtained under the Liquidity Facility for Series 2009A Bonds, if any, then in effect and
(iii) payments to be made by the University pursuant to the Loan Agreement on account of the Purchase Price of the
Series 2009A Bonds. There will be no Liquidity Facility in effect upon the issuance of the Series 2009A Bonds.
The Loan Agreement is a general, unsecured obligation of the University. The Loan Agreement obligates the
University to make payments to satisfy the principal, Purchase Price and Redemption Price of and interest on
Outstanding Series 2009A Bonds. Payments made by the University in respect of interest on the Series 2009A
Bonds are to be made three days prior to the first Business Day of each month in an amount equal to the interest
coming due on the next succeeding interest payment date. Payments by the University in respect of principal of the
Series 2009A Bonds are to be made on the 10th day of each August immediately preceding the September 1 on
which such principal becomes due. The Loan Agreement also obligates the University to pay, at least 15 days prior
to a redemption date or purchase date of Bonds called for redemption or contracted to be purchased in lieu of
redemption, the amount, if any, required to pay the purchase price or Redemption Price of such Bonds. See “PART
3 - THE SERIES 2009A BONDS - Redemption and Purchase in Lieu of Redemption Provisions.”
The Authority has directed, and the University has agreed, to make such payments directly to the Trustee. Such
payments are to be applied by the Trustee to the payment of the principal and Redemption Price of and interest on
the Series 2009A Bonds.
The Loan Agreement also requires the University to pay the Purchase Price of Tendered Bonds that have not
been remarketed and for the payment of which moneys have not been received from any Liquidity Facility then in
effect. The University is to make payment by 1:45 p.m., New York City time, on the Optional Tender Date or
Mandatory Tender Date (each a “Tender Date”) if notice is given to it by 11:15 a.m., New York City time, on the
Tender Date, and by 2:30 p.m., New York City time, on the Tender Date if notice is given to it after 11:15 a.m. but
by 1:15 p.m., New York City time, on the Tender Date. If notice is given to it after 1:15 p.m., New York City time,
on the Tender Date, the University is not obligated to make payment until 10:00 a.m. on the following Business
Day. Payments made by the University or a Liquidity Facility for payment of the Purchase Price of Tendered
Bonds, as well as the Remarketing Proceeds of Tendered Bonds, are to be made to the Tender Agent and deposited
in the Purchase Account. The Purchase Account, all moneys therein and investments thereof are held in trust for,
and irrevocably pledged to, the Holders of Tendered Bonds for payment of the Purchase Price of Tendered Bonds.
Liquidity Facility
There will be no Liquidity Facility in effect upon issuance of the Series 2009A Bonds. However, during any
Rate Period, the University may, in its discretion, provide a Liquidity Facility. The Series 2009A Bonds will be
subject to mandatory tender on the effective date of such Liquidity Facility upon 15 days notice to Bondholders.

Security for the Series 2009A Bonds

The Series 2009A Bonds are secured equally with all other Bonds which have been and may be issued under the
Resolution by the pledge of the Revenues, the proceeds of the Bonds and, except as otherwise provided in the
Resolution, all funds and accounts established by the Resolution and any Series Resolution other than the Arbitrage
Rebate Fund and any fund established for the payment of the Purchase Price of Option Bonds tendered for
purchase.
The Series 2009A Bonds will not be a debt of the State nor will the State be liable thereon. The Authority has
no taxing power. Neither the State nor the Authority has any responsibility to make payments with respect to the
Series 2009A Bonds except for the Authority’s responsibility to make payments from moneys received from the
University pursuant to the Loan Agreement and from amounts held in the funds and accounts under the Resolution
and pledged therefor.
The Loan Agreement and the obligation of the University to make payments under the Loan Agreement are
general, unsecured obligations of the University. The obligations of the University to make payments or cause the
same to be made under the Loan Agreement are complete and unconditional and the amount, manner and time of
making such payments are not to be decreased, abated, postponed or delayed for any cause or by reason of the
happening or non-happening of any event, irrespective of any defense or any right of set-off, recoupment or
counterclaim which the University may otherwise have against the Authority, the Trustee or any Bondholder for any
cause whatsoever.
No security interest in any revenues or assets of the University has been granted by the University to the
Authority under the Loan Agreement. However, the University has granted security interests in certain revenues

4
and assets of the University to secure certain of the University’s outstanding indebtedness other than the Bonds.
See “PART 4 - THE UNIVERSITY - ANNUAL FINANCIAL STATEMENT INFORMATION - Outstanding
Indebtedness; Existing Liens,” for a description of such indebtedness of the University secured by certain pledged
revenues. In addition, pursuant to the Loan Agreement, the University may incur certain Debts secured by a lien
and pledge of revenues of the University without granting to the Authority any security interest in any revenues to
secure the University’s obligations under the Loan Agreement. See “ - Covenants - Limitations on Liens” below. In
the event of a default under any debt instrument secured by such pledged revenues, the holder or trustee under such
debt instrument (including the Authority) will have the right to collect a portion or all of such pledged revenues, and
apply the revenues so collected to the payment of amounts due under such debt instrument. Any revenues so
collected and applied will not be available for satisfying any of the University’s obligations under the Loan
Agreement.

Covenants
Existing Covenants
The University has made in the Loan Agreement, as in effect on the date of this Official Statement, certain
covenants regarding maintenance of the ratio of its Available Assets to its General Liabilities and maintenance of its
assets, as described in “Appendix C - Summary of Certain Provisions of the Loan Agreement.” Failure by the
University to comply with any of these covenants will not constitute an event of default under the Loan Agreement
or the Resolution if the University complies with the provisions relating to a Management Consultant or provides
security for the University’s obligation under the Loan Agreement or a Liquidity Facility and/or a Credit Facility as
provided in the Loan Agreement. The University has also covenanted in the Loan Agreement that, except to the
extent permitted under the Loan Agreement, it will not encumber its assets to secure indebtedness, as more fully
described in “Appendix C - Summary of Certain Provisions of the Loan Agreement.” Failure by the University to
comply with this covenant will constitute an event of default under the Loan Agreement and the Resolution.
Proposed Amendments
The Authority and the University expect to enter into an Amended and Restated Loan Agreement that would (i)
eliminate the covenant that requires the University to maintain the ratio of Available Assets to General Liabilities
(ii) eliminate the covenant that requires the University to maintain securities in connection with its outstanding
Short Term Debt, (iii) eliminate the covenant that restricts the University’s ability to encumber any of its assets to
secure Debt, and (iv) modify the circumstances under which the University would be required to retain a
Management Consultant. The Amended and Restated Loan Agreement would make certain other changes in the
Loan Agreement. For a more detailed description of the changes proposed to be made by the Amended and Restated
Loan Agreement, see “Appendix C - Summary of Certain Provisions of the Loan Agreement.”
In order for the amendments to the Loan Agreement contained in the Amended and Restated Loan Agreement to
become effective, the consent of the holders of a majority in principal amount of Outstanding Bonds must be
obtained. The Authority intends to seek the consent of the holders of all other Outstanding Bonds. The Authority
expects that, simultaneously with the issuance of the Series 2009A Bonds, the Underwriter will consent to the
Amended and Restated Loan Agreement on behalf the holders of the Series 2009A Bonds, as permitted by the
Resolution and that similar consents will be sought with respect to future Bond issuances. Since the Series 2009A
Bonds, together with prior Series of Outstanding Bonds the holders of which have so consented, do not constitute a
majority of the Outstanding Bonds, the amendments contained in the Amended and Restated Loan Agreement will
not become effective until the requisite consents of the holders a majority in principal amount of Outstanding Bonds
are received. Although it is not possible to predict when the consent of the majority of holders will be obtained,
prospective purchasers of the Series 2009A Bonds should assume that the financial covenants described above will
be deleted and amended as described above during the term of the Series 2009A Bonds.

Events of Default and Acceleration

The following are events of default under the Resolution: (i) a default in the payment of the principal, Sinking
Fund Installment, if any, or Redemption Price of or interest on any Bond; (ii) the Authority defaults in the due and
punctual performance of the tax covenants contained in the Resolution, and, as a result thereof, the interest on
Bonds of a Series shall no longer be excludable from gross income under the Code; (iii) a default by the Authority
in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained
in the Bonds or in the Resolution or any Series Resolution on the part of the Authority to be performed and the

5
continuance of such default for 30 days after written notice specifying such default and requiring the same to be
remedied shall have been given to the Authority by the Trustee, which may give such notice in its discretion and
shall give such notice at the written request of the Holders of not less than 25% in principal amount of the
Outstanding Bonds; or (iv) an event of default under the Loan Agreement shall have been declared and is
continuing and all sums payable by the University under the Loan Agreement have been declared immediately due
and payable (unless such declaration has been annulled). Unless otherwise specified above, an event of default
under the Loan Agreement is not an event of default under the Resolution.
The Resolution provides that if an event of default (other than as described in clause (ii) of the preceding
paragraph) occurs and continues, the Trustee may, and upon the written request of Holders of not less than 25% in
principal amount of the Bonds Outstanding, by notice in writing to the Authority, is to declare the principal of and
interest on all of the Bonds Outstanding to be due and payable at the expiration of 30 days after such notice is given.
At the expiration of 30 days from the giving of such notice, such principal and interest will become immediately due
and payable. The Trustee, with the written consent of the Holders of not less than 25% in principal amount of
Bonds not yet due by their terms and then Outstanding, will annul such declaration and its consequences under the
terms and conditions specified in the Resolution with respect to such annulment.
Notwithstanding any other provision of the Resolution to the contrary, upon the Authority’s failure to comply
with the covenant described in subclause (ii) of the first paragraph under this heading, upon the direction of the
Holders of not less than 25% in principal amount of the Outstanding Bonds of the Series affected thereby, the
Trustee is to exercise the rights and remedies provided to the Bondholders under the Resolution. However, the
Resolution provides that in no event may the Trustee, whether or not it is acting at the direction of the Holders of
25% or more in principal amount of the Outstanding Bonds of the Series affected thereby, declare the principal of
such Series of Bonds, and the interest accrued thereon, to be due and payable immediately as a result of the
Authority’s failure to comply with such covenant.
The Resolution provides that the Trustee is to give notice in accordance with the Resolution of each event of
default known to the Trustee to the Holders of the Bonds within 30 days after knowledge of the occurrence thereof
unless such default has been remedied or cured before the giving of such notice. However, except in the case of
default in the payment of the principal, Sinking Fund Installment, if any, or Redemption Price of, or interest on, any
of the Bonds, the Trustee is protected in withholding such notice thereof from the Holders if the Trustee in good
faith determines that the withholding of such notice is in the best interests of the Holders of the Bonds.

Issuance of Additional Bonds

In addition to the Bonds currently Outstanding under the Resolution and the Series 2009A Bonds, the
Resolution authorizes the issuance of other Series of Bonds to finance one or more projects and for other specified
purposes including to refund Outstanding Bonds or other notes or bonds of the Authority issued on behalf of the
University. The Bonds which may be issued include Fixed Interest Rate Bonds, Capital Appreciation Bonds,
Deferred Income Bonds, Option Bonds and Variable Interest Rate Bonds.

General
The Series 2009A Bonds will not be a debt of the State nor will the State be liable thereon. The Authority has
no taxing power. The Authority has never defaulted in the timely payment of principal or sinking fund installments
of or interest on its bonds or notes. See “PART 7 - THE AUTHORITY.”

PART 3 – THE SERIES 2009A BONDS

Set forth below is a narrative description of certain provisions relating to the Series 2009A Bonds. These
provisions have been summarized and this description does not purport to be complete. Reference should be made
to the Resolution and the Loan Agreement, copies of which are on file with the Authority and the Trustee. See also
“Appendix C - Summary of Certain Provisions of the Loan Agreement” and “Appendix D - Summary of Certain
Provisions of the Resolution” for a more complete description of certain provisions of the Series 2009A Bonds.

General
The Series 2009A Bonds will be issued pursuant to the Resolution. The Series 2009A Bonds will be registered
in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”),

6
pursuant to DTC’s Book-Entry Only System. Purchases of beneficial interests in the Series 2009A Bonds will be
made in book-entry form, without certificates. So long as DTC or its nominee, Cede & Co., is the registered owner
of the Series 2009A Bonds, payments of the principal, Purchase Price and Redemption Price of and interest on the
Series 2009A Bonds will be made by the Trustee directly to Cede & Co. Disbursement of such payments to the
DTC Participants (as hereinafter defined) is the responsibility of DTC and disbursement of such payments to the
Beneficial Owners of the Series 2009A Bonds is the responsibility of the DTC Participants and the Indirect
Participants (as hereinafter defined). If at any time the Book-Entry Only System is discontinued for the Series
2009A Bonds, the Series 2009A Bonds will be exchangeable for fully registered Series 2009A Bonds in any
authorized denominations of the same maturity without charge except the payment of any tax, fee or other
governmental charge to be paid with respect to such exchange, subject to the conditions and restrictions set forth in
the Resolution. See “ - Book-Entry Only System” and “Appendix D - Summary of Certain Provisions of the
Resolution.”

Description of the Series 2009A Bonds

General
The Series 2009A Bonds will be dated the date of their delivery and will mature on September 1, 2039. The
Series 2009A Bonds will bear interest from their date of delivery through the Initial Rate Period at the Initial Rate
and thereafter will bear interest in the Weekly Rate Mode (payable on the first Business Day of each month) until
the Series 2009A Bonds are converted to another Rate Mode. The Series 2009A Bonds will be issued in
denominations of $100,000 or any integral multiple of $5,000 in excess thereof during the Initial Rate Period and
any Daily Rate Period or Weekly Rate Period. Unless otherwise set forth herein, the description of the Series
2009A Bonds and the related documents included herein generally relate only to the terms and provisions which
are applicable while the Series 2009A Bonds bear interest in the Daily Rate Mode or the Weekly Rate Mode.
Interest on the Series 2009A Bonds will be payable during the Initial Rate Period, Daily Rate Periods and
Weekly Rate Periods in immediately available funds by check or draft or, at the request of a Holder, by wire transfer
to the wire transfer address within the continental United States to which such Holder has, prior to the applicable
Record Date, directed the Trustee to wire such interest. The Record Date is the close of business on the Business
Day immediately preceding each Interest Payment Date during the Initial Rate Period and any Daily Rate Period or
Weekly Rate Period.
Interest Payment Dates for Series 2009A Bonds
Interest on the Series 2009A Bonds will be paid June 1, 2009 and on the first Business Day of each month
thereafter, while bearing interest at a Daily Rate or a Weekly Rate, until converted to another Rate Mode other than
a Daily Rate Mode or a Weekly Rate Mode. Interest on the Bonds will be computed during the Initial Rate Period
and any Daily Rate Period or Weekly Rate Period on the basis of a 365-day or 366-day year, as appropriate, for the
actual number of days elapsed.
Rate Periods
The Initial Rate Period begins on the date of issue of the Series 2009A Bonds and will continue to and including
the Tuesday following the date of issue. During the Initial Rate Period, the Initial Rate will be established by the
Authority. Beginning on the Wednesday next following the Initial Rate Period, the Bonds will bear interest at
Weekly Rates for successive Weekly Rate Periods until converted to another Rate Mode. Each Weekly Rate Period
will begin on a Wednesday and end on Tuesday of the following week or on an earlier Conversion Date to another
Rate Mode. With respect to the Daily Rate, the Bonds will bear interest at a Daily Rate for each Business Day upon
which the Daily Rate is determined until converted to another Rate Period. The Daily Rate for any day which is not
a Business Day shall be the same as the Daily Rate for the immediately preceding Business Day.
Establishment of Rates
Each Daily Rate or Weekly Rate will be the rate of interest that, in the Remarketing Agent’s judgment, having
due regard for the prevailing financial market conditions for bonds or other securities the interest on which is
excludable from gross income for federal income tax purposes of the same general nature as the Series 2009A
Bonds and which are comparable to the Series 2009A Bonds as to credit and maturity or tender dates, would be the
lowest interest rate which would enable the Series 2009A Bonds to be sold at a price of par, plus accrued interest, if
any, on the first day of the Rate Period. In no event may the interest rate on any Bond for any Rate Period exceed
the Maximum Rate. Each Daily Rate is to be determined no later than 10:00 a.m., New York City time, on each

7
Business Day. Each Weekly Rate is to be determined no later than 5:00 p.m., New York City time, on the Business
Day next preceding each Weekly Rate Period.
If for any reason the Daily Rate or Weekly Rate for any Daily Rate Period or Weekly Rate Period is not
established, no Remarketing Agent is serving under the Resolution, the Daily Rate or Weekly Rate is held to be
invalid or unenforceable or the Remarketing Agent is, pursuant to the Remarketing Agreement, not then required to
establish a Daily Rate or Weekly Rate, then the Daily Rate or Weekly Rate for such Daily Rate Period or Weekly
Rate Period will be the SIFMA Municipal Index.
Conversion to Another Rate Mode
The Authority, subject to certain conditions set forth in the Bond Series Certificate, may convert all or a portion
of the Series 2009A Bonds from the Daily Rate Mode or the Weekly Rate Mode to another Rate Mode. Other than
conversions from Weekly Rate Periods to Daily Rate Periods and from Daily Rate Periods to Weekly Rate Periods,
such Series 2009A Bonds will be subject to mandatory tender upon such conversion.
If any Series 2009A Bonds are to be converted from a Daily Rate Mode or a Weekly Rate Mode to another Rate
Mode, the Tender Agent will give a Conversion Notice to the Holders of such Series 2009A Bonds by first class
mail, not less than 15 days preceding the Conversion Date. The Conversion Notice must set forth, among other
things (a) the proposed Conversion Date, (b) that the conversion will not occur unless the Tender Agent has
received on the Conversion Date an Opinion of Bond Counsel, (c) that all Series 2009A Bonds being converted
(other than from the Weekly Rate Period to the Daily Rate Period or from the Daily Rate Period to the Weekly Rate
Period) are to be tendered for purchase on the Conversion Date and. whether or not tendered to the Tender Agent,
such Series 2009A Bonds will be deemed to have been properly tendered for purchase on the Conversion Date and
the Holders of such Series 2009A Bonds will no longer be entitled to the payment of the principal of or interest on
such Series 2009A Bonds, but will only be entitled to payment of the Purchase Price and (d) that, if on the
Conversion Date moneys for the payment of the Purchase Price are held by the Tender Agent, interest will cease to
accrue on the Series 2009A Bonds to be converted from and after the Conversion Date.
If on the proposed Conversion Date, the conditions required for a change to another Rate Mode have not been
met, the Series 2009A Bonds to be tendered will continue to be subject to mandatory tender on the proposed
Conversion Date, will not convert to the other Rate Mode, and will remain in the Daily Rate Mode or the Weekly
Rate Mode. The interest rate on the Series 2009A Bonds during such Daily Rate Period or Weekly Rate Period will
be determined on the date the Series 2009A Bonds were to have converted to the other Rate Mode.
The Tender Agent shall give a Conversion Notice to the Holders of the Series 2009A Bonds in the event such
Series 2009A Bonds are converted from a Daily Rate Mode to a Weekly Rate Mode, or converted from a Weekly
Rate Mode to a Daily Rate Mode, but so long as the Series 2009A Bonds remain in a Daily Rate Mode or a Weekly
Rate Mode, such Series 2009A Bonds will not be subject to mandatory tender.
Optional Tender of Series 2009A Bonds
While the Series 2009A Bonds bear interest at the Daily Rate or the Weekly Rate, the Holders of Series 2009A
Bonds may elect to tender their Series 2009A Bonds (or portions thereof in Authorized Denominations) for
purchase at the Purchase Price on any Business Day (an “Optional Tender Date”).
To exercise the tender option, a Bondholder must deliver to the Remarketing Agent and Tender Agent at their
principal offices, not later than 11:00 a.m., New York City time, on any Business Day in the case of Series 2009A
Bonds in the Daily Rate Mode, and not later than 5:00 p.m., New York City time, on the seventh calendar day
preceding the Optional Tender Date in the case of Series 2009A Bonds in the Weekly Rate Mode, an irrevocable
telephonic notice (subsequently confirmed in writing the same day) or written notice which states (i) the aggregate
principal amount in an Authorized Denomination of each Series 2009A Bond to be purchased and (ii) that each such
Series 2009A Bond (or portion thereof in an Authorized Denomination) is to be purchased on the Optional Tender
Date.
As long as the Series 2009A Bonds are registered in the name of Cede & Co., as nominee of DTC, the tender
option may only be exercised by a DTC Participant (as hereinafter defined) on behalf of a Beneficial Owner (as
hereinafter defined) of Series 2009A Bonds by giving written notice of its election to tender at the times and in the
manner described above. An election to tender a Series 2009A Bond for purchase is irrevocable and binding on the
Holder or DTC Participant making such election, the Beneficial Owner on whose behalf the notice was given and
on any transferee thereof.

8
 Mandatory Tender of Series 2009A Bonds
Series 2009A Bonds are subject to mandatory tender and purchase at the Purchase Price on the following dates
(each a “Mandatory Tender Date”): (i) their Conversion Date (other than from a Weekly Rate Mode to a Daily Rate
Mode or from a Daily Rate Mode to a Weekly Rate Mode), whether or not the conditions to such conversion have
been satisfied or such conversion occurs, (ii) not later than the third Business Day next preceding the date on which
any Liquidity Facility then in effect expires, (iii) on the effective date of any initial Liquidity Facility or substitute
Liquidity Facility, (iv) not less than one Business Day prior to the termination date of a Liquidity Facility, and (v) at
the election of the Authority, on any Reset Date. Notice of mandatory tender will be given to the holders of the
Series 2009A Bonds to be tendered not less than 15 days prior to the tender date, except that, if the Series 2009A
Bonds are to be tendered as a consequence of the delivery or termination of an initial or substitute Liquidity Facility,
such notice will be given not less than five days prior to the tender date.
Delivery of Tendered Series 2009A Bonds
Series 2009A Bonds or portions thereof, other than Series 2009A Bonds registered in the name of DTC or its
nominee, Cede & Co., for which an election to tender has been made and Series 2009A Bonds subject to mandatory
tender are to be delivered and surrendered to the Tender Agent at its principal corporate trust office in Buffalo, New
York on the Tender Date. If on the Tender Date there is on deposit with the Tender Agent sufficient moneys to pay
the Purchase Price of the Tendered Bonds, such Bonds will be deemed tendered without physical delivery to the
Trustee and the Holders or DTC Participants and Beneficial Owners of such Bonds will have no further rights
thereunder other than the right to the payment of the Purchase Price. The Purchase Price for Tendered Bonds is
payable solely out of the moneys derived from the remarketing of such Series 2009A Bonds and the moneys made
available by the University or pursuant to a Liquidity Facility if one is then in effect. The Authority has no
obligation to pay the Purchase Price out of any other moneys.
Remarketing and Purchase of Series 2009A Bonds
The Remarketing Agent is required to use its best efforts to remarket the Tendered Bonds. However, the
Remarketing Agent is not required to remarket, and may immediately suspend its remarketing efforts of, any
Tendered Bonds under certain circumstances, including, among others (i) if an Event of Default with respect to the
Series 2009A Bonds has occurred and is continuing under the Resolution, (ii) the Remarketing Agent determines
that any applicable disclosure document or undertaking required in connection with the remarketing of the Series
2009A Bonds is either unavailable or not satisfactory to the Remarketing Agent or (iii) the Remarketing Agent has
received an Opinion of Bond Counsel that the exclusion from gross income of interest on the Series 2009A Bonds
for federal income tax purposes, or the exemption from registration under the Securities Act of 1933, as amended,
or the exemption from qualification of the Resolution under the Trust Indenture Act of 1939, as amended, can be
challenged. In addition, the University, with the consent of the Authority, may direct the Remarketing Agent to
discontinue or suspend the remarketing of the Series 2009A Bonds.
Tendered Bonds will be purchased from the Holders on the Tender Date at the Purchase Price. Interest on
Tendered Bonds to be purchased after the Record Date for an Interest Payment Date will be paid to the registered
owner of the Tendered Bonds on the Record Date. The Purchase Price is to be paid from the proceeds of the
remarketing of Tendered Bonds or moneys provided by the University. There will be no Liquidity Facility in effect
upon the issuance of the Series 2009A Bonds.
No Series 2009A Bond tendered for purchase at the option of the Holder which does not strictly conform to the
description contained in the notice of tender will be purchased from its Holder.

9
 Rate Period Tables
The following Rate Period Tables are provided for the convenience of the Holder. The information contained in
the chart is not intended to be comprehensive. Reference is made to the above description and to the Resolution and
the Bond Series Certificate for a more complete description.

Daily Rate Period Table

Duration of Rate Period The Business Day upon which a Daily Rate is set, to
but not including the next succeeding Business Day
Interest Payment Dates The first Business Day of each month and each
Mandatory Tender Date
Interest Rate Determination Dates By 10:00 a.m. New York City time on each
Business Day
Optional Tender Date Any Business Day
Bondholder Notice of Tender Due No later than 11:00 a.m. New York City time on any
Business Day

Weekly Rate Period Table

Duration of Rate Period Seven days beginning on a Wednesday

to and including the following Tuesday
Interest Payment Dates The first Business Day of each month and each
Mandatory Tender Date
Interest Rate Determination Dates By 5:00 p.m. New York City time on the Business Day
prior to the first day of the Weekly Rate Period
Optional Tender Date Any Business Day
Bondholder Notice of Tender Due No later than 5:00 p.m. New York City time on the
seventh day preceding the Optional Tender Date

Certain Considerations Affecting Sales of Variable Rate Bonds

The Remarketing Agent is Paid by the University
The Remarketing Agent’s responsibilities include determining the interest rate from time to time and
remarketing the Series 2009A Bonds that are optionally or mandatorily tendered by the owners thereof (subject to
the terms of the Remarketing Agreement), all as further described in this Official Statement. The Remarketing
Agent is appointed by the University and is paid by the University for its services. As a result, the interests of the
Remarketing Agent may differ from those of existing holders and potential purchasers of Series 2009A Bonds.
Under certain circumstances, the Remarketing Agent may be removed or have the ability to resign or cease its
remarketing efforts, without a successor having been named, subject to the terms of the Remarketing Agreement.
The Remarketing Agent Routinely Purchases Bonds for its Own Account
The Remarketing Agent acts as remarketing agent for a variety of variable rate demand obligations and, in its
sole discretion, routinely purchases such obligations for its own account. The Remarketing Agent is permitted, but
not obligated, to purchase tendered Series 2009A Bonds for its own account and, in its sole discretion, may
routinely acquire tendered Series 2009A Bonds in order to achieve a successful remarketing of the Series 2009A
Bonds for which it serves as Remarketing Agent (i.e., because there otherwise are not enough buyers to purchase
the Series 2009A Bonds) or for other reasons. However, the Remarketing Agent is not obligated to purchase Series
2009A Bonds, and may cease doing so at any time without notice. The Remarketing Agent may also make a market
in the Series 2009A Bonds by routinely purchasing and selling Series 2009A Bonds other than in connection with
an optional or mandatory tender and remarketing. Such purchases and sales may be at or below par. However, the
Remarketing Agent is not required to make a market in the Series 2009A Bonds. The Remarketing Agent may also
sell any Series 2009A Bonds it has purchased to one or more affiliated investment vehicles for collective ownership
or enter into derivative arrangements with affiliates or others in order to reduce its exposure to the Series 2009A

10
Bonds. The purchase of Series 2009A Bonds by the Remarketing Agent may create the appearance that there is
greater third party demand for the Series 2009A Bonds in the market than is actually the case. The practices
described above also may result in fewer Series 2009A Bonds being tendered in a remarketing.
Series 2009A Bonds May be Offered at Different Prices on any Date
Pursuant to the Remarketing Agreement and the Resolution, the Remarketing Agent is required to determine
the rate of interest that, in its judgment, having due regard for the prevailing financial market conditions for revenue
bonds or other securities the interest on which is excludable from gross income for federal income tax purposes and
which are comparable to the Series 2009A Bonds as to credit and maturity or tender dates, would be the lowest
interest rate which would enable the Series 2009A Bonds to be sold at a price of par plus accrued interest, if any, on
the first day of the Rate Period. The interest rate will reflect, among other factors, the level of market demand for
the Series 2009A Bonds (including whether the Remarketing Agent is willing to purchase Series 2009A Bonds for
its own account). The Remarketing Agreement and the Resolution require that the Remarketing Agent use its best
efforts to sell tendered bonds at par, plus accrued interest. There may or may not be Series 2009A Bonds tendered
and remarketed on the date that the rate is determined or becomes effective, the Remarketing Agent may or may not
be able to remarket any Series 2009A Bonds tendered for purchase on such date at par and the Remarketing Agent
may sell Series 2009A Bonds at varying prices to different investors on such date or any other date. The
Remarketing Agent is not obligated to advise purchasers in a remarketing if it does not have third party buyers for
all of the Series 2009A Bonds at the remarketing price. The Remarketing Agent, in its sole discretion, may offer
Series 2009A Bonds on any date, including the date that the rate is determined or becomes effective, at a discount to
par to some investors.
The Ability to Sell the Series 2009A Bonds other than through Tender Process May Be Limited
The Remarketing Agent may buy and sell Series 2009A Bonds other than through the tender process.
However, it is not obligated to do so and may cease doing so at any time without notice and may require holders
that wish to tender their Series 2009A Bonds to do so through the tender agent with appropriate notice. Thus,
investors who purchase the Series 2009A Bonds, whether in a remarketing or otherwise, should not assume that
they will be able to sell their Series 2009A Bonds other than by tendering the Series 2009A Bonds in accordance
with the tender process.

Redemption and Purchase in Lieu of Redemption Provisions

The Series 2009A Bonds are subject to optional redemption, and to purchase in lieu of redemption, as described
below. For a more complete description of the redemption and other provisions relating to the Series 2009A Bonds,
see “Appendix D—Summary of Certain Provisions of the Resolution.”

Optional Redemption
The Series 2009A Bonds are subject to optional redemption at the election of the Authority in whole or in part
on any Business Day at a redemption price equal to 100% of the principal amount of Series 2009A Bonds or
portions thereof to be redeemed, plus accrued interest to the redemption date.

Purchase in Lieu of Optional Redemption

The Series 2009A Bonds are also subject to purchase in lieu of optional redemption prior to maturity at the
election of the University, on any Business Day on which the Series 2009A Bonds are subject to optional
redemption, in any order, in whole or in part at any time, at a price of 100% of the principal amount of Series
2009A Bonds or portions thereof to be purchased, plus accrued interest to the date set for purchase (the “Purchase
Date”).

Special Redemption
The Series 2009A Bonds are subject to redemption prior to maturity at the option of the Authority, in whole or
in part on any interest payment date, at a redemption price equal to 100% of the principal amount of Series 2009A
Bonds or portions thereof to be redeemed, plus accrued interest to the redemption date (i) from proceeds of a
condemnation or insurance award, which proceeds are not used to repair, restore or replace the Project to which
such proceeds relate, and (ii) from unexpended proceeds of the Series 2009A Bonds upon the abandonment of all or
a portion of the Project due to a legal or regulatory impediment.

11
 Selection of Bonds to be Redeemed or Purchased
If less than all of the Series 2009A Bonds are to be redeemed or purchased in lieu of redemption, the Series
2009A Bonds to be redeemed or purchased will be selected by the Trustee, by lot, using such method of selection as
the Trustee shall consider proper in its discretion.

Notice of Redemption
The Trustee is to give notice of the redemption of the Series 2009A Bonds in the name of the Authority, by
first-class mail, postage prepaid, not less than 15 days nor more than 30 days prior to the redemption date to the
registered owners of any Series 2009A Bonds to be redeemed, at their last known addresses appearing on the
registration books of the Authority not more than ten Business Days prior to the date such notice is given. Each
notice of redemption will state, in addition to any other condition, that the redemption is conditioned upon the
availability on the redemption date of sufficient moneys to pay the Redemption Price of the Series 2009A Bonds to
be redeemed. The failure of any owner of a Series 2009A Bond to be redeemed to receive notice of redemption will
not affect the validity of the proceedings for the redemption of such Series 2009A Bond.
If on the redemption date moneys for the redemption of the Series 2009A Bonds of like maturity to be
redeemed, together with interest thereon to the redemption date, are held by the Trustee so as to be available for
payment of the redemption price, and if notice of redemption has been mailed, then interest on the Series 2009A
Bonds of such maturity will cease to accrue from and after the redemption date and such Series 2009A Bonds will
no longer be considered to be Outstanding.

Notice of Purchase in Lieu of Redemption and its Effect

Notice of purchase of the Series 2009A Bonds will be given in the name of the University to the registered
owners of the Series 2009A Bonds to be purchased by first-class mail, postage prepaid, not less than 15 days nor
more than 30 days prior to the Purchase Date specified in such notice. The Series 2009A Bonds to be purchased are
required to be tendered on the Purchase Date to the Trustee. Series 2009A Bonds to be purchased that are not so
tendered will be deemed to have been properly tendered for purchase. If the Series 2009A Bonds are called for
purchase in lieu of an optional redemption, such purchase will not extinguish the indebtedness of the Authority
evidenced thereby or modify the terms of the Series 2009A Bonds. Such Series 2009A Bonds need not be cancelled,
and will remain Outstanding under the Resolution and continue to bear interest.
The University’s obligation to purchase a Series 2009A Bond or cause it to be purchased is conditioned upon
the availability of sufficient money to pay the purchase price for all of the Series 2009A Bonds to be purchased on
the Purchase Date. If sufficient money is available on the Purchase Date to pay the purchase price of the Series
2009A Bonds to be purchased, the former registered owners of such Series 2009A Bonds will have no claim
thereunder or under the Resolution or otherwise for payment of any amount other than the purchase price. If
sufficient money is not available on the Purchase Date for payment of the purchase price, the Series 2009A Bonds
tendered or deemed tendered for purchase will continue to be registered in the name of the registered owners on the
Purchase Date, who will be entitled to the payment of the principal of and interest on such Series 2009A Bonds in
accordance with their respective terms.
If not all of the Outstanding Series 2009A Bonds of a maturity are to be purchased, the Series 2009A Bonds of
such maturity to be purchased will be selected by lot in the same manner as Series 2009A Bonds of a maturity to be
redeemed in part are to be selected.
For a more complete description of the redemption and other provisions relating to the Series 2009A Bonds, see
“Appendix D - Summary of Certain Provisions of the Resolution.”

Book-Entry Only System

The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Series
2009A Bonds. The Series 2009A Bonds will be issued as fully-registered securities registered in the name of Cede
& Co. (DTC’s partnership nominee), or such other name as may be requested by an authorized representative of
DTC. One fully-registered Series 2009A Bond certificate will be issued for the Series 2009A Bonds, in the
aggregate principal amount of the Series 2009A Bonds, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a
“clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency”

12
registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and
provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt
issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”)
deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other
securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges
between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust &
Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation
and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users
of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S.
securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a
custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). The DTC
Rules applicable to its Participants are on file with the Securities and Exchange Commission.
Purchases of Series 2009A Bonds under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Series 2009A Bonds on DTC’s records. The ownership interest of each actual
purchaser of each Series 2009A Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect
Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase.
Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as
well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership interests in the Series 2009A Bonds are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Series 2009A
Bonds, except in the event that use of the book-entry system for the Series 2009A Bonds is discontinued.
To facilitate subsequent transfers, all Series 2009A Bonds deposited by Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Series 2009A Bonds with DTC and their registration in the name
of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Series 2009A Bonds; DTC’s records reflect only the identity of
the Direct Participants to whose accounts such Series 2009A Bonds are credited, which may or may not be the
Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to DTC. If less than all of the Series 2009A Bonds are being redeemed,
DTC’s practice is to determine by lot the amount of the interest of each Direct Participant to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Series
2009A Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its
usual procedures, DTC mails an Omnibus Proxy to the Authority as soon as possible after the record date. The
Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the
Series 2009A Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal, redemption premium, if any, and interest payments on the Series 2009A Bonds will be made to Cede
& Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to
credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the
Authority or the Trustee on the payable date in accordance with their respective holdings shown on DTC’s records.
Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices,
as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and
will be the responsibility of such Participant and not of DTC, the Trustee or the Authority, subject to any statutory
or regulatory requirements as may be in effect from time to time. Payment of principal, redemption premium, if
any, and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of
DTC) is the responsibility of the Authority or the Trustee, disbursement of such payments to Direct Participants will
be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility
of Direct and Indirect Participants.

13
 A Beneficial Owner shall give notice to elect to have its Series 2009A Bond tendered for purchase, through its
Participant, to the Tender Agent and the Remarketing Agent, and shall effect delivery of such Series 2009A Bond
by causing the Direct Participant to transfer the Participant’s interest in the Series 2009A Bond, on DTC’s records,
to the Tender Agent. The requirement for physical delivery of Series 2009A Bonds in connection with an optional
tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Series 2009A Bonds are
transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Series 2009A
Bonds to the Tender Agent’s DTC account.
The Authority and the Trustee may treat DTC (or its nominee) as the sole and exclusive registered owner of the
Series 2009A Bonds registered in its name for the purposes of payment of the principal and redemption premium, if
any, of, or interest on, the Series 2009A Bonds, giving any notice permitted or required to be given to registered
owners under the Resolution, registering the transfer of the Series 2009A Bonds, or other action to be taken by
registered owners and for all other purposes whatsoever. The Authority and the Trustee have no responsibility or
obligation to any Direct or Indirect Participant, any person claiming a beneficial ownership interest in the Series
2009A Bonds under or through DTC or any Direct or Indirect Participant, or any other person which is not shown
on the registration books of the Authority (kept by the Trustee) as being a registered owner, with respect to the
accuracy of any records maintained by DTC or any Direct or Indirect Participant; the payment by DTC or any
Direct or Indirect Participant of any amount in respect of the principal, redemption premium, if any, or interest on
the Series 2009A Bonds; any notice which is permitted or required to be given to registered owners thereunder or
under the conditions to transfers or exchanges adopted by the Authority; or other action taken by DTC as registered
owner. Interest, redemption premium, if any, and principal will be paid by the Trustee to DTC, or its nominee.
Disbursement of such payments to the Direct or Indirect Participants is the responsibility of DTC and disbursement
of such payments to the Beneficial Owners is the responsibility of the Direct or Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Series 2009A Bonds at any time
by giving reasonable notice to the Authority and the Trustee. Under such circumstances, in the event that a
successor depository is not obtained, the Series 2009A Bond certificates are required to be printed and delivered.
The Authority may decide to discontinue use of the system of book-entry only transfers through DTC (or a
successor securities depository). In that event, the Series 2009A Bond certificates will be printed and delivered to
DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources
that the Authority believes to be reliable, but the Authority takes no responsibility for the accuracy thereof.
Each person for whom a Participant acquires an interest in the Series 2009A Bonds, as nominee, may desire to
make arrangements with such Participant to receive a credit balance in the records of such Participant, and may
desire to make arrangements with such Participant to have all notices of redemption or other communications of
DTC, which may affect such persons, to be forwarded in writing by such Participant and to have notification made
of all interest payments. NEITHER THE AUTHORITY NOR THE TRUSTEE WILL HAVE ANY
RESPONSIBILITY OR OBLIGATION TO SUCH PARTICIPANTS OR THE PERSONS FOR WHOM THEY
ACT AS NOMINEES WITH RESPECT TO THE SERIES 2009A BONDS.
So long as Cede & Co. is the registered owner of the Series 2009A Bonds, as nominee for DTC, references
herein to the Bondholders or registered owners of the Series 2009A Bonds (other than under the caption “PART 10
 TAX MATTERS” herein) means Cede & Co., as aforesaid, and does not mean the Beneficial Owners of the
Series 2009A Bonds.
When reference is made to any action which is required or permitted to be taken by the Beneficial Owners,
such reference only relates to those permitted to act (by statute, regulation or otherwise) on behalf of such
Beneficial Owners for such purposes. When notices are given, they will be sent by the Trustee to DTC only.
For every transfer and exchange of Series 2009A Bonds, the Beneficial Owner may be charged a sum sufficient
to cover any tax, fee or other governmental charge that may be imposed in relation thereto.
The Authority, in its sole discretion and without the consent of any other person, may terminate the services of
DTC with respect to the Series 2009A Bonds if the Authority determines that (i) DTC is unable to discharge its
responsibilities with respect to the Series 2009A Bonds, or (ii) a continuation of the requirement that all of the
Outstanding Series 2009A Bonds be registered in the registration books kept by the Trustee in the name of Cede &
Co., as nominee of DTC, is not in the best interests of the Beneficial Owners. In the event that no substitute
securities depository is found by the Authority or restricted registration is no longer in effect, Series 2009A Bond
certificates will be delivered as described in the Resolutions.

14
 NEITHER THE AUTHORITY, THE UNIVERSITY NOR THE TRUSTEE WILL HAVE ANY
RESPONSIBILITY OR OBLIGATION TO DIRECT PARTICIPANTS, TO INDIRECT PARTICIPANTS, OR TO
ANY BENEFICIAL OWNER WITH RESPECT TO (I) THE ACCURACY OF ANY RECORDS MAINTAINED
BY DTC, ANY DIRECT PARTICIPANT, OR ANY INDIRECT PARTICIPANT, (II) ANY NOTICE THAT IS
PERMITTED OR REQUIRED TO BE GIVEN TO THE OWNERS OF THE SERIES 2009A BONDS UNDER
THE RESOLUTIONS; (III) THE SELECTION BY DTC OR ANY DIRECT PARTICIPANT OR INDIRECT
PARTICIPANT OF ANY PERSON TO RECEIVE PAYMENT IN THE EVENT OF A PARTIAL REDEMPTION
OF THE SERIES 2009A BONDS; (IV) THE PAYMENT BY DTC OR ANY DIRECT PARTICIPANT OR
INDIRECT PARTICIPANT OF ANY AMOUNT WITH RESPECT TO THE PRINCIPAL OR REDEMPTION
PREMIUM, IF ANY, OR INTEREST DUE WITH RESPECT TO THE SERIES 2009A BONDS; (V) ANY
CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS THE OWNER OFTHE SERIES 2009A BONDS;
OR (VI) ANY OTHER MATTER.

15
Principal and Interest Requirements
The following table sets forth the amounts, after giving effect to the issuance of the Series 2009A Bonds,
required to be paid by the University during each twelve month period ending June 30 shown for the payment of the
principal of and interest on the Series 2009A Bonds, debt service on other outstanding indebtedness of the
University and the total debt service on all indebtedness of the University, including the Series 2009A Bonds. See
“PART 4 - THE UNIVERSITY - ANNUAL FINANCIAL STATEMENT INFORMATION - Outstanding Indebtedness;
Existing Liens.”

Series 2009A Bonds

Total Debt
Debt Service Service on
12 Month on the Other Total
Period Ending Principal Interest Series 2009A Outstanding Debt
June 30 Payments Payments Bonds (1) Indebtedness(1) Service(1)
2009 $ - $ 201,945 $ 201,945 $129,640,658 $129,842,603
2010 - 4,095,000 4,095,000 143,889,162 147,984,162
2011 - 4,095,000 4,095,000 129,223,828 133,318,828
2012 - 4,102,510 4,102,510 122,438,206 126,540,716
2013 - 4,087,490 4,087,490 205,855,417 209,942,907
2014 - 4,095,000 4,095,000 115,453,760 119,548,760
2015 - 4,095,000 4,095,000 90,917,908 95,012,908
2016 - 4,102,510 4,102,510 103,431,890 107,534,400
2017 - 4,087,490 4,087,490 83,916,809 88,004,299
2018 - 4,095,000 4,095,000 80,966,423 85,061,423
2019 - 4,095,000 4,095,000 80,458,290 84,553,290
2020 - 4,102,510 4,102,510 79,923,838 84,026,348
2021 - 4,087,490 4,087,490 76,934,058 81,021,548
2022 - 4,095,000 4,095,000 72,987,899 77,082,899
2023 - 4,095,000 4,095,000 65,870,765 69,965,765
2024 - 4,102,510 4,102,510 65,871,365 69,973,875
2025 - 4,087,490 4,087,490 65,740,575 69,828,065
2026 - 4,095,000 4,095,000 57,041,325 61,136,325
2027 - 4,095,000 4,095,000 57,065,150 61,160,150
2028 - 4,102,510 4,102,510 47,126,237 51,228,747
2029 - 4,087,490 4,087,490 39,094,250 43,181,740
2030 - 4,095,000 4,095,000 28,795,000 32,890,000
2031 - 4,095,000 4,095,000 28,796,000 32,891,000
2032 - 4,102,510 4,102,510 12,500,000 16,602,510
2033 - 4,087,490 4,087,490 12,500,000 16,587,490
2034 - 4,095,000 4,095,000 12,500,000 16,595,000
2035 - 4,095,000 4,095,000 12,500,000 16,595,000
2036 - 4,102,510 4,102,510 12,500,000 16,602,510
2037 - 4,087,490 4,087,490 12,500,000 16,587,490
2038 - 4,095,000 4,095,000 212,500,000 216,595,000
2039 - 4,095,000 4,095,000 2,500,000 6,595,000
2040 117,000,000 1,032,164 118,032,164 2,500,000 120,532,164

_________
(1)
Interest on tax-exempt short-term and variable rate bonds, including the Series 2009A Bonds, is assumed to accrue at the
rate of 3.50% per annum and interest on taxable short-term debt is assumed to accrue at the rate of 5.00%.

16
 PART 4 - THE UNIVERSITY

GENERAL INFORMATION
Introduction
The Trustees of Columbia University in the City of New York (“Columbia” or the “University”) is a privately
endowed, nonsectarian, non-profit institution of higher education. Known originally as King’s College, the
University was founded under a charter which was granted in 1754 by King George II and ratified, amended and
confirmed in 1787 by the State Legislature.
Today, the University is one of the largest private institutions of higher education in the United States, with a
full-time faculty of approximately 3,546 and a student body of approximately 20,295 full-time and 5,164 part-time
students. Instruction and research are carried out in 16 component schools located at two primary sites in New
York City (the “City”) and several additional sites outside the City. The University is formally affiliated with
several neighboring institutions, including Barnard College, Teachers College and Union Theological Seminary.
The University offers degree and certificate programs through 16 faculties and schools, consisting of Columbia
College, its original school, the School of General Studies (a liberal arts college for non-traditional students), and
the 14 professional or specialized divisions whose programs supplement the liberal arts curricula. The University
offers bachelor’s degrees in 104 subject areas, master’s degrees in 145 subject areas, doctoral degrees in 121
academic fields, and 45 certificate programs.
The University’s professional and specialized divisions include the College of Physicians and Surgeons founded
in 1767 (the second oldest medical school in the country and the first to grant an M.D. degree), the School of Law
founded in 1858, the Fu Foundation School of Engineering and Applied Science founded in 1864, the Graduate
School of Arts and Sciences founded in 1820 and the Graduate School of Business founded in 1916. The
University’s College of Physicians and Surgeons and its School of Nursing, Joseph L. Mailman School of Public
Health and School of Dental Medicine, together with New York Presbyterian Hospital (Columbia-Presbyterian
campus) and the New York State Psychiatric Institute, which is maintained by the New York State Department of
Mental Hygiene, comprise the Columbia University Medical Center.
The University is a member of numerous professional associations, including the Association of American
Universities, and is accredited by the Middle States Association of Colleges and Schools. In addition, ten of its
professional schools hold separate accreditation from their respective professional associations.

University Properties
The main campus of the University, located in Morningside Heights (in the Borough of Manhattan), contains 83
buildings with approximately 6.9 million gross square feet of floor area. Its central core on 32 acres is bounded by
120th Street on the north, Amsterdam Avenue on the east, 114th Street on the south and Broadway on the west, with
an eastern annex bounded by 118th Street on the north, Morningside Drive on the east, and 116th Street on the
south.
The Medical Center campus, with approximately 4.0 million gross square feet, is the other primary campus of
the University and is located in Washington Heights (in the Borough of Manhattan). The University also maintains
approximately 7.7 million gross square feet of off-campus housing and commercial space near these two campuses.
Other facilities, including research, academic, administration and athletic/recreation facilities, are located in the
greater New York area and in Paris, France. These include:
· Lamont-Doherty Earth Observatory, which occupies 26 major buildings in the academic plant on
approximately 155 acres in Rockland County, New York and provides research facilities in the earth
sciences;
· Baker Field, the main outdoor athletic and recreation area for the University, which occupies nearly 26
acres at Broadway and 218th Street in New York City;
· Nevis Laboratories, a high-energy physics research facility located on 68 acres in Westchester County,
New York; and
· Reid Hall, a four-building academic facility in Paris, France.
The University has acquired approximately 85% of a 17-acre site situated just northwest of the main
Morningside Center campus. The Manhattanville site consists primarily of the four large blocks from 129th Street to

17
133rd Street, between Broadway and Twelfth Avenue, including the north side of 125th Street, as well as three
properties on the east side of Broadway from 131st to 134th Streets. The comprehensive plan for this site moves
away from past ad-hoc growth of University buildings and is expected to provide, over the next quarter-century,
more than 6.8 million square feet of space for teaching, research, and housing for University affiliates. It will also
provide pedestrian-friendly streets and new publicly accessible open spaces, to connect West Harlem to the new
Hudson River waterfront park. See “Future Facilities” below.

Governance
The University is governed by a 24-member Board of Trustees. Responsibilities of the Trustees include
selecting the President and approving all faculty and senior administrative appointments. The Trustees also monitor
the University’s budget, supervise the endowment, and oversee protection of University property.
Six Trustees are nominated by the alumni. The Committee on Trusteeship is responsible for nominating
candidates to fill the remaining 18 Trustee positions, six of whom are nominated after consultation with the
Executive Committee of the University Senate. Trustees serve a six-year term and are eligible for re-election to a
second six-year term.
The current members of the Board of Trustees are listed below; there is one vacant position.

William V. Campbell, Chair José A. Cabranes Vikram Pandit

Chairman of the Board Judge CEO
Intuit, Inc. US Court of Appeals Citigroup
for Second Circuit
Marilyn Laurie, Vice Chair Michael B. Rothfeld
President Stephen H. Case Managing Member
Laurie Consulting Managing Director and Eagle Productions, LLC
General Counsel
Philip L. Milstein, Vice Chair Emerald Development Managers Jonathan D. Schiller
Principal Managing Partner
Ogden CAP Properties, LLC Kenneth A. Forde Boies, Schiller & Flexner LLP
Jse M. Ferrer Professor
Richard E. Witten, Vice Chair Emeritus of Clinical Surgery Esta E. Stecher
Senior Managing Director College of Physicians and Executive Vice President,
The Orienta Group Surgeons General Counsel and Secretary
The Goldman Sachs Group, Inc.
Joan E. Spero, Vice Chair Ann F. Kaplan Kyriakos Tsakopoulos
President Chair President
Doris Duke Charitable Circle Financial Group L.L.C. KT Communities Corporation
Foundation
Mark E. Kingdon Savio W. Tung
Armen A. Avanessians President Managing Director
Managing Director Kingdon Capital Management Investcorp International, Inc.
The Goldman Sachs Group, Inc.
Gerry Lenfest Faye Wattleton
Lee C. Bollinger President and CEO President
President The Lenfest Group Center for the Advancement of
Columbia University Women
Paul J. Maddon
A’Lelia Bundles CEO and Chief Science Officer Clyde Y.C. Wu
Progencis Pharmaceuticals, Inc.

18
Administration
The President of the University is appointed by the University’s Board of Trustees and, as chief executive
officer, is principally responsible for administration of the University. All other principal executive officers of the
University are nominated by the President and appointed by the Trustees. The principal executive officers of the
University are listed below:

Name Position
Lee C. Bollinger President
Alan Brinkley Provost
Robert Kasdin Senior Executive Vice President
Jane E. Booth General Counsel
Jerome Davis Secretary of the University
Susan K. Feagin Executive Vice President for Development and Alumni Relations
Lee Goldman Executive Vice President for Health and Biomedical Sciences/ Dean of
the Faculties of Health Sciences and of Medicine
Maxine F. Griffith Executive Vice President for Government and Community Affairs
David Hirsh Executive Vice President for Research
Joseph A. Ienuso Executive Vice President for University Facilities
Jeffrey F. Scott Executive Vice President of Student and Administrative Services
David M. Stone Executive Vice President for Communications
Anne R. Sullivan Executive Vice President for Finance/Chief Financial Officer

Lee C. Bollinger, President. Mr. Bollinger became the nineteenth President of Columbia University in 2002. He
is also a member of the faculty of the Law School. One of the nation’s leading scholars of First Amendment issues,
he has taught and written on freedom of speech and press for over thirty years. As the named defendant in the twin
2003 Supreme Court cases that clarified and upheld affirmative action in higher education, Bollinger became a
national advocate for diversity and integration. In recognition of his leadership on these issues, he received the
National Humanitarian Award from the National Conference for Community and Justice and the National Equal
Justice Award from the NAACP Legal Defense and Education Fund. He is the recipient of the Clark Kerr Award,
the highest honor conferred by the faculty of the University of California, Berkeley, for his service to higher
education, especially on matters of freedom of speech and diversity. President Bollinger has received numerous
honorary degrees from universities in the U.S. and around the world. He is a fellow of the American Academy of
Arts and Sciences and the American Philosophical Society. Prior to the Columbia presidency, he served as President
of the University of Michigan, where he also served as Dean of the Law School and a law professor.
Alan Brinkley, Provost and Allan Nevins Professor of History. Dr. Brinkley received his A.B. from Princeton
University and Ph.D. from Harvard. He has been teaching at Columbia since 1991, chaired the Department of
History from 2000 to 2003, and became the Provost in July of 2003. His research and teaching interests are in
twentieth-century American history, and particularly the history of various competing political traditions, among
them liberalism, populism, and the American right. Effective June 30, 2009, Dr. Brinkley will be leaving his post as
Provost of the University and will remain on the faculty of the University. A search for a replacement is currently
underway.
Robert Kasdin, Senior Executive Vice President. Mr. Kasdin was appointed Senior Executive Vice President
of Columbia University in March 2002 and assumed his responsibilities as of September 1, 2002. Prior to joining
Columbia University, he served as the Executive Vice President and Chief Financial Officer of the University of
Michigan. Before his service at the University of Michigan, he was the Treasurer and Chief Investment Officer for
The Metropolitan Museum of Art in New York City, and the Vice President and General Counsel for Princeton
University Investment Company. He started his career as a corporate attorney at Davis Polk & Wardwell. Mr.
Kasdin serves on several boards. He is President of the Board of Trustees of The Dalton School, and a trustee of the
National September 11 Memorial & Museum. He serves on the Board of Directors of the Noranda Aluminum
Holding Corporation. He is also a member of The Council of Foreign Relations. Mr. Kasdin earned his A.B. from
Princeton and his J.D. from Harvard Law School.
Jane E. Booth, General Counsel. Ms. Booth joined the Office of General Counsel in 2002, and assumed the
position of General Counsel in March, 2009. Prior to coming to Columbia, she was Chief of the Civil Division at

19
the United States Attorney’s Office. Her previous experience also includes heading the Civil Appeals & Law
Reform unit of The Legal Aid Society and litigating complex securities and financial matters for Shearson Lehman.
Ms. Booth began her career as a law clerk to U.S. District Court Judge Leonard B. Sand. She earned her B.A. from
Fordham University, her M.A. from the University of Toronto and a her J.D. from Columbia Law School.
Jerome Davis, Secretary of the University. Mr. Davis has served as Secretary of the University since June
2007. Prior to that, he served as Interim Secretary and as Special Assistant to University President Lee C.
Bollinger. Before joining Columbia in September 2002, Mr. Davis held several senior level positions in the private
sector including Chairman and CEO of Noxtech, President and CEO of Cummins Power Generation, Inc., and Vice
President of Chemical Bank. Mr. Davis is a member of the Council on Foreign Relations, the Board of Control of
the Eugene Higgins Charitable Trust, and is a former Trustee of Princeton University where he earned his A.B. Mr.
Davis also holds an M.A. in Economics from Oxford University and a J.D. from Yale Law School.
Susan K. Feagin, Executive Vice President for University Development and Alumni Relations. Ms. Feagin
assumed her current role at Columbia University in 2002. In 1974, Ms. Feagin received a B.A. degree cum laude
from Columbia University’s School of General Studies. Ms. Feagin has spent thirty-four years in university
development and has had leadership roles in three major University development campaigns. In 1990, she was
appointed the first Associate Dean for Development in Harvard’s Faculty of Arts and Sciences and then was named
Director of University Development in 1996. Ms. Feagin was Vice President for Development at the University of
Michigan before joining Columbia.
Lee Goldman, Executive Vice President for Health and Biomedical Sciences. Dr. Goldman is the Harold and
Margaret Hatch Professor and Executive Vice President for Health and Biomedical Sciences at Columbia
University, where he also serves as Dean of the Faculties of Health Sciences and Medicine. He received his BA,
MD, and MPH degrees from Yale University. After training in medicine (University of California, San Francisco;
Massachusetts General Hospital) and cardiology (Yale), he spent 17 years in Boston where he served as Professor
of Medicine at Harvard Medical School, Professor of Epidemiology at Harvard School of Public Health, and Vice
Chair of the Department of Medicine and later Chief Medical Officer at the Brigham and Women’s Hospital. He
then moved to the University of California, San Francisco, where he was the Julius R. Krevans Distinguished
Professor and Chair of the Department of Medicine and Associate Dean for Clinical Affairs of the School of
Medicine. Dr. Goldman’s research has focused on the effectiveness and costs of diagnostic and therapeutic
strategies.
Maxine F. Griffith, Executive Vice President for Government and Community Affairs. Ms. Griffith joined the
University in July 2005 with more than 20 years of New York experience and a strong background in government
affairs. While she was a senior fellow for community planning and development at the Regional Plan Association in
New York, she worked extensively in Harlem on a variety of issues, including development projects. Most recently
Ms. Griffith served as the executive director of the Philadelphia City Planning Commission and the secretary for
strategic planning. Prior to her cabinet-level appointment in Philadelphia, she served in the Clinton administration at
the U.S. Department of Housing and Urban Development (HUD), first as the secretary’s regional representative for
New York and New Jersey and then in Washington as HUD’s assistant deputy secretary. Ms. Griffith graduated
cum laude from Hunter College in New York and holds a master’s degree in architecture from the University of
California, Berkeley. She has taught city planning and urban design at Columbia, New York University and the
University of Pennsylvania.
David Hirsh, Executive Vice President for Research. Dr. Hirsh received his B.A. from Reed College and his
Ph.D. from Rockefeller University in 1968. From 1990 until 2003, he was Chairman of the Department of
Biochemistry and Molecular Biophysics in the College of Physicians and Surgeons of Columbia University. He has
taught at Columbia since 1990 and was appointed Robert Wood Johnson, Jr. Professor of Biochemistry and
Molecular Biophysics in 1991. He served as Interim Dean for Research in the Faculty of Medicine from January
2000 to February 2001. Prior to joining Columbia, he served as Executive Vice President and Director of Research
at Synergen, Inc., and held an academic appointment at the University of Colorado, Boulder.
Joseph A. Ienuso, Executive Vice President for University Facilities. Mr. Ienuso joined Columbia in 1989 and
has since held a number of senior administrative roles in Admissions, Financial Aid, Student Services and Facilities.
As part of the Facilities Executive Team since 2001, he is responsible for leading new building construction,
campus public safety, daily building and grounds maintenance for academic and administrative departments, and for
the University’s apartment housing inventory on the Morningside Heights campus. He is also responsible for
leading the development of the University’s long-term expansion in the old Manhattanville manufacturing zone in
West Harlem. Mr. Ienuso holds a Master of Business Administration degree from Columbia University, a Master of

20
Science in Education from St. John’s University, and a Bachelor of Science from St. John’s University. He is on the
Board of Directors of Nontraditional Employment for Women (NEW), a nonprofit organization that trains women
for skilled jobs in construction and other blue-collar industries.
Jeffrey F. Scott, Executive Vice President for Student and Administrative Services. Mr. Scott joined Columbia
in June, 2008 from the Export Import Bank of the United States in Washington DC, where he was Senior Vice
President and Chief Financial Officer. Mr. Scott began his career in the Federal Government, serving first as a
planner in the Office of the Secretary of Defense, then as budget examiner for international affairs at the Office of
Management and Budget. Leaving Government to pursue a career in the private sector, Mr. Scott worked in the
aerospace, industrial machinery, chemical, and paper industries. After stints in strategic planning at General
Dynamics and Chrysler Corporation, he joined FMC Corporation, ultimately serving as Chief Financial Officer –
Europe in Brussels, Director General - Russia and CIS in Moscow, and Corporate Director of Business
Development in Philadelphia. At SCA, a premier Swedish paper and personal care company, he was Vice
President and Chief Financial Officer for the Americas, overseeing the company’s rapid growth through acquisition
into North and South America. Mr. Scott graduated Magna Cum Laude from Harvard College and earned a Masters
of Public Policy from Harvard’s Kennedy School of Government.
David M. Stone, Executive Vice President for Communications. David M. Stone was appointed Executive
Vice President for Communications in March 2006. Over the past two decades, Mr. Stone served in state and
federal government, worked as a writer, public affairs television producer and communications consultant for a
variety of media, education, government and mission-driven organizations. Mr. Stone was an advisor to Princeton
University’s Policy Research Institute and a consultant on strategic communications and community outreach for
the University of Pennsylvania, including the University’s civic partnerships in West Philadelphia. Previously, he
served as deputy chief of staff and communications director for Pennsylvania Governor Robert P. Casey and United
States Senator Harris Woffard. A native New Yorker, Mr. Stone graduated from Princeton University and Harvard
Law School.
Anne Sullivan, Executive Vice President for Finance/Chief Financial Officer. Ms. Sullivan was appointed
Executive Vice President for Finance in October 2007. She most recently served as Senior Associate Dean at the
Wharton School at the University of Pennsylvania. Prior to that, Ms. Sullivan served at Columbia University as
Assistant Vice President of Administrative Planning and Financial Management. Her previous experience includes a
management role in a start-up venture funded by Columbia University and positions in Booz Allen Hamilton’s
insurance and healthcare practice and Kidder, Peabody, Inc.’s investment banking division. She received her B.A.
from the University of Virginia, her MBA from Harvard Business School and a Masters in Public Policy from
Harvard’s John F. Kennedy School of Government.
Affiliation with New York-Presbyterian Hospital
Through an affiliation with New York-Presbyterian Hospital (NYPH) dating back to 1921, the University is part
of the largest academic medical center in New York City. University faculty provide instruction and training to
approximately 600 medical students and 800 residents and fellows at NYPH and other affiliated teaching hospitals.
NYPH reimburses the University for medical, administrative and technical services provided by University
faculty and staff, including the teaching and supervision of medical residents. NYPH also provides funds to the
University for faculty and staff salary support and to develop, expand and support certain clinical programs. The
University leases or purchases certain facilities and services (outpatient offices, nursing services,
telecommunications, etc.) from NYPH, for which the University is invoiced on a monthly basis. The University and
NYPH also collaborate to fund joint projects and programs subject to specific agreements.
Each year the University and NYPH negotiate a joint budget. The fiscal year 2008 joint budget was
approximately $143 million. Payments by the University to NYPH for facilities and services for fiscal year 2008
were approximately $70 million. Revenues received from NYPH are reflected in the consolidated financial
statements as a portion of “Patient Care Revenue.” Payments to NYPH are reflected as a portion of “Patient Care
Expenses.”
The University records both receivables from and payables to NYPH on the Balance Sheet. The University has
no liability for obligations or debt incurred by NYPH.
Employee Relations
The faculty and administrative officers of the University are not represented by any union. The University has
ten unions making up fifteen bargaining units which represent approximately 3,259 of its 18,554 member salaried
workforce.

21
 OPERATING INFORMATION

Enrollment and Admissions

The University’s undergraduate enrollment includes Columbia College, the School of Engineering and Applied
Science, the School of Nursing and the School of General Studies. Enrollment during the past five years, based on
fall registration, is shown below:

ENROLLMENT SUMMARY

Academic Graduate and

Year Undergraduate Professional Non-Degree Total
2008-09 7,129 16,112 2,218 25,459
2007-08 6,923 15,731 2,166 24,820
2006-07 6,969 15,417 2,258 24,644
2005-06 6,937 15,095 2,385 24,417
2004-05 6,801 14,849 2,163 23,813

The following table sets forth the number of applications received for full-time admission to the University’s
undergraduate programs in Columbia College, the number and percentage of those applications accepted and the
number and percentage of those accepted who enrolled, for the past five years.

COLUMBIA COLLEGE ADMISSIONS STATISTICS

Academic Acceptance New

Year Applications Acceptances Rate (Selectivity) Enrollment Yield
2008-09 19,119 1,783 9.3% 1,061 59.5%
2007-08 18,081 1,647 9.1 1,016 61.7
2006-07 17,151 1,661 9.7 1,022 61.5
2005-06 15,793 1,693 10.7 1,024 60.5
2004-05 15,006 1,636 10.9 1,011 61.8

For the 2008-09 academic year, Columbia College continued to be among the most highly selective schools in
the Ivy League. For the class entering fall 2009, Columbia College received 21,274 applications, an increase of
11.3% over the prior year.
Columbia College draws matriculants from all 50 states of the nation and more than 75 countries. About one-
third of Columbia College’s students are from the tri-state region of New York, New Jersey and Connecticut. As
Columbia’s applicant pool has grown over the past five years, the enrolled population has become more
geographically and demographically diverse.

Tuition and Fees

Tuition accounts for approximately one-fifth of the University’s total operating revenues. The table below
indicates tuition rates for Columbia College undergraduate students for the past five academic years:

COLUMBIA COLLEGE TUITION CHARGES

2004-05 2005-06 2006-07 2007-08 2008-09
Tuition $30,260 $31,924 $33,664 $35,516 $37,470
Mandatory Fees 1,212 1,322 1,500 1,707 1,856
Tuition and Mandatory Fees $31,472 $33,246 $35,164 $37,223 $39,326

For the 2008-09 academic year, the undergraduate term bill (including tuition and mandatory fees, as noted
above, as well as room and board) is $49,306, which represents a 4.5% increase over the prior year. Housing and
food services are classified as auxiliary enterprises in the University’s financial statements and are considered

22
separate cost centers. Dormitory and board charges are determined so that substantially all auxiliary enterprise costs,
including related debt service, are expected to be recovered from related fees or charges.
Tuition for the Graduate School of Arts and Sciences for the 2008-09 academic year is $34,364. Full-time
tuition in other graduate and professional schools of the University varies from a low of $30,980 in the School of
Social Work to a high of $46,476 for students enrolled in the Graduate School of Business. Graduate tuition rates in
academic year 2008-09 represent increases ranging from 3.0% to 7.0% over the previous year.

Financial Aid
The University’s admissions and financial aid policies are designed to enable the most qualified students to
attend the University, regardless of their financial circumstances. Since 1974, decisions regarding admission to
Columbia College and the undergraduate classes of the School of Engineering and Applied Science have been
without regard to financial need, and student packages have been made available to meet the needs of every
undergraduate admitted to those schools.
Last year, the University announced an enhanced undergraduate financial aid program for Columbia College
and the School of Engineering and Applied Science effective for incoming and continuing students beginning with
the academic year 2008-09. The program eliminated loans for all College and Engineering undergraduate students
receiving financial aid, and replaced the loans with university grants; it provided that families with incomes below
$60,000 would be exempt from contribution; and it provided that for families with incomes between $60,000 and
$100,000, parental contribution would be reduced.
Across all schools, in fiscal year 2008, the University provided $207.5 million in financial aid grants and
students received approximately $23.6 million in tuition waivers through the University’s tuition exemption
program. In addition, undergraduate, graduate and professional school students finance their education through
Federal and State grants, loans and employment; in fiscal year 2008 this amount totaled $251.1 million.

COLUMBIA UNIVERSITY
FINANCIAL AID GRANTS
Fiscal Amounts
Year (in thousands)
2008 $207,479
2007 186,256
2006 173,328
2005 163,288
2004 158,552
Faculty
Total current full-time faculty members at the University number approximately 3,546, of which approximately
20% are tenured. The majority of the University’s faculty is appointed within one of the three principal academic
ranks: professor, associate professor and assistant professor. Salaries and fringe benefits paid in these ranks are
competitive with comparable institutions both regionally and nationally.
The following table sets forth the faculty profile for each of the last five academic years.

FACULTY PROFILE
Full-Time Percent of
Academic Full-time Part-time* Total Equivalent Total Faculty
Year Faculty Faculty Faculty Faculty Tenured
2008-09 3,546 1,053 4,599 3,897 20%
2007-08 3,570 1,083 4,652 3,931 19
2006-07 3,462 1,027 4,489 3,804 19
2005-06 3,392 1,008 4,400 3,728 19
2004-05 3,313 819 4,132 3,586 20
_________
*Salaried only; does not include part-time unsalaried faculty or graduate students.

23
 ANNUAL FINANCIAL STATEMENT INFORMATION

University Finances
The tables that follow are based on the audited financial statements of the University for the fiscal years 2004
through 2008, and should be read in conjunction with the audited financial statements of the University and related
footnotes as of June 30, 2008 included in Appendix B to this Official Statement.
The following table provides a summary of the University’s assets, liabilities and net assets as of June 30, 2004
through 2008:
Summary of Balance Sheet Information
As of June 30,
(in thousands)
2004 2005 2006 2007 2008
Total Assets $7,876,905 $8,864,501 $10,084,707 $11,504,462 $11,841,219
Total Liabilities 1,707,989 1,938,174 2,256,692 2,351,019 2,672,088
Total Net Assets $6,168,916 $6,926,327 $ 7,828,015 $ 9,153,443 $ 9,169,131
Comprised of:
Unrestricted $4,216,192 $4,892,751 $ 5,642,682 $ 6,695,615 $ 6,496,155
Temporarily Restricted 636,867 610,293 640,869 778,726 854,310
Permanently Restricted 1,315,857 1,423,283 1,544,464 1,679,102 1,818,666
Total Net Assets $6,168,916 $6,926,327 $ 7,828,015 $ 9,153,443 $ 9,169,131

The following table provides a summary of the revenues and support, expenses and other changes in net assets
for the years ended June 30, 2004 through 2008. Operating income (Change in Net Assets from Operating
Activities) of $139 million provided a 4.6% margin on operating revenues (Total Revenues and Support) of $3,034
million in fiscal year 2008.
Condensed Statement of Activities
For the year ended June 30,
(in thousands)
2004 2005 2006 2007 2008
Revenues and Support
Tuition and fees, net financial aid $ 434,753 $ 467,000 $ 520,515 $ 542,093 $ 564,647
Government grants and contracts 565,383 603,622 642,617 615,974 667,256
Private gifts, grants and contracts 239,734 324,320 328,757 353,406 401,968
Patient care revenues - - - 663,466 703,503
Medical faculty practice income 344,804 388,343 395,315 - -
Investment income and gains utilized 233,119 264,264 296,149 335,102 379,957
Other sources 399,558 442,729 526,512 312,226 316,671
Total revenues and support $2,217,351 $2,490,278 $2,709,865 $2,822,267 $3,034,002
Expenses
Instruction, research and educational
administration $1,317,768 $1,432,484 $1,499,306 $1,374,933 $1,503,614
Patient care expenses - - - 606,356 642,342
Medical faculty practice expenses 345,640 361,617 368,494 - -
Administration, library and plant operations 265,339 300,989 329,113 365,909 404,935
Other 280,775 303,893 343,120 341,157 343,918
Total expenses $2,209,522 $2,398,983 $2,540,033 $2,688,355 $2,894,809
Change in net assets from operating activities 7,829 91,295 169,832 133,912 139,193
Change in net assets from
non-operating activities 435,662 666,116 782,599 1,240,196 (123,505)
Cumulative effect of change in accounting (251,799) - (50,743) (48,680) -
Total increase in net assets $ 191,692 $ 757,411 $ 901,688 $1,325,428 $ 15,688

24
Patient Care Revenues and Expenses
“Patient Care Revenues” and “Patient Care Expenses” are new categories on the fiscal year 2008 Statement of
Activities, and serve to combine three major sets of activities: the medical faculty practice ColumbiaDoctors
(previously reported as Medical Faculty Practice Revenue and Expense), hospital affiliation agreements and the
medical management service agreements. The revenue and expenses for these categories were previously included
in other categories including “revenues from other educational and research activities” and “revenues from
government grants and contracts” and “instruction, research and educational administration” expense.
Patient Care Revenues accounted for approximately 23% of fiscal year 2008 revenues, up 6% from the prior
year. In fiscal year 2008, medical faculty practice revenues of $447.5 million were the largest component of Patient
Care Revenues, followed by affiliation agreements with $231.4 million and medical management service
agreements with $24.6 million. The largest component of Patient Care Expenses is physician compensation. All
physicians are employees of the Columbia University Medical Center.

Government Grants and Contracts

During the fiscal year ended June 30, 2008, the University recorded, through government grants and contracts,
revenues of $667.3 million, which accounted for approximately 22% of the University’s total operating revenues
and support of $3.034 billion for that fiscal year. Indirect costs on government grants and contracts represent the
allocation of overhead costs (library, University and departmental administration, operation and maintenance of
plant, and building and equipment depreciation) to the projects funded by such grants. Total indirect costs of the
University reimbursed from governmental grants and contracts were $160.2 million in fiscal year 2007-08 and
$152.5 million in fiscal year 2007. In spring 2008, the University successfully completed negotiations with the
federal government for the rate at which it can be reimbursed for facilities and administrative costs (F&A Costs)
applicable to federal on-campus research. This indirect cost recovery rate will average 60.7% through fiscal year
2011.
The following table sets forth the revenues from government grants and contracts for each of the past five fiscal
years through June 30, 2008. In fiscal year 2008, the National Institutes of Health provided 42% of the annual
revenues from government grants and contracts.

GOVERNMENT GRANTS AND CONTRACTS*

Amount
Year (in thousands)
2008 $667,256
2007 615,974
2006 642,617
2005 603,622
2004 565,383
________
*For fiscal years 2007 and 2008, Government Grants and Contracts does not include the contract with Harlem Hospital, which is
included under “Patient Care Revenue.” Prior to fiscal year 2007, the Harlem Hospital affiliation revenue is reflected as grant revenue.

The University conducts a significant amount of research funded by outside sponsors, primarily the federal
government. The University expects that it will continue to receive significant amounts of federal funds supporting
research. However, inasmuch as federally sponsored research is obtained through both grants and contracts, it may
vary from year to year, and no assurance can be given that it will continue at the levels experienced in recent years.
The costs associated with being a major federal contractor have grown substantially. The cost of compliance
with federal regulations, including the application of codes regarding building modifications, the requirements of
increased record keeping, and changes in procedures governing the reimbursement of direct and indirect costs of
performing sponsored research, has escalated and will continue to require considerable investment of University
resources.
Passage of the American Recovery and Reinvestment Act of 2009 on February 19, 2009 demonstrated the U.S.
Government’s intention to spend approximately $12.4 billion on government funded research between March 2009
and September 2010 in order to stimulate the U.S. economy. Although federal funding decisions have not been

25
made at this time, the University expects to retain its competitive position as a recipient of federal research funding
and, therefore, may experience an increase in research funding from this federal initiative.

Private Gifts and Grants

For the fiscal year ended June 30, 2008, total gifts amounted to $532 million. The total is comprised of
unrestricted private gifts, grants, and contracts of $264 million, temporarily restricted gifts of $138 million, and
permanently restricted endowment gifts of $130 million. Temporarily restricted and permanently restricted gifts
include both pledges and cash gifts received. Gross pledges outstanding increased by 8% to $311 million. Fiscal
year 2008 was a record year for gift giving, ranking Columbia in third place nationally among higher education
institutions for fundraising, according to the Council for Aid to Education.
Columbia is in the middle of a multi-year capital campaign: $4 billion is targeted to be raised by December 31,
2011. As of March 31, 2009, the campaign was ahead of schedule, with $3.114 billion committed. Commitments
include pledges, conditional pledges and bequests, gifts and gifts in kind.

Endowment
The University’s endowment comprises two major components, the long-term investment portfolio and the
Residential Real Estate Portfolio, used to house University affiliates. The University’s long-term investment
portfolio includes the corpus of permanently restricted gifts as well as reinvested gains and income and board-
designated endowments.
The following table summarizes the endowment at June 30, 2004 through June 30, 2008:

Market Value* of Endowment at June 30,

(in millions)

2004 2005 2006 2007 2008

Unrestricted $2,896 $3,501 $4,134 $5,130 $4,941
Temporarily Restricted 511 516 531 645 710
Permanently Restricted 1,086 1,174 1,272 1,375 1,496
Total $4,493 $5,191 $5,937 $7,150 $7,147
________
*Residential Real Estate portfolio reflected at cost, net of related liabilities.

Managed Assets:
The largest portion of investments is managed by Columbia Investment Management Company, L.L.C. (CIMC),
a New York limited liability company formed in 2002 by the University to manage the University’s investment
assets under the supervision of the Committee on Finance of the Trustees of Columbia University, and of which the
University is the sole member. Assets under CIMC management totaled $7.2 billion as of June 30, 2008, with a net
total return of 2.0% for fiscal year 2008; assets under CIMC management at June 30, 2007 were $7.2 billion, with a
net total return of 23.1% for fiscal year 2007.
Annualized Returns for Periods ended June 30, 2008
1 Year 3 Years 5 Years 10 Years
Columbia Managed Assets 2.0% 14.1% 15.1% 10.5%
S&P 500 Total Return Index (13.1) 4.4 7.6 2.9
MSCI EAFE (10.1) 13.3 17.2 6.2
BC Aggregate (Barclays Capital) 7.1 4.1 3.9 5.7

26
 Asset allocation of the CIMC-managed assets was as follows:
Asset Allocation (% of Managed Asset Portfolio)
Based on Market Value at June 30,
2006 2007 2008
Global equities 25% 29% 23%
Hedge funds 42 32 29
Fixed income 7 4 5
Private equity 19 20 25
Real assets 8 10 14
Cash (1) 5 4
Total 100% 100% 100%

The asset allocation above differs from the presentation of asset allocation in the footnotes to the University’s
financial statements in that the information above allocates hedge funds with long-only equity or long-only fixed
income strategies to those respective asset classes. Since June 30, 2008, significant volatility and decline in world
financial markets have impacted all major asset classes in which IMC is invested. As of March 31, 2009, the total
value of the managed asset portfolio, using standard reporting protocols, had declined by nearly 22% from June 30,
2008. This estimate is unaudited and includes certain assets for which valuations are less frequently provided and
were most recently estimated based on information provided as of December 31, 2008. The distribution from the
endowment supports approximately 13% of the University budget. The University is planning to reduce the
distribution from the endowment for core operations by approximately 8% in fiscal year 2010 to begin to absorb
endowment losses experienced in fiscal year 2009. Across the University, schools and central administrative units
have taken steps to reduce expenses and/or increase revenues to adapt to this change in spending policy.
The valuation of the University’s managed asset portfolio is further subject to the continuing effects of
volatility, limited liquidity, and pricing issues in certain markets. See Note 6 to the financial statements of the
University included in Appendix B to this Official Statement for more information on components of managed
assets included within the University’s long-term investments.

Residential Real Estate Portfolio:

The Residential Real Estate portfolio, which consists of properties proximate to the Morningside Heights and
Washington Heights campuses, provides housing to faculty, staff, and graduate students. Income from the rental
properties in the portfolio is used to support operating costs. The Residential Real Estate portfolio is carried at
approximately $338.6 million, which represents a historical cost value of $682.1 million less related liabilities of
$343.5 million. The portfolio increased by $26.8 million or 4.1% between June 30, 2007 and 2008, which reflects
the renovation of existing properties. The appraised market value of these properties as of June 30, 2008 was nearly
$1.2 billion.

Capital Expenditures and Budgeting

The fiscal year 2009 Capital Budget anticipates capital expenditures totaling $495 million. Capital projects will
be financed by a combination of unrestricted operating funds, borrowing (including the proceeds of the Series
2009A Bonds), gifts and grants. The capital improvement program includes projects that address the major strategic
objectives of the University.

Future Facilities
The University continues to plan for future development, including renovation of existing property on the
Morningside Heights, Lamont and CU Medical Center campuses, as well as its planned expansion into the
Manhattanville section of West Harlem, just north of the Morningside Heights campus. The planned expansion
stretches over a period of several decades. Zoning approval from New York City (Uniform Land Use Review
Process) was secured in December 2007. The University is currently in discussions with local community
representatives regarding the provisions of benefits and services for the community in the project area. Proceeds
from the Series 2009A Bonds will not be used for expenditures related to the property that was rezoned. It is
anticipated that the University will continue to access the capital markets from time to time to help finance a portion
of its future capital costs.

27
Outstanding Indebtedness; Existing Liens
The long-term debt of the University as of June 30, 2008 totaled $1.435 billion as shown in the following
schedule. A small portion of the University’s long-term debt is secured by some type of collateral, revenue pledge
or other security interest. Such secured obligations are entitled to payment in full from the collateral or revenues
pledged therefor before any payments may be made by the University on its obligations under the Bonds, including
the Series 2009A Bonds.
The University has authorized a $150 million taxable commercial paper program that it uses on a revolving
basis to bridge finance capital projects and to help manage working capital balances. As of March 31, 2009, when
no taxable commercial paper was outstanding, the University’s debt portfolio was 93% fixed rate and 88% tax-
exempt. In October 2008, the University entered into a notional $200 million, 67% LIBOR, fixed-payer swap, to
hedge interest rates on future variable rate debt. The market value of the swap as of March 31, 2009 was a $64
million liability. Under the swap agreement with counterparty Goldman Sachs Mitsui Marine Derivative Products,
L.P., the University is not required to post collateral at its current ratings levels.
The following table presents a summary of the indebtedness of the University as of June 30, 2008:
OUTSTANDING INDEBTEDNESS
Balance
Interest Final Outstanding
Rates Maturity Date (in thousands)
Authority Revenue Bonds
Series 2008A 4.00%-5.00% 2038 $ 282,715
Series 2006A 4.75%-5.25% 2031 225,000
Series 2006B 3.25%-5.25% 2022 156,890
Series 2004A2 5.00% 2014 46,500
Series 2004B 4.00%-5.125% 2024 91,315
Series 2004C 5.00% 2029 48,270
Series 2003A 3.20%-5.125% 2024 76,350
Series 2003B Variable, 1.00%-3.88% 2028 30,000
Series 2002A 3.75%-5.25% 2014 32,850
Series 2002B 4.50%-5.25% 2024 43,890
Series 2002C Variable, 1.40%-3.73% 2027 23,300
Series 2000A 4.10%-5.25% 2025 46,325
Series 1994A (1) 5.75% 2010 31,925
Tax-exempt commercial paper, Series 1997 (2) Variable, 1.30%-3.75% 2015 34,850
College and University Education Loan, Series 1993 (3) 5.55%-5.65% 2013 4,638
College and University Education Loan, Series 1992 (3) 6.80% 2013 3,888
U.S. Department of Education Housing Program Bonds
1991 Issue (4) 5.50% 2021 1,621
1990 Issue (4) 3.00% 2020 1,859
Taxable Medium-Term Notes, Series C 6.53%-7.36% 2021 152,890
Empire State Development Corporation (5) Interest free 2029 8,538
Empire State Development Corporation (6) Interest free 2010 7,075
Economic Development Corporation (6) Interest free 2010 8,734
New Jersey Economic Development Corp. Series 2002 Variable, 0.85%-3.62% 2028 9,230
Taxable commercial paper Variable, 2.25%-5.55% Various 60,880
Promissory Note 8.00% 2010 3,000
Promissory Notes 11.00% 2010 2,195
Total bonds and notes payable $1,434,728
_____________
(1) These issues are secured by pledges of tuition and student fees and charges in amounts equal to the principal and sinking fund installments and interest
coming due in any one year.
(2) The commercial paper notes are secured by a pledge of tuition and student fees and charges in each twelve month period beginning July 1 of each
calendar year and ending on June 30 of the succeeding calendar year, paid or payable to the University during such period.
(3) The University is a participant with other colleges and universities in a New York State program to provide funds for student loans to students attending
those institutions, or to the parents of such students. The University’s share of these issues is secured by a pledge of repayments on the loans and, if necessary, by a
portion of tuition and other student fees.
(4) Under the related loan agreements, dated as of February 7, 1987 and April 10, 1990, the U.S. Department of Education (the “Department”) provided the
University with loans of $3.5 million and $2.5 million, respectively, under the Department’s College Housing Loan Program. Loan proceeds financed portions of the
costs of the rehabilitation of certain residence halls of the University and the rehabilitation of Hamilton Hall. The loans are secured by notes and pledge and trust

28
agreements pursuant to which marketable securities, in each case, in an amount at all times equal to or greater than the outstanding balance of the respective loan will
be held in trust for the benefit of the Department. Principal and interest is being paid in level semiannual installments over the remaining term of each loan.
(5) On March 16, 1989, the New York State Empire State Development Corporation (formerly known as the New York State Urban Development
Corporation (“ESDC”)) provided a $36 million loan to the University through the sale of Federally Taxable Project Revenue Bonds (Columbia University Center for
Computers, Microelectronics and Telecommunications), Series 1989, for the construction of the Center for Engineering and Physical Science Research (“CEPSR”).
The loan is secured by a mortgage on the CEPSR. The CEPSR is leased by the University to the State of New York and, in turn, subleased to the University. The
sublease is secured by a second mortgage on the CEPSR. Under the lease, New York State is required to make rental payments equal to the total annual debt service
less the University’s annual rental payments under the sublease. Under the sublease, the University is required to make annual rental payments of $910,697 for 40
years beginning March 1, 1990. Except as otherwise provided in the financing documents, recourse is limited to the CEPSR and the site of the CEPSR through the
mortgage granted to ESDC and the second mortgage granted to New York State. The bonds are not obligations or debts of New York State. Rental payments by
New York State are subject to annual appropriation by the New York State legislature. If New York State fails to appropriate sufficient funds and the University
does not assume responsibility for New York State’s payments, bondholders could cause ESDC to foreclose the mortgage securing the ESDC loan to the University.
(6) The New York City Economic Development Corporation (“EDC”) and the ESDC have agreements with the University which provided the University
with interest-free loans of $10.0 million and $8.1 million, respectively, for Phase I of the Audubon Research Park. These agreements include a long-term lease from
the City of New York to the University, of the land on which Phase I is located. The public parties have the option of calling for repayment of their investment 15
years after completion of construction of the research building if non-recourse financing in that amount is available at that time. Otherwise, the public parties at their
option may call for repayment 20 years, and in any event must be repaid no later than 25 years, after completion of construction. The University recorded the loans at
a discounted rate of 7.0%. The difference between the face value of the loans and their present value ($12.9 million) is recorded on the Balance Sheet as deferred
grant revenue and is amortized over the life of the loan. Upon repayment by the University of the amount invested by the public parties, the University will have the
right to acquire title to the research building site for a nominal sum.

No assurance can be given that additional liens on assets and revenues of the University will not be granted to
secure additional obligations of the University.

Liquidity
As of March 31, 2009, the University’s total cash and cash equivalents, including that in the investment
portfolio, had a fair market value of approximately $675 million in same day and next day funds, consisting almost
entirely of Overnight Repurchase Agreements backed by Treasury/Agency/Agency Mortgage collateral. The
composition and amount of the liquid funds varies from time to time depending on market conditions and other
factors.
The University has a $100 million committed operating line of credit with a major financial institution. The
University has not drawn down on this facility.
The University has also entered into a $100 million revolving credit agreement with a major financial institution
to provide additional liquidity in the event of a failed remarketing of its variable rate and short-term obligations.
This 364-day revolving credit agreement is cancelable at the University’s discretion and may be terminated by the
financial institution in certain circumstances. The Trustee and the holders of the Series 2009A Bonds will have no
right to access funds available under the revolving credit agreement.
Although the University is not obligated to maintain or renew such agreements, it plans to maintain a
combination of bank facilities and liquid investments to support its variable rate bonds and commercial paper.
As of March 31, 2009, the University’s variable rate debt outstanding totaled included:

DASNY Series 2003B $30,000,000

DASNY Series 2002C 23,300,000
DASNY Tax-Exempt Commercial Paper, Series 1997 34,850,000
New Jersey Economic Development Corp. Series 2002 8,910,000
Taxable Commercial Paper 0
Total $97,060,000
Pension Plans
Retirement benefits are provided for full-time faculty and officers under a noncontributory defined contribution
plan. Contributions are determined as a percentage of each covered employee’s salary, factoring in the age and
accrued service of each employee. Charges to expenditures under this plan amounted to $82.8 million and $71.6
million for the years ended June 30, 2008 and 2007, respectively.
The University has four noncontributory pension plans (the “pension plans”) for supporting staff employees.
Two of these plans are defined benefit plans for both past and future service. The other two plans provide defined
benefits for service prior to January 1, 1976, in one case, and prior to July 1, 1976, in the other. For the two latter
plans, future benefits are provided by a defined contribution plan. All four of these plans are subject to collective
bargaining agreements. Charges to expenditures under the plans amounted to $4.3 million and $6.0 million for the
years ended June 30, 2008 and 2007, respectively. For additional information regarding the University’s retirement
benefits and pension plans, including the value of plan assets and funding status, see Note 13 to the financial
statements of the University included in Appendix B to this Official Statement.

29
Insurance
The University carries insurance on its buildings and their contents with a blanket policy limit of $1.0 billion per
occurrence covering full replacement value for its multiple campus properties. Liability insurance with substantial
limits of liability is also purchased to protect the University and its trustees and officers against third-party claims
and suits. The University maintains a self-insurance reserve to fund the deductible obligations of its policies.

LITIGATION
From time to time, various claims and suits generally incident to the conduct of the University’s business are
pending or may arise against the University. All funds expended in connection with government grants and
contracts are subject to audit by government agencies. While the ultimate liability, if any, from such audits, claims
and suits is presently not determinable, it should not, in the opinion of counsel and management, have a material
effect on the University’s financial position or results of activities.

PART 5 – THE 2009A PROJECT

Proceeds from the sale of the Series 2009A Bonds are being used to finance various design, construction, and
renovation projects throughout the University system, including reimbursement of expenditures for:
Butler Library, Phase V – Completion of a multi-phase renovation of Butler Library that upgrades systems,
improves infrastructure and refurbishes the elevators and roofs.
Faculty House – Renovation, restoration and upgrading of a 1923 Georgian style building of approximately
38,000 square feet, which will serve as a venue for academic meetings and events.
Northwest Corner Building (formerly Interdisciplinary Science Building) – Construction of a 188,000 square
foot state-of-the-art science building, which will house faculty offices, classroom and interdisciplinary research
facilities for the disciplines of chemistry, biology, engineering and physics.
Irving Cancer Research Center – Completion of the fitout of Department of Cancer Genetics facilities in the
Audubon Biomedical Science and Technology Park on the Medical Center campus, which will provide 35,800
square feet of research and clinical laboratories, a vivarium and quarantine space for cancer research.
Jerome Greene Hall – Enclosure of the 900 level of Columbia Law School’s Jerome Green Hall, which will
house additional faculty offices and seminar rooms.
McVickar Hall – Completion of renovation and upgrading of an eight story building, providing approximately
51,000 square feet, for the offices of University Development and Alumni Relations.
Residential Real Estate– Renovation, restoration, upgrading and maintenance of residential real estate that
houses students, faculty and University affiliates on and near the Morningside campus.
Uris Hall – Renovation and upgrading of Uris Hall, home to the Columbia School of Business, which will
improve classrooms, faculty offices, library and public spaces.
615 West 131st Street – Continued renovation and upgrading of a six story industrial building, originally the
Studebaker assembly plant, containing approximately 210,000 square feet, which will house additional
Administrative offices of the University.
Numerous other renovations, improvements, maintenance and upgrades of University-owned academic
buildings, dormitories, laboratories and infrastructure.

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 PART 6 – ESTIMATED SOURCES AND USES OF FUNDS

The estimated sources and uses of funds are as follows:

Sources of Funds
Principal Amount of Series 2009A Bonds ....................................... $117,000,000
Total Sources ..................................................................... $117,000,000
Uses of Funds
Deposit to Construction Fund........................................................... $115,201,999
Costs of Issuance .............................................................................. 558,499
State Bond Issuance Charge ............................................................. 974,613
Underwriter’s Discount .................................................................... 264,889
Total Uses ......................................................................... $117,000,000

PART 7 - AUTHORITY

Background, Purposes and Powers

The Authority is a body corporate and politic constituting a public benefit corporation. The Authority was
created by the Act for the purpose of financing and constructing a variety of facilities for certain independent
colleges and universities and private hospitals, certain not-for-profit institutions, public educational institutions
including The State University of New York, The City University of New York and Boards of Cooperative
Educational Services (“BOCES”), certain school districts in the State, facilities for the Departments of Health and
Education of the State, the Office of General Services, the Office of General Services of the State on behalf of the
Department of Audit and Control, facilities for the aged and certain judicial facilities for cities and counties. The
Authority is also authorized to make and purchase certain loans in connection with its student loan program. To
carry out this purpose, the Authority was given the authority, among other things, to issue and sell negotiable bonds
and notes to finance the construction of facilities of such institutions, to issue bonds or notes to refund outstanding
bonds or notes and to lend funds to such institutions.
On September 1, 1995, the Authority through State legislation (the “Consolidation Act”) succeeded to the
powers, duties and functions of the New York State Medical Care Facilities Finance Agency (the “Agency”) and the
Facilities Development Corporation (the “Corporation”), each of which will continue its corporate existence in and
through the Authority. Under the Consolidation Act, the Authority has also acquired by operation of law all assets
and property, and has assumed all the liabilities and obligations, of the Agency and the Corporation, including,
without limitation, the obligation of the Agency to make payments on its outstanding bonds, and notes or other
obligations. Under the Consolidation Act, as successor to the powers, duties and functions of the Agency, the
Authority is authorized to issue and sell negotiable bonds and notes to finance and refinance mental health services
facilities for use directly by the New York State Department of Mental Hygiene and by certain voluntary agencies.
As such successor to the Agency, the Authority has acquired additional authorization to issue bonds and notes to
provide certain types of financing for certain facilities for the Department of Health, not-for-profit corporations
providing hospital, medical and residential health care facilities and services, county and municipal hospitals and
nursing homes, not-for-profit and limited profit nursing home companies, qualified health maintenance
organizations and health facilities for municipalities constituting social services districts. As successor to the
Corporation, the Authority is authorized, among other things, to assume exclusive possession, jurisdiction, control
and supervision over all State mental hygiene facilities and to make them available to the Department of Mental
Hygiene, to provide for construction and modernization of municipal hospitals, to provide health facilities for
municipalities, to provide health facilities for voluntary non-profit corporations, to make its services available to the
State Department of Correctional Services, to make its services available to municipalities to provide for the design
and construction of local correctional facilities, to provide services for the design and construction of municipal
buildings, and to make loans to certain voluntary agencies with respect to mental hygiene facilities owned or leased
by such agencies.

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 The Authority has the general power to acquire real and personal property, give mortgages, make contracts,
operate dormitories and other facilities and fix and collect rentals or other charges for their use, contract with the
holders of its bonds and notes as to such rentals and charges, make reasonable rules and regulations to assure the
maximum use of facilities, borrow money, issue negotiable bonds or notes and provide for the rights of their holders
and adopt a program of self-insurance.
In addition to providing financing, the Authority offers a variety of services to certain educational,
governmental and not-for-profit institutions, including advising in the areas of project planning, design and
construction, monitoring project construction, purchasing of furnishings and equipment for projects, designing
interiors of projects and designing and managing projects to rehabilitate older facilities. In succeeding to the
powers, duties and functions of the Corporation as described above, the scope of design and construction services
afforded by the Authority has been expanded.

Outstanding Indebtedness of the Authority (Other than Indebtedness Assumed by the Authority)
At March 31, 2009, the Authority had approximately $37.9 billion aggregate principal amount of bonds and
notes outstanding, excluding indebtedness of the Agency assumed by the Authority on September 1, 1995 pursuant
to the Consolidation Act. The debt service on each such issue of the Authority’s bonds and notes is paid from
moneys received by the Authority or the trustee from or on behalf of the entity having facilities financed with the
proceeds from such issue or from borrowers in connection with its student loan program.
The Authority’s bonds and notes include both special obligations and general obligations of the Authority. The
Authority’s special obligations are payable solely from payments required to be made by or for the account of the
institution for which the particular special obligations were issued or from borrowers in connection with its student
loan program. Such payments are pledged or assigned to the trustees for the holders of respective special
obligations. The Authority has no obligation to pay its special obligations other than from such payments. The
Authority’s general obligations are payable from any moneys of the Authority legally available for the payment of
such obligations. However, the payments required to be made by or for the account of the institution for which
general obligations were issued generally have been pledged or assigned by the Authority to trustees for the holders
of such general obligations. The Authority has always paid the principal of and interest on its special and general
obligations on time and in full.

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 The total amounts of the Authority bonds and notes (excluding debt of the Agency assumed by the Authority on
September 1, 1995 pursuant to the Consolidation Act) outstanding at March 31, 2009 were as follows:
Bonds and
Bonds Notes Notes
Public Programs Bonds Issued Outstanding Outstanding Outstanding
State University of New York
Dormitory Facilities ....................................... $ 2,250,196,000 $ 974,760,000 $ 0 $ 974,760,000
State University of New York Educational
and Athletic Facilities .................................... 12,287,697,999 5,284,232,634 0 5,284,232,634
Upstate Community Colleges of the
State University of New York ....................... 1,431,000,000 604,840,000 0 604,840,000
Senior Colleges of the City University
of New York .................................................. 9,663,821,762 2,934,864,213 0 2,934,864,213
Community Colleges of the City University
of New York .................................................. 2,364,178,350 508,140,787 0 508,140,787
BOCES and School Districts ............................. 2,000,366,208 1,488,605,000 0 1,488,605,000
Judicial Facilities ............................................... 2,161,277,717 731,557,717 0 731,557,717
New York State Departments of Health
and Education and Other................................ 5,198,240,000 3,551,125,000 0 3,551,125,000
Mental Health Services Facilities ...................... 6,811,595,000 3,676,845,000 0 3,676,845,000
New York State Taxable Pension Bonds ........... 773,475,000 0 0 0
Municipal Health Facilities
Improvement Program ................................... 985,555,000 782,980,000 0 782,980,000
Totals Public Programs ...................................... $ 45,927,403,036 $ 20,537,950,351 $ 0 $ 20,537,950,351
Bonds and
Bonds Notes Notes
Non-Public Programs Bonds Issued Outstanding Outstanding Outstanding
Independent Colleges, Universities
and Other Institutions .................................... $ 16,855,471,020 $ 8,270,366,644 $191,005,000 $ 8,461,371,644
Voluntary Non-Profit Hospitals ......................... 13,459,114,309 7,866,030,000 0 7,866,030,000
Facilities for the Aged ....................................... 1,996,020,000 1,002,860,000 0 1,002,860,000
Supplemental Higher Education Loan
Financing Program......................................... 95,000,000 0 0 0
Totals Non-Public Programs .............................. $ 32,405,605,329 $ 17,139,256,644 $191,005,000 $ 17,330,261,644
Grand Totals Bonds and Notes .......................... $ 78,333,008,365 $ 37,677,206,995 $191,005,000 $ 37,868,211,995

Outstanding Indebtedness of the Agency Assumed by the Authority

At March 31, 2009, the Agency had approximately $370.4 million aggregate principal amount of bonds
outstanding, the obligations as to all of which have been assumed by the Authority. The debt service on each such
issue of bonds is paid from moneys received by the Authority (as successor to the Agency) or the trustee from or on
behalf of the entity having facilities financed with the proceeds from such issue.
The total amounts of the Agency’s bonds (which indebtedness was assumed by the Authority on September 1,
1995) outstanding at March 31, 2009 were as follows:
Public Programs Bonds Issued Bonds Outstanding
Mental Health Services Improvement Facilities ............... $ 3,817,230,725 $ 0
Non-Public Programs Bonds Issued Bonds Outstanding
Hospital and Nursing Home Project Bond Program ......... $ 226,230,000 $ 3,255,000
Insured Mortgage Programs ............................................. 6,625,079,927 359,484,720
Revenue Bonds, Secured Loan and Other Programs ........ 2,414,240,000 7,670,000
Total Non-Public Programs .............................................. $ 9,265,549,927 $ 370,409,720
Total MCFFA Outstanding Debt ...................................... $ 13,082,780,652 $ 370,409,720

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Governance
The Authority carries out its programs through an eleven-member board, a full-time staff of approximately 660
persons, independent bond counsel and other outside advisors. Board members include the Commissioner of
Education of the State, the Commissioner of Health of the State, the State Comptroller or one member appointed by
him or her who serves until his or her successor is appointed, the Director of the Budget of the State, one member
appointed by the Temporary President of the State Senate, one member appointed by the Speaker of the State
Assembly and five members appointed by the Governor, with the advice and consent of the Senate, for terms of
three years. The Board member position that is filled by an appointment from the Temporary President of the State
Senate is currently vacant. The Commissioner of Education of the State, the Commissioner of Health of the State
and the Director of the Budget of the State each may appoint a representative to attend and vote at Authority
meetings. The members of the Authority serve without compensation, but are entitled to reimbursement of
expenses incurred in the performance of their duties.
The Governor of the State appoints a Chair from the members appointed by him or her and the members of the
Authority annually choose the following officers, of which the first two must be members of the Authority: Vice-
Chair, Secretary, Treasurer, Assistant Secretaries and Assistant Treasurers.
The current members of the Authority are as follows:
GAIL H. GORDON, Esq., Chair, Slingerlands.
Gail H. Gordon was appointed as a Member of the Authority by the Governor on May 10, 2004. Ms. Gordon
served as Deputy Commissioner and General Counsel for the Office of Children and Family Services from
September 15, 1997 to December 31, 2006. She previously was of counsel to the law firm of Helm, Shapiro, Anito
& McCale, P.C., in Albany, New York, where she was engaged in the private practice of law. From 1987 to 1993,
Ms. Gordon served as Counsel to the Comptroller of the State of New York where she directed a legal staff of
approximately 40 attorneys, was responsible for providing legal and policy advice to the State Comptroller and his
deputies in all areas of the State Comptroller’s responsibilities, including the supervision of accounts of public
authorities and in the administration, as sole trustee, of the New York State Employees Retirement System and the
Policemen’s and Firemen’s Retirement System. She served as Deputy Counsel to the Comptroller of the State of
New York from 1983 to 1987. From 1974 to 1983, Ms. Gordon was an attorney with the law firm of Hinman,
Howard & Kattell, Binghamton, New York, where she concentrated in areas of real estate, administrative and
municipal law. Ms. Gordon holds a Bachelor of Arts degree from Smith College and a Juris Doctor degree from
Cornell University School of Law. Ms. Gordon’s term expired on March 31, 2007 and by law she continues to serve
until a successor shall be chosen and qualified.
JOHN B. JOHNSON, JR., Vice-Chair, Watertown.
John B. Johnson, Jr. was appointed as a Member of the Authority by the Governor on April 26, 2004. Mr.
Johnson is Chairman of the Board and Chief Executive Officer of the Johnson Newspaper Corporation, which
publishes the Watertown Daily Times, Batavia Daily News, Malone Telegram, Catskill Daily Mail, Hudson
Register Star, Ogdensburg Journal, Massena-Potsdam Courier Observer, seven weekly newspapers and three
shopping newspapers. He is director of the New York Newspapers Foundation, a member of the Development
Authority of the North Country and the Fort Drum Regional Liaison Committee, a trustee of Clarkson University
and president of the Bugbee Housing Development Corporation. Mr. Johnson has been a member of the American
Society of Newspaper Editors since 1978, and was a Pulitzer Prize juror in 1978, 1979, 2001 and 2002. He holds a
Bachelor’s degree from Vanderbilt University, and Master’s degrees in Journalism and Business Administration
from the Columbia University Graduate School of Journalism and Business. Mr. Johnson was awarded an
Honorary Doctor of Science degree from Clarkson University. Mr. Johnson’s term expires on March 31, 2010.
JACQUES JIHA, Ph.D., Woodbury.
Jacques Jiha was appointed as a Member of the Authority by the Governor on December 15, 2008. Mr. Jiha is
an Executive Vice President and the Chief Financial Officer of Earl G. Graves, Ltd., a multi-media company that
includes Black Enterprise magazine. He is also a member of the Investment Advisory Committee of the New York
Common Retirement Fund. Mr. Jiha has previously served as Deputy Comptroller for Pension Investment and
Public Finance in the Office of the New York State Comptroller and as Co-Executive Director of the New York
Local Government Assistance Corporation (LGAC). Prior thereto, Mr. Jiha was Nassau County Deputy
Comptroller for Audits and Finances. He also worked for the New York City Office of the Comptroller in
increasingly responsible positions: first as Chief Economist and later as Deputy Comptroller for Budget. Mr. Jiha

34
has served as Executive Director of the New York State Legislative Tax Study Commission and as Principal
Economist for the New York State Assembly Committee on Ways and Means. He holds a Ph.D. and a Master’s
degree in Economics from the New School University and a Bachelor’s degree in Economics from Fordham
University. His current term expires on March 31, 2010.
BRIAN RUDER, Scarsdale.
Mr. Ruder was appointed as a Member of the Authority on June 23, 2006. He is Chief Executive Officer of
Skylight Partners, a strategic marketing and business development consulting group that he founded in 2001. Prior
to Skylight Partners, Mr. Ruder served for four years as Executive Vice President of Global Marketing for
Citigroup. He spent 16 years at the H.J. Heinz Co. in progressively responsible positions, including President of
Heinz USA, President of Weight Watchers Food Company and corporate Vice President of Worldwide Infant
Feeding. He also served as Director of Marketing, New Products and Sales for Pepsi USA in the mid-1980s. Mr.
Ruder is a member of the board of the New York State Foundation for Science, Technology and Academic
Research (NYSTAR), and also serves as chair of the board of the Adirondack Council, board member and secretary
of the New York Metro Chapter of the World Presidents’ Organization, and an advisory board member of PNC
Private Client Advisors. Mr. Ruder earned a Bachelor of Arts degree in American History in 1976 from Washington
University in St. Louis, Mo., and a Master of Business Administration degree in Marketing in 1978 from the Tuck
School at Dartmouth College. His current term expires on March 31, 2009.
ANTHONY B. MARTINO, CPA, Buffalo.
Mr. Martino was appointed as a Member of the Authority by the Governor on April 26, 2004. A certified public
accountant with more than 37 years of experience, Mr. Martino is a retired partner of the Buffalo CPA firm
Lumsden & McCormick, LLP. He began his career at Price Waterhouse where he worked in the firm’s Buffalo and
Washington, DC, offices. Mr. Martino is a member of the American Institute of CPAs and the New York State
Society of CPAs. Long involved in community organizations, he serves on the boards of the Buffalo Niagara
Medical Campus as Vice Chairman, Mount Calvary Cemetery as Chair of the Investment Committee, Cradle Beach
Camp of which he is a former Chair, the Kelly for Kids Foundation and Key Bank. Mr. Martino received a
Bachelor of Science degree in accounting from the University at Buffalo. Mr. Martino’s current term expires on
August 31, 2010.
SANDRA M. SHAPARD, Delmar.
Ms. Shapard was appointed as a Member of the Authority by the State Comptroller on January 21, 2003. Ms.
Shapard served as Deputy Comptroller for the Office of the State Comptroller from January, 1995 until her
retirement in 2001, during which time she headed the Office of Fiscal Research and Policy Analysis and twice
served as Acting First Deputy Comptroller. Previously, Ms. Shapard held the positions of Deputy Director and First
Deputy Director for the New York State Division of Budget, from 1991 to 1994, and Deputy Assistant
Commissioner for Transit for the State Department of Transportation, from 1988 to 1991. She began her career in
New York State government with the Assembly in 1975 where, over a thirteen year period, she held the positions of
Staff Director of the Office of Counsel to the Majority, Special Assistant to the Speaker, and Deputy Director of
Budget Studies for the Committee on Ways and Means. Ms. Shapard also served as Assistant to the County
Executive in Dutchess County. A graduate of Mississippi University for Women, Ms. Shapard received a Masters
of Public Administration from Harvard University, John F. Kennedy School of Government, where she has served
as visiting lecturer, and has completed graduate work at Vanderbilt University.
ROMAN B. HEDGES, Ph.D., Delmar.
Dr. Hedges was appointed as a Member of the Authority by the Speaker of the State Assembly on February 24,
2003. Dr. Hedges serves on the Legislative Advisory Task Force on Demographic Research and Reapportionment.
He is the former Deputy Secretary of the New York State Assembly Committee on Ways and Means. Dr. Hedges
previously served as the Director of Fiscal Studies of the Assembly Committee on Ways and Means. He was an
Associate Professor of Political Science and Public Policy at the State University of New York at Albany where he
taught graduate and undergraduate courses in American politics, research methodology, and public policy. Dr.
Hedges holds a Doctor of Philosophy and a Master of Arts degree from the University of Rochester and a Bachelor
of Arts degree from Knox College.
RICHARD P. MILLS, Commissioner of Education of the State of New York, Albany; ex-officio.
Dr. Mills became Commissioner of Education on September 12, 1995. Prior to his appointment, Dr. Mills
served as Commissioner of Education for the State of Vermont since 1988. From 1984 to 1988, Dr. Mills was

35
Special Assistant to Governor Thomas H. Kean of New Jersey. Prior to 1984, Dr. Mills held a number of positions
within the New Jersey Department of Education. Dr. Mills’ career in education includes teaching and
administrative experience at the secondary and postsecondary education levels. Dr. Mills holds a Bachelor of Arts
degree from Middlebury College and a Master of Arts, a Master of Business Administration and a Doctor of
Education degree from Columbia University.
LAURA L. ANGLIN, Budget Director of the State of New York, Albany; ex-officio.
Ms. Anglin was appointed Budget Director on January 1, 2008. As Budget Director, she is responsible for the
overall development and management of the State’s fiscal policy, including overseeing the preparation of budget
recommendations for all State agencies and programs, economic and revenue forecasting, tax policy, fiscal
planning, capital financing and management of the State’s debt portfolio, as well as pensions and employee benefits.
Ms. Anglin previously served as First Deputy Budget Director from January 2007 to December 2007. She was
appointed Deputy Comptroller of the Division of Retirement Services in January 2003 and was responsible for
overseeing the administration and managing the operations of the New York State and Local Retirement System.
From 1996-2003, Ms. Anglin worked in the New York State Assembly where she served as Director of Budget
Studies for the Assembly Ways and Means Committee and as First Deputy Fiscal Director for the Committee. Ms.
Anglin has also held the position of Econometrician in the Department of Taxation and Finance from 1992-1996
and began her career as an Economist for the Department of Environmental Conservation. Ms. Anglin holds a
Bachelor of Arts degree and a Masters degree in Economics from the State University of New York at Albany.
RICHARD F. DAINES, M.D., Commissioner of Health, Albany; ex-officio.
Richard F. Daines, M.D., became Commissioner of Health on March 21, 2007. Prior to his appointment he
served as President and CEO at St. Luke’s-Roosevelt Hospital Center since 2002. Before joining St. Luke’s-
Roosevelt Hospital Center as Medical Director in 2000, Dr. Daines served as Senior Vice President for Professional
Affairs of St. Barnabas Hospital in the Bronx, New York since 1994 and as Medical Director from 1987 to 1999.
Dr. Daines received a Bachelor of History degree from Utah State University in 1974 and served as a missionary for
the Church of Jesus Christ of Latter-day Saints in Bolivia, 1970-1972. He received his medical degree from Cornell
University Medical College in 1978. He served a residency in internal medicine at New York Hospital and is Board
Certified in Internal Medicine and Critical Care Medicine.
The principal staff of the Authority is as follows:
PAUL T. WILLIAMS, JR. is the Executive Director and chief administrative and operating officer of the
Authority. Mr. Williams is responsible for the overall management of the Authority’s administration and operations.
He most recently served as Senior Counsel in the law firm of Nixon Peabody LLP. Prior to working at Nixon
Peabody, Mr. Williams helped to establish a boutique Wall Street investment banking company. Prior thereto, Mr.
Williams was a partner in, and then of counsel to, the law firm of Bryan Cave LLP. He was a founding partner in
the law firm of Wood, Williams, Rafalsky & Harris, which included a practice in public finance and served there
from 1984-1998. Mr. Williams began his career as an associate at the law firm of Walker & Bailey in 1977 and
thereafter served as a counsel to the New York State Assembly. Mr. Williams is licensed to practice law in the State
of New York and holds professional licenses in the securities industry. He holds a Bachelor’s degree from Yale
University and a Juris Doctor degree from Columbia University School of Law.
MICHAEL T. CORRIGAN is the Deputy Executive Director of the Authority, and assists the Executive
Director in the administration and operation of the Authority. Mr. Corrigan came to the Authority in 1995 as
Budget Director, and served as Deputy Chief Financial Officer from 2000 until 2003. He began his government
service career in 1983 as a budget analyst for Rensselaer County, and served as the County’s Budget Director from
1986 to 1995. Immediately before coming to the Authority, he served as the appointed Rensselaer County
Executive for a short period. Mr. Corrigan holds a Bachelor’s degree in Economics from the State University of
New York at Plattsburgh and a Master’s degree in Business Administration from the University of Massachusetts.
PORTIA LEE is the Managing Director of Public Finance and Portfolio Monitoring. She is responsible for
supervising and directing Authority bond issuance in the capital markets, through financial feasibility analysis and
financing structure determination for Authority clients; as well as implementing and overseeing financing programs,
including interest rate exchange and similar agreements; overseeing the Authority’s compliance with continuing
disclosure requirements and monitoring the financial condition of existing Authority clients. Ms. Lee previously
served as Senior Investment Officer at the New York State Comptroller’s Office where she was responsible for
assisting in the administration of the long-term fixed income portfolio of the New York State Common Retirement
Fund, as well as the short-term portfolio, and the Securities Lending Program. From 1995 to 2005, Ms. Lee worked

36
at Moody’s Investors Service where she most recently served as Vice President and Senior Credit Officer in the
Public Finance Housing Group. In addition, Ms. Lee has extensive public service experience working for over 10
years in various positions in the Governor’s Office, NYS Department of Social Services, as well as the New York
State Assembly. She holds a Bachelor’s degree from the State University of New York at Albany.
JOHN G. PASICZNYK is the Chief Financial Officer of the Authority. Mr. Pasicznyk is responsible for
investment management and accounting, as well as the development of the financial policies for the Authority.
Before joining the Authority in 1985, Mr. Pasicznyk worked in audit positions at KPMG Peat Marwick and Deloitte
& Touche. He holds a Bachelor’s degree from Syracuse University and a Master of Business Administration degree
from the Fuqua School of Business at Duke University.
JEFFREY M. POHL is General Counsel to the Authority. Mr. Pohl is responsible for all legal services
including legislation, litigation, contract matters and the legal aspects of all Authority financings. He is a member
of the New York State Bar, and most recently served as a counsel in the public finance group of a large New York
law firm. Mr. Pohl had previously served in various capacities in State government with the Office of the State
Comptroller and the New York State Senate. He holds a Bachelor’s degree from Franklin and Marshall College and
a Juris Doctor degree from Albany Law School of Union University.
STEPHEN D. CURRO, P.E. is the Managing Director of Construction. In that capacity, he is responsible for
the Authority’s construction groups, including design, project management, purchasing, contract administration,
interior design, and engineering and other technology services. Mr. Curro joined the Authority in 2001 as Director
of Technical Services, and most recently served as Director of Construction Support Services. He is a registered
Professional Engineer in New York and Rhode Island and has worked in the construction industry for over 20 years
as a consulting structural engineer and a technology solutions provider. Mr. Curro is also an Adjunct Professor at
Hudson Valley Community College and Bryant & Stratton College. He holds a Bachelor of Science in Civil
Engineering from the University of Rhode Island, a Master of Engineering in Structural Engineering from
Rensselaer Polytechnic Institute and a Master of Business Administration from Rensselaer Polytechnic Institute’s
Lally School of Management.
CARRA WALLACE is the Managing Director of the Office of Executive Initiatives (OEI). In that capacity,
she oversees the Authority’s Communications and Marketing, Opportunity Programs, Environmental Initiatives,
Client Outreach, Training, Executive Projects, and Legislative Affairs units. Ms. Wallace is responsible for strategic
efforts in developing programs, maximizing the utilization of Minority and Women Owned Businesses, and
communicating with Authority clients, the public and governmental officials. She possesses more than twenty years
of senior leadership experience in diverse private sector businesses and civic organizations. Ms. Wallace most
recently served as Executive Vice President at Telwares, a major telecommunications service firm. Prior to her
service at Telwares, Ms. Wallace served as Executive Vice President of External Affairs at the NYC Leadership
Academy. She holds a Bachelor of Science degree in management from the Pepperdine University Graziadio
School of Business and Management.

Claims and Litigation

Although certain claims and litigation have been asserted or commenced against the Authority, the Authority
believes that these claims and litigation are covered by the Authority’s insurance or by bonds filed with the
Authority should the Authority be held liable in any of such matters, or that the Authority has sufficient funds
available or the legal power and ability to seek sufficient funds to meet any such claims or judgments resulting from
such litigation.

Other Matters
New York State Public Authorities Control Board
The New York State Public Authorities Control Board (the “PACB”) has authority to approve the financing and
construction of any new or reactivated projects proposed by the Authority and certain other public authorities of the
State. The PACB approves the proposed new projects only upon its determination that there are commitments of
funds sufficient to finance the acquisition and construction of the projects. The Authority has obtained the approval
of the PACB for the issuance of the Series 2009A Bonds.

37
 Legislation
From time to time, bills are introduced into the State Legislature which, if enacted into law, would affect the
Authority and its operations. The Authority is not able to represent whether such bills will be introduced or become
law in the future. In addition, the State undertakes periodic studies of public authorities in the State (including the
Authority) and their financing programs. Any of such periodic studies could result in proposed legislation which, if
adopted, would affect the Authority and its operations.
Environmental Quality Review
The Authority complies with the New York State Environmental Quality Review Act and with the New York
State Historic Preservation Act of 1980, and the respective regulations promulgated thereunder respecting the
Project to the extent such acts and regulations are applicable.
Independent Auditors
The accounting firm of KPMG LLP audited the financial statements of the Authority for the fiscal year ended
March 31, 2008. Copies of the most recent audited financial statements are available upon request at the offices of
the Authority.

PART 8 – LEGALITY OF THE SERIES 2009A BONDS FOR INVESTMENT AND DEPOSIT
Under New York State law, the Series 2009A Bonds are securities in which all public officers and bodies of the
State and all municipalities and municipal subdivisions, all insurance companies and associations, all savings banks
and savings institutions, including savings and loan associations, administrators, guardians, executors, trustees,
committees, conservators and other fiduciaries in the State may properly and legally invest funds in their control.
The Series 2009A Bonds may be deposited with the State Comptroller to secure deposits of State moneys in
banks, trust companies and industrial banks.

PART 9 – NEGOTIABLE INSTRUMENTS

The Series 2009A Bonds are negotiable instruments as provided in the Act, subject to the provisions for
registration and transfer contained in the Resolution and in the Series 2009A Bonds.

PART 10 – TAX MATTERS

Federal Income Taxes

The Internal Revenue Code of 1986, as amended (the “Code”), imposes certain requirements that must be met
subsequent to the issuance and delivery of the Series 2009A Bonds for interest thereon to be and remain excluded
from gross income for federal income tax purposes. Noncompliance with such requirements could cause the
interest on the Series 2009A Bonds to be included in gross income for federal income tax purposes retroactive to the
date of issue of the Series 2009A Bonds. Pursuant to the Resolution, the Series Resolution, the Loan Agreement
and the Tax Certificate, the Authority and the University have covenanted to comply with the applicable
requirements of the Code in order to maintain the exclusion of the interest on the Series 2009A Bonds from gross
income for federal income tax purposes pursuant to Section 103 of the Code. In addition, the Authority and the
University have made certain representations and certifications in the Resolution, the Series Resolution, the Loan
Agreement and the Tax Certificate. Bond Counsel will also rely on the opinion of Counsel to the University as to
all matters concerning the status of the University as an organization described in Section 501(c)(3) of the Code and
exempt from federal income tax under Section 501(a) of the Code. Bond Counsel will not independently verify the
accuracy of those representations and certifications or that opinion.
In the opinion of Nixon Peabody LLP, Bond Counsel, under existing law and assuming compliance with the
aforementioned covenants, and the accuracy of certain representations and certifications made by the Authority and
the University described above, interest on the Series 2009A Bonds is excluded from gross income for federal
income tax purposes under Section 103 of the Code. Bond Counsel is also of the opinion that such interest is not
treated as a preference item in calculating the alternative minimum tax imposed under the Code with respect to
individuals and corporations. Interest on the Series 2009A Bonds is excluded from the adjusted current earnings of
corporations for purposes of computing the alternative minimum tax imposed on corporations.

38
State Taxes
Bond Counsel is also of the opinion that, by virtue of the Act, interest on the Series 2009A Bonds is exempt
from personal income taxes of the State of New York and its political subdivisions, including The City of New
York and the City of Yonkers. Bond Counsel expresses no opinion as to other State or local tax law consequences
arising with respect to the Series 2009A Bonds nor as to the taxability of the Series 2009A Bonds or the income
derived therefrom under the laws of any other state other than the State of New York.

Ancillary Tax Matters

Ownership of the Series 2009A Bonds may result in other federal tax consequences to certain taxpayers,
including, without limitation, certain S corporations, foreign corporations with branches in the United States,
property and casualty insurance companies, individuals receiving Social Security or Railroad Retirement benefits,
individuals seeking to claim the earned income credit, and taxpayers (including banks, thrift institutions and other
financial institutions) who may be deemed to have incurred or continued indebtedness to purchase or to carry the
Series 2009A Bonds; for certain bonds issued during 2009 and 2010, the American Recovery and Reinvestment Act
of 2009 modifies the application of those rules as they apply to financial institutions. Prospective investors are
advised to consult their own tax advisors regarding these rules.
Commencing with interest paid in 2006, interest paid on tax-exempt obligations such as the Series 2009A Bonds
is subject to information reporting to the Internal Revenue Service (the “IRS”) in a manner similar to interest paid
on taxable obligations. In addition, interest on the Series 2009A Bonds may be subject to backup withholding if
such interest is paid to a registered owner that (a) fails to provide certain identifying information (such as the
registered owner’s taxpayer identification number) in the manner required by the IRS, or (b) has been identified by
the IRS as being subject to backup withholding.
Bond Counsel is not rendering any opinion as to any federal tax matters other than those described in the
opinion attached as Appendix E. Prospective investors, particularly those who may be subject to special rules
described above, are advised to consult their own tax advisors regarding the federal tax consequences of owning
and disposing of the Series 2009A Bonds, as well as any tax consequences arising under the laws of any state or
other taxing jurisdiction.

Changes in Tax Law and Post Issuance Events

Legislative or administrative actions and court decisions, at either the federal or state level, could have an
adverse impact on the potential benefits of the exclusion from gross income of the interest on the Series 2009A
Bonds for federal or state income tax purposes, and thus on the value or marketability of the Series 2009A Bonds.
This could result from changes to federal or state income tax rates, changes in the structure of federal or state
income taxes (including replacement with another type of tax), repeal of the exclusion of the interest on the Series
2009A Bonds from gross income for federal or state income tax purposes, or otherwise. It is not possible to predict
whether any legislative or administrative actions or court decisions having an adverse impact on the federal or state
income tax treatment of holders of the Series 2009A Bonds may occur. Prospective purchasers of the Series 2009A
Bonds should consult their own tax advisers regarding such matters.
Bond Counsel has not undertaken to advise in the future whether any events after the date of issuance and
delivery of the Series 2009A Bonds may affect the tax status of interest on the Series 2009A Bonds. Bond Counsel
expresses no opinion as to any federal, state or local tax law consequences with respect to the Series 2009A Bonds,
or the interest thereon, if any action is taken with respect to the Series 2009A Bonds or the proceeds thereof upon
the advice or approval of other counsel.

PART 11 – STATE NOT LIABLE ON THE SERIES 2009A BONDS

The Act provides that notes and bonds of the Authority are not a debt of the State, that the State is not liable on
them and that such notes and bonds are not payable out of any funds other than those of the Authority. The
Resolution specifically provides that the Series 2009A Bonds are not a debt of the State and that the State is not
liable on the Series 2009A Bonds.

39
 PART 12 – COVENANT BY THE STATE
The Act states that the State pledges and agrees with the holders of the Authority’s notes and bonds that the
State will not limit or alter the rights vested in the Authority to provide projects, to establish and collect rentals
therefrom and to fulfill agreements with the holders of the Authority’s notes and bonds or in any way impair the
rights and remedies of the holders of such notes or bonds until such notes or bonds and interest thereon and all
costs and expenses in connection with any action or proceeding by or on behalf of the holders of such notes or
bonds are fully met and discharged. Notwithstanding the State’s pledges and agreements contained in the Act, the
State may in the exercise of its sovereign power enact or amend its laws which, if determined to be both reasonable
and necessary to serve an important public purpose, could have the effect of impairing these pledges and
agreements with the Authority and with the holders of the Authority’s notes or bonds.

PART 13 – LEGAL MATTERS

Certain legal matters incidental to the authorization and issuance of the Series 2009A Bonds by the Authority
are subject to the approval of Nixon Peabody LLP, New York, New York, Bond Counsel, whose approving opinion
will be delivered with the Series 2009A Bonds. The proposed form of Bond Counsel’s opinion is set forth in
Appendix E hereto.
Certain legal matters will be passed upon for the University by its General Counsel and by Hawkins Delafield &
Wood LLP, New York, New York. Certain legal matters will be passed upon for the Underwriter by its counsel,
Squire, Sanders & Dempsey L.L.P., New York, New York.
There is not now pending any litigation restraining or enjoining the issuance or delivery of the Series 2009A
Bonds or questioning or affecting the validity of the Series 2009A Bonds or the proceedings and authority under
which they are to be issued. There is no litigation pending which in any manner questions the right of the Authority
to finance the 2009A Project in accordance with the provisions of the Act, the Resolution and the Loan Agreement.

PART 14 - UNDERWRITING
J.P. Morgan Securities Inc. has agreed, subject to certain conditions, to purchase the Series 2009A Bonds from
the Authority at an aggregate purchase price of $116,735,111.26 and to make a public offering of the Series 2009A
Bonds at prices that are not in excess of the public offering price or prices stated on the cover page of this Official
Statement. The Underwriter will be obligated to purchase all such Series 2009A Bonds if any are purchased.
The Series 2009A Bonds may be offered and sold to certain dealers (including the Underwriter) at prices lower
than such public offering prices, and such public offering prices may be changed, from time to time, by the
Underwriter.

PART 15 - CONTINUING DISCLOSURE

So long as the Series 2009A Bonds are in any Rate Mode other than the Term Rate Mode or the Fixed Rate
Mode, the Series 2009A Bonds are exempt from Rule 15c2-12 (the “Rule”) promulgated by the Securities and
Exchange Commission, and the Authority and the University will not be required to provide any continuing
disclosure in accordance with the Rule.

PART 16  RATINGS
Moody’s Investors Service (“Moody’s”) has assigned a rating of “Aaa” to the long-term obligations of the
University. Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies, Inc. (“Standard &
Poor’s”) has assigned a rating of “AAA” to the long-term obligations of the University. Moody’s has assigned a
short-term credit rating of “VMIG1” to the Series 2009A Bonds and Standard Poor’s has assigned a short-term
rating of “A-1+” to the Series 2009A Bonds. Such ratings reflect only the views of such organizations and any
desired explanation of the significance of such ratings should be obtained from the rating agencies at the following
addresses: Standard & Poor’s, 55 Water Street, New York, New York 10041; and Moody’s, 99 Church Street, New
York, New York 10007. There is no assurance that such ratings will prevail for any given period of time or that they
will not be revised downward or withdrawn entirely by any or all of such rating agencies if, in the judgment of any

40
or all of them, circumstances so warrant. Any such downward revision or withdrawal of such rating or ratings may
have an adverse effect on the market price of the Series 2009A Bonds.

PART 17 - MISCELLANEOUS
References in this Official Statement to the Act, the Resolution, the Series 2009A Resolution, the Series 2009A
Bond Series Certificate and the Loan Agreement do not purport to be complete. Refer to the Act, the Resolution,
the Series 2009A Resolution, the Series 2009A Bond Series Certificate and the Loan Agreement for full and
complete details of their provisions. Copies of the Resolution, the Series 2009A Resolutions, the Series 2009A
Bond Series Certificate and the Loan Agreement are on file with the Authority and the Trustee.
The agreements of the Authority with Holders of the Series 2009A Bonds are fully set forth in the Resolution.
Neither any advertisement of the Series 2009A Bonds nor this Official Statement is to be construed as a contract
with purchasers of the Series 2009A Bonds.
Any statements in this Official Statement involving matters of opinion, whether or not expressly stated, are
intended merely as expressions of opinion and not as representations of fact.
The information regarding the University was supplied by the University. The Authority believes that this
information is reliable, but the Authority makes no representations or warranties whatsoever as to the accuracy or
completeness of this information.
The information regarding DTC and DTC’s book-entry only system has been furnished by DTC. The Authority
believes that this information is reliable, but makes no representations or warranties whatsoever as to the accuracy
or completeness of this information.
“Appendix A - Definitions,” “Appendix C - Summary of Certain Provisions of the Loan Agreement,”
“Appendix D - Summary of Certain Provisions of the Resolution” and “Appendix E - Form of Approving Opinion
of Bond Counsel” have been prepared by Nixon Peabody LLP, New York, New York, Bond Counsel.
The Financial Statements of the University as of and for the year ended June 30, 2008, included in Appendix B
have been audited by PricewaterhouseCoopers LLP, independent auditors, as stated in their report appearing herein.
The University has reviewed the parts of this Official Statement describing the University, the 2009A Project,
the Estimated Sources and Uses of Funds and Appendix B. The University shall certify as of the dates of sale and
delivery of the Series 2009A Bonds that such parts do not contain any untrue statement of a material fact and do not
omit to state any material fact necessary to make the statements made therein, in the light of the circumstances under
which the statements are made, not misleading.
The University has agreed to indemnify the Authority, the Underwriter and certain others against losses, claims,
damages and liabilities arising out of any untrue statements or omissions of statements of any material fact as
described in the preceding paragraph.
The execution and delivery of this Official Statement by an Authorized Officer have been duly authorized by
the Authority.
DORMITORY AUTHORITY OF
THE STATE OF NEW YORK

By: /s/ Paul T. Williams, Jr.

Authorized Officer

41
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 Appendix A

DEFINITIONS
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 Appendix A

DEFINITIONS

The following are definitions of certain terms used in this Official Statement.
Accreted Value means with respect to any Capital Appreciation Bond (i) as of any Valuation Date, the
amount set forth for such date in the Series Resolution authorizing such Capital Appreciation Bond or the
Bond Series Certificate relating thereto and (ii) as of any date other than a Valuation Date, the sum of (a)
the Accreted Value on the preceding Valuation Date and (b) the product of (1) a fraction, the numerator of
which is the number of days having elapsed from the preceding Valuation Date and the denominator of
which is the number of days from such preceding Valuation Date to the next succeeding Valuation Date,
calculated based on the assumption that Accreted Value accrues during any semi-annual period in equal
daily amounts on the basis of a year of twelve (12) thirty-day months, and (2) the difference between the
Accreted Values for such Valuation Dates.
Act means the Dormitory Authority Act (being Chapter 524 of the Laws of 1944 of the State, as
amended, and constituting Title 4 and Title 4-B of Article 8 of the Public Authorities Law of the State, as
amended).
Annual Administrative Fee means the fee payable during each Bond Year for the general
administrative and supervisory expenses of the Authority in an amount equal to .05% of the aggregate
principal amount of Bonds issued by the Authority; provided, however, the amount payable with respect to
a Series of Bonds for the Bond Year during which such Series of Bonds are issued shall be the amount
determined as provided above multiplied by a fraction, the numerator of which is the number of complete
calendar months remaining in such Bond Year and the denominator of which is twelve (12).
Appreciated Value means with respect to any Deferred Income Bond (i) as of any Valuation Date, the
amount set forth for such date in the Series Resolution authorizing such Deferred Income Bond or the Bond
Series Certificate relating thereto and (ii) as of any date other than a Valuation Date, the sum of (a) the
Appreciated Value on the preceding Valuation Date and (b) the product of (1) a fraction, the numerator of
which is the number of days having elapsed from such preceding Valuation Date and the denominator of
which is the number of days from such preceding Valuation Date to the next succeeding Valuation Date,
calculated based on the assumption that Appreciated Value accrues during any semi-annual period in equal
daily amounts on the basis of a year of twelve thirty-day months, and (2) the difference between the
Appreciated Values for such Valuation Dates, and (iii) as of any date of computation on and after the
Interest Commencement Date, the Appreciated Value on the Interest Commencement Date.
Arbitrage Rebate Fund means the fund so designated, created and established pursuant to the
Resolution.
Authority means the Dormitory Authority of the State of New York, a body corporate and politic
constituting a public benefit corporation of the State created by the Act, or any body, agency or
instrumentality of the State which succeeds to the rights, powers, duties and functions of the Authority.
Authority Fee means a fee payable to the Authority consisting of all the Authority's internal costs and
overhead expenses attributable to the issuance of a Series of Bonds and the construction of the Projects, as
more particularly described in the Loan Agreement.
Authorized Denominations means (i) during any Commercial Paper Rate Period, Daily Rate or Weekly
Rate Period, $100,000 or any integral multiple of $1,000 in excess thereof or (ii) during any Term Rate
Period or the Fixed Rate Period, $5,000 or any integral multiple thereof.
Authorized Newspaper means The Bond Buyer or any other newspaper of general circulation printed in
the English language and customarily published at least once a day for at least five days (other than legal
holidays) in each calendar week in the Borough of Manhattan, City and State of New York, designated by
the Authority.

A-1
Appendix A

Authorized Officer means (i) in the case of the Authority, the Chair, the Vice-Chair, the Treasurer, an
Assistant Treasurer, the Secretary, an Assistant Secretary, the Executive Director, the Deputy Executive
Director, the Chief Financial Officer, the Managing Director of Construction, the Managing Director of
Public Finance, the Deputy Chief Financial Officer, the Assistant Director, the Managing Director of Public
Policy and Program Development, the General Counsel, the Deputy General Counsel, the Associate
General Counsel, an Assistant Counsel and when used with reference to any act or document also means
any other person authorized by a resolution or the by-laws of the Authority to perform such act or execute
such document; (ii) in the case of an Institution, the person or persons authorized by a resolution or the by-
laws of such Institution to perform any act or execute any document; and (iii) in the case of the Trustee, the
President, a Vice President, an Assistant Vice President, a Corporate Trust Officer, an authorized signatory,
a Trust Officer or an Assistant Trust Officer of the Trustee, and when used with reference to any act or
document also means any other person authorized to perform any act or sign any document by or pursuant
to a resolution of the Board of Directors of such Trustee or the by-laws of such Trustee.
Available Assets means the total of all assets of the University less all permanently restricted net assets
of the University; provided however, that such assets shall (i) include the corresponding assets of all related
entities and affiliates of the University which are consolidated with such assets of the University in
accordance with generally accepted accounting principles, and (ii) exclude the corresponding assets of all
related entities and affiliates which are not legally available to the University notwithstanding that such
assets are consolidated with those of the University as provided in clause (i); provided, further, that
whenever Available Assets is required to be determined based on the University’s audited financial
statements, total assets and permanently restricted net assets shall be as shown on such financial statements
with such adjustments as shall be appropriate to reflect the inclusion and exclusion of related entities and
affiliates as required by the preceding proviso.
Bond or Bonds means any of the bonds of the Authority authorized pursuant to the Resolution and
issued pursuant to the Resolution and to a Series Resolution.
Bond Counsel means Nixon Peabody LLP or an attorney or a law firm, appointed by the Authority,
having a national reputation in the field of municipal law whose opinions are generally accepted by
purchasers of municipal bonds.
Bond Series Certificate means the certificate of an Authorized Officer of the Authority fixing terms,
conditions and other details of Bonds in accordance with the delegation of power to do so under the
Resolution or under a Series Resolution.
Bond Year means a period of twelve (12) consecutive months beginning July 1 in any calendar year
and ending on June 30 of the succeeding calendar year.
Bondholder or Holder of Bonds or Holder or any similar term, when used with reference to a Bond or
Bonds, means the registered owner of any Bond.
Book Entry Bond means a Bond authorized to be issued, and issued to and registered in the name of a
Depository for the participants in such Depository or the beneficial owner of such Bond.
Business Day means when used in connection with any particular Series 2009A Bonds a day other than
(i) a Saturday and Sunday or a (ii) a day on which any of the following are authorized or required to remain
closed: (A) banks or trust companies chartered by the State of New York or the United States of America,
(B) the Trustee, (C) the New York Stock Exchange, or (D) if such Series 2009A Bonds are in the
Commercial Paper Mode, the Daily Rate Mode, the Weekly Rate Mode or the Term Rate Mode, the Tender
Agent, the Remarketing Agent or the Provider of a Liquidity Facility for such Series 2009A Bonds.
Capital Appreciation Bond means any Bond as to which interest is compounded on each Valuation
Date therefor and is payable only at the maturity or prior redemption thereof.
Code means the Internal Revenue Code of 1986, as amended, and the applicable regulations
thereunder.

A-2
 Appendix A

Certificate of Determination means a certificate of an Authorized Officer of the Authority executed

upon the Conversion of Series 2009A Bonds out of a Rate Mode to an Initial Rate Period, if necessary,
prior to the Conversion of Series 2009A Bonds to a Daily Rate Mode, a Weekly Rate Mode, or a
Commercial Paper Mode, setting forth the Initial Rate, the Initial Rate Period, the first Interest Payment
Date if other than a date on which interest would otherwise be payable hereunder, and the matters required
by the Bond Series Certificate relating to a Liquidity Facility.
Commercial Paper Mode means a Rate Mode in which a Series 2009A Bond for its respective
Commercial Paper Rate Period bears interest at a Commercial Paper Rate.
Commercial Paper Rate means, with respect to each Series 2009A Bond in the Commercial Paper
Mode, the rate at which each such Series 2009A Bond bears interest during the Commercial Paper Rate
Period applicable thereto, as established in accordance with the Bond Series Certificate.
Commercial Paper Rate Period means, with respect to a particular Series 2009A Bond, a period
commencing on a Conversion Date or a Reset Date and extending for a period of one to two hundred
seventy days (1 to 270 days) during which such Series 2009A Bond bears interest at a Commercial Paper
Rate; provided, however, that the first day immediately following the last day of each Commercial Paper
Rate Period shall in all events be a Business Day.
Contract Documents means any general contract or agreement for the construction of a Project, notice
to bidders, information for bidders, form of bid, general conditions, supplemental general conditions,
general requirements, supplemental general requirements, bonds, plans and specifications, addenda, change
orders, and any other documents entered into or prepared by or on behalf of the University relating to the
construction of a Project, and any amendments to the foregoing.
Construction Fund means the fund so designated, created and established for a Project pursuant to a
Series Resolution.
Cost or Costs of Issuance means the items of expense incurred in connection with the authorization,
sale and issuance of the Bonds, which items of expense shall include, but not be limited to, document
printing and reproduction costs, filing and recording fees, costs of credit ratings, initial fees and charges of
the Trustee or a Depository, legal fees and charges, professional consultants’ fees, fees and charges for
execution, transportation and safekeeping of Bonds, premiums, fees and charges for insurance on Bonds,
commitment fees or similar charges relating to a Credit Facility, or a Liquidity Facility, an Interest Rate
Exchange Agreement or a Remarketing Agent, costs and expenses of refunding Bonds or other bonds or
notes of the Authority, costs and expenses incurred pursuant to a remarketing agreement and other costs,
charges and fees, including those of the Authority, in connection with the foregoing.
Cost or Costs of a Project means when used in relation to a Project the costs and expenses or the
refinancing of costs and expenses determined by the Authority to be necessarily or appropriately incurred
in connection with the Project, including, but not limited to, (i) costs and expenses of the acquisition of the
title to or other interest in real property, including easements, rights-of-way and licenses, (ii) costs and
expenses incurred for labor and materials and payments to contractors, builders and materialmen, for the
acquisition, construction, reconstruction, rehabilitation, repair and improvement of the Project, (iii) the cost
of surety bonds and insurance of all kinds, including premiums and other charges in connection with
obtaining title insurance, that may be required or necessary prior to completion of the Project, which is not
paid by a contractor or otherwise provided for, (iv) the costs and expenses for design, environmental
inspections and assessments, test borings, surveys, estimates, plans and specifications and preliminary
investigations therefor, and for supervising construction of the Project, (v) costs and expenses required for
the acquisition and installation of equipment or machinery, (vi) all other costs which the University shall be
required to pay or cause to be paid for the acquisition, construction, reconstruction, rehabilitation, repair,
improvement and equipping of the Project, (vii) any sums required to reimburse the University or the
Authority for advances made by them for any of the above items or for other costs incurred and for work
done by them in connection with the Project (including interest on moneys borrowed from parties other
than the University), (viii) interest on the Bonds prior to, during and for a reasonable period after
completion of the acquisition, construction, reconstruction, rehabilitation, repair, improvement or equipping
of the Project, and (ix) fees, expenses and liabilities of the Authority incurred in connection with the Project

A-3
Appendix A

or pursuant to the Resolution or to the Loan Agreement, a Credit Facility, a Liquidity Facility, or a
remarketing agreement in connection with Option Bonds or Variable Interest Rate Bonds.
Conversion means a change in the Rate Mode of a Series 2009A Bond made in accordance with the
provisions of the Bond Series Certificate.
Conversion Date means the day on which a Series 2009A Bond is converted from one Rate Mode to a
different Rate Mode or was proposed to be converted from one Rate Mode to another Rate Mode, which
date must be a Reset Date or an Interest Payment Date for such Series 2009A Bond.
Credit Facility means an irrevocable letter of credit, surety bond, loan agreement, or other agreement,
facility or insurance or guaranty arrangement issued or extended by a bank, a trust company, a national
banking association, an organization subject to registration with the Board of Governors of the Federal
Reserve System under the Bank Holding Company Act of 1956 or any successor provisions of law, a
federal branch pursuant to the International Banking Act of 1978 or any successor provisions of law, a
domestic branch or agency of a foreign bank which branch or agency is duly licensed or authorized to do
business under the laws of any state or territory of the United States of America, a savings bank, a saving
and loan association, an insurance company or association chartered or organized under the laws of any
state of the United States of America, the Government National Mortgage Association or any successor
thereto, the Federal National Mortgage Association or any successor thereto, or any other federal agency or
instrumentality approved by the Authority, pursuant to which the Authority is entitled to obtain moneys to
pay the principal, Redemption Price of Bonds due in accordance with their terms of Redemption or
tendered for purchase or redemption, plus accrued interest thereon to the date of payment or redemption
thereof in accordance with the Resolution and with the Series Resolution authorizing such Bonds or a Bond
Series Certificate, whether or not the Authority is in default under the Resolution.
Daily Rate means the rate at which a Series 2009A Bond in the Daily Rate Mode bears interest, as
established in accordance with the Bond Series Certificate.
Daily Rate Mode means a Rate Mode in which a Series 2009A Bond in such Rate Mode bears interest
at a Daily Rate.
Daily Rate Period means a period commencing on a Conversion Date or on a Business Day and
extending to, but not including, the next succeeding Business Day, during which Series 2009A Bonds in the
Daily Rate Mode bear interest at the Daily Rate.
Debt means indebtedness for borrowed money, whether or not evidenced by Notes, bonds, debentures
or other similar evidences of indebtedness, or the guarantee of indebtedness for borrowed money, including
indebtedness under purchase money mortgages, capital leases, installment sales contracts or any other
similar security arrangements which appear as debt on the audited balance sheet of the University.
Debt Service Fund means the fund so designated, created and established pursuant to the Resolution.
Defeasance Security means (a) a Government Obligation of the type described in clauses (i), (ii), (iii)
or (iv) of the definition of Government Obligations, (b) Federal Agency Obligations described in clauses (i)
or (ii) of the definition of Federal Agency Obligations and (c) an Exempt Obligation, provided such
Exempt Obligation (i) is not subject to redemption prior to maturity other than at the option of the holder
thereof or as to which irrevocable instructions have been given to the trustee of such Exempt Obligation by
the obligor thereof to give due notice of redemption and to call such Exempt Obligation for redemption on
the date or dates specified in such instructions and such Exempt Obligation is not otherwise subject to
redemption prior to such specified date other than at the option of the holder thereof, (ii) is secured as to
principal and interest and redemption premium, if any, by a fund consisting only of cash or Government
Obligations, which fund may be applied only to the payment of such principal of and interest and
redemption premium, if any, on such Exempt Obligation on the maturity date thereof or the redemption
date specified in the irrevocable instructions referred to in clause (i) above, (iii) as to which the principal of
and interest on the direct obligations of the United States of America which have been deposited in such
fund, along with any cash on deposit in such fund, are sufficient to pay the principal of and interest and
redemption premium, if any, on such Exempt Obligation on the maturity date or dates thereof or on the

A-4
 Appendix A

redemption date or dates specified in the irrevocable instructions referred to in clause (i) above, and (iv) is
rated by at least two Rating Services in the highest rating category for such Exempt Obligation; provided,
however, that (1) such term shall not include any interest in a unit investment trust or mutual fund or
(2) any obligation that is subject to redemption prior to maturity other than at the option of the holder
thereof.
Deferred Income Bond means any Bond as to which interest accruing thereon prior to the Interest
Commencement Date of such Bond is compounded on each Valuation Date for such Deferred Income
Bond, and as to which interest accruing after the Interest Commencement Date is payable semi-annually on
the dates specified in the Series resolution authorizing such Bond or the Bond Series Certificate relating to
such Bond.
Depository means The Depository Trust Company, New York, New York, a limited purpose trust
company organized under the laws of the State, or its nominee, or any other person, firm, association or
corporation designated in the Series Resolution authorizing a Series of Bonds or a Bond Series Certificate
relating to a Series of Bonds to serve as securities depository for the Bonds of such Series.
Exempt Obligation means (i) an obligation of any state or territory of the United States of America,
any political subdivision of any state or territory of the United States of America, or any agency, authority,
public benefit corporation or instrumentality of such state, territory or political subdivision, the interest on
which is excludable from gross income under Section 103 of the Code, which is not a “specified private
activity bond” within the meaning of Section 57(a)(5) of the Code, and which, at the time an investment
therein is made or such obligation is deposited in any fund or account under the Resolution, is rated,
without regard to qualification of such rating by symbols such as “+” or “-” and numerical notation, no
lower than the second highest rating category for such obligation by at least two Rating Services, (ii) a
certificate or other instrument which evidences the beneficial ownership of, or the right to receive all or a
portion of the payment of the principal of, or interest on any of the foregoing and (iii) a share or interest in
a mutual fund, partnership or other fund wholly comprised of any of the foregoing obligations.
Facility Provider means the issuer of a Credit Facility or a Liquidity Facility delivered to the Trustee
pursuant to the Resolution.
Federal Agency Obligation means (i) an obligation issued by any federal agency or instrumentality
approved by the Authority, (ii) an obligation the principal of and interest on which are fully insured or
guaranteed as to payment by a federal agency approved by the Authority, (iii) a certificate or other
instrument which evidences the beneficial ownership of, or the right to receive all or a portion of the
payment of the principal of or interest on any of the foregoing and (iv) a share or interest in a mutual fund,
partnership or other fund wholly comprised of any of the foregoing obligations.
Fitch means Fitch Inc., a corporation organized and existing under the laws of the State of Delaware,
or its successors and assigns.
Fixed Rate means the rate at which a Series 2009A Bond bears interest to its maturity during the Fixed
Rate Period, as established in accordance with the Bond Series Certificate.
Fixed Rate Mode means a Rate Mode in which a Series 2009A Bond in such Rate Mode bears interest
at a Fixed Rate.
Fixed Rate Period means the period from and including the Conversion Date and extending (i) to and
including the date of maturity of a Series 2009A Bonds in the Fixed Rate Mode or (ii) to, but not including,
the Conversion Date on which Series 2009A Bonds in the Fixed Rate Mode are converted to another Rate
Mode.
General Liabilities means total liabilities of the University; provided, however, that total liabilities of
the University shall (i) include the total liabilities of all related entities and affiliates of the University
which are consolidated with the total liabilities of the University in accordance with generally accepted
accounting principles, and (ii) exclude the total liabilities of all related entities and affiliates with respect to

A-5
Appendix A

which the University is not legally obligated notwithstanding that such total liabilities are consolidated with
those of the University as provided in clause (i); provided, further, that whenever General Liabilities is
required to be determined based on the University’s audited financial statements, total liabilities of the
University shall be as shown on such financial statements with such adjustments as shall be appropriate to
reflect the inclusion and exclusion of related entities and affiliates as required by the preceding proviso.
Government Obligation means (i) a direct obligation of the United States of America, (ii) an obligation
the principal of and interest on which are fully insured or guaranteed as to payment by the United States of
America, (iii) an obligation to which the full faith and credit of the United States of America are pledged,
(iv) a certificate or other instrument which evidences the beneficial ownership of, or the right to receive all
or a portion of the payment of the principal of or interest on any of the foregoing and (v) a share or interest
in a mutual fund, partnership or other fund wholly comprised of any of the foregoing obligations.
Gross Proceeds means, with respect to any of the Bonds, the gross proceeds of such Bonds, as such
term is defined or used in the Code as it applies to such Bonds.
Initial Rate means, when used in connection with any particular Series 2009A Bond, the rate per
annum at which such Series 2009A Bond will bear interest during the Initial Rate Period, as set forth in the
Bond Series Certificate, and, when used in connection with a Conversion, the respective rates per annum
set forth in a Certificate of Determination.
Initial Rate Period means (i) when used in connection with any particular Series 2009A Bonds, the
period commencing on the Issue Date and extending to and including the date set forth in Bond Series
Certificate as the last day of the Initial Rate Period, and (ii) when used in connection with a Conversion, the
period commencing on the Conversion Date and extending to and including the date set forth in a
Certificate of Determination as the last day of the Initial Rate Period.
Interest Payment Date means, when used in connection with any particular Series 2009A Bond
(i) during any Daily Rate Period or any Weekly Rate Period, the first Business Day of each month, (ii)
during any Commercial Paper Rate Period, the next succeeding Reset Date or Conversion Date, (iii) during
any Term Rate Period or the Fixed Rate Period, each March 1 and September 1, except that, in connection
with a Term Rate Period of less than two years, the interest may be paid on the Reset Date or Conversion
Date as authorized in a Certificate of Determination, and (iv) any Mandatory Tender Date; provided,
however, that if so provided in a Certificate of Determination the first Interest Payment Date may be a date
that is different from the date on which interest would otherwise be payable; provided, further, that interest
on Bank Bonds shall be payable at the times required by the Reimbursement Agreement. If any such date
is not a Business Day, the Interest Payment Date shall be the succeeding Business Day.
Interest Commencement Dates means, with respect to any particular Deferred Income Bond, the date
prior to the maturity date thereof specified in the Series Resolution authorizing such Bond or the Bond
Series Certificate relating to such Bond, after which interest accruing on such Bond shall be payable on the
interest payment date immediately succeeding such Interest Commencement Date and semiannually
thereafter on the dates specified in the Series Resolution authorizing such Bond or the Bond Series
Certificate relating to such Bond.
Investment Agreement means an agreement for the investment of moneys with a Qualified Financial
Institution.
Liens means any mortgage, pledge, lien, charge, security interest or lease in the nature thereof
(including any conditional sale agreement, equipment trust agreement or other title retention agreement) or
other encumbrance of whatsoever nature.
Liquidity Facility means an irrevocable letter of credit, surety bond, loan agreement, standby purchase
agreement, line of credit or other agreement or arrangement issued or extended by a bank, a trust company,
a national banking association, an organization subject to registration with the Board of Governors of the
Federal Reserve System under the Bank Holding Company Act of 1956 or any successor provisions of law,
a federal branch pursuant to the International Banking Act of 1978 or any successor provisions of law, a

A-6
 Appendix A

domestic branch or agency of a foreign bank which branch or agency is duly licensed or authorized to do
business under the laws of any state or territory of the United States of America, a savings bank, a savings
and loan association, an insurance company or association chartered or organized under the laws of any
state of the United States of America, the Government National Mortgage Association or any successor
thereto, the Federal National Mortgage Association or any successor thereto, or any other federal agency or
instrumentality approved by the Authority, pursuant to which the Authority is entitled to obtain moneys
upon the terms and conditions contained therein for the purchase of Bonds tendered for purchase in
accordance with the terms of the Resolution and of the Series Resolution authorizing such Bonds or a Bond
Series Certificate relating to such Bonds.
Loan Agreement means the Loan Agreement, dated as of September 27, 2000, executed by and
between the Authority and the University, in connection with the issuance of the Bonds, as the same shall
have been amended, supplemented or otherwise modified as permitted by the Resolution and by the Loan
Agreement.
Maximum Interest Rate means, with respect to any particular Variable Interest Rate Bond, the
numerical rate of interest, if any, set forth in the Series Resolution authorizing such Bond or the Bond
Series Certificate relating to such Bond, as the maximum rate at which such Bond may bear interest at any
time.
Minimum Interest Rate means, with respect to any particular Variable Interest Rate Bond, a numerical
rate of interest, if any, set forth in the Series Resolution authorizing such Bond or the Bond Series
Certificate relating to such Bonds, as the minimum rate at which such Bond may bear interest at any time.
Moody’s means Moody’s Investors Service, Inc., a corporation organized and existing under the laws
of the State of Delaware, and its successors and assigns.
Option Bond means any Bond which by its terms may be or is required to be tendered by and at the
option of the Holder thereof for redemption by the Authority prior to the stated maturity thereof or for
purchase thereof, or the maturity of which may be extended by and at the option of the Holder thereof in
accordance with the Series Resolution authorizing such Bonds or the Bond Series Certificate related to such
Bonds.
Optional Tender Date means any Business Day during a Daily Rate Period or a Weekly Rate Period.
Outstanding, when used in reference to Bonds, means, as of a particular date, all Bonds authenticated
and delivered under the Resolution and under any applicable Series Resolution except (i) any Bond
canceled by the Trustee at or before such date; (ii) any Bond deemed to have been paid in accordance with
the Resolution; (iii) any Bond in lieu of or in substitution for which another Bond shall have been
authenticated and delivered pursuant to the Resolution; and (iv) any Option Bond tendered or deemed
tendered in accordance with the provisions of the Series Resolution authorizing such Bond or the Bond
Series Certificate relating to such Bond on the applicable adjustment or conversion date, if interest thereon
shall have been paid through such applicable date and the purchase price thereof shall have been paid or
amounts are available for such payment as provided in the Resolution authorizing such Bond or the Bond
Series Certificate relating to such Bond.
Paying Agent means, with respect to the Bonds of any Series, the Trustee and any other bank or trust
company and its successor or successors, appointed pursuant to the provisions of the Resolution or of a
Series Resolution, a Bond Series Certificate or any other resolution of the Authority adopted prior to
authentication and delivery of the Series of Bonds for which such Paying Agent or Paying Agents shall be
so appointed.
Permitted Collateral means (i) Government Obligations described in clauses (i), (ii) or (iii) of the
definition of Government Obligations, (ii) Federal Agency Obligations described in clauses (i) or (ii) of the
definition of Federal Agency Obligations, (iii) commercial paper that (a) matures within two hundred
seventy (270) after its day of issuance, (b) is rated in the highest short term rating category by at least one
Rating Service and (c) is issued by a domestic corporation whose unsecured senior debt is rated by at least

A-7
Appendix A

one Rating Service no lower than in the second highest rating category or (iv) financial guaranty
agreements, surety or other similar bonds or other instruments of an insurance company that has an equity
capital of at least $125,000,000 and is rated by Bests Insurance Guide or a Rating Service in the highest
rating category.
Permitted Investments means any of the following: (i) Government Obligations; (ii) Federal Agency
Obligations; (iii) Exempt Obligations; (iv) Uncollateralized certificates of deposit that are fully insured by
the Federal Deposit Insurance Corporation and issued by a banking organization authorized to do business
in the State; (v) Collateralized certificates of deposit that are (a) issued by a banking organization
authorized to do business in the State that has an equity capital of not less than $125,000,000, whose
unsecured senior debt, or debt obligations fully secured by a letter or credit, contract, agreement or surety
bond issued by it, are rated by at least one Rating Services in at least the second highest rating category,
and (b) are fully collateralized by Permitted Collateral; and (vi) Investment Agreements that are fully
collateralized by Permitted Collateral.
Project means a “dormitory” as defined in the Act, which may include more than one part, financed in
whole or in part from the proceeds of the sale of Bonds, as more particularly described in the Series
Resolution authorizing the issuance of Bonds in connection with such Project.
Purchase Price means:
(i) when used in relation to a Tendered Bond, other than a Series 2009A Bonds
mandatorily tendered upon a Conversion from the Fixed Rate Mode or Term Rate Mode,
an amount equal to one hundred percent (100%) of the principal amount of such Series
2009A Bond tendered or deemed tendered to the Tender Agent for purchase pursuant to
Article V hereof, plus accrued interest and unpaid interest thereon to the date of purchase;
and

(ii) when used in relation to a Tendered Bond mandatorily tendered upon

Conversion from the Fixed Rate Mode or a Term Rate Mode on a date other than a Reset
Date, an amount equal to the Redemption Price that would be payable if such Series
2009A Bonds had been called for redemption on the Conversion Date; plus accrued and
unpaid interest thereon to the date of purchase;

provided, however, that, in each case, if the date of purchase is an Interest Payment Date, then the Purchase
Price shall not include accrued and unpaid interest, which shall be paid to the Holder of record on the
applicable Record Date.
Qualified Financial Institution means any of the following entities that has an equity capital of at least
$125,000,000 or whose obligations are unconditionally guaranteed by an affiliate or parent having an
equity capital of at least $125,000,000:
(i) a securities dealer, the liquidation of which is subject to the Securities
Investors Protection Corporation or other similar corporation, and (a) that is on the
Federal Reserve Bank of New York list of primary government securities dealers and (b)
whose senior unsecured long term debt is at the time an investment with it made rated by
at least one Rating Service no lower than in the second highest rating category, or, in the
absence of a rating on long term debt, whose short term debt is rated by at least one
Rating Service no lower than in the highest rating category for such short term debt;
provided, however, that no short term rating may be utilized to determine whether an
entity qualifies under this paragraph as a Qualified Financial Institution if the same would
be inconsistent with the rating criteria of any Rating Service or credit criteria of an entity
that provides a Credit Facility or financial guaranty agreement in connection with
Outstanding Bonds;
(ii) a bank, a trust company, a national banking association, a corporation
subject to registration with the Board of Governors of the Federal Reserve System under
the Bank Holding Company Act of 1956 or any successor provisions of law, a federal

A-8
 Appendix A

branch pursuant to the International Banking Act of 1978 or any successor provisions of
law, a domestic branch or agency of a foreign bank which branch or agency is duly
licensed or authorized to do business under the laws of any state or territory of the United
States of America, a savings bank, a savings and loan association, an insurance company
or association chartered or organized under the laws of the United States of America, any
state of the United States of America or any foreign nation, whose senior unsecured long
term debt is at the time an investment with it made is rated by at least one Rating Service
no lower than in the second highest rating category, or, in the absence of a rating on long
term debt, whose short term debt is rated by at least one Rating Service no lower than in
the highest rating category for such short term debt; provided, however, that no short term
rating may be utilized to determine whether an entity qualifies under this paragraph as a
Qualified Financial Institution if the same would be inconsistent the rating criteria of any
Rating Service or credit criteria of an entity that provides a Credit Facility or financial
guaranty agreement in connection with Outstanding Bonds;
(iii) a corporation affiliated with or which is a subsidiary of any entity
described in (i) or (ii) above or which is affiliated with or a subsidiary of a corporation
which controls or wholly owns any such entity, whose senior unsecured long term debt is
at the time an investment with it made rated by at least one Rating Service no lower than
in the second highest rating category, or, in the absence of a rating on long term debt,
whose short term debt is rated by at least one Rating Service no lower than in the highest
rating category for such short term debt; provided, however, that no short term rating may
be utilized to determine whether an entity qualifies under this paragraph as a Qualified
Financial Institution if the same would be inconsistent the rating criteria of any Rating
Service or credit criteria of an entity that provides a Credit Facility or financial guaranty
agreement in connection with Outstanding Bonds;
(iv) the Government National Mortgage Association or any successor thereto,
the Federal National Mortgage Association or any successor thereto, or any other federal
agency or instrumentality approved by the Authority; or
(v) a corporation whose obligations, including any investments of any moneys
held under the Resolution purchased from such corporation, are insured by an insurer that
meet the applicable rating requirements set forth above.
Rate means the Initial Rate, any Daily Rate, Commercial Paper Rate, Weekly Rate, Term Rate, Bank
Bond Rate, or the Fixed Rate.
Rate Mode means the Daily Rate Mode, Commercial Paper Mode, Weekly Rate Mode, Term Rate
Mode, or Fixed Rate Mode.
Rate Period means any Initial Rate Period, Daily Rate Period, Commercial Paper Rate Period, Weekly
Rate Period or Term Rate Period, or the Fixed Rate Period.
Rating Service means each of Moody’s Investors Service, Inc., Standard & Poor’s Rating Services, a
division of the McGraw-Hill Companies, Inc., Fitch, Inc., and each other rating service, in each case which
has assigned a rating to Outstanding Bonds at the request of the Authority, or their respective successors
and assigns.
Record Date means, unless a Series Resolution authorizing Variable Interest Rate Bonds or Option
Bonds or a Bond Series Certificate relating thereto provides otherwise with respect to such Variable
Interest Rate Bond or Options Bonds the fifteenth (15th) day (whether or not a Business Day) of the
calendar month next preceding an interest payment date.
Redemption Price, when used with respect to a Bond, means the principal amount of such Bond plus
the applicable premium, if any, payable upon redemption prior to maturity thereof pursuant to the
Resolution or to the applicable Series Resolution or Bond Series Certificate.

A-9
Appendix A

Refunding Bonds means all Bonds, whether issued in one or more Series of Bonds, authenticated and
delivered on original issuance pursuant to the Resolution and any Bonds thereafter authenticated and
delivered in lieu of or in substitution for such Bonds pursuant to the Resolution.
Remarketing Agent means, when used in connection with any particular Series 2009A Bond, initially,
J.P. Morgan Securities Inc., and its successors and assigns, and, thereafter, any person, and its successors
and assigns, appointed to serve as the Authority’s agent to perform the duties of a Remarketing Agent in
connection with the remarketing of Series 2009A Bonds in the Commercial Paper Mode, the Daily Rate
Mode, the Weekly Rate Mode or the Term Rate Mode.
Resolution means the Columbia University Revenue Bond Resolution, adopted by the Authority on
September 27, 2000, as from time to time amended or supplemented by Supplemental Resolutions or Series
Resolutions in accordance with the terms and provisions of the Resolution.
Restricted Property means any of the University’s assets.
Reset Date means, when used in connection with a Series 2009A Bond in the Daily Rate Mode,
Commercial Paper Mode, Weekly Rate Mode or Term Rate Mode, the date on which the interest rate borne
by such Series 2009A Bond is to be determined in accordance with the provisions of the Bond Series
Certificate, and, when used in connection with a Series 2009A Bond in the Term Rate Mode, also means
the last day of the then current Term Rate Period.
Revenues means all payments received or receivable by the Authority pursuant to the Loan Agreement,
which are to be paid to the Trustee (except payments to the Trustee for the administrative costs and
expenses or fees of the Trustee and payments to the Trustee for deposit to the Arbitrage Rebate Fund).
S&P means Standard & Poor’s Rating Group, a division of McGraw-Hill, Inc., a corporation organized
and existing under the laws of the State of New York, and its successors and assigns.
Serial Bonds means the Bonds so designated in a Series Resolution or a Bond Series Certificate.
Series means all of the Bonds authenticated and delivered on original issuance and pursuant to the
Resolution and to the Series Resolution authorizing such Bonds as a separate Series of Bonds or a Bond
Series Certificate, and any Bonds thereafter authenticated and delivered in lieu of or in substitution for such
Bonds pursuant to the Resolution, regardless of variations in maturity, interest rate, Sinking Fund
Installments or other provisions.
Series 2009A Resolution means the Series Resolution Authorizing Up To $117,285,000 Columbia
University Revenue Bonds, adopted by the Authority pursuant to the Resolution on April 29, 2009.
Series Resolution means a resolution of the Authority authorizing the issuance of a Series of Bonds
adopted by the Authority pursuant to the Resolution.
Short Term Debt means, Outstanding Option Bonds or Debt of the University, other than Debt of the
University payable to the Authority, (i) which Debt is payable upon demand, (ii) twenty percent (20%) or
more of the original principal amount of which Debt is payable in any Bond Year prior to the Bond Year
during which Bonds are no longer Outstanding, or (iii) the principal amount of which is payable prior to
maturity at the option of the holder thereof (other than upon acceleration upon an event of default) prior to
the Bond Year during which Bonds are no longer Outstanding, including any note, bond, debenture or other
evidence of indebtedness of the University which may be tendered to the University at the option of the
holder thereof for purchase, payment or redemption prior to maturity; provided, however, that such term
shall not include Debt less than twenty percent (20%) of the original principal amount of which is payable
during each of the then current and the immediately succeeding two (2) Bond Years and Debt which is not
payable prior to maturity at the option of the holder thereof during the then current or either of the
immediately succeeding two (2) Bond years.
Sinking Fund Installment means, as of any date of calculation, when used with respect to any Bonds of
a Series, so long as such Bonds are Outstanding, the amount of money required by the Resolution or by the

A-10
 Appendix A

Series Resolution pursuant to which such Bonds were issued or by the Bond Series Certificate relating to
such Bonds, to be paid on a single future date for the retirement of any Outstanding Bonds of said Series
which mature after said future date, but does not include any amount payable by the Authority by reason
only of the maturity of a Bond, and said future date is deemed to be the date when a Sinking Fund
Installment is payable and the date of such Sinking Fund Installment and said Outstanding Bonds are
deemed to be Bonds entitled to such Sinking Fund Installment.
Standby Purchase Agreement means an agreement by and between the Authority and another person or
by and among the Authority, the University and another person, pursuant to which such person is obligated
to purchase an Option Bond or a Variable Interest Rate Bond tendered for purchase;
State means the State of New York.
Supplemental Resolution means any resolution of the Authority amending or supplementing the
Resolution, any Series Resolution or any Supplemental Resolution adopted and becoming effective in
accordance with the terms of the Resolution.
Tax Certificate means the “Tax Certificate as to Arbitrage and the Provisions of Section 141 through
150, inclusive, of the Internal Revenue Code of 1986” executed by an Authorized Officer of the Authority
in connection with and relating to the issuance of a Series of Bonds, including the appendices, schedules
and exhibits thereto, or any similar certificate, agreement or other instrument made, executed and delivered
in lieu of said certificate, in each case as the lien of said certificate, in each case as the same may be
amended or supplemented.
Tender Agent means the Trustee, in its capacity as Tender Agent, having the duties, responsibilities
and rights provided for the Tender Agent in the Bond Series Certificate, and its successor or successors and
any successor Trustee which may at any time be substituted in its place.
Tender Date means each Optional Tender Date or Mandatory Tender Date.
Tendered Bond means a Series 2009A Bond or portion thereof in an Authorized Denomination
mandatorily tendered or tendered at the option of the Holder thereof for purchase in accordance with the
Bond Series Certificate, including a Series 2009A Bond or portion thereof deemed tendered, but not
surrendered on the applicable Tender Date.
Term Bonds means the Bonds so designated in a Series Resolution or a Bond Series Certificate and
payable from Sinking Fund Installments.
Term Rate means the rate at which a Series 2009A Bond bears interest during a Term Rate Period, as
established in accordance with the Bond Series Certificate.
Term Rate Mode means a Rate Mode designated as such in a Conversion Notice in which a Series
2009A Bond in such Rate Mode bears interest at a Term Rate.
Term Rate Period means a period commencing on the Conversion Date or a Reset Date and extending
(i) to and including a Business Day that is at least three hundred sixty–five (365) days after the Conversion
Date or the immediately preceding Reset Date or (ii) to, but not including, the Conversion Date on which
Series 2009A Bonds in the Term Rate Mode are converted to another Rate Mode.
Trustee means the bank or trust company appointed as Trustee for the Bonds pursuant to the
Resolution and having the duties, responsibilities and rights provided for in the Resolution, and its
successor or successors and any other bank or trust company which may at any time be substituted in its
place pursuant to the Resolution.
University means The Trustees of Columbia University in the City of New York, a corporation duly
organized and existing under the laws of the State, which is an institution for higher education located in
the State and authorized to confer degrees by law or by the Board of Regents of the State, or any successor
thereto.

A-11
Appendix A

Valuation Date means (i) with respect to any Capital Appreciation Bond, the date or dates set forth in
the Series Resolution authorizing such Capital Appreciation Bond or in the Bond Series Certificate relating
to such Bond on which specific Accreted Values are assigned to such Capital Appreciation Bond, and (ii)
with respect to any Deferred Income Bond, the date or dates prior to the Interest Commencement Date and
the Interest Commencement Date set forth in the Series Resolution authorizing such Bond or in the Bond
Series Certificate relating to such Bond on which specific Appreciated Values are assigned to such
Deferred Income Bond.
Variable Interest Rate means a rate or rates of interest to be borne by a Series of Bonds or any one or
more maturities within a Series of Bonds, which is or may be varied from time to time in accordance with
the method of computing such interest rate or rated specified in the Series Resolution authorizing such
Bonds or a Bond Series Certificate relating to such Bonds and which shall be based on (i) a percentage or
percentages or other function of an objectively determinable interest rate or rates (e.g., a prime lending rate)
which may be in effect from time to time or at a particular time or times; provided, however, that such
variable interest rate may be subject to a Maximum Interest Rate and may be subject to a Minimum Interest
Rate and that there may be an initial rate specified in each case as provided in such Series Resolution or a
Bond Series Certificate or (ii) a stated interest rate that may be changed from time to time as provided in
the Series Resolution authorizing such Bonds or a Bond Series Certificate; provided further, that such
Series Resolution or Bond Series Certificate shall also specify either (x) the particular period or periods of
time or manner of determining such period or periods of time for which each variable interest note shall
remain in effect or (y) the time or times at which any change in such variable interest rate shall become
effective or the manner of determining such time or times.
Variable Interest Rate Bond means any Bond which bears a Variable Interest Rate, provided that a
Bond the interest rate on which shall have been fixed for the remainder of the term thereof shall no longer
be a Variable Interest Rate Bond.
Weekly Rate means the rate at which a Series 2009A Bond bears interest during a Weekly Rate Period,
as established in accordance with the Bond Series Certificate.
Weekly Rate Mode means a Rate Mode in which a Series 2009A Bond in such Rate Mode bears
interest at a Weekly Rate.
Weekly Rate Period means a period commencing on a Conversion Date or the Wednesday of a
calendar week and extending to and including the next succeeding Tuesday.

A-12
 Appendix B

FINANCIAL STATEMENTS OF
COLUMBIA UNIVERSITY
AND INDEPENDENT AUDITORS’ REPORT
[THIS PAGE INTENTIONALLY LEFT BLANK
 Report of Independent Auditors

To The Trustees of Columbia University in the City of New York:

In our opinion, the accompanying consolidated balance sheet and the related consolidated statements
of activities and cash flows present fairly, in all material respects, the financial position of The Trustees
of Columbia University in the City of New York (the "University") at June 30, 2008, and the changes in
its net assets and its cash flows for the year then ended in conformity with accounting principles
generally accepted in the United States of America. These financial statements are the responsibility
of the University’s management. Our responsibility is to express an opinion on these financial
statements based on our audit. The prior year summarized comparative information has been derived
from the University's June 30, 2007 financial statements, and in our report dated September 21, 2007,
we expressed an unqualified opinion on those financial statements. We conducted our audit of these
statements in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.

As discussed in Note 3 to the consolidated financial statements, in fiscal year 2008 the University
changed its accounting for cash distributions from certain investments in the statement of cash flows.
Also, as discussed in Note 13, in fiscal year 2007 the University changed the manner in which it
accounts for defined benefit and postretirement plans.

October 10, 2008

The Trustees of Columbia University in the City of New York
Consolidated Balance Sheet
At June 30, 2008, with Comparative Totals at June 30, 2007
(in thousands of dollars)

June June
2008 2007

Assets
Cash and cash equivalents $282,713 $405,060
Accounts receivable, net:
Government agencies 135,029 69,011
Patient receivables 76,905 83,409
Other 168,298 143,061
Investment income receivable, net 2,479 3,740
Receivable for securities sold 309,343 172,091
Cash and securities held in trust by others 221,264 87,710
Pledges receivable, net 258,938 238,784
Student loans receivable, net 89,556 82,874
Collateral for securities loaned 70,946 58,781
Investments, at fair value 7,083,705 7,244,125
Institutional real estate 682,070 655,249
Land, buildings, and equipment, net 2,108,139 1,915,324
Other assets 66,437 66,320
Net assets held by CPMC Fund, Inc. 127,814 130,749
Interest in perpetual trusts held by others 157,583 148,174

Total assets $11,841,219 $11,504,462

Liabilities
Accounts payable and accrued expenses $498,644 $447,482
Liabilities for securities purchased 8,544 25,602
Securities loan agreement payable 70,946 58,781
Prepaid tuition and other deferred credits 46,965 47,716
Deferred revenue and unamortized bond premium 71,046 60,814
Refundable advances 88,584 77,143
Capital lease obligations 83,097 84,388
Conditional asset retirement obligations 93,881 57,501
Accrued employee benefit liabilities 164,857 150,260
Federal student loan funds 75,465 70,441
Actuarial liability for split-interest agreements 35,331 28,991
Bonds and notes payable 1,434,728 1,241,900

Total liabilities 2,672,088 2,351,019

Net assets
Unrestricted 6,496,155 6,695,615
Temporarily restricted 854,310 778,726
Permanently restricted 1,818,666 1,679,102

Total net assets 9,169,131 9,153,443

Total liabilities and net assets $11,841,219 $11,504,462

See accompanying notes to financial statements.

2
The Trustees of Columbia University in the City of New York
Consolidated Statement of Activities
For the Year Ended June 30, 2008, with Comparative Totals at June 30, 2007
(in thousands of dollars)

Temporarily Permanently June June

Unrestricted Restricted Restricted 2008 2007
Operating activities
Revenues and support
Tuition and fees $772,126 $772,126 $728,349
Less financial aid grants (207,479) (207,479) (186,256)
Net tuition and fees 564,647 564,647 542,093
Government grants and contracts:
Direct 507,035 507,035 463,475
Indirect 160,221 160,221 152,499
Private gifts, grants and contracts:
Direct 253,181 $138,041 391,222 343,535
Indirect 10,746 10,746 9,871
Revenue from other educational and
research activities 191,744 191,744 195,045
Patient care revenue 703,503 703,503 663,466
Investment income and gains utilized 374,679 5,278 379,957 335,102
Sales and services of auxiliary enterprises 107,920 107,920 102,002
State aid 3,263 3,263 3,447
Other sources 13,744 13,744 11,732
Net assets released from restrictions 62,667 (62,667)

Total operating revenues and support 2,953,350 80,652 3,034,002 2,822,267

Expenses
Instruction and educational administration 1,110,579 1,110,579 986,688
Research 393,035 393,035 388,245
Patient care expense 642,342 642,342 606,356
Library 62,073 62,073 60,653
Operation and maintenance of plant 157,636 157,636 147,285
Institutional support 185,226 185,226 157,971
Auxiliary enterprises 97,461 97,461 94,251
Depreciation expense 153,991 153,991 146,310
Interest expense 50,313 50,313 49,633
Other 42,153 42,153 50,963

Total expenses 2,894,809 2,894,809 2,688,355

Change in net assets from operating activities 58,541 80,652 139,193 133,912

Nonoperating activities
Endowment gifts $130,131 130,131 123,756
Current year realized and unrealized capital
gains (losses) (7,591) 28,899 (1,545) 19,763 1,304,158
Endowment appreciation utilized (226,964) (25,145) (252,109) (214,865)
Change in net assets held by CPMC Fund, Inc. (2,935) (2,935) 18,494
Change in funds held by others in perpetuity 9,409 9,409 11,622
Present value adjustment to split-interest agreements (412) (8,822) 1,569 (7,665) (2,969)
Changes in pension and post retirement obligations (20,099) (20,099)

Change in net assets from nonoperating activities (258,001) (5,068) 139,564 (123,505) 1,240,196

Change in net assets (199,460) 75,584 139,564 15,688 1,374,108

Cumulative effect of change in accounting
for FAS 158 (48,680)
Change in net assets after cumulative effect
of change in accounting (199,460) 75,584 139,564 15,688 1,325,428

Net assets at beginning of year 6,695,615 778,726 1,679,102 9,153,443 7,828,015

Net assets at end of period $6,496,155 $854,310 $1,818,666 $9,169,131 $9,153,443

See accompanying notes to financial statements.

3
The Trustees of Columbia University in the City of New York
Consolidated Statement of Cash Flows
For the Year Ended June 30, 2008, with Comparative Totals at June 30, 2007
(in thousands of dollars)

June June
2008 2007

Cash flows from operating activities

(Includes adjustments to reconcile change in net assets to net cash provided by operating activities):
Change in net assets $15,688 $1,325,428
Cumulative effect of change in accounting for FAS 158 48,680
Depreciation expense 153,991 146,310
Interest on capital lease obligations and CARO 9,421 3,468
Institutional real estate depreciation 15,632 16,505
Realized and unrealized (gains) losses (19,763) (1,304,158)
Partnership distributions 448,496 519,108
Contributions restricted for permanent investment,
plant, and split-interest agreements (136,504) (79,169)
Contributions other than cash (96,616) (61,869)
Present value adjustments to split-interest agreements 7,577 3,006
Accreted interest on bonds 2,445 2,476
Change in fair value of net assets held by CPMC Fund, Inc. 2,935 (18,494)
Change in fair value of interest in perpetual trusts held by others (9,409) (11,622)
Change in operating assets and liabilities:
Accounts receivable, net (84,751) 1,431
Investment income receivable, net 1,261 (2,078)
Pledges receivable, net (20,154) (30,981)
Other assets (117) 2,137
Accounts payable and accrued expenses 68,605 67,888
Prepaid tuition and other deferred credits (751) (59)
Deferred revenue and unamortized bond premium 10,232 (5,609)
Refundable advances 11,441 9,087
Accrued employee benefit liabilities 14,597 9,015

Net cash provided by operating activities 394,256 640,500

Cash flows from investing activities

Proceeds from sales of investments 2,421,902 3,246,054
Purchases of investments (2,747,912) (3,840,371)
Collections from student notes 9,224 11,425
Student notes issued (15,906) (18,578)
Investment in cash and securities held in trust by others (133,554) 91,056
Purchases of institutional real estate (44,694) (37,282)
Purchases of plant and equipment (327,344) (243,732)

Net cash used by investing activities (838,284) (791,428)

Cash flows from financing activities

Proceeds from contributions for:
Investment in endowment 92,200 63,910
Investment in plant 28,352 11,878
Investment in split-interest agreements 15,952 3,381
Investment income on split-interest agreements 2,508 2,149
Payments on split-interest agreements (3,741) (3,298)
Payments on capital lease obligations (8,996) (9,468)
Repayment of bonds and notes payable (140,603) (46,030)
Proceeds from bond issuance 330,985 39,661
Net change in federal student loan funds 5,024 3,938

Net cash provided by financing activities 321,681 66,121

Net change in cash and cash equivalents (122,347) (84,807)

Cash and cash equivalents at beginning of year 405,060 489,867

Cash and cash equivalents at end of year $282,713 $405,060

Supplemental disclosure of cash flow information:

Equipment and space acquired through capital leases $3,938 $13,580
Cash paid during the year for interest $54,188 $60,767

See accompanying notes to financial statements.

4
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

1. Organization

The Trustees of Columbia University in the City of New York (the “University”) is a private,
nonsectarian, nonprofit institution of higher education whose activities are concentrated at two
locations in New York City and extend around the globe. The University provides instruction
through sixteen undergraduate, graduate, and professional schools. It operates a variety of research
institutes and a library system to support its teaching, learning, and research activities. The
University performs research, training, and other services under grants and contracts with agencies
of the federal government and other sponsoring organizations. The University enrolls
approximately 24,900 full-time and part-time students and employs approximately 14,100 full-time
employees, including 5,239 full-time faculty members and research staff. Of these, 1,187 hold
positions in the arts and sciences; 3,120 hold health science positions; and the remainder hold
positions in the other professional schools.

The University is a nonprofit corporation under Section 501(c)(3) of the Internal Revenue Code.

2. Columbia University Medical Center

Columbia University Medical Center (“CUMC”), a division of the University, located in the
Washington Heights section of northern Manhattan, is one of the largest academic medical centers
in the United States. It is composed of four schools: College of Physicians and Surgeons, Mailman
School of Public Health, College of Dental Medicine, and School of Nursing. CUMC’s activities
also include extensive patient care services provided by its faculty members.

CUMC has three primary areas of focus: scientific research, education, and patient care. CUMC
offers a wide variety of degrees, certifications, and continuing education in the health care field.
Sponsored research, faculty patient care services, tuition, endowment income, patent royalties, and
gifts provide the bulk of CUMC’s revenues. Approximately 3,500 students are enrolled at CUMC,
with a full-time faculty of 2,162, of whom approximately 245 are tenured. Additionally, CUMC’s
staff includes 3,313 part-time faculty instructors, 971 full-time researcher staff members, 1,105
part-time researchers, and 375 post doctoral research trainees. Approximately 69 percent of the
full-time faculty and 47 percent of the part-time faculty hold clinical appointments and have
admitting privileges at NewYork-Presbyterian Hospital (“NYPH”) or other hospitals.

Patient Care Activities

Patient Care activities include patient visits handled by Columbia part-time and full-time faculty
through its medical faculty practice plan, as well as clinical and educational services provided to
hospitals and other health care institutions through contractual agreements for services.

CUMC maintains several clinical and education affiliation agreements with other organizations.
The most significant affiliation agreements are with NYPH, Harlem Hospital, and St. Luke’s–
Roosevelt Hospital Center. In addition, certain faculty physicians provide patient care and
supervision of residents at NYPH network hospitals and other affiliates. Through interinstitutional
“medical service agreements,” CUMC faculty also provide patient care in specialty and
subspecialty areas at hospitals in the tristate area and occasionally in other parts of the country.

The full-time and part-time clinical faculty handled approximately 1.9 million outpatient and
emergency room visits and participated in instruction and supervision of 600 University medical
students and 800 residents and fellows at NYPH. CUMC physicians generated 63,600 NYPH
hospital admissions during the year.
5
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Payments for patient-care services provided by the full-time faculty in both institutional and private
office settings are derived mainly from third-party payers, including managed care companies (64
percent), Medicare (13 percent), commercial insurance (6 percent), Medicaid (2 percent), direct
patient payments (12 percent), and other (3 percent).

3. Summary of Significant Accounting Policies

The significant accounting policies of the University are as follows:

Basis of Consolidation
The accompanying consolidated financial statements of the University include the accounts of all
academic and administrative departments of the University. Additionally, the consolidated
financial statements include the net assets and activities of the following entities, for which the
University maintains managerial and financial control:

x Columbia Investment Management Company, LLC—Columbia Investment Management

Company, LLC (“CIMC”) is a New York limited liability company formed by the
University to manage the University’s investment assets under the supervision of a Board
appointed by the Trustees of the University and subject to the oversight of the Committee
on Finance of the Trustees.
x Columbia University Press—Columbia University Press is a not-for-profit corporation
formed to promote the study of economic, historical, literary, philosophical, scientific, and
other subjects and to encourage and promote the publication of literary works embodying
original research in such subjects.
x Reid Hall, Inc.—Reid Hall, Inc., located in Paris, France, was donated to the University in
1964. Reid Hall, Inc., a corporation organized under New York membership corporation
law as an educational and charitable organization, operates Reid Hall to promote, facilitate,
and aid the educational, cultural, and social interests of students studying in France.
x The University holds nine New York limited liability companies, one Delaware not-for-
profit corporation, as well as one Swaziland not-for-profit company, which are established
to facilitate various program and research objectives in Africa.

The University provides custodial services and manages all of the assets of Columbia Presbyterian
Medical Center Fund, Inc. (“CPMC Fund, Inc.”), a not-for-profit corporation that exists to solicit
gifts for the University and NYPH. The consolidated financial statements reflect the University’s
interest in the net assets of CPMC Fund, Inc. as well as the assets and amounts due NYPH.

The University is also the sole corporate member of two not-for-profit physician private practice
entities, Columbia Ophthalmology Consultants, Inc., and Columbia University Healthcare, Inc.,
and, as such, consolidates these entities into the University’s consolidated financial statements.

All significant intercompany accounts have been eliminated in consolidation.

Accrual Basis
The consolidated financial statements of the University have, in all material respects, been prepared
on an accrual basis.

6
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Basis of Presentation
The University maintains its accounts in accordance with the principles of fund accounting. Under
this method of accounting, resources for various purposes are classified into funds that are
consistent with activities or objectives specified by donors. Separate accounts are maintained for
each fund.

For reporting purposes, the University prepares its consolidated financial statements in accordance
with accounting principles generally accepted in the United States of America (“GAAP”) and as
such, with the provisions of Statement of Financial Accounting Standards No. 117 (“SFAS No.
117”), Financial Statements of Not-for-Profit Organizations. SFAS No. 117 requires that resources
be classified for reporting purposes based on the existence or absence of donor-imposed
restrictions. This is accomplished by classification of fund balances into three categories of net
assets – unrestricted, temporarily restricted, and permanently restricted. Descriptions of the three
net asset categories and the type of transactions affecting each category follow.

Unrestricted—Net assets that are not subject to donor-imposed restrictions. This category includes
unrestricted gifts, certain endowment income balances, certain board-designated endowment
principal balances, including capital appreciation on such balances, certain plant funds, University-
designated loan funds, and other unrestricted designated and undesignated current funds.

Temporarily restricted—Net assets that are subject to legal or donor-imposed stipulations that will
be satisfied either by actions of the University, the passage of time, or both. These net assets
include gifts donated for a particular purpose, amounts subject to time restrictions such as funds
pledged for future payment, or amounts subject to legal restrictions such as portions of otherwise
unrestricted capital appreciation, which must be reported as temporarily restricted in accordance
with New York law. Once restrictions are satisfied, or have been deemed to have been satisfied,
those temporarily restricted net assets are released from restrictions, except for temporarily
restricted revenue earned and expended in the same fiscal year, which is recorded as unrestricted
revenue.

Permanently restricted—Net assets that are subject to donor-imposed stipulations that will be
invested to provide a perpetual source of income to the University. Donors of these assets require
the University to maintain and invest the original contribution in perpetuity but permit the use of
some or all investment earnings for operating or other purposes.

Revenues and Expenses

Revenues are reported as increases in unrestricted net assets unless the use of those assets is limited
by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains
and losses on investments are reported as increases or decreases in unrestricted net assets, unless
their use is restricted by explicit donor stipulation or by law.

Tuition and Fees and Financial Aid

Tuition and fees are derived from degree programs as well as executive and continuing education
programs. Tuition and fee revenue is recognized as operating income in the period in which it is
earned. Tuition and fee receipts received in advance are recorded as deferred revenue. Net tuition
and fees are computed after deducting certain scholarships and fellowships awarded to students. In
order to assist students in meeting tuition and other costs of attendance, the University administers a
variety of federal, state, institutional, and private programs. Financial aid packages to students may
include direct grants, loans, and employment during the academic year.

7
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Contributions
Contributions, including unconditional promises to give (“pledges”), are recognized as operating
revenue in the period earned. Pledges that are expected to be collected within one year are recorded
at their net realizable value. Amounts expected to be collected in future years are recorded at the
present value of estimated future cash flows. The discounts on those pledges are computed using a
risk-free interest rate applicable to the year in which the promise was received. Subsequent years’
accretion of the discount is included in contribution revenue. Conditional promises to give are not
recognized as revenue until such time as the conditions are substantially met.

Patient Care Revenue and Expense

Patient care activities relate to three distinct areas: Medical faculty practice plans, affiliation
agreements, and medical service agreements.

The University provides medical care to patients via faculty practice at CUMC, primarily under
agreements with third-party payors. Agreements with third-party payors, including health
maintenance organizations, provide payment for medical services at amounts different from
standard rates established by the University. Medical faculty practice plan revenue is reported net
of two items: (a) contractual allowances from third-party payors for services rendered and (b)
estimates of uncollectible amounts.

The University maintains several clinical and education affiliation agreements with other
organizations. The University provides medical, professional, and supervisory staff as well as other
technical assistance. Revenues and expenses from these agreements are accounted for in patient
care categories of the operating activity in the Consolidated Statement of Activities.

Grant and Contract Income

The University receives grant and contract income from governmental and private sources. The
University recognizes revenue associated with the direct costs of sponsored programs as the related
costs are incurred. Recovery of facilities and administrative costs of federally sponsored programs
are at reimbursement rates negotiated with the University’s cognizant agency, the Department of
Health and Human Services. The University and the federal government are currently operating
under an agreement that provides for facilities and administrative cost rates under federal grants and
contracts through June 30, 2011.

Research and Development

The University engages in numerous research and development projects, partially or fully
sponsored by governmental and private funds. These costs are charged to operating expense as
incurred. The University periodically funds and develops patents for certain technologies, then
licenses the usage of these patents to companies over several years. The revenue, net of payments
due to third parties, is recorded in “Revenue from other educational and research activities” in the
Consolidated Statement of Activities. Costs incurred with developing and maintaining these
patents are expensed as incurred.

Cash and Cash Equivalents

Cash and cash equivalents are recorded at fair value and include several depository accounts,
checking accounts, institutional money market funds, and similar temporary investments with
maturities of three months or less at the date of purchase.

8
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Investments
The University’s investments, consisting of publicly traded fixed income and equity securities,
alternative investments, and cash held for reinvestment, are stated at fair value as of June 30, 2008.
Alternative investments include hedge fund investments (“Hedge Funds”) and private equity and
real estate investments (“Private Equity Funds”). The management of the respective fund provides
the fair value of the investment. The University reflects its share of the partnership interest in the
consolidated financial statements unless it demonstrates “control” of the partnership, in which case
it consolidates the investment.

The University believes that the carrying amount of its alternative investments is a reasonable
estimate of fair value as of June 30, 2008. Because alternative investments are not marketable, the
estimated value is subject to uncertainty and, therefore, may differ from the value that would have
been used had a ready market for the investment existed. Such differences could be material. The
amount of gain or loss associated with these investments is reflected in the accompanying
consolidated financial statements based on the University’s proportionate share in the net assets of
these investments.

The University records both the assets and corresponding liabilities generated by securities lending
transactions as “Collateral for securities loaned” and “Securities loan agreement payable.” The
loaned securities are returnable on demand and are collateralized by cash and cash equivalents.

The University records purchases and sales of securities on a trade-date basis. Realized gains and
losses are determined on the basis of average cost of securities sold and are reflected in the
Consolidated Statement of Activities. Dividend income is recorded on the ex-dividend date, and
interest income is recorded on an accrual basis.

Split-Interest Agreements
The University’s split-interest agreements with donors consist primarily of charitable gift annuities,
pooled income funds, and irrevocable charitable remainder trusts for which the University serves as
custodian and trustee. Assets are invested and payments are made to donors and/or other
beneficiaries in accordance with the respective agreements.

Contribution revenues for split-interest agreements are recognized at the dates the agreements are
established net of the present value of the estimated future payments to be made to the
beneficiaries, if applicable, under these agreements. Assets related to these agreements are
recorded in “Investments, at fair value,” and the liability for the net of the present value of the
estimated future payments to be made to the beneficiaries is recorded in “Actuarial liability for
split-interest agreements.” Adjustments to the fair value of these agreements are recorded in the
Consolidated Statement of Activities under “Present value adjustment to split-interest agreements.”

Institutional Real Estate

Institutional real estate consists primarily of properties proximate to the University’s Morningside
and Washington Heights campuses, the primary purpose of which is to house faculty, staff, and
graduate students. The income earned on this investment is used primarily to finance operating
expenditures. The properties are valued at cost and depreciated over a useful life of fifty years.

9
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Land, Buildings, and Equipment

Land, buildings, and equipment are stated at cost net of accumulated depreciation. Depreciation is
calculated on a straight-line basis over useful lives ranging from ten to forty years for buildings and
improvements and five to twenty years for equipment, consistent with the method used for
government cost reimbursement purposes. Capitalized software costs are amortized over seven
years. Upon disposal of assets, the costs and accumulated depreciation are removed from the
accounts, and the resulting gain or loss is included in operations.

Other Assets
Prepaid expenses, bond issuance costs, and the University’s equity in the Medical Center Insurance
Company (“MCIC”) are categorized within other assets. Bond issuance costs are amortized over
the expected holding period of the specific debt issue.

Collections
Collections at the University include works of art, literary works, historical treasures, and artifacts
that are maintained in the University’s galleries, libraries, and buildings. These collections are
protected and preserved for public exhibition, education, research, and the furtherance of public
service and, therefore, are not recognized as assets on the Consolidated Balance Sheet. Costs
associated with purchasing additions and maintaining these collections are recorded as operating
expenses in the period in which the items are acquired.

Interest in Perpetual Trusts Held by Others

The University is the beneficiary of certain perpetual trusts administered by others. These trusts are
recognized as permanently restricted contributions upon establishment and adjusted to fair value
each year.

Capital Lease Obligations

Capital lease obligations are recognized for equipment and space where substantially all of the risks
of ownership have been transferred to the University. The obligations extend up to five years for
equipment and up to fifty years for space.

Conditional Asset Retirement Obligations

Conditional asset retirement obligations, as adopted on June 30, 2006, under Financial Accounting
Standards Board (“FASB”) Interpretation No. 47 (“FIN 47”), Accounting for Conditional Asset
Retirement Obligations (an interpretation of FASB Statement No. 143), are recognized for
remediation or disposal of asbestos, underground storage tanks, soil, and radioactive sources and
equipment as required by law. The fair value of the liability for a conditional asset retirement
obligation is recognized in the period in which it occurred, provided that it can be reasonably
estimated.

Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. The most significant estimates include valuation of
investments without readily determinable public markets, actuarially determined costs associated
with split-interest agreements, pension, postemployment and postretirement benefits, contractual
allowances for patient receivables, and allowances for doubtful accounts.

10
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

2007 Presentation
While comparative information is not required under GAAP, the University believes that this
information is useful and has included summarized financial information from the consolidated
financial statements for 2007. This summarized information is not intended to be a full
presentation in conformity with GAAP, which would require certain additional information.
Accordingly, such information should be read in conjunction with the University’s audited
consolidated financial statements for the year ended June 30, 2007. In addition, certain amounts in
the summarized consolidated financial statements for fiscal year 2007 have been reclassified to
conform to the fiscal year 2008 presentation.

In 2008, the University revised the presentation of revenues and expenses relating to medical
faculty practice plan activities and hospital affiliation agreements and reflects these activities on a
combined basis as “Patient care revenues” and “Patient care expenses” in the Consolidated
Statement of Activities for the year ended June 30, 2008. The Consolidated Statement of Activities
for the year ended June 30, 2007, as originally reported, included a separate category for “Medical
faculty practice plan income” of $445,009. The previous presentation also reflected certain hospital
affiliation agreements in two categories of revenue – within government grants activity ($52,013)
and within “Revenue from other educational and research activities” ($166,444). In addition, the
Consolidated Statement of Activities for the year ended June 30, 2007, as originally reported,
included a separate category for “Medical faculty practice plan expense” ($378,755) and reflected
certain expenses related to hospital affiliation agreements within “Instruction and educational
administration” ($227,449). For purposes of comparability, the presentation of the Consolidated
Statement of Activities for the year ended June 30, 2007, has been revised to conform to the
combined presentation in "Patient care revenue" ($663,466) and Patient care expenses" ($606,356).
This change in presentation had no impact on the change in net assets from operating activities or
the total change in net assets as previously reported.

During fiscal 2008, the University determined that securities lending activity should have been
reflected on the June 30, 2007 Consolidated Balance Sheet both as an asset, “Collateral for
securities loaned” in the amount of $58,781 and a liability, “Securities loan agreement payable” in
the amount of $58,781. For purposes of comparability, the presentation of the Consolidated
Balance Sheet as of June 30, 2007, has been revised to conform to the current year. This change in
presentation had no impact on the Consolidated Statement of Activities for fiscal year 2007 as a
result of this reclassification.

The presentation of the 2007 Consolidated Statement of Cash Flows has been reclassified to reflect
cash activity related to the sale of contributed securities as investing activities. Previously, these
amounts were classified primarily as operating and financing activities, depending on the nature of
the gift, because the University’s practice is to sell these securities immediately upon receipt. This
reclassification reduced 2007 operating cash by $16,279 offset by changes in investing activities
and financing activities with no impact on “Cash and cash equivalents” as previously reported at
June 30, 2007.

The University reflected its July, 1 2007 debt service payments on its DASNY tax exempt debt as a
reduction in cash and securities held in trust by others ($49,804), accrued liabilities ($20,874) and
bonds and notes payable ($28,930) at June 30, 2007. In fiscal year 2008, the University changed its
presentation and did not reflect its July 1, 2008 payment as a reduction in cash and securities held
in trust by others, accrued liabilities and bonds and notes payable at June 30, 2008. The June 30,

11
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

2007 amounts were reclassified for comparability. This reclassification had no impact on net assets
or cash and cash equivalents as previously reported at June 30, 2007.

Change in Accounting
The University carries its investments in private equity, venture capital, and hedge funds (i.e.,
primarily limited liability partnerships, limited liability corporations, and other similarly structured
investments) in which it maintains a specific capital ownership or similar account at fair value in
accordance with the AICPA Not-for-Profit Audit Guide(the AAG-NFP) (see Footnote 6).

In fiscal 2008, the University revised its presentation of the cash flows for these investments in the
Statement of Cash Flows consistent with the accounting for equity method investments under
generally accepted accounting principles. The University considers the revised presentation
preferable as it better represents the underlying nature of these investments in which the University
has a capital account. The revision did not result in changes to the University's fair value method of
reporting of such investments on the statement of financial position, and changes in net assets and
total net assets of the University.

The result of this revision was an increase in net cash provided by operating activities and a
reduction in investing activities of $519,108 in the University's Statement of Cash Flows in fiscal
2007. This revision was due to realized gain cash distributions (from the investments described
above) previously recorded in investing activities, which were reclassed to operating activities.
Total cash and cash equivalents as previously reported at June 30, 2007, were not impacted by the
revision.

It was determined under the previous method of accounting that $78,218 reported as dividend
income should have been reported as unrealized gains in 2007. As a result, the University has
decreased the cash flows from operating activities and increased the cash flows from investing
activities by $78,218 in its revised presentation of the 2007 Statement of Cash Flows.

Total cash and cash equivalents as previously reported at June 30, 2007 were not impacted by these
revisions and reclassifications. Furthermore, there was no impact on changes in net assets or net
assets of the University as previously reported at June 30, 2007.

New Authoritative Pronouncements

Effective July 1, 2007, the University adopted FASB Interpretation No. 48, “Accounting for
Uncertainty in Income Taxes” (“FIN 48”), which requires recognizing and measuring tax benefit
taken or expected to be taken in an unrelated business activity tax return and disclosures regarding
uncertainties in tax positions. No significant adjustments to the financial statements were required
in 2008 as a result of the implementation of FIN 48.

A number of recent pronouncements will be adopted in the future in accordance with FASB
guidelines on the timing of adoption and are not reflected in the fiscal year 2008 statements.
Management is currently assessing the impact of the following pronouncements:

In September 2006, the FASB issued Statement of Financial Accounting Standards (“SFAS”)
No. 157, “Fair Value Measurements” (“SFAS 157”). SFAS 157 establishes a framework for
measuring fair value and expands disclosures about its measurement and is effective for financial
statements issued for fiscal years beginning after November 15, 2007.

12
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets
and Financial Liabilities” (“SFAS 159”). SFAS 159 permits entities to choose to measure any
financial instruments and certain other items at fair value and is effective for fiscal years beginning
after November 15, 2007.

In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and
Hedging Activities” (“SFAS 161”). SFAS 161 changes the disclosure requirements for derivative
instruments and hedging activities and is effective for financial statements issued for fiscal years
beginning after November 15, 2008.

In August 2008, the FASB issued FASB Staff Position FAS 117-1, “Endowments of Not-for-Profit
Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform
Prudent Management of Institutional Funds Act” (“UPMIFA”), and enhanced disclosures for all
endowments funds. This FSP provides guidance on classifying the net assets associated with
donor-restricted endowment funds held by organizations that are subject to an enacted version of
UPMIFA and is effective for fiscal years ending after December 15, 2008.

4. Operating Measurement

The University divides its Consolidated Statement of Activities into operating and nonoperating
activities. The operating activities of the University include all income and expenses related to
carrying out its educational and research mission. Operating revenues include investment income
and endowment appreciation utilized to fund current operations, the largest portion of which is the
distribution of funds budgeted in accordance with the endowment spending rule.

Nonoperating activities include current year realized and unrealized gains and losses on
investments including realized gain distributions from Private Equity Funds and Hedge Funds, less
amounts withdrawn from endowment appreciation to fund operations. Nonoperating activities also
include new gifts to permanently restricted endowments, changes in net assets held by CPMC
Fund, Inc., changes in perpetual trusts held by others, present value adjustments to split-interest
agreements, and changes in pension and postretirement obligations.

5. Patient Care Revenue

The University’s affiliation agreements with tristate area hospitals generated $231,402 and
$208,443 of revenue for the years ended June 30, 2008 and 2007, respectively. As of June 30, 2008
and 2007, accounts receivable includes $64,205 and $50,014, respectively, relating to these
agreements.

Medical faculty practice revenue is reported at the estimated net realizable amounts from patients,
third-party payors, and others for services rendered. Medical faculty practice revenues are
$447,532 and $433,698 for the years ended June 30, 2008 and 2007, respectively. As of June 30,
2008 and 2007, patient accounts receivable amounts to $76,905 and $83,409, respectively.

Other areas of patient care, such as medical service agreements, generated $24,569 and $21,325 of
revenue for the years ended June 30, 2008 and 2007, respectively.

13
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

6. Long-Term Investments

The following is a summary of the University’s investments as of June 30:

2008 2007

U.S. public equities and U.S. equity mutual funds $ 315,230 $ 605,251
Foreign public equities and foreign equity mutual funds 672,003 1,205,703
Private equity (limited partnerships) 2,860,793 2,301,502
Hedge funds (limited partnerships and corporations) 2,934,500 2,717,494
Fixed income and fixed income mutual funds 41,062 53,703
Cash held for investment 301,834 485,432
Other 79,208 (815)
Total investment portfolio $ 7,204,630 $ 7,368,270

Investments included above and held for CPMC Fund, Inc. (120,925) (124,145)
Investments, at fair value $ 7,083,705 $ 7,244,125

Additional balance sheet information

Receivable for securities sold $ 309,343 $ 172,091
Collateral for securities loaned 70,946 58,781
Liabilities for securities purchased 8,544 25,602
Notes payable - 39,661
Securities loan agreement payable 70,946 58,781

U.S. Public Equities and Mutual Funds and Foreign Public Equities and Mutual Funds
The fair value of publicly traded fixed income, equity securities, and derivatives investments are
based on quoted market prices. Investments that are listed on an exchange are valued, in general, at
the last reported sale price (or, if there is no sales price, at the last reported bid price, or, in the
absence of reported bid prices, at the mean between the last reported bid and asked prices thereof).
If an investment is restricted, the University may discount the price to reflect the nature of the
restriction. Fees paid to investment managers are netted against investment income.

Alternative Investments
Alternative investments include interests in Private Equity and Hedge Funds. Since Private Equity
and some Hedge Funds do not have readily ascertainable market values and may be subject to
withdrawal restrictions, the University values these investments in accordance with valuations
provided by the general partners of the underlying partnerships. The University’s management may
consider other factors in assessing the fair value of these investments.

As a rule, the general partners of Private Equity Funds initially value investments held by the Funds
at cost and require that changes in value be established by meaningful third-party transactions or a
significant impairment in the financial condition or operating performance of the issuer, unless
meaningful developments occur that otherwise warrant a change in the valuation of an investment.
Such values usually represent the University’s proportionate share of the net assets of the Private
Equity Funds as reported by the general partners of the underlying partnerships. The values of the
investments in the underlying partnerships are increased by additional contributions to the
underlying partnerships and the University’s share of net earnings from the underlying partnerships
and decreased by distributions from the underlying partnerships and the University’s share of net
losses from the underlying partnerships.

14
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Hedge Funds are also valued in accordance with valuations provided by the general partners of the
underlying partnerships. Some Hedge Funds do not have readily ascertainable market values and
may be subject to withdrawal restrictions. The fair value of the Hedge Funds represents the amount
the University expects to receive at June 30, 2008 and 2007, if it had liquidated its investments in
the Hedge Funds on these dates.

The University invests in Hedge Funds and Private Equity Funds that are not registered under the
Investment Company Act of 1940, as amended, and invests in other financial instruments
employing various investment strategies and techniques, including leverage that may involve
significant market, credit, and operational risks. These Hedge Funds and Private Equity
investments may allocate a high percentage of their assets in specific sectors of the market in order
to achieve a potentially greater investment return. As a result, the Hedge Funds and Private Equity
investments may be susceptible to economic, political, and regulatory developments in a particular
sector of the market, positive or negative, and may experience increased volatility in net asset
values.

The University is obligated under certain limited partnership investment fund agreements to
advance additional funding periodically up to specified levels. At June 30, 2008, the University
had unfunded commitments of $1,622 million, which are likely to be called through 2012.

Cash Held for Reinvestment

Cash equivalents included in the portfolio consist primarily of liquid short-term instruments held by
the investment pool.

Off Balance Sheet Risks

The University employs derivatives primarily to hedge its risks within the endowment portfolio and
to rebalance its market exposures. Derivatives used may include futures, swaps, options, and
forward contracts and are reflected at fair value. As of June 30, 2008 and 2007, these futures and
swaps had a fair value of ($14.4) million and ($0.5) million, respectively, which has been reflected
in "Investments, at fair value" on the Consolidated Balance Sheet.

Securities Lending
At June 30, 2008 and 2007, investment securities having a fair value of $67.2 million and $56.3
million, respectively, were loaned to various brokerage firms through a securities lending agent.
The loaned securities are returnable on demand and are collateralized by cash and cash equivalents.
The University recorded the value of the collateral received of $70.9 million and $58.8 million and
an offsetting liability for the return of the collateral on the Consolidated Balance Sheet at June 30,
2008 and 2007, respectively.

15
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Investment Return
The following schedules summarize the investment return and its reported classification:

2008
Temporarily Permanently
Unrestricted Restricted Restricted
Net Assets Net Assets Net Assets Total
Interest and dividend income, net $ 84,337 $ 5,278 $ 89,615
Institutional real estate income, net 17,041 17,041
Short-term investment income 21,192 21,192
Realized and unrealized gains, net (7,591) 28,899 $ (1,545) 19,763
Total return on investments $ 114,979 $ 34,177 $ (1,545) $ 147,611

2007
Temporarily Permanently
Unrestricted Restricted Restricted
Net Assets Net Assets Net Assets Total
Interest and dividend income, net $ 61,323 $ 3,890 $ 65,213
Institutional real estate income, net 17,350 17,350
Short-term investment income 37,674 37,674
Realized and unrealized gains, net 1,173,324 130,202 $ 632 1,304,158
Total return on investments $ 1,289,671 $ 134,092 $ 632 $ 1,424,395

Investment income and gains utilized on the Statement of Activities contains interest, dividend
income, dividend distributions from Private Equity Funds, institutional real estate revenue net of
operating expenses and depreciation, other investment income, and endowment appreciation
utilized to fund the spending rule. Endowment appreciation utilized was $252.1 million and $214.9
million during 2008 and 2007, respectively. The nonoperating section of the Statement of
Activities contains realized and unrealized gains reduced by endowment appreciation utilized to
fund the spending rule.

Long-term investments net assets as of June 30 are summarized as follows:

2008
Temporarily Permanently
Unrestricted Restricted Restricted 2007
Net Assets Net Assets Net Assets Total Total

Endowmen t funds $ 1,477,979 $ 1,477,979 $ 1,356,379

Fund s functioning as endowment:
Departmental funds $ 3,323,459 $ 693,258 4,016,717 4,097,975
University funds 1,276,915 1,276,915 1,333,322
Institutional real estate 338,5 85 338,585 328,844
Split-interest agreements 2,0 48 16,348 18,214 36,610 33,283
CPMC Fund, Inc. 95,696 32,118 127,814 130,749
Pledge balances 127,020 127,020 117,806
Interests in perpetual trusts held by others 157,583 157,583 148,174
Total net assets of long-term investments $ 5,036,703 $ 709,606 $ 1,812,914 $ 7,559,223 $ 7,546,532

16
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Institutional Real Estate

The University owns institutional real estate consisting of various properties primarily proximate to
the University’s Morningside Heights and Washington Heights campuses. The properties are held
for long-term investment purposes but are used primarily to house faculty, staff, and graduate
students. The University’s accounting policy is to reflect the properties at depreciated historical
cost.

7. Endowment Funds

The University’s endowment consists of approximately 4,100 separate funds established over many
years for a wide variety of purposes. Endowment fund balances, including funds functioning as
endowment, are classified and reported as either permanently restricted, temporarily restricted, or
unrestricted net assets, in accordance with legal or donor-imposed stipulations. Net losses on
permanently restricted net assets are classified as a reduction to the appreciation recorded in
temporarily restricted net assets, to the extent applicable, and then as a reduction to unrestricted net
assets.

The University employs a market value unit method of accounting for pooled general investments.
Each participating fund enters and withdraws from the pooled investment account based on
monthly unit market values. Changes in the market value of investments are distributed
proportionately to each fund that participates in the investment pool. Net investment income
distributed during the year is allocated on a per unit basis to each participating fund.

Endowment Spending Rule

The endowment spending rule utilized by the University is designed to be directly responsive to
both investment returns and the current level of price inflation. Its long-term objectives are:

x To protect the corpus of the endowment by spending no more than the real investment return;
x To cushion spending against market volatility; and
x To provide specific spending instructions and multiyear spending projections based on explicit
future investment return assumptions.

The current endowment spending rule is based on two factors: first, the market value multiplied by
a 5 percent target spending rate, which provides a response to investment market conditions; and
second, the prior year’s spending plus inflation, which ties spending increases to operating needs
and cushions spending against market volatility.

Each fiscal year’s distribution is calculated by adding together the following:

a. The market value of the endowment at a point twelve months prior to the beginning of the
given fiscal year, multiplied by the 5 percent target spending rate, multiplied by a 40 percent
weighting; and

b. Endowment spending in the year immediately preceding the given fiscal year, grown or
reduced by an inflation factor, which is defined as the Higher Education Price Index (“HEPI”),
multiplied by a 60 percent weighting.

The Trustees will conduct a special review in any year in which either projected endowment
distributions are 0.5 percent higher or lower than the 5 percent target spending rate, or if the
increase in endowment distributions over the previous year is more than 3 percentage points higher
or lower than HEPI.
17
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

8. Accounts Receivable

Accounts receivable, net, consists of the following as of June 30:

2008 2007

Patient receivables, net of contractual allowances $ 237,718 $ 222,305

Government agencies 139,038 73,016
NewYork-Presbyterian Hospital 62,316 49,013
Patent and licensing 19,342 18,293
Student receivables 23,358 32,361
Other receivables, gross 71,798 51,677
553,570 446,665
Less: Allowance for doubtful accounts (173,338) (151,184)
Accounts receivable, net $ 380,232 $ 295,481

Patient receivables for medical services are net of an allowance for contractual reserves in the
amount of $133.5 million and $158.6 million at June 30, 2008 and 2007, respectively.

9. Student Loans Receivable and Financial Aid

The University participates in various federal loan programs, in addition to administering

institutional loan programs. Loans receivable from students as of June 30 are as follows:

2008 2007

Government revolving loans $ 74,150 $ 70,441

Institutional loans 19,136 15,622
Gross student loans 93,286 86,063
Less: Allowance for doubtful collections (3,730) (3,189)
Student loans receivable, net $ 89,556 $ 82,874

In addition to the loans identified above, the University processes and authorizes loans to students
through the Stafford Loan program and Federal Plus Loan program. These loans are not recorded
in the University’s consolidated financial statement since the University does not guarantee any
federal loan funds related to these programs. The amount of loans issued under these programs was
$220.9 million and $192.2 million for the years ended June 30, 2008 and 2007, respectively.

Government revolving loans are funded principally with federal advances to the University under
the Perkins Loan Program and certain other programs. Advances under the Perkins Loan Program
totaled $62.5 million and $61.5 million as of June 30, 2008 and 2007, respectively. These advances
are classified as liabilities on the Balance Sheet. Interest earned on the revolving and institutional
loan programs is reinvested to support additional loans. The repayment and interest rate terms of
the institutional loans vary considerably.

18
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Loans receivable under federally guaranteed student loan programs are subject to significant
restrictions. Accordingly, it is not practicable to determine the fair value of such amounts.

Undergraduate financial aid represents packages for all or part of a student’s tuition, fees, room,
and board. Graduate financial aid represents packages for all or part of a student’s tuition and fees.
Funding from external sources is obtained through government and private grants and contracts as
well as private gifts and endowment return.

2008 2007
University External Total University External Total
Sources Sources Financial Aid Sources Sources Financial Aid
Undergraduate $ 46,006 $ 30,297 $ 76,303 $ 45,862 $ 21,554 $ 67,416
Graduate 86,144 45,032 131,176 79,891 38,949 118,840
Total financial aid grants $ 132,150 $ 75,329 $ 207,479 $ 125,753 $ 60,503 $ 186,256

Agency activities such as tuition aid grants, federal supplemental educational opportunity grants,
federal Pell, SMART, and ACG grant program are not included in the University’s consolidated
financial statements. Receipts from agency transactions were $9.7 million and $9.3 million, and
disbursements were $9.7 million and $9.3 million in fiscal year 2008 and 2007, respectively.

10. Pledges Receivable

Unconditional promises to give appear as pledges receivable and revenue of the appropriate net
asset category. Pledges are recorded after recognizing an allowance for uncollectible contributions
and a discount to reflect the net present value based on projected cash flows.

The June 30 balances of unconditional promises to give are:

2008 2007

Less than one year $ 98,429 $ 90,127

One to five years 183,738 176,726
More than five years 28,921 21,983
Total unconditional promises 311,088 288,836
Less: Allowance for doubtful contributions (15,554) (14,442)
Less: Net present-value discount (36,596) (35,610)
Net pledges receivable $ 258,938 $ 238,784

New pledges recorded in 2008 and 2007 were discounted at average annual rates of 4.0 percent and
5.1 percent, respectively.

19
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Pledges receivable are intended for the following purposes:

2008 2007

Endowment for educational and general purposes $ 127,020 $ 117,806

New construction and modernization of plant 44,587 35,370
Support of University operations 87,331 85,608
Net pledges receivable $ 258,938 $ 238,784

The University also has other outstanding pledges of $678.9 million as of June 30, 2008. These
pledges represent either conditional gifts for which the probability of meeting the conditions is
uncertain, verbal pledges, or other pledges that have not met the requirements for recognition.

11. Land, Buildings, and Equipment

Investments in land, buildings, and equipment, net, consisted of the following at June 30:

2008 2007
Total Accumulated Net Total Accumulated Net
Assets Depreciation Assets Assets Depreciation Assets

Land $ 228,577 $ 228,577 $ 16 0,43 6 $ 160,436

Building and building
improvements 3 ,003 ,394 $ 1,250,597 1,752,797 2,741,754 $ 1,139,692 1,602,062
Equipment 275 ,246 148,481 126,765 294,540 141,714 152,826
$ 3,507,217 $ 1,399,078 $ 2,108,139 $ 3,19 6,73 0 $ 1,281,406 $ 1,915,324

The University uses componentized depreciation to calculate depreciation expense for buildings
and building improvements for research facilities included in operations. The costs of research
facilities are separated into the building shell, building service systems, and fixed equipment, and
each component is separately depreciated.

Equipment includes physical assets owned by the University as well as capitalized software costs
and moveable equipment acquired through capitalized leases.

Building and building improvements include physical assets owned by the University as well as
leasehold improvements, capitalized space leases, and construction in progress. Capital space
leases at June 30, 2008 and 2007, were $67 million and $69 million, respectively.

12. Accrued Employee Benefit Liabilities

Accrued employee benefit liabilities arise from employment at the University. These include
liabilities for pension, postretirement benefits, postemployment benefits, unused vacation, and
deferred compensation.

Postemployment benefits relating to workers’ compensation, short-term disability, and continuation

of medical benefits for those on long-term disability are provided to former or inactive employees
after employment but before retirement. The University records the costs of such benefits on an
accrual basis if the employee has provided the services from which those benefits are derived. In

20
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

2008 and 2007, the University recognized actuarially computed liabilities of $30.7 million and
$30.6 million, respectively.

13. Pension and Other Postretirement Benefit Costs

Pension Plan Benefits

Retirement benefits are provided for full-time faculty and officers under a noncontributory defined
contribution plan. Contributions are determined as a percentage of each covered employee’s salary,
factoring in the age and accrued service of each employee. Charges to expenditures under this plan
amounted to $82.8 million and $71.6 million for the years ended June 30, 2008 and 2007,
respectively.

The University has four noncontributory pension plans (the “pension plans”) for supporting staff
employees. Two of these plans are defined benefit plans for both past and future service. The other
two plans provide defined benefits for service prior to January 1, 1976, in one case, and prior to
July 1, 1976, in the other. For the two latter plans, future benefits are provided by a defined
contribution plan. All four of these plans are subject to collective bargaining agreements. Charges
to expenditures under the Plans amounted to $4.3 million and $6 million for the years ended June
30, 2008 and 2007, respectively. The University also maintains a retirement plan for employees of
the Arden Conference Center, which closed in 2005.

Postretirement Health Care and Life Insurance Benefits

The University provides postretirement health care and life insurance benefits for certain
employees. The University accrues the estimated cost of these benefits over the years employees
who are eligible render service.

Obligations and Funded Status

In 2007, the University adopted FAS 158, Employers’ Accounting for Defined Benefit Pension and
Other Postretirement Plans, which requires the recognition on the Balance Sheet of the difference
between benefit obligations and any plan assets of the University’s defined benefit and
postretirement benefit plans. In addition, FAS 158 requires unrecognized amounts (e.g., net
actuarial gains or losses and prior service cost or credits) to be recognized as changes to
unrestricted net assets and that those amounts be adjusted as they are subsequently recognized as
components of net periodic pension cost.

In 2007, the incremental effect of applying the provisions of FAS 158 on individual line items in
the Balance Sheet was:

Before Incremental After

Application Effect of Application
of FAS 158 of FAS 158 of FAS 158
Assets
Other assets $ 68,115 $ (5,595) $ 62,520

Liabilities and Net assets

Accrued employee benefit liabilities $ 107,175 $ 43,085 $ 150,260
Unrestricted net assets $ 6,744,295 $ (48,680) $ 6,695,615

21
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Amounts recognized in unrestricted net assets are as follows:

Other Postretirement
Pension Plan Benefits Benefits
2008 2007 2008 2007
Net actuarial loss $ 19,078 $ 12,940 $ 37,170 $ 21,420
Prior service cost 1,134 200 1,118 1,778
Transition obligation 10,285 12,342
Total amount recognized $ 20,212 $ 13,140 $ 48,573 $ 35,540

The components of accrued benefit costs for pension benefits and other postretirement benefits are
as follows:

Other Postretirement
Pension Plan Benefits Benefits
2008 2007 2008 2007
Change in benefit obligation:
Benefit obligation, beginning of year $ 88,819 $ 85,275 $ 166,701 $ 148,428
Service cost 2,880 2,803 5,832 5,451
Interest cost 5,787 5,282 10,804 9,730
Actuarial (gain) loss (2,917) (2,936) (2,262) 11,073
Plan amendments 962
Net disbursements and transfers (4,689) (4,240) (11,849) (7,981)
Projected benefit obligation, end of year $ 90,842 $ 86,184 $ 169,226 $ 166,701
Change in plan assets:
Fair value of assets, beginning of year $ 85,095 $ 75,542 $ 121,449 $ 105,276
Actual return on plan assets (3,433) 11,056 (7,885) 19,391
Employer contributions 6,000 11,128 5,450
Net disbursements and transfers (4,689) (4,240) (12,532) (8,668)
Fair value of assets, end of year $ 82,973 $ 82,358 $ 112,160 $ 121,449

Net amount recognized $ (7,869) $ (3,826) $ (57,066) $ (45,252)

2008 2007
Weighted-average assumptions used to determine
end of year benefit obligation
Discount rate 6% to 6.8% 6.15% to 6.4%
Rate of compensation increase 5% to 5.5% 5% to 5.5%

The accumulated benefit obligations for the pension plans at June 30, 2008 and 2007, were $78.6
million and $72.7 million, respectively.

22
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

At the end of 2008 and 2007, the projected benefit obligation exceeded pension plan assets for two
of the five plans. At the end of 2008 and 2007, the accumulated benefit obligation exceeded
pension plan assets for two of the five plans. The projected benefit obligation and the accumulated
benefit obligation for the two plans with a benefit obligation in excess of plan assets were as
follows:

2008 2007
End of year
Projected benefit obligation $ 76,662 $ 73,896
Fair value of plan assets 63,635 63,542

At the end of 2008 and 2007, the accumulated postretirement benefit obligation for the other
postretirement benefit plan and the fair value of plan assets with an accumulated postretirement
benefit obligation in excess of plan assets was as follows:

2008 2007
End of year
Accumulated postretirement benefit obligation $ 169,226 $ 166,701
Fair value of plan assets 112,160 121,449

A 7.5 percent annual rate of increase in the per capita cost of covered health care benefits for the
other postretirement benefit plan was assumed for 2009. The rate was assumed to decrease
gradually to 5 percent for 2013 and remain at that level thereafter. Assumed health care cost trend
rates have a significant effect on the amounts reported for the health care plans. A one-percentage-
point change in assumed health care cost trend rates would have the following effect:

1-%-point 1-%-point
increase decrease
Effect on accumulated postretirement benefit obligation $ 15,775 $ 13,133

One hundred percent of the pension plans’ assets were allocated to the Balanced Growth and Index
Fund at June 30, 2008 and 2007. This is also the target allocation for 2008. This fund has
guidelines that set targets of 50 percent U.S. equities, 10 percent international equities, and 40
percent debt securities. The expected long-term rate of return on the Plans’ assets was 8 percent in
both 2008 and 2007.

The expected rate of return on pension plan assets was developed by evaluating input from
investment experts and actuaries as well as long-term inflation assumptions and the pension plans’
historical compounded return of approximately 7.8 percent. The pension plans’ expected long-term
rate of return on plan assets is based on target asset allocation assumptions of 50 percent in U.S.
equities, with an expected long-term rate of return of 8 percent; 10 percent in non-U.S. equities,
with an expected long-term rate of return of 8.2 percent; and 40 percent in fixed income securities,
with an expected long-term rate of return of 5 percent. The combination of these target allocations
and expected returns result in the overall assumed long-term rate of return of 8 percent for 2008 and
2007. The actual asset allocation at June 30, 2008 and 2007, was close to these target asset
allocations. The University’s management regularly reviews the actual asset allocations. The
University believes that 8 percent is a reasonable long-term rate of return on plan assets for 2008
and 2007 and will continue to evaluate the actuarial assumptions, including the expected rate of
return, at least annually, and will adjust the appropriate assumptions as necessary.
23
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

The retirement plan for the employees of Arden Conference Center was invested in equity
securities, including mutual funds, 76 percent, and debt securities, 24 percent.

The asset allocation for the other postretirement benefit plan at June 30, 2008 and 2007, and the
target allocation for 2009, by asset category, follows:

Target Percentage of plan

allocation assets at years end
2009 2008 2007
Asset category
U.S. large cap equity 45% 45.1% 45%
U.S. fixed income 20% 20% 20%
U.S. small cap equity 14% 13.9% 14%
Emerging markets equity 8% 8% 8%
International equity 8% 8% 8%
Real estate 5% 5% 5%
100% 100% 100%

The expected rate of return on other postretirement benefit plan assets was developed by evaluating
input from investment experts and actuaries as well as long-term inflation assumptions and the
historical compounded return of approximately 9.5 percent. The other postretirement benefit plan’s
expected long-term rate of return on plan assets is based on target asset allocation assumptions of
45 percent in U.S. large cap equities, with an expected long-term rate of return of 8 percent; 14
percent in U.S. small cap equities, with an expected long-term rate of return of 8.5 percent; 8
percent in non-U.S. equities, with an expected long-term rate of return of 8.2 percent; 8 percent in
emerging market equities, with an expected long-term rate of return of 9.5 percent; 20 percent in
fixed income securities, with an expected long-term rate of return of 5 percent; and 5 percent in real
estate, with expected long-term rate of return of 6.7 percent. The combination of these target
allocations and expected returns result in the overall assumed long-term rate of return of 8 percent
for 2008 and 2007. The actual asset allocation at June 30, 2008 and 2007, was close to these target
asset allocations. The University’s management regularly reviews the actual asset allocations. The
University believes that 8 percent is a reasonable long-term rate of return on plan assets for 2008
and 2007 and will continue to evaluate the actuarial assumptions, including the expected rate of
return, at least annually, and will adjust the appropriate assumptions as necessary.

24
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Net Periodic Pension Cost

The components of net periodic benefit cost for pension benefits and other postretirement benefits
are as follows:

Other Postretirement
Pension Plan Benefits Benefits
2008 2007 2008 2007
Components of net periodic benefit cost
Service cost $ 2,886 $ 2,803 $ 5,832 $ 5,451
Interest cost on projected benefit obligation 5,787 5,282 10,804 9,730
Expected return on assets (6,410) (5,944) (9,792) (8,332)
Amortization of transition obligation - - 2,057 2,057
Amortization of prior service cost 28 28 661 747
Amortization of unrecognized net losses 821 908 1,028 747
Net periodic benefit cost $ 3,112 $ 3,077 $ 10,590 $ 10,400
Other changes in plan assets and benefit
obligations recognized in the Consolidated
Statement of Activities
Current year actuarial (gain)/loss 6,959 16,778
Amortization of actuarial gain/(loss) (821) (1,029)
Current year prior service (credit)/cost 962 (660)
Amortization of prior service credit/(cost) (28) (2,057)
Total recognized in nonoperating $ 7,072 $ - $ 13,032 $ -
Total recognized in net periodic benefit
cost and nonoperating $ 10,184 $ 3,077 $ 23,622 $ 10,400

Other
Pension Plan Postretirement
Benefits Benefits
Amounts in net unrestricted assets expected to be
recognized in net periodic pension cost in fiscal 2009
Actual (gain)/loss $ 440 $ 1,568
Prior service (credit)/cost 92 508
Transition (asset)/obligation 2,057
$ 532 $ 4,133

2008 2007
Weighted-average assumptions used to determine net
periodic pension cost
Discount rate 6% to 6.4% 6.25%
Expected return on plan assets 8% 8%
Rate of compensation increase 5% to 5.5% 5.5%

25
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Assumed health care cost trend rates have a significant effect on the amounts reported for the other
postretirement benefit plan. A one-percentage-point change in the assumed health care cost trend
rates would have had the following effect:

1-%-point 1-%-point
increase decrease
Effect on total service and interest cost $ 1,900 $ 1,538

Expected Cash Flows

Information about the expected cash flows for the Plans is as follows:

Other Postretirement
Pension Benefits Pension Benefits
University contributions:
2009 (expected) $ 5,600 $ 15,700

Expected benefit payments:

2009 $ 5,045 $ 10,060
2010 5,238 10,803
2011 5,394 11,438
2012 5,532 12,140
2013 5,695 12,696
2014-2018 31,626 72,067
Total $ 58,530 $ 129,204

Expected contributions to the other postretirement benefit plan include benefits of $15.7 million
from employer assets in 2009. Total benefits expected to be paid include both the University’s
share of the benefit cost and the participants’ share of the cost, which is funded by participant
contributions to the other postretirement benefit plan. The University receives a Medicare Part D
subsidy from the federal government as reimbursement for certain retiree health benefits paid to
plan participants.

14. Lease Obligations

The University is the lessee of various equipment and space under noncancelable operating and
capital leases. Capital lease obligations at June 30, 2008 and 2007, were $83.1 million and $84.4
million, respectively. Operating lease rental expense for the year ended June 30, 2008, was
approximately $23.8 million. Space leases contained customary escalation clauses, which are
included in annual aggregate minimum rentals.

26
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Future aggregate minimum rental payments under operating and capital leases are as follows:

Future minimum rental payments: Operating Capital

2009 $ 20,725 $ 8,393
2010 18,253 6,414
2011 16,469 5,288
2012 15,835 4,213
2013 11,650 3,851
Thereafter 97,455 167,071
Less: Interest at 3.95 percent to 5.118 percent (112,133)
Capital lease obligations at June 30, 2008 $ 83,097

15. Conditional Asset Retirement Obligations

Financial Accounting Standards Board Interpretation No. 47, Accounting for Conditional Asset
Retirement Obligations (an interpretation of FASB Statement No. 143), was issued in March 2005.
FIN 47 defines a conditional asset retirement obligation as a legal obligation to perform an asset
retirement activity in which the timing and/or method of settlement are conditional on a future
event that may or may not be within the control of the entity. Uncertainty with respect to the timing
and/or method of settlement of the asset retirement obligation does not defer recognition of a
liability. This interpretation requires that the fair value of a liability for a conditional asset
retirement obligation be recognized in the period in which it occurred if a reasonable estimate of
fair value can be made.

Conditional asset retirement obligations related to remediation or disposal of asbestos, underground

storage tanks, soil, and radioactive sources and equipment were $93.9 million and $57.5 million at
June 30, 2008 and 2007, respectively. For June 30, 2008, the University increased its obligation for
certain environmental remediation that was not reasonably estimatable as to the amount of the
potential obligation in prior years.

27
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

16. Bonds and Notes Payable

Bonds and notes payable outstanding at June 30, 2008 and 2007, are as follows:

D ormitory Authority of the State of New York, tax exempt 2008 2007
rev enue bon ds, Co lumbia U niversity issues
Series 2008 A , 4.00% to 5.00%, maturing 2038 $ 282,715
Series 2006 A , 4.75% to 5.25%, maturing 2031 225,000 $ 225 ,000
Series 2006 B, 3.25% to 5.25% , maturing 2022 156,890 156 ,890
Series 2004 A 1, 4.00%, maturing 2007 9 ,970
Series 2004 A 2, 5.00%, maturing 2014 46,500 46 ,500
Series 2004 B, 4.00% to 5.125% , maturing 202 4 91,315 94 ,305
Series 2004 C, 5.00% , maturing 2029 48,270 50 ,000
Series 2003 A , 3.20% to 5.125%, maturing 2024 76,350 79 ,355
Series 2003 B, variable rate, 1.00% to 3 .88% , maturing 2028 30,000 30 ,000
Series 2002 A , 3.75% to 5.25%, maturing 2014 32,850 33 ,030
Series 2002 B, 4.50% to 5.25% , maturing 2024 43,890 46 ,945
Series 2002 C, variable rate, 1.40% to 3 .73% , maturing 2027 23,300 23 ,300
Series 2000 A , 4.10% to 5.25%, maturing 2025 46,325 49 ,730
Series 1994 A , 5.75%, matu ring 2 010 31,925 31 ,925
Series 1992, 5.75%, maturing 2007 4 ,060
1,135,330 881 ,010
D ormitory Authority of the State of New York, tax-exempt
commercial paper
Series 1997, variable rate, 1.3 0% to 3.75%, final maturity 2015 34,850 39 ,670
N ew Jersey Economic Development Corp oration
Series 2002, variable rate, 0.8 5% to 3.62%, final maturity 2028 9,230 9 ,230
U nited States D epartment of Education Housing Program Issues:
1991, 5.50% , maturin g 2021 * 1,621 1 ,667
1990, 3.00% , maturin g 2020 * 1,859 2 ,074
Medium-Term Notes, Taxable Series C 6.53% to 7.36%,
maturing 20 21 152,890 165 ,420
E mp ire State Development Corporation Issues:
Interest-free, maturing 2029 8,538 8 ,686
Interest-free, maturing 2010 7,075 6 ,612
E conomic Develo pment Corporatio n
Interest-free, maturing 2010 8,734 8 ,163
T axable commercial paper, variable rate, 2.25% to 5.55%,
due 20 09 60,880 64 ,380
D ormitory Authority of the State of New York College and
University Education Loan Revenu e Bon ds
Series 1993, 5.55% to 5.65% , maturing 2013 4,638 5 ,619
Series 1992, 6.80%, maturing 2013 3,888 4 ,671
Promissory N ote, 8% , maturing 2010 3,000 3 ,000
Promissory N ote, 11% , maturing 2010 2,195 2 ,037
Investment Mortgage Pay able, 6 mo LIBOR + 5 bps, maturing 2016 - 39 ,661
299,398 360 ,890
Total bonds and notes pay able $ 1,434,728 $ 1,241 ,900
* Principal fully collateralized by investm ents.

28
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

Estimated Principal Payments on bonds and certificates are summarized below:

Year Principal
2009 $ 117,260
2010 73,313
2011 64,527
2012 60,498
2013 62,515
Thereafter (through 2031) 1,056,615
Total $ 1,434,728

At June 30, 2008, the University’s bonds and notes payable had a carrying amount of
approximately $1,434.7 million, compared to an estimated fair value of $1,468.1 million. The
estimated fair value of bonds and notes payable was calculated using a discounted cash flow
method, where the estimated cash flows were based on contractual principal and interest payments.
The discount rates used were based on the University’s borrowing rate for similar obligations. Fair
values represent the lower of the estimated value at call or maturity of each respective issue.

The University may offer from time to time up to $400 million aggregate principal amount of
Medium-Term Notes. As of June 30, 2008, $152.9 million was outstanding. The University also
has a $100 million taxable commercial paper program. As of June 30, 2008, $60.9 million was
outstanding. Subsequent to June 30, 2008, the taxable commercial paper program was increased to
$150 million.

The University issues most of its tax-exempt debt through the Dormitory Authority of the State of
New York (“DASNY”). On April 23, 2008, the University issued $282.7 million of Series 2008A
bonds. The proceeds from Series 2008A were used to finance various construction and renovation
projects. Series 2008A was issued at a premium of $10.9 million, which will be amortized over ten
years.

On July 2, 2007, the University reoffered $48.3 million of its DASNY Series 2004C bonds at an
average yield of 4.4 percent and retired $1.7 million of the original debt.

On June 14, 2007, the University entered into a $200 million notional value forward starting, fixed
payor swap agreement with an effective date of April 1, 2008, to protect against the risk of interest
rate changes. This agreement was extended until October 1, 2008. The estimated fair value of the
agreement was ($15.7) million and ($1.6) million at June 30, 2008 and 2007, respectively. The fair
value of the swap is obtained by taking the present value of all future cash flows on the swap
implied by the forward curve.

The University has certain financial and administrative covenants with which it was in compliance
as of June 30, 2008 and 2007.

29
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

17. Insurance

In connection with managing financial risks through various third-party insurance programs, the
University is self-insured in certain areas. Funded self-insurance liabilities primarily cover
deductibles on general liability and property insurance claims. Self-insurance liabilities are actuari-
ally calculated on an annual basis. The University has recorded self-insurance liabilities of
approximately $100.8 million and $93.6 million as of June 30, 2008 and 2007, respectively. The
University’s core liability coverage is purchased through Pinnacle RRG, a Vermont-based risk
retention group with fifteen other universities.

The University obtains medical malpractice insurance through MCIC and MLMIC. MCIC is a
group-captive insurance company owned by the University, Johns Hopkins, Yale, Rochester, and
Weill Cornell Medical School and their respective major teaching hospitals, including NYPH.
MLMIC is a mutual company where policyholders are owners, with full voting rights to elect the
company's Board of Directors, thereby having direct input into vital areas of operation. The
governing Board is comprised primarily of practicing physicians, dentists, and hospital
administrators. More than 900 of the University’s faculty physicians and dentists are enrolled in
MCIC.

18. Related Party Transactions

The University maintains several clinical and education affiliation agreements with other
organizations. Revenues and expenses from these agreements are accounted for in the operating
activities segment of the Statement of Activities. The most significant affiliation agreement is with
the NYPH.

The University has an alliance dating back to 1921 with Presbyterian Hospital, which merged with
New York Hospital effective January 1, 1998, and formed the new corporate entity called
NewYork-Presbyterian Hospital. The University provides NYPH with medical, professional, and
supervisory staff as well as other technical assistance. These services are reimbursed by NYPH.
NYPH provides funding to the clinical departments for several specific purposes, including
administration, supervision, and teaching of the NYPH resident staff and salary support for faculty
and staff providing services to NYPH. In addition, NYPH provides partial funding for clinical
programs that the University and NYPH would like to see developed or expanded. NYPH also
provides the departments with certain facilities and services (outpatient faculty practice offices,
nursing, telecommunications, etc.) for which the University is invoiced on a monthly basis.
Finally, the University and NYPH collaborate and fund joint projects for which specific agreements
are negotiated.

The University and NYPH negotiated a joint budget, which forms the basis for the reimbursement
agreement. The final fiscal year 2008 joint budget was approximately $143 million. The payments
to NYPH for goods and services were $70 million. The revenues received pursuant to this
reimbursement arrangement for services rendered are reflected in the consolidated financial
statements as a portion of “Patient care revenue.” The expenses related to this agreement are
reflected in “Patient care expense.”

The University records both receivables from and payables to NYPH on the Balance Sheet. The
University has no liability for obligations and debt incurred by NYPH.

30
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

The University has financial arrangements with several for-profit physician professional
corporations (“PCs”), whereby the University provides facilities and other services to these PCs for
a negotiated fee. These PCs provide clinical services to patients and are owned and controlled by
physicians who are also faculty members of the University. These noncontrolled PCs generated
revenue of approximately $55 million and $56 million during fiscal year 2008 and 2007,
respectively, which has not been consolidated into the University’s consolidated financial
statements. The University is also the sole corporate member of two not-for-profit physician
private practice entities and, as such, consolidates these entities into the University’s consolidated
financial statements.

19. Contingencies and Commitments

From time to time, various claims and suits generally incident to the conduct of normal business are
pending or may arise against the University.

In the opinion of counsel and management of the University, after taking into account insurance
coverage, losses, if any, from the resolution of pending litigation should not have a material effect
on the University’s financial position or results of operations.

All funds expended in connection with government grants and contracts are subject to audit by
government agencies. While the ultimate liability, if any, from audits of government grants and
contracts by government agencies, claims, and suits is presently not determinable, it should not, in
the opinion of counsel and management, have a material effect on the University’s financial
position or results of activities.

The University is subject to laws and regulations concerning environmental remediation and will,
from time to time, establish reserves for potential obligations that management considers probable
and for which reasonable estimates can be made. As of June 30, 2008, the University has recorded
$93.9 million for conditional asset retirement obligations. These estimates may change depending
upon the nature and extent of contamination, appropriate remediation technologies, and regulatory
approvals. The University is not aware of any existing conditions that it currently believes are
likely to have a material adverse effect on the University’s financial position, changes in net assets,
or cash flows.

The University has entered into contracts to purchase properties with an aggregate value of $140.5
million. As of June 30, 2008, approximately $132.8 million is still outstanding.

20. Expense Allocation by Program

Expenses are reported for the University’s primary program activities. The consolidated financial
statements also report certain categories of expenditures that support more than one major program
of the University. These expenses include operation and maintenance of plant, depreciation
expense, and interest expense.

31
The Trustees of Columbia University in the City of New York
Notes to the Consolidated Financial Statements
June 30, 2008 and 2007
(All amounts are in thousands of dollars, unless otherwise noted)

These costs are allocated to the applicable program activities as indicated in the following chart:

2008 2007
Expenses per Final Expenses per Final
Statement of Allocated Statement of Allocated
Activities Allocation Expenses Activities Allocation Expenses

Instruction and educational

administration $ 1,110,579 $ 192,445 $ 1,303,024 $ 986,688 $ 182,559 $ 1,169,247
Research 393,035 74,081 467,116 388,245 70,485 458,730
Patient care expense 642,342 4,763 647,105 606,356 5,092 611,448
Library 62,073 51,411 113,484 60,653 47,465 108,118
Operation and maintenance of plant 157,636 (157,636) 147,285 (147,285)
Institutional support 185,226 26,852 212,078 157,971 25,378 183,349
Auxiliary enterprise 97,461 12,148 109,609 94,251 12,013 106,264
Depreciation expense 153,991 (153,991) 146,310 (146,310)
Interest expense 50,313 (50,313) 49,633 (49,633)
Other 42,153 240 42,393 50,963 236 51,199
$ 2,894,809 $ 2,894,809 $ 2,688,355 $ 2,688,355

The allocation of operation and maintenance of plant is based on square footage occupancy.
Depreciation expense includes depreciation of buildings and building improvements and
equipment. The allocation of depreciation on buildings and building improvements is based on
square footage occupancy. Depreciation on equipment is allocated to the programs for which the
equipment was purchased. Interest expense is allocated according to the same methodologies used
for building depreciation.

32
 Appendix C

SUMMARY OF CERTAIN PROVISIONS

OF THE LOAN AGREEMENT
[THIS PAGE INTENTIONALLY LEFT BLANK]
 Appendix C

SUMMARY OF CERTAIN PROVISIONS OF THE LOAN AGREEMENT

The following is a brief summary of certain provisions of the Loan Agreement pertaining to the Bonds
and the Project. Such summary does not purport to be complete and reference is made to the Loan
Agreement for full and complete statements of such and all provisions. Defined terms used herein shall
have the meanings ascribed to them in Appendix A.
Termination
The Loan Agreement shall remain in full force and effect until no Bonds are Outstanding and until all
other payments, expenses and fees payable under the Loan Agreement by the University shall have been
made or provision made for the payment thereof; provided, however, that certain liabilities and obligations
of the University under the Loan Agreement shall nevertheless survive any such termination. Upon such
termination, an Authorized Officer of the Authority shall deliver such documents as may be reasonably
requested by the University to evidence such termination and the discharge of its duties under the Loan
Agreement, and the release or surrender of any security interests granted by the University to the Authority
pursuant to the Loan Agreement.
(Section 43)
Construction of Projects
The University agrees that, whether or not there are sufficient moneys available to it under the
provisions of the Resolution and under the Loan Agreement, the University shall complete the acquisition,
design, construction, reconstruction, rehabilitation and improving or otherwise providing and furnishing
and equipping of each Project, substantially in accordance with the Contract Documents relating thereto.
Subject to the conditions of the Loan Agreement, the Authority will, to the extent of moneys available in
the applicable Construction Fund, cause the University to be reimbursed for, or pay, any costs and expenses
incurred by the University which constitute Costs of the Project, provided such costs and expenses are
approved by an Authorized Officer of the Authority.
(Section 5)
Amendment of a Project; Cost Increases; Additional Bonds
A Project may be amended by the University with the prior written consent of an Authorized Officer of
the Authority to decrease, increase or otherwise modify the scope thereof. Any such increase may provide
for the addition of any further acquisition, design, construction, reconstruction, rehabilitation, improving, or
otherwise providing furnishing and equipping of a Project which the Authority is authorized to undertake.
The University shall provide such moneys or an irrevocable letter of credit or other security in a form
acceptable to the Authority as is required for the cost of completing a Project or portion thereof in excess of
the moneys in the Construction Fund established for such Project.
Upon receipt of the consent of the holders of a majority in principal amount of Outstanding
Bonds, the Amended and Restated Loan Agreement will become effective and Section 6 of the Loan
Agreement will be amended to read as follows:
A Project may be amended by the University with the prior written consent of an Authorized Officer of
the Authority to decrease, increase or otherwise modify the scope thereof. Any such increase may provide
for the addition of any further acquisition, design, construction, reconstruction, rehabilitation, improving, or
otherwise providing furnishing and equipping of a Project which the Authority is authorized to undertake
(Section 6)

Financial Obligations of the University; General and Unconditional Obligation; Voluntary Payments
Except to the extent that moneys are available therefor under the Resolution or the Loan Agreement,
including moneys in the Debt Service Fund, and excluding interest accrued but unpaid on investments held
in the Debt Service Fund, the University pursuant to the Loan Agreement unconditionally agrees to pay, so

C-1
Appendix C

long as Bonds are Outstanding, to or upon the order of the Authority, from its general funds or any other
moneys legally available to it:
(a) On or before the date of delivery of the Series 2000 A Bonds, $50,000 to be applied against
payment of the Authority Fee in connection with the issuance of such Bonds which fee is estimated to be
such amount;
(b) On or before the date of delivery of Bonds of a Series, such amount, if any, as is specified in the
Series Resolution authorizing the issuance of such Bonds or in the Bond Series Certificate relating to such
Bonds, to pay the Costs of Issuance of such Bonds, and other costs in connection with the issuance of such
Bonds;
(c) Three days (or the preceding Business Day if such day is not a Business Day) prior to an interest
payment date on Outstanding Variable Interest Rate Bonds, the interest coming due on such Variable
Interest Rate Bonds on such interest payment date, assuming that such Bonds will, from and after the next
succeeding date on which the rates at which such Bonds bear interest are to be determined, bear interest at a
rate per annum equal to the rate per annum for such Bonds on the immediately preceding Business Day,
plus one percent (1%) per annum;
(d) On the 10th day of the month immediately preceding the date on which interest becomes due on
Outstanding Bonds, other than Variable Interest Rate Bonds, the interest becoming due on such interest
payment date for such Bonds;
(e) On the 10th day of the month immediately preceding the date on which the principal or Sinking
Fund Installments of any Outstanding Bonds becomes due, the principal and Sinking Fund Installments on
the Bonds coming due on such date;
(f) At least forty-five (45) days with respect to Bonds other than Option Bonds and Variable Interest
Rate Bonds and fifteen (15) days with respect to Option Bonds and Variable Interest Rate Bonds prior to
any date on which the Redemption Price of Bonds previously called for redemption or contracted to be
purchased is to be paid, the amount required to pay the Redemption Price or purchase of such Bonds;
(g) On December 10 of each Bond Year, one-half (1/2) of the Annual Administrative Fee payable
during such Bond Year in connection with each Series of Bonds, and on June 10 of each Bond Year the
balance of the Annual Administrative Fee payable during such Bond Year; and, provided, however, that the
Annual Administrative Fee with respect to any Series of Bonds payable during the Bond Year during which
such Annual Administrative Fee became effective shall be equal to the Annual Administrative Fee with
respect to such Series of Bonds multiplied by a fraction the numerator of which is the number of calendar
months or parts thereof remaining in such Bond Year and the denominator of which is twelve (12);
(h) Promptly after notice from the Authority, but in any event not later than fifteen (15) days after
such notice is given, the amount set forth in such notice as payable to the Authority (i) for the Authority
Fee then unpaid, (ii) to reimburse the Authority for payments made pursuant to the Loan Agreement and
any expenses or liabilities incurred by the Authority pursuant to the Loan Agreement, (iii) to reimburse the
Authority for the costs and expenses incurred to compel full and punctual performance of all the provisions
of the Loan Agreement and the Resolution in accordance with the terms thereof, (iv) for the fees and
expenses of the Trustee and any Paying Agent in connection with performance of their duties under the
Resolution, and (v) for any external costs or expenses attributable to the issuance of a Series of Bonds or
the financing or construction of a Project, including but not limited to any fees or other amounts payable
under a Remarketing Agreement, a Credit Facility or a Liquidity Facility;
(i) Promptly upon demand by an Authorized Officer of the Authority (a copy of which shall be
furnished to the Trustee), all amounts required to be paid by the University as a result of an acceleration
pursuant to the Loan Agreement;
(j) Promptly upon demand by an Authorized Officer of the Authority, the difference between the
amount on deposit in the Arbitrage Rebate Fund available to be rebated in connection with the Bonds of a
Series or otherwise available therefor under the Resolution and the amount required to be rebated to the

C-2
 Appendix C

Department of the Treasury of the United States of America in accordance with the Code in connection
with the Bonds of such Series;
(k) the amount, in immediately available funds, required to pay the purchase price of any Option
Bonds tendered for purchase for which it has received notice from the Remarketing Agent or the Tender
Agent for such Option Bonds of the principal amount of such Option Bonds for which a remarketing has
not been confirmed or which were remarketed at a price that is less than the principal amount thereof,
which amount shall be paid, in immediately available funds: (x) if such notice is given to the University by
11:15 A.M., New York City time, by 1:45 P.M., New York City time; (y) if such notice is given to the
University after 11:15 A.M., New York City time but not later than 1:15 P.M., New York City time, by
2:30 P.M., New York City time; and (z) if such notice is given to the University after 1:15 P.M., New York
City time, by 10:00 A.M., New York City time, on the next succeeding Business Day; and
(l) Promptly upon demand by an Authorized Officer of the Authority, all amounts required to be paid
by the Authority to a Counterparty in accordance with an Interest Rate Exchange Agreement or to
reimburse the Authority for any amounts paid to a Counterparty in accordance with an Interest Rate
Exchange Agreement.
Subject to the provisions of the Resolution and the Loan Agreement, the University shall receive a
credit against the amount required to be paid by the University during a Bond Year pursuant to paragraph
(e) above on account of any Sinking Fund Installments if, prior to the date notice of redemption is given
pursuant to the Resolution with respect to Bonds to be redeemed through Sinking Fund Installments during
the next succeeding Bond Year, either (i) the University delivers to the Trustee for cancellation one or more
Bonds of the Series and maturity to be so redeemed, or (ii) the Trustee, at the direction of the Authority, has
purchased one or more Bonds of the maturity to be so redeemed from amounts on deposit in the Debt
Service Fund in accordance with the Resolution. The amount of the credit shall be equal to the principal
amount of the Bonds so delivered.
The Authority directs the University, and the University agrees, to make the payments required by
paragraphs (c), (d), (e), (f) and (j) above directly to the Trustee for deposit in the Debt Service Fund and
application in accordance with the Resolution, the payments required by paragraph (b) above directly to the
Trustee for deposit in a Construction Fund or other fund established under the Resolution as directed by an
Authorized Officer of the Authority, the payments required by paragraph (l) above directly to the Trustee
for deposit in the Arbitrage Rebate Fund, the payments required by paragraph (k) above directly to the
Trustee for payment of the purchase price of Option Bonds tendered by the Holders thereof for purchase,
the payment required by paragraph (l) above with respect to a Counterparty as directed by an Authorized
Officer of the Authority, the payments required by paragraphs (a), (g), (h) and (i) above directly to or upon
the order of the Authority.
Notwithstanding any provision in the Loan Agreement or in the Resolution or the Series Resolution to
the contrary (except as otherwise specifically provided for in the provisions described under this caption),
(i) all moneys paid by the University to the Trustee pursuant to paragraphs (c), (d), (e), (f), (i) and (j) above
shall be received by the Trustee as agent for the Authority in satisfaction of the University’s indebtedness
to the Authority with respect to the interest on and principal or Redemption Price of the Bonds to the extent
of such payment and (ii) the transfer by the Trustee of any moneys (other than moneys described in (i)
above) held by it in the Construction Fund to the Debt Service Fund in accordance with the applicable
provisions of the Loan Agreement or of the Resolution shall be deemed, upon such transfer, receipt by the
Authority from the University of a payment in satisfaction of the University’s indebtedness to the Authority
with respect to the Redemption Price of the Bonds to the extent of the amount of moneys transferred.
Except as otherwise provided in the Resolution, the Trustee shall hold such moneys in trust in accordance
with the applicable provisions of the Resolution for the sole and exclusive benefit of the Holders of Bonds,
regardless of the actual due date or applicable payment date of any payment to the Holders of Bonds.
The obligations of the University to make payments or cause the same to be made under the Loan
Agreement shall be complete and unconditional and the amount, manner and time of making such
payments shall not be decreased, abated, postponed or delayed for any cause or by reason of the happening

C-3
Appendix C

or non-happening of any event, irrespective of any defense or any right of set-off, recoupment or
counterclaim which the University may otherwise have against the Authority, the Trustee or any
Bondholder for any cause whatsoever including, without limiting the generality of the foregoing, failure of
the University to complete a Project or the completion thereof with defects, failure of the University to
occupy or use a Project, any declaration or finding that the Bonds or any Series of Bonds are, or the
Resolution is, invalid or unenforceable or any other failure or default by the Authority or the Trustee;
provided, however, that nothing in the Loan Agreement shall be construed to release the Authority from the
performance of any agreements on its part contained in the Loan Agreement or any of its other duties or
obligations, and in the event the Authority shall fail to perform any such agreement, duty or obligation, the
University may institute such action as it may deem necessary to compel performance or recover damages
for non-performance. Notwithstanding the foregoing, the Authority shall have no obligation to perform its
obligations under the Loan Agreement to cause advances to be made to reimburse the University for, or to
pay, the Costs of the Projects relating to a Project, beyond the extent of moneys available in the
Construction Fund established for such Project.
The Loan Agreement and the obligations of the University to make payments under the Loan
Agreement are general obligations of the University.
An Authorized Officer of the Authority, for the convenience of the University, shall furnish to the
University statements of the due date, purpose and amount of payments to be made pursuant to the Loan
Agreement. The failure to furnish such statements shall not excuse non-payment of the amounts payable
under the Loan Agreement at the time and in the manner provided in the Loan Agreement. The University
shall notify the Authority as to the amount and date of each payment made to the Trustee by the University.
The Authority shall have the right in its sole discretion to make on behalf of the University any
payment required pursuant to the Loan Agreement which has not been made by the University when due.
No such payment by the Authority shall limit, impair or otherwise affect the rights of the Authority under
the Loan Agreement arising out of the University’s failure to make such payment and no payment by the
Authority shall be construed to be a waiver of any such right or of the obligation of the University to make
such payment.
The University, if it is not then in default under the Loan Agreement, shall have the right to make
voluntary payments in any amount to the Trustee. In the event of a voluntary payment, the amount so paid
shall be deposited in accordance with the directions of an Authorized Officer of the Authority in the Debt
Service Fund or held by the Trustee for the payment of Bonds in accordance with the Resolution. In
making a voluntary payment to be held by the Trustee in accordance with the Resolution, the University
may effect such payment by the delivery of Defeasance Securities. Upon any voluntary payment by the
University or upon any deposit in the Debt Service Fund made pursuant to the Loan Agreement, the
Authority agrees to direct the Trustee to purchase or redeem Bonds in accordance with the Resolution or to
give the Trustee irrevocable instructions in accordance with the Resolution with respect to such Series of
Bonds; provided, however, that in the event such voluntary payment is in the sole judgment of the
Authority sufficient to pay all amounts then due under the Loan Agreement and under the Resolution,
including the purchase or redemption of all Bonds Outstanding, or to pay or provide for the payment of all
Bonds Outstanding in accordance with the Resolution, the Authority agrees, in accordance with the
instructions of the University, to direct the Trustee to purchase or redeem all Bonds Outstanding, or to
cause all Bonds outstanding to be paid or to be deemed paid in accordance with the Resolution.
Upon receipt of the consent of the holders of a majority in principal amount of Outstanding
Bonds, the Amended and Restated Loan Agreement will become effective and clauses (d), (e) and (f)
of Section 9 of the Loan Agreement will be amended to read as follows:
(d) On the fifth Business Day immediately preceding the date on which interest becomes due on
Outstanding Bonds, other than Variable Interest Rate Bonds, the interest becoming due on such interest
payment date for such Bonds;

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 Appendix C

(e) On the fifth Business Day immediately preceding the date on which the principal or Sinking Fund
Installments of any Outstanding Bonds becomes due, the principal and Sinking Fund Installments on the
Bonds coming due on such date;
(f) At least five Business Days prior to any date on which the Redemption Price of Bonds previously
called for redemption or contracted to be purchased is to be paid, the amount required to pay the
Redemption Price or purchase of such Bonds;
(Section 9)
Consent to Pledge and Assignment
The University consents to and authorizes the assignment, transfer or pledge by the Authority to the
Trustee of the Authority’s rights to receive certain of the payments required to be made pursuant to the
Loan Agreement, any or all security interests granted by the University under the Loan Agreement. All
funds and accounts established by the Resolution and pledged thereby to secure any payment or the
performance of any obligation of the University under the Loan Agreement or arising out of the
transactions contemplated by the Loan Agreement shall be specifically assigned by the Authority to the
Trustee. The University further agrees that the Authority may pledge and assign to the Trustee any and all
of the Authority’s rights and remedies under the Loan Agreement. Upon any pledge and assignment by the
Authority to the Trustee authorized by the Loan Agreement, the Trustee shall be fully vested with all of the
rights of the Authority so assigned and pledged and may thereafter exercise or enforce, by any remedy
provided therefor by the Loan Agreement or by law, any of such rights directly in its own name. Any such
pledge and assignment shall be limited to securing the University’s obligation to make all payments
required by the Loan Agreement and to performing all other obligations required to be performed by the
University under the Loan Agreement. Any realization upon any pledge made or security interest granted
by the Loan Agreement shall not, by operation of law or otherwise, result in cancellation or termination of
the Loan Agreement or the obligations of the University under the Loan Agreement.
(Section 10)
Limitation on Liens
Except as otherwise provided in the Loan Agreement, so long as Bonds shall be Outstanding, the
University covenants and agrees that it will not issue, assume or guarantee any Debt secured by Liens upon
any Restricted Property or create, incur or assume any Liens upon any Restricted Property to secure Debt,
without effectively providing that the University’s indebtedness under the Loan Agreement (together with,
if the University so determines, any other indebtedness or obligation thereafter created that is not
subordinate in right of payment to the University’s indebtedness under the Loan Agreement) shall be
secured equally and ratably with or prior to all other obligations secured thereby as long as such Debt shall
be so secured, except that the foregoing provisions shall not apply to:
(a) Liens to secure all or any part of the purchase price or the cost of construction of Restricted
Property acquired or constructed by the University, provided (i) the Debt secured by any such Lien is non-
recourse to the University, (ii) the amount of such Debt does not exceed ninety-five percent (95%) of the
purchase price or the cost of construction, (iii) such Debt and related Lien are incurred at the time of or
within one hundred and eighty (180) days after the acquisition or completion of construction, and (iv) such
Lien relates only to the Restricted Property so acquired or constructed;
(b) Liens on Restricted Property existing at the time of acquisition of such Restricted Property by the
University, provided (i) the Debt secured by any such Lien is non-recourse to the University, and (ii) the
amount of such Debt does not exceed ninety-five percent (95%) of the fair market value (in the opinion of
an Authorized Officer of the University) of such Restricted Property;
(c) Liens to secure Debt incurred to the Authority or to secure Bonds, bonds, notes or other
obligations issued by the Authority;

C-5
Appendix C

(d) With the consent of the Authority, Liens upon Restricted Property, to secure obligations incurred
by the University to a Facility Provider or a Counterparty in connection with a Credit Facility, Liquidity
Facility or Interest Rate Exchange Agreement; and
(e) Any extension, renewal or replacement (or successive extensions, renewals or replacements), in
whole or in part, of any Lien referred to in the foregoing clauses (a) through (d) inclusive or of any Debt
secured thereby; provided, that (i) the principal amount of Debt secured thereby shall not exceed the greater
of the principal amount of Debt so secured at the time of such extension, renewal or replacement, or
(ii) ninety-five percent (95%) of the original purchase price or cost of construction of Restricted Property,
(iii) such extension, renewal or replacement Lien shall be limited to all or part of substantially the same
Restricted Property to which the Lien that was extended, renewed or replaced applied (plus improvements
on such Restricted Property) and (iv) in the case of any Lien referred to in the foregoing clause (i) or (ii),
the Debt secured thereby shall be non-recourse to the University.
Upon receipt of the consent of the holders of a majority in principal amount of Outstanding
Bonds, the Amended and Restated Loan Agreement will become effective and Section 12 of the Loan
Agreement will be deleted.
(Section 12)
Exempted Transactions
Notwithstanding the provisions of the Loan Agreement, the University may issue, assume or guarantee
Debt secured by Liens or create, incur or assume Liens to secure Debt, that would otherwise be subject to
the restrictions in the Loan Agreement described above in the event that:
(i) the fair market value (in the opinion of an Authorized Officer of the University) of the Restricted
Property securing such Debt, together with the aggregate value (as shown on the books and records of the
University upon which the most recent audited financial statements of the University are based) of all other
Restricted Property of the University securing Debt (other than Restricted Property securing Debt permitted
to be secured under the Loan Agreement) does not exceed an amount equal to twenty percent (20%) (or
such higher percentage as shall be consented to by an Authorized Officer of the Authority) of the
University’s total assets (as shown on the most recent audited financial statements of the University); and
(ii) the aggregate principal amount of such Debt, together with the aggregate outstanding principal
amount of all other Debt secured by Liens on Restricted Property of the University (other than Debt
permitted to be secured under the Loan Agreement), does not exceed an amount equal to twenty-percent
(20%) of the University’s total assets (as shown on the most recent audited financial statements of the
University);
provided that in no event shall the University without the prior consent of the Authority, issue, assume
or guarantee any Debt secured by Liens upon the University’s stocks, bonds, notes or other investments, or
create, incur or assume Liens upon the University’s stocks, bonds, notes or other investments to secure
Debt (other than Debt incurred to the Authority in connection with bonds, notes or other obligations of the
Authority issued under a resolution of the Authority) if at the time such Debt is issued, assumed or
guaranteed or such Lien is created, incurred or assumed the market value (in the opinion of an Authorized
Officer of the University) of stocks, bonds, notes or other investments securing such Debt, together with the
aggregate market value of all other stocks, bonds, notes or other investments of the University securing
Debt (other than Debt incurred to the Authority in connection with bonds, notes or other obligations of the
Authority issued under a resolution of the Authority) would exceed five percent (5%) (or such higher
percentage as shall be consented to by an Authorized Officer of the Authority) of (x) the value (as shown
on the most recent audited financial statements of the University) of all stocks, bonds, notes or other
investments of the University less (y) one hundred ten percent (110%) of the principal amount of Bonds
then Outstanding, or if at the time such Debt is issued, assumed or guaranteed or such Lien is created,
incurred or assumed the market value (in the opinion of an Authorized Officer of the University) of stocks,
bonds, notes and other investments which are derived from gifts or bequests, not required to pay any item
which is a Cost of a Project, held as part of the University’s permanent capital, and free and clear of any

C-6
 Appendix C

lien, pledge, charge, security interest or other encumbrance or statutory, contractual or other restriction, is
not at least equal to one hundred ten percent (110%) of the principal amount of Bonds then Outstanding.
Upon receipt of the consent of the holders of a majority in principal amount of Outstanding
Bonds, the Amended and Restated Loan Agreement will become effective and Section 13 of the Loan
Agreement will be deleted.
(Section 13)
Financial Covenants
The University covenants that it shall maintain Available Assets of the University which will be not
less than two (2) times the General Liabilities of the University, and it shall deliver to the Authority and the
Trustee a certified statement of an Authorized Officer of the University after the close of each quarter of
each fiscal year of the University as provided in the Loan Agreement which demonstrates compliance with
such covenant; provided, however, the failure of the University to comply with such covenant shall not
constitute an Event of Default if the University has complied with the provisions of the Loan Agreement
respecting the Management Consultant.
The University covenants that it shall maintain as an asset of the University, stocks, bonds, notes or
other similar securities which (a) are free and clear of any pledge, lien, charge, security interest or other
encumbrance, (b) are not subject to any statutory, contractual or other restriction, and (c) have a market
value at least equal to one hundred twenty percent (120%) of the aggregate principal amount of its
outstanding Short Term Debt, and it shall deliver to the Authority and the Trustee a certified statement of
an Authorized Officer of the University after the close of each quarter of each fiscal year of the University
as provided in the Loan Agreement which demonstrates compliance with such covenant; provided,
however, the failure of the University to comply with such covenant shall not constitute an Event of
Default if the University has complied with the provisions of the Loan Agreement respecting the
Management Consultant.
Upon receipt of the consent of the holders of a majority in principal amount of Outstanding
Bonds, the Amended and Restated Loan Agreement will become effective and Section 14 of the Loan
Agreement will be deleted.
(Section 14)
Management Consultant
If the University fails to comply with any of the covenants contained in the Loan Agreement in any
fiscal year succeeding a fiscal year in which no such failure occurred, the Authority, at its election which
shall be exercised within sixty (60) days of notice of such failure, may request the University to engage, at
the University’s expense, a Management Consultant to review the rates, operations and management of the
University and any other matter deemed appropriate by the Authority and to make such recommendations
with respect to such rates, operations, management and other matters as will enable the University to
comply with such covenants within a reasonable period. The University shall engage a Management
Consultant within sixty (60) days of such request by the Authority. Copies of the report and
recommendations of the Management Consultant shall be filed with the Authority, the Trustee, the Board
of Trustees of the University and an Authorized Officer of the University no later than one hundred twenty
(120) days following the date of engagement of such Management Consultant. The Board of Trustees of
the University and such Authorized Officer of the University shall each deliver to the Authority no later
than sixty (60) days following the date of filing with the Authority of the report and recommendations of
the Management Consultant a written report setting forth their respective comment and reaction to the
report and recommendations of the Management Consultant.
If the University fails to comply with any of the covenants contained in the Loan Agreement in any
fiscal year succeeding a fiscal year in which such failure has occurred, the University shall either engage
within sixty (60) days of such failure, at the University’s expense, a Management Consultant to review the
rates, operations and management of the University and any other matter deemed appropriate by the
Authority and to make such recommendations with respect to such rates, operations, management and other

C-7
Appendix C

matters as will enable the University to comply with such covenants within a reasonable period or
(ii) provide security for the University’s obligations under this Loan Agreement or credit enhancement for
Bonds, in each case acceptable to the Authority. The University shall immediately notify an Authorized
Officer of the Authority of such engagement. Copies of the report and recommendations of the
Management Consultant shall be filed with the Authority, the Trustee, the Board of Trustees of the
University and an Authorized Officer of the University no later than one hundred twenty (120) days
following the date of engagement of such Management Consultant.
The University shall, to the extent feasible, promptly upon its receipt of such recommendations, and
subject to applicable requirements or restrictions imposed by law or regulation, revise its rates, fees and
charges, its methods of operation or collections or its debt and investment management and shall take such
other action as shall be in conformity with such recommendations. The University shall deliver to the
Authority and the Trustee:
(i) within forty- five (45) days of receipt of such Management Consultant’s report (a) a report setting
forth in reasonable detail the steps the University proposes to take to implement the recommendations of
such Management Consultant, and (b) a certified copy of a resolution adopted by the Board of Trustees of
the University accepting both the Management Consultant’s report and the report prepared by the
University as required in clause (a) hereof.
(ii) quarterly reports demonstrating the progress made by the University in implementing the
recommendations of the Management Consultant.
If the University complies in all material respects with the reasonable recommendations of the
Management Consultant delivered under the Loan Agreement, the University will be deemed to have
complied with the covenants contained in the Loan Agreement for the University’s fiscal year in which the
Management Consultant’s report is delivered and the University’s succeeding fiscal year.
Upon receipt of the consent of the holders of a majority in principal amount of Outstanding
Bonds, the Amended and Restated Loan Agreement will become effective and Section 15 of the Loan
Agreement will be amended to read as follows:
If at any time the rating on any Outstanding Bonds or on any of the University’s long term unsecured,
unenhanced debt obligations is reduced by Moody’s to “A1” or by Fitch or S&P to “A+”, the Authority
may request the University to engage, at the University's expense, a Management Consultant, which the
University hereby agrees to engage within sixty days after such request is made; and, if at any time the
rating on any Outstanding Bonds or on any of the University’s long term unsecured, unenhanced debt
obligations is reduced by Moody’s to less than “A1” or by Fitch or S&P to less than “A+” or if any rating is
suspended or withdrawn by Moody’s, Fitch or S&P, the University, at the University’s expense, has agreed
to engage a Management Consultant within sixty (60) days after such reduction, suspension or withdrawal,
unless the Authority has waived such obligation which it may do in its sole discretion. The Management
Consultant shall review the fees and tuition, operations and management of the University and any other
matter deemed appropriate by the Authority and make such recommendations with respect to such fees and
tuition, operations, management and other matters. Copies of the report and recommendations of the
Management Consultant shall be filed with the Authority, the Trustee, the Board of Trustees of the
University and an Authorized Officer of the University no later than one hundred twenty (120) days
following the date of engagement of such Management Consultant. The Board of Trustees of the
University and such Authorized Officer of the University shall each deliver to the Authority no later than
sixty (60) days following the date of filing with the Authority of the report and recommendations of the
Management Consultant a written report setting forth their respective comment and reaction to the report
and recommendations of the Management Consultant. The University shall, to the extent feasible,
promptly upon its receipt of such recommendations, and subject to applicable requirements or restrictions
imposed by law or regulation, revise its tuition, fees and charges, its methods of operation or collections or
its debt and investment management and shall take such other action as shall be in conformity with such
recommendations. The University shall deliver to the Authority and the Trustee:

C-8
 Appendix C

(i) within forty–five (45) days of receipt of such Management Consultant's report (x) a report setting
forth in reasonable detail the steps the University proposes to take to implement the recommendations of
such Management Consultant, and (y) a certified copy of a resolution adopted by the Board of Trustees of
the University accepting both the Management Consultant's report and the report prepared by the
University as required in clause (x) hereof; and
(ii) within thirty (30) days after the end of each calendar quarter a report demonstrating the progress
made by the University in implementing the recommendations of the Management Consultant.
Notwithstanding the foregoing provisions of this Section, the University may elect in lieu of engaging a
Management Consultant to provide security in form and substance acceptable to the Authority in its sole
discretion for the University’s obligations under the Loan Agreement.
(Section 15)
Tax-Exempt Status of the University
The University represents that: (i) it is an organization described in Section 501(c)(3) of the Code, or
corresponding provisions of prior law and is not a “private foundation,” as such term is defined under
Section 509(a) of the Code; (ii) it has received a letter or other notification from the Internal Revenue
Service to that effect; (iii) such letter or other notification has not been modified, limited or revoked; (iv) it
is in compliance with all terms, conditions and limitations, if any, contained in such letter or other
notification; (v) the facts and circumstances which form the basis of such letter or other notification as
represented to the Internal Revenue Service continue to exist; and (vi) it is exempt from federal income
taxes under Section 501(a) of the Code.
(Section 16)
Use of Projects; Restrictions on Religious Use
Subject to the rights, duties and remedies of the Authority under the Loan Agreement, the University
shall have sole and exclusive control of, possession of and responsibility for (i) the Projects; (ii) the
operation of the Projects and supervision of the activities conducted therein or in connection with any part
thereof; and (iii) the maintenance, repair and replacement of the Projects; provided, however, that, except
as otherwise limited hereby, the foregoing shall not prohibit use of a Project by person other than the
University or its students, staff and employees in furtherance of the University’s corporate purposes if such
use will not adversely affect the exclusion of interest on any Bonds from gross income for federal income
tax purposes.
The University agrees that with respect to any Project or portion thereof, so long as such Project or
portion thereof exists and unless and until such Project or portion thereof is sold for the fair market value
thereof, such Project or portion thereof shall not be used for sectarian religious instruction or as a place of
religious worship or in connection with any part of a program of a school or department of divinity for any
religious denomination; provided, however, that the foregoing restriction shall not prohibit the free exercise
of any religion; and provided, further, that if at any time hereafter, in the opinion of Bond Counsel, the then
applicable law would permit a Project or portion thereof to be used without regard to the above stated
restriction, said restriction shall not apply to such Project and each portion thereof. The Authority and its
agents may conduct such inspections as an Authorized Officer of the Authority deems necessary to
determine whether any Project or any portion or real property thereof financed by Bonds is being used for
any purpose proscribed by the Loan Agreement. The University further agrees that prior to any disposition
of any portion of a Project for less than fair market value, it shall execute and record in the appropriate real
property records an instrument subjecting, to the satisfaction of the Authority, the use of such portion of
such Project to the restriction that (i) so long as such portion of such Project (and, if included in the Project,
the real property on or in which such portion of such Project is situated) shall exist and (ii) until such
portion of such Project is sold or otherwise transferred to a person who purchases the same for the fair
market value thereof at the time of such sale or transfer, such portion of such Project shall not be used for
sectarian religious instruction or as a place of religious worship or used in connection with any part of the
program of a school or department of divinity of any religious denomination. The instrument containing

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Appendix C

such restriction shall further provide that such restriction may be enforced at the instance of the Authority
or the Attorney General of the State, by a proceeding in any court of competent jurisdiction, by injunction,
mandamus or by other appropriate remedy. The instrument containing such restriction shall also provide
that if at any time thereafter, in the opinion of Bond Counsel, the then applicable law would permit such
portion of a Project, or the real property on or in which such portion is situated, to be used without regard to
the above stated restriction, then said restriction shall be without any force or effect. For the purposes of
this heading an involuntary transfer or disposition of a Project or a portion thereof, upon foreclosure or
otherwise, shall be considered a sale for the fair market value thereof.
(Sections 20 and 21)
Covenant as to Insurance
The University shall procure and maintain, or cause to be procured and maintained, to the extent
reasonably obtainable, from responsible insurers, insurance of the type and in the amounts customarily
maintained by institutions for higher education providing programs substantially similar to those of the
University. The University is not prohibited by the Loan Agreement from self-insuring against any risk. In
the event the University fails to provide such insurance, the Authority may elect at any time thereafter to
procure and maintain the insurance at the expense of the University.
Upon receipt of the consent of the holders of a majority in principal amount of Outstanding
Bonds, the Amended and Restated Loan Agreement will become effective and Section 23 of the Loan
Agreement will be amended to read as follows:
The University agrees to maintain or cause to be maintained insurance with insurance companies or by
means or self-insurance, insurance of such type, against such risks and in such amounts as are customarily
carried by private colleges and universities located in the State of a nature similar to that of the University,
which insurance shall include property damage, fire and extended coverage, public liability and property
damage liability insurance in amounts estimated to indemnify the reasonably anticipated damage, loss or
liability, subject to reasonable deductible provisions. The University shall at all times also maintain
worker’s compensation coverage as required by the laws of the State.
(Section 23)
Financial Information
The University shall furnish to the Authority and the Trustee within sixty (60) days after the end of
each of the first three (3) quarters of the University’s fiscal year a statement certified by an Authorized
Officer of the University, and within one hundred sixty-five (165) days after the end of such fiscal year an
audited statement, setting forth the Available Assets and General Liabilities of the University at the end of
each quarter and at the end of such fiscal year. The University shall also furnish to the Authority and the
Trustee as promptly as practicable after the end of each calendar quarter, but not later than thirty (30) days
thereafter, a certified statement by an Authorized Officer of the University, which shall state as of the end
of such calendar quarter (i) the market value of the bonds, notes, debentures or other similar securities
owned by the University which comply with the requirements of the Loan Agreement, (ii) the outstanding
principal amount of Short Term Debt calculated in accordance with the Loan Agreement, and (iii) whether
the University is in compliance with the provisions of the Loan Agreement. At the request of an
Authorized Officer of the Authority, the University shall submit documentation supporting the conclusions
and statements contained in any such certified statements.
Upon receipt of the consent of the holders of a majority in principal amount of Outstanding
Bonds, the Amended and Restated Loan Agreement will become effective and Section 26 of the Loan
Agreement will be amended to read as follows:
The University shall, if and when requested by an Authorized Officer of the Authority, render to the
Authority and the Trustee reports with respect to all repairs, replacements and maintenance made to each
Project. In addition, the University shall, if and when requested by an Authorized Officer of the Authority,
render such other reports concerning the condition of each Project as an Authorized Officer of the
Authority may request. The University shall also furnish annually, not later than one hundred sixty-five

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 Appendix C

(165) days after the end of the University’s fiscal year, to the Trustee, the Authority and to such other
parties as an Authorized Officer of the Authority may designate, including Rating Services, (i) a certificate
stating whether the University is in compliance with the provisions of the Loan Agreement, (ii) copies of its
financial statements audited by a nationally recognized independent public accountant selected by the
University and acceptable to an Authorized Officer of the Authority and prepared in conformity with
generally accepted accounting principles applied on a consistent basis, except that such audited financial
statements may contain such changes as are concurred in by such accountants, and (iii) such other
statements, reports and schedules describing the finances, operation and management of the University and
such other information reasonably required by an Authorized Officer of the Authority.
(Section 26)
Defaults and Remedies
(a) As used in the Loan Agreement the term “Event of Default” shall mean:
(i) the University shall default in the timely payment of any amount payable pursuant to the Loan
Agreement or the payment of any other amounts required to be delivered or paid in accordance with the
Loan Agreement or the Resolution, and such default continues for a period in excess of seven (7) days or
default in the timely payment of any amount payable with respect to an interest payment date on
Outstanding Variable Interest Rate Bonds and such default continues for a period in excess of (1) day or
default in timely payment of Option Bonds or Variable Rate Bonds which are tendered for purchase by the
Holders thereof;
(ii) the University defaults in the due and punctual performance of any other covenant contained in the
Loan Agreement and such default continues for thirty (30) days after written notice requiring the same to
be remedied shall have been given by the Authority or the Trustee, provided that, if in the determination of
the Authority such default cannot be corrected within such thirty (30) day period but can be corrected by
appropriate action, it shall not constitute an Event of Default if corrective action is instituted by the
University within such period and is diligently pursued until the default is corrected;
(iii) as a result of any default in payment or performance required of the University or any Event of
Default under the Loan Agreement, whether or not declared, continuing or cured, the Authority shall be in
default in the payment or performance of any of its obligations under the Resolution or an “Event of
Default” (as defined in the Resolution) shall have been declared under the Resolution so long as such
default or Event of Default shall remain uncured or the Trustee, a Facility Provider or Holders of the Bonds
shall be seeking the enforcement of any remedy under the Resolution as a result thereof;
(iv) as a result of any default in payment or performance required of the University or any Event of
Default hereunder, whether or not declared, continuing or cured, the Authority shall be in default in the
payment or performance of any of its obligations under the Resolution or an “event of default” (as defined
in the Resolution) shall have been declared under the Resolution so long as such default or “event of
default” shall remain uncured or the Trustee, a Facility Provider or Holders of the Bonds shall be seeking
the enforcement of any remedy under the Resolution as a result thereof;
(v) the University shall (a) be generally not paying its debts as they become due, (b) file, or consent
by answer or otherwise to the filing against it of, a petition under the United States Bankruptcy Code or
under any other bankruptcy or insolvency law of any jurisdiction, (c) make a general assignment for the
benefit of its general creditors, (d) consent to the appointment of a custodian, receiver, trustee or other
officer with similar powers of itself or of any substantial part of its property, (e) be adjudicated insolvent or
be liquidated, or (f) take corporate action for the purpose of any of the foregoing;
(vi) a court or governmental authority of competent jurisdiction shall enter an order appointing,
without consent by the University, a custodian, receiver, trustee or other officer with similar powers with
respect to it or with respect to any substantial part of its property, or an order for relief shall be entered in
any case or proceeding for liquidation or reorganization or otherwise to take advantage of any bankruptcy
or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the

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Appendix C

University, or any petition for any such relief shall be filed against the University and such petition shall
not be dismissed within ninety (90) days;
(vii) the charter of the University shall be suspended or revoked;
(viii) a petition shall be filed by the University with the Board of Regents of the State or other
governmental authority having jurisdiction over the University to dissolve the University;
(ix) an order of dissolution of the University shall be made by the Board of Regents of the State, the
legislature of the State of New York or other governmental authority having jurisdiction over the
University which order shall remain undismissed or unstayed for an aggregate of thirty (30) days;
(x) a petition shall be filed with a court having jurisdiction for an order directing the sale, disposition
or distribution of all or substantially all of the property belonging to the University which petition shall
remain undismissed or unstayed for an aggregate of ninety (90) days;
(xi) an order of a court having jurisdiction shall be made directing the sale, disposition or distribution
of all or substantially all of the property belonging to the University, which order shall remain undismissed
or unstayed for the earlier of (a) three (3) business days prior to the date provided for in such order for such
sale, disposition or distribution or (b) an aggregate of thirty (30) days from the date such order shall have
been entered; or
(xii) a final judgment for the payment of money which in the reasonable judgment of the Authority will
materially adversely affect the rights of the Holders of the Bonds shall be rendered against the University
and at any time after thirty (30) days from the entry thereof, (a) such judgment shall not have been
discharged, or (b) the University shall not have taken and be diligently prosecuting an appeal therefrom or
from the order, decree or process upon which or pursuant to which such judgment shall have been granted
or entered, and shall not have caused, within thirty (30) days, the execution of or levy under such judgment,
order, decree or process or the enforcement thereof to have been stayed pending determination of such
appeal.
(b) Upon the occurrence of an Event of Default the Authority may take any one or more of the
following actions:
(i) declare all sums payable by the University under the Loan Agreement immediately due and
payable;
(ii) direct the Trustee to withhold any and all payments, advances and reimbursements from the
proceeds of Bonds or any Construction Fund or otherwise to which the University may otherwise be
entitled under the Loan Agreement and in the Authority’s sole discretion apply any such proceeds or
moneys for such purposes as are authorized by the Resolution;
(iii) withhold any or all further performance under the Loan Agreement;
(iv) maintain an action against the University under the Loan Agreement to recover any sums payable
by the University or to require its compliance with the terms of the Loan Agreement;
(v) to the extent permitted by law, (a) enter upon a Project and complete the construction of any
Project in accordance with the plans and specifications with such changes therein as the Authority may
deem appropriate and employ watchmen to protect the Projects, all at the risk, cost and expense of the
University, consent to such entry being given by the University by the Loan Agreement, (b) at any time
discontinue any work commenced in respect of the construction of any Project or change any course of
action undertaken by the University and not be bound by any limitations or requirements of time whether
set forth in the Loan Agreement or otherwise, (c) assume any construction contract made by the University
in any way relating to the construction of any Project and take over and use all or any part of the labor,
materials, supplies and equipment contracted for by the University, whether or not previously incorporated
into the construction of such Project, and (d) in connection with the construction of any Project undertaken
by the Authority pursuant to the provisions of this clause (v), (x) engage builders, contractors, architects,
engineers and others for the purpose of furnishing labor, materials and equipment in connection with the
construction of such Project, (y) pay, settle or compromise all bills or claims which may become liens

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 Appendix C

against a Project or against any moneys of the Authority applicable to the construction of a Project, or
which have been or may be incurred in any manner in connection with completing the construction of a
Project or for the discharge of liens, encumbrances or defects in the title to a Project or against any moneys
of the Authority applicable to the construction of a Project, and (z) take or refrain from taking such action
under the Loan Agreement as the Authority may from time to time determine. The University shall be
liable to the Authority for all sums paid or incurred for construction of any Project whether the same shall
be paid or incurred pursuant to the provisions of this clause (v) or otherwise, and all payments made or
liabilities incurred by the Authority under the Loan Agreement of any kind whatsoever shall be paid by the
University to the Authority upon demand. For the purpose of exercising the rights granted by this
subparagraph during the term of the Loan Agreement, the University irrevocably constitutes and appoints
the Authority its true and lawful attorney-in-fact to execute, acknowledge and deliver any instruments and
to do and perform any acts in the name and on behalf of the University; and
(vi) take any action necessary to enable the Authority to realize on its liens under the Loan Agreement
or by law, and any other action or proceeding permitted by the terms of the Loan Agreement or by law.
All rights and remedies given or granted to the Authority in the Loan Agreement are cumulative,
non-exclusive and in addition to any and all rights and remedies that the Authority may have or may be
given by reason of any law, statute, ordinance or otherwise, and no failure to exercise or delay in exercising
any remedy shall effect a waiver of the Authority’s right to exercise such remedy thereafter.
At any time before the entry of a final judgment or decree in any suit, action or proceeding instituted on
account of any Event of Default or before the completion of the enforcement of any other remedies under
the Loan Agreement, the Authority may annul any declaration made or action taken pursuant to the Loan
Agreement and its consequences if such Events of Default shall be cured. No such annulment shall extend
to or affect any subsequent default or impair any right consequent thereto.
Upon receipt of the consent of the holders of a majority in principal amount of Outstanding
Bonds, the Amended and Restated Loan Agreement will become effective and clauses (v) and (vi) of
paragraph (b) Section 29 of the Loan Agreement will be deleted.
(Section 29)

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Appendix C

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 Appendix D

SUMMARY OF CERTAIN PROVISIONS

OF THE RESOLUTION
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 Appendix D

SUMMARY OF CERTAIN PROVISIONS OF THE RESOLUTION

The following is a brief summary of certain provisions of the Resolution pertaining to the Bonds and
the Project. Such summary does not purport to be complete and reference is made to the Resolution for full
and complete statements of such and all provisions. Defined terms used herein shall have the meanings
ascribed to them in Appendix A.
Contract with Bondholders
With respect to the Bonds, in consideration of the purchase and acceptance of any and all of the Bonds
authorized to be issued under the Resolution by those who shall hold or own the same from time to time,
the Resolution shall be deemed to be and shall constitute a contract among the Authority, the Trustee and
the Holders from time to time of such Bonds, and the pledge and assignment made in the Resolution and
the covenants and agreements set forth to be performed by or on behalf of the Authority shall be for the
equal and ratable benefit, protection and security of the Holders of any and all of such Bonds, all of which,
regardless of the time or times of their issue or maturity, shall be of equal rank without preference, priority
or distinction of any such Bonds, over any other Bonds except as expressly provided in or permitted by the
Resolution.
(Section 1.03)
Refunding Bonds and Additional Obligations
All or any portion of one or more Series of Refunding Bonds may be authenticated and delivered upon
original issuance to refund all Outstanding Bonds, one or more Series of Outstanding Bonds, a portion of a
Series of Outstanding Bonds or a portion of a maturity of a Series of Outstanding Bonds. The Authority
may issue Refunding Bonds in an aggregate principal amount sufficient, together with other moneys
available therefor, to accomplish such refunding and to make such deposits required by the provisions of
the Resolution and of the Series Resolution authorizing such Series of Refunding Bonds.
The proceeds, including accrued interest, of Refunding Bonds shall be applied simultaneously with the
delivery of such Refunding Bonds in the manner provided in or as determined in accordance with the Series
Resolution authorizing such Refunding Bonds or the Bond Series Certificate relating to such Series of
Refunding Bonds.
The Authority reserves the right to issue bonds, notes or any other obligations or otherwise incur
indebtedness pursuant to other and separate resolutions or agreements of the Authority, so long as such
bonds, notes or other obligations are not, or such other indebtedness is not, except as provided in the
Resolution, entitled to a charge or lien or right prior or equal to the charge or lien created by the Resolution,
or prior or equal to the rights of the Authority and Holders of Bonds as provided by the Resolution.
(Sections 2.04 and 2.05)
Pledge of Revenues
The proceeds from the sale of the Bonds, the Revenues and all funds and accounts, excluding the
Arbitrage Rebate Fund, established by the Resolution and any Series Resolution, are pledged to the Trustee
as security for the payment of the principal, Sinking Fund Installments, if any, and Redemption Price of
and interest on the Bonds and as security for the performance of any other obligation of the Authority under
the Resolution and any Series Resolution, all in accordance with the provisions of the Resolution and any
Series Resolution. The pledge of the Revenues and the assignment of the Authority’s security interest shall
also be for the benefit of each Facility Provider as security for the payment of any amounts payable to such
Facility Provider under the Resolution; provided, however, that such pledge and assignment shall, in all
respects, be subject and subordinate to the rights and interest therein of the Bondholders. The pledge made
by the Resolution is valid, binding and perfected from the time when the pledge attaches and the proceeds
from the sale of the Bonds, the Revenues and the funds and accounts established by the Resolution and any

D-1
Appendix D

Series Resolution shall immediately be subject to the lien of such pledge without any physical delivery
thereof or further act, and the lien of such pledge shall be valid, binding and perfected as against all parties
having claims of any kind in tort, contract or otherwise against the Authority irrespective of whether such
parties have notice thereof. No instrument by which such pledge is created nor any financing statement
need be recorded or filed. The Bonds shall be special obligations of the Authority payable solely from and
secured by a pledge of the proceeds from the sale of the Bonds, the Revenues and the funds and accounts
established by the Resolution, which pledge shall constitute a first lien thereon.
(Section 5.01)
Establishment of Funds and Accounts
The following funds and separate accounts within funds are established by the Resolution and shall be
held and maintained by the Trustee:
Construction Fund;
Debt Service Fund; and
Arbitrage Rebate Fund.

In addition to the accounts and subaccounts, if any, required to be established by the Resolution or by
any Series Resolution or any Bond Series Resolution, the Authority may establish such other accounts or
subaccounts it considers necessary or desirable. All moneys at any time deposited in any fund, account or
subaccount created and pledged by the Resolution, or by any Series Resolution or required thereby to be
created shall be held in trust for the benefit of the Holders of Bonds, but shall nevertheless be disbursed,
allocated and applied solely for the uses and purposes provided in the Resolution; provided, however, that
the proceeds derived from the remarketing of Option Bonds tendered or deemed to have been tendered for
purchase in accordance with the Series Resolution authorizing the issuance of such Bonds or the Bond
Series Certificate relating to such Bonds or derived from a Liquidity Facility relating to such Bonds, and
any fund or account established by or pursuant to such Series Resolution for the payment of the purchase
price or of Option Bonds so tendered or deemed to have been tendered, shall not be held in trust for the
benefit of the Holders of the Bonds other than such Option Bonds and are pledged hereby for the payment
of the purchase price of such Option Bonds.
(Section 5.02)
Application of Bond Proceeds and Allocation Thereof
Upon the receipt of the proceeds from the sale of a Series of Bonds, the Authority shall apply such
proceeds as specified in the Resolution and in the Series Resolution authorizing such Series or the Bond
Series Certificate relating to such Series.
Accrued interest, if any, received upon the delivery of a Series of Bonds shall be deposited in the Debt
Service Fund unless all or any portion of such amount is to be otherwise applied as specified in the Series
Resolution authorizing such Series or the Bond Series Certificate relating to such Series.
(Section 5.03)
Application of Moneys in the Construction Fund
As soon as practicable after the delivery of each Series of Bonds, there shall be deposited in the
Construction Fund or Funds established for the Project or Projects in connection with which such Series of
Bonds was issued the amount required to be deposited therein pursuant to the Series Resolution authorizing
the issuance of such Series or the Bond Series Certificate relating to such Series. Except as otherwise
provided in the Resolution and in any applicable Series Resolution or Bond Series Certificate, moneys
deposited in the Construction Fund shall be used only to pay the Costs of Issuance and the Costs of the
Project for which such fund was established.
Upon receipt by the Trustee of a certificate relating to the completion of a Project, the moneys, if any,
then remaining in the Construction Fund relating to such Project, after making provision in accordance with

D-2
 Appendix D

the direction of an Authorized Officer of the Authority for the payment of any Costs of Issuance and Costs
of the Projects in connection with such Project then unpaid, shall be paid or applied by the Trustee as
follows and in the following order of priority:
First: Upon the direction of an Authorized Officer of the Authority, to the Arbitrage Rebate Fund, the
amount set forth in such direction; and
Second: To the Debt Service Fund, to be applied in accordance with the Resolution, any balance
remaining.
(Section 5.04)
Deposit and Allocation of Revenues
The Revenues and any other moneys, which by any of the provisions of the Loan Agreement are
required to be paid to the Trustee, shall upon receipt by the Trustee be deposited or paid to the Trustee as
follows in the following order of priority:
First: To the Debt Service Fund: in the case of Revenues received
during the period from the beginning of each Bond Year until December 31
thereof, the amount, if any, necessary to make the amount in the Debt Service
Fund equal to

(a) the interest on and the principal and Sinking Fund

Installments of Outstanding Bonds payable on or prior to the next
succeeding January 1, including the interest estimated by the Authority
to be payable on any Variable Interest Rate Bond on and prior to the
next succeeding January 1, assuming that such Variable Interest Rate
Bond will bear interest, from and after the next date on which the rate at
which such Variable Interest Rate Bond bears interest is to be adjusted,
at a rate per annum equal to the rate per annum at which such Bonds
then bear interest, plus one percent (1%) per annum, and

(b) the purchase price or Redemption Price of Outstanding

Bonds theretofore contracted to be purchased or called for redemption
pursuant to Section 5.06 hereof on or prior to the next succeeding
January 1, plus accrued interest thereon to the date of purchase or
redemption; and

(ii) in the case of Revenues received thereafter and until the end of
such Bond Year, the amount, if any, necessary to make the amount in the Debt
Service Fund equal to

(a) the interest on and the principal and Sinking Fund

Installments of Outstanding Bonds payable on and prior to the next
succeeding July 1, including the interest estimated by the Authority to
be payable on any Variable Interest Rate Bond on and prior to the
next succeeding July 1, assuming that such Variable Interest Rate
Bond will bear interest, from and after the next date on which the rate
at which such Variable Interest Rate Bond bears interest is to be
adjusted, at a rate per annum equal to the rate per annum at which
such Bonds then bear interest, plus one percent (1%) per annum, and

(b) the purchase price or Redemption Price of Outstanding

Bonds theretofore contracted to be purchased or called for redemption
pursuant to Section 5.06 hereof on or prior to the next succeeding
July 1, plus accrued interest thereon to the date of purchase or
redemption;

D-3
Appendix D

Second: To reimburse, pro rata, each Facility Provider for Provider Payments which are then unpaid,
in proportion to the respective Provider Payments then unpaid to each Facility Provider; and
Third: To the Authority, unless otherwise paid, such amounts as are payable to the Authority for: (i)
any expenditures of the Authority for fees and expenses of auditing, and fees and expenses of the Trustee
and Paying Agents, all as required by the Resolution, (ii) all other expenditures reasonably and necessarily
incurred by the Authority in connection with the financing of the Projects, including expenses incurred by
the Authority to compel full and punctual performance of all the provisions of the Loan Agreement in
accordance with the terms thereof, and (iii) any fees of the Authority; but only upon receipt by the Trustee
of a certificate signed by an Authorized Officer of the Authority, stating in reasonable detail the amounts
payable to the Authority pursuant to this paragraph Third.
The Trustee shall notify the Authority and the University promptly after making the payments of any
balance of Revenues then remaining. After making the above required payments, the balance, if any, of the
Revenues then remaining shall, upon the direction of an Authorized Officer of the Authority, be paid by the
Trustee to the Construction Fund or the Debt Service Fund, or paid to the University, in the respective
amounts set forth in such direction. Any amounts paid to the University shall be free and clear of any
pledge, lien, encumbrance or security interest created by the Resolution or by the Loan Agreement.
(Section 5.05)
Debt Service Fund
The Trustee shall on or before the Business Day preceding each interest payment date pay to itself and
any other Paying Agents out of the Debt Service Fund:
(a) the interest due and payable on all Outstanding Bonds on such interest payment date;
(b) the principal amount due and payable on all Outstanding Bonds on such interest payment date; and
(c) the Sinking Fund Installments or other amounts related to a mandatory redemption, if any, due and
payable on all Outstanding Bonds on such interest payment date.
The amounts paid out pursuant to this subdivision shall be irrevocably pledged to and applied to such
payments.
Notwithstanding the provisions of this subdivision, the Authority may, at any time subsequent to July 1
of any Bond Year but in no event less than forty-five (45) days prior to the succeeding date on which a
Sinking Fund Installment is scheduled to be due, direct the Trustee to purchase, with moneys on deposit in
the Debt Service Fund, at a price not in excess of par plus interest accrued and unpaid to the date of such
purchase, Term Bonds to be redeemed from such Sinking Fund Installment. Any Term Bond so purchased
and any Term Bond purchased by the University and delivered to the Trustee in accordance with the Loan
Agreement shall be canceled upon receipt thereof by the Trustee and evidence of such cancellation shall be
given to the Authority. The principal amount of each Term Bond so canceled shall be credited against the
Sinking Fund Installment due on such date; provided, however, that such Term Bond is canceled by the
Trustee prior to the date on which notice of redemption is given.
Notwithstanding the provisions of this subdivision, the University pursuant to the Loan Agreement
may deliver, at any time subsequent to July 1 of any Bond Year, but in no event less than forty-five (45)
days prior to the succeeding date on which a Sinking Fund Installment is scheduled to be due, to the
Trustee for cancellation one or more Term Bonds of the Series and maturity to be so redeemed on such date
from such Sinking Fund Installment. Any Term Bond so delivered to the Trustee shall be canceled upon
receipt thereof by the Trustee and evidence of such cancellation shall be given to the Authority. The
principal amount of each Term Bond so canceled shall be credited against the Sinking Fund Installment due
on such date; provided, however, that such Term Bond is canceled by the Trustee prior to the date on which
notice of redemption is given.

D-4
 Appendix D

Moneys in the Debt Service Fund in excess of the amount required to pay the principal and Sinking
Fund Installments of Outstanding Bonds payable on and prior to the next succeeding July 1, the interest on
Outstanding Bonds payable on and prior to the earlier of the next succeeding interest payment date January
1 or July 1 assuming that a Variable Interest Rate Bond will bear interest, from and after the next date on
which the rate at which such Variable Interest Rate Bond bears interest is to be adjusted, at a rate per
annum equal to the rate per annum at which such Bonds then bear interest, plus one percent (1%) per
annum, and the purchase price or Redemption Price of Outstanding Bonds theretofore contracted to be
purchased or called for redemption, plus accrued interest thereon to the date of purchase or redemption,
shall be retained therein applied by the Trustee in accordance with the direction of an Authorized Officer of
the Authority to: the purchase of Outstanding Bonds of any Series at purchase prices not exceeding the
Redemption Price applicable on the next interest payment date on which such Bonds are redeemable, plus
accrued and unpaid interest to such date, at such times, at such purchase prices and in such manner as an
Authorized Officer of the Authority shall direct. If sixty (60) days prior to the end of a Bond Year an
excess, calculated as aforesaid, exists in the Debt Service Fund, such moneys shall be applied by the
Trustee in accordance with the direction of an Authorized Officer of the Authority given pursuant to the
Resolution to the redemption of Bonds as provided in the Resolution, at the Redemption Prices specified in
the applicable Series Resolution authorizing the issuance of the Bonds to be redeemed or the Bond Series
Certificate relating to such Bonds.
(Section 5.06)
Arbitrage Rebate Fund
The Trustee shall deposit to the Arbitrage Rebate Fund any moneys delivered to it by the University
for deposit therein and, notwithstanding any other provisions of the Resolution, shall transfer to the
Arbitrage Rebate Fund, in accordance with the directions of an Authorized Officer of the Authority,
moneys on deposit in any other funds held by the Trustee under the Resolution at such times and in such
amounts as set forth in such directions.
Moneys on deposit in the Arbitrage Rebate Fund shall be applied by the Trustee in accordance with the
direction of an Authorized Officer of the Authority to make payments to the Department of the Treasury of
the United States of America at such times and in such amounts as the Authority shall determine to be
required by the Code to be rebated to the Department of the Treasury of the United States of America.
Moneys which an Authorized Officer of the Authority determines to be in excess of the amount required to
be so rebated shall, first, be applied to reimburse pro rata, each Facility Provider for moneys advanced
under a Credit Facility or a Liquidity Facility, including interest thereon, which is then unpaid in proportion
to the respective amounts advanced by each Facility Provider, and, then be deposited to any fund or
account established hereunder in accordance with the directions of such Authorized Officer.
The Authority shall periodically determine the amount which may be required by the Code to be
rebated to the Department of the Treasury of the United States of America with respect to each Series of
Bonds and direct the Trustee to (i) transfer from any other of the funds and accounts held by the Trustee
under the Resolution and deposit to the Arbitrage Rebate Fund such amount as the Authority shall have
determined to be necessary in order to enable it to comply with its obligation to rebate moneys to the
Department of the Treasury of the United States of America with respect to each Series of Bonds and (ii) if
and to the extent required by the Code, pay out of the Arbitrage Rebate Fund to the Department of the
Treasury of the United States of America the amount, if any, required by the Code to be rebated thereto.
(Section 5.07)
Application of Moneys in Certain Funds for Retirement of Bonds
Notwithstanding any other provisions of the Resolution, if at any time the amounts held in the Debt
Service Fund are sufficient to pay the principal or Redemption Price of all Outstanding Bonds and the
interest accrued and unpaid and to accrue on such Bonds to the next date on which all such Bonds are
redeemable, or to make provision pursuant to the Resolution for the payment of the Outstanding Bonds at

D-5
Appendix D

the maturity or redemption dates thereof, the Trustee shall so notify the Authority and the University.
Upon receipt of such notice, the Authority may (i) direct the Trustee to redeem all such Outstanding Bonds,
whereupon the Trustee shall proceed to redeem or provide for the redemption of such Outstanding Bonds in
the manner provided for redemption of such Bonds by the Resolution and by each Series Resolution as
provided in the Resolution, or (ii) give the Trustee irrevocable instructions in accordance with the
Resolution and make provision for the payment of the Outstanding Bonds at the maturity or redemption
dates thereof in accordance therewith.
(Section 5.08)
Tax Exemption; Rebates
In order to maintain the exclusion from gross income for purposes of federal income taxation of
interest on the Bonds of such Series as the Authority may designate, the Authority shall comply with the
provisions of the Code applicable to the Bonds of such Series, including without limitation the provisions
of the Code relating to the computation of the yield on investments of the Gross Proceeds of the Bonds of
such Series, reporting of earnings on the Gross Proceeds of the Bonds of such Series, and rebates on such
gross proceeds to the Department of the Treasury of the United States of America. In furtherance of the
foregoing, the Authority shall comply with the provisions of the Tax Certificate with respect to such Series
of Bonds.
The Authority shall not take any action or fail to take any action, which would cause the Bonds of such
Series to be “arbitrage bonds” within the meaning of Section 148(a) of the Code; nor shall any part of the
proceeds of the Bonds of such Series or any other funds of the Authority be used directly or indirectly to
acquire any securities or obligations the acquisition of which would cause any Bond of such Series to be an
“arbitrage bond” within the meaning of Section 148(a) of the Code.
The Authority shall make any and all payments required to be made to the United States Department of
the Treasury in connection with the Bonds of such Series pursuant to Section 148(f) of the Code from
amounts on deposit in the Arbitrage Rebate Fund and available therefor.
(Section 5.01, Series 2009A Resolution)
Investment of Funds and Accounts
Moneys held under the Resolution by the Trustee, if permitted by law, shall, as nearly as may be
practicable, be invested by the Trustee, upon direction of the Authority given or confirmed in writing,
signed by an Authorized Officer of the Authority (which direction shall specify the amount thereof to be so
invested), in Government Obligations, Federal Agency Obligations or Exempt Obligations; provided that
each such investment shall permit the moneys so deposited or invested to be available for use at the times at
which the Authority reasonably believes such moneys will be required for the purposes of the Resolution.
In lieu of the investments of moneys in obligations authorized in the preceding paragraph, the Trustee
shall, to the extent permitted by law, upon direction of the Authority given or confirmed in writing, signed
by an Authorized Officer of the Authority, invest moneys in the Construction Fund in any Permitted
Investment; provided that (w) each such investment shall permit the moneys so deposited or invested to be
available for use at the times at which the Authority reasonably believes such moneys will be required for
the purposes of the Resolution; provided, further, that (x) any Permitted Collateral required to secure any
Permitted Investment shall have a market value determined by the Trustee or its agent periodically, but not
less frequently than weekly, at least equal to the amount deposited or invested including interest accrued
thereon, (y) the Permitted Collateral shall be deposited with and held by the Trustee or an agent of the
Trustee approved by an Authorized Officer of the Authority, and (z) the Permitted Collateral shall be free
and clear of claims of any other person.
Permitted Investments purchased as an investment of moneys in any fund or account held by the
Trustee under the provisions of the Resolution shall be deemed at all times to be a part of such fund or

D-6
 Appendix D

account and the income or interest earned, profits realized or losses suffered by a fund or account due to the
investment thereof shall be retained in, credited or charged, as the case may be, to such fund or account.
In computing the amount in any fund or account held by the Trustee under the provisions of the
Resolution, each Permitted Obligation shall be valued at par or the market value thereof, plus accrued
interest, whichever is lower.
Notwithstanding anything to the contrary in the Resolution, the Authority, in its discretion, may direct
the Trustee to, and the Trustee upon receipt of such direction shall, sell, present for redemption or exchange
any investment held by the Trustee pursuant to the Resolution and the proceeds thereof may be reinvested
as provided in the Resolution. Except as otherwise provided in the Resolution, the Trustee shall sell at the
best price obtainable, or present for redemption or exchange, any investment held by it pursuant to the
Resolution whenever it shall be necessary in order to provide moneys to meet any payment or transfer from
the fund or account in which such investment is held. The Trustee shall advise the Authority and the
University in writing, on or before the fifteenth (15th) day of each calendar month, of the amounts required
to be on deposit in each fund and account under the Resolution and of the details of all investments held for
the credit of each fund and account in its custody under the provisions of the Resolution as of the end of the
preceding month and as to whether such investments comply with the provisions of the Resolution. The
details of such investments shall include the par value, if any, the cost and the current market value of such
investments as of the end of the preceding month. The Trustee shall also describe all withdrawals,
substitutions and other transactions occurring in each such fund and account in the previous month.
(Section 6.02)
Creation of Liens
Except as permitted by the Resolution, the Authority shall not create or cause to be created or suffer or
permit the creation of any lien or charge prior or equal to that of the Bonds on the proceeds from the sale of
the Bonds, the Revenues, the rights of the Authority to receive payments to be made under the Loan
Agreement that are to be deposited with the Trustee or the funds and accounts established by the Resolution
or by any Series Resolution which are pledged by the Resolution; provided, however, that nothing
contained in the Resolution shall prevent the Authority from (i) issuing bonds, notes or other obligations or
otherwise incurred indebtedness under another and separate resolution so long as the charge or lien created
thereby is not prior or equal to the charge or lien created by the Resolution, and (ii) incurring obligations
with respect to a Credit Facility or a Liquidity Facility which are secured by a lien upon and pledge of the
Revenues which lien and pledge is of equal priority with the lien created and the pledge made by the
Resolution.
(Section 7.06)
Amendment of Loan Agreement
The Loan Agreement may not be amended, changed, modified, altered or terminated so as to
materially adversely affect the interest of the Holders of the Outstanding Bonds without the prior written
consent of (a) the Holders of at least a majority in aggregate principal amount of the Bonds then
Outstanding, or (b) in case less than all of the several Series of Bonds then Outstanding are affected by the
modifications or amendments, the Holders of not less than a majority in aggregate principal amount of the
Bonds of each Series so affected then Outstanding; provided, however, that if such modification or
amendment will, by its terms, not take effect so long as any Bonds of any specified Series remain
Outstanding, the consent of the Holders of such Bonds shall not be required and such Bonds shall not be
deemed to be Outstanding for the purpose of any calculation of Outstanding Bonds under this section;
provided further, that no such amendment, change, modification, alteration or termination will reduce the
percentage of the aggregate principal amount of Outstanding Bonds the consent of the Holders of which is
a requirement for any such amendment, change, modification, alteration or termination, or decrease the
amount of any payment required to be made by the University under the Loan Agreement that is to be
deposited with the Trustee or extend the time of payment thereof.

D-7
Appendix D

The Loan Agreement may be amended, changed, modified or altered (i) to make changes necessary or
appropriate in connection with the acquisition, construction, reconstruction, rehabilitation and
improvement, or otherwise providing, furnishing and equipping of any facilities constituting a part of any
Project or to otherwise amend the Project or (ii) with the consent of the Trustee, to cure any ambiguity, or
to correct or supplement any provisions contained in the Loan Agreement which may be defective or
inconsistent with any other provisions contained in the Resolution or in the Loan Agreement. Except as
otherwise provided in the Resolution, the Loan Agreement may be amended, changed, modified or altered
without the consent of the Holders of Outstanding Bonds or the Trustee. Prior to execution by the
Authority of any amendment, a copy thereof certified by an Authorized Officer of the Authority shall be
filed with the Trustee.
For the purposes of this Section, the purchasers of the Bonds of a Series, whether purchasing as
underwriters, for resale or otherwise, upon such purchase from the Authority, may consent to an
amendment, change, modification, alteration or termination permitted by this Section with the same effect
as a consent given by the Holder of such Bonds.
For the purposes of this Section, a Series shall be deemed to be adversely affected by an amendment,
change, modification or alteration of the Loan Agreement if the same adversely affects or diminishes the
rights of the Holders of the Bonds of such Series in any material respect. The Trustee may in its discretion
determine whether or not, in accordance with the foregoing provisions, Bonds of any particular Series
would be adversely affected in any material respect by any amendment, change, modification or alteration,
and any such determination shall be binding and conclusive on the University, the Authority and all
Holders of Bonds.
For the purposes of this Section, the Trustee shall be entitled to rely upon an opinion of counsel, which
counsel shall be satisfactory to the Trustee, with respect to whether any amendment, change, modification
or alteration adversely affects the interests of any Holders of Bonds then Outstanding in any material
respect.
(Section 7.11)
Modification and Amendment of Resolution Without Consent
The Authority may adopt at any time or from time to time Series Resolutions or Supplemental
Resolutions for any one or more of the following purposes, and any such Series Resolution or
Supplemental Resolution shall become effective in accordance with its terms upon the filing with the
Trustee of a copy thereof certified by an Authorized Officer of the Authority:
(a) To provide for the issuance of a Series of Bonds pursuant to the provisions of the Resolution and to
prescribe the terms and conditions pursuant to which such Bonds may be issued, paid or redeemed;
(b) To add additional covenants and agreements of the Authority for the purpose of further securing the
payment of the Bonds, provided such additional covenants and agreements are not contrary to or
inconsistent with the covenants and agreements of the Authority contained in the Resolution;
(c) To prescribe further limitations and restrictions upon the issuance of Bonds and the incurring of
indebtedness by the Authority which are not contrary to or inconsistent with the limitations and restrictions
thereon theretofore in effect;
(d) To surrender any right, power or privilege reserved to or conferred upon the Authority by the terms
of the Resolution, provided that the surrender of such right, power or privilege is not contrary to or
inconsistent with the covenants and agreements of the Authority contained in the Resolution;
(e) To confirm, as further assurance, any pledge under the Resolution, and the subjection to any lien,
claim or pledge created or to be created by the provisions of the Resolution, of the Revenues or of any other
moneys, securities or funds;

D-8
 Appendix D

(f) To modify any of the provisions of the Resolution or of any previously adopted Series Resolution in
any other respects, provided that such modifications shall not be effective until after all Bonds of any Series
of Bonds Outstanding as of the date of adoption of such Supplemental Resolution or Series Resolution shall
cease to be Outstanding, and all Bonds issued under such resolutions shall contain a specific reference to
the modifications contained in such subsequent Resolutions; or
(g) With the consent of the Trustee, to cure any ambiguity or defect or inconsistent provision in the
Resolution or to insert such provisions clarifying matters or questions arising under the Resolution as are
necessary or desirable in the event any such modifications are not contrary to or inconsistent with the
Resolution as theretofore in effect, or to modify any of the provisions in the Resolution or in any previously
adopted Series Resolution in any other respect, provided that such modification shall not adversely affect
the interests of the Holders in any material respect.
(Section 9.01)
Supplemental Resolutions Effective With Consent of Bondholders
The provisions of the Resolution may also be modified or amended at any time or from time to time by
a Supplemental Resolution, subject to the consent of Bondholders in accordance with and subject to the
provisions of the Resolution, such Supplemental Resolution to become effective upon the filing with the
Trustee of a copy thereof certified by an Authorized Officer of the Authority.
(Section 9.02)
Powers of Amendment
Any modification or amendment of the Resolution and of the rights and obligations of the Authority
and of the Holders of the Bonds under the Resolution, in any particular, may be made by a Supplemental
Resolution, with the written consent given as provided in the Resolution, (i) of the Holders of at least a
majority in principal amount of the Bonds Outstanding at the time such consent is given, or (ii) in case less
than all of the several Series of Bonds then Outstanding are affected by the modification or amendment, of
Holders of at least a majority in principal amount of the Bonds of each Series so affected and Outstanding
at the time such consent is given, or (iii) in case the modification or amendment changes the amount or date
of any Sinking Fund Installment, of the Holders of at least a majority in principal amount of the Bonds of
the particular Series, maturity and interest rate entitled to such Sinking Fund Installment Outstanding at the
time such consent is given; provided, however, that if such modification or amendment will, by its terms,
not take effect so long as any Bonds of any specified like Series and maturity remain Outstanding, the
consent of the Holders of such Bonds shall not be required and such Bonds shall not be deemed to be
Outstanding for the purpose of any calculation of Outstanding Bonds under the Resolution. No such
modification or amendment shall permit a change in the terms of redemption or maturity of the principal of
any Outstanding Bond or of any installment of interest thereon or a reduction in the principal amount or the
Redemption Price thereof, or in the rate of interest thereon without the consent of the Holder of such Bond,
or shall reduce the percentages or otherwise affect the classes of Bonds the consent of the Holders of which
is required to effect any such modification or amendment. For the purposes of this paragraph, a Series shall
be deemed to be affected by a modification or amendment of the Resolution if the same adversely affects or
diminishes the rights of the Holders of Bonds of such Series in any material respect. The Trustee may in its
discretion determine whether or not, in accordance with the foregoing provisions, the Bonds of any
particular Series or maturity would be affected by any modification or amendment of the Resolution and
any such determination shall be binding and conclusive on the Authority and all Holders of Bonds. The
Trustee may receive an opinion of counsel, including an opinion of Bond Counsel, as conclusive evidence
as to whether Bonds of any particular Series or maturity would be so affected by any such modification or
amendment of the Resolution.
(Section 10.01)

D-9
Appendix D

Consent of Bondholders
The Authority may at any time adopt a Supplemental Resolution making a modification or amendment
permitted by the provisions of the Resolution to take effect when and as provided in the Resolution. A
copy of such Supplemental Resolution (or brief summary thereof or reference thereto in form approved by
the Trustee) together with a request to the Holders for their consent thereto in form satisfactory to the
Trustee, is required promptly after adoption to be mailed by the Authority to the Holders (but failure to
mail such copy and request will not affect the validity of the Supplemental Resolution when consented to as
provided in the Resolution ). Such Supplemental Resolution shall not be effective unless and until (i) there
shall been filed with the Trustee (a) the written consents of Holders of the percentages of Outstanding
Bonds specified in the Resolution and (b) an opinion of Bond Counsel stating that such Supplemental
Resolution has been duly and lawfully adopted and filed by the Authority in accordance with the provisions
of the Resolution, is authorized or permitted by the Resolution, and is valid and binding upon the Authority
and enforceable in accordance with its terms, and (ii) a notice shall have been mailed as provided in the
Resolution. Each such consent shall be effective only if accompanied by proof of the holding or owning at
the date of such consent, of the Bonds with respect to which such consent is given, which proof shall be
such as is permitted by the Resolution. A certificate or certificates by the Trustee filed with the Trustee that
it has examined such proof and that such proof is sufficient in accordance with the Resolution shall be
conclusive that the consents have been given by the Holders described in such certificate or certificates of
the Trustee. Any consent shall be binding upon the Holder of the Bonds giving such consent and, anything
in the Resolution to the contrary notwithstanding, upon any subsequent Holder of such Bonds and of any
Bonds issued in exchange therefor (whether or not such subsequent Holder thereof has notice thereof),
unless such consent is revoked in writing by the Holder of such Bonds giving such consent or a subsequent
Holder thereof by filing with the Trustee, prior to the time when the written statement of the Trustee
provided for in the Resolution is filed, such revocation. The fact that a consent has not been revoked may
likewise be proved by a certificate of the Trustee filed with the Trustee to the effect that no revocation
thereof is on file with the Trustee. At any time after Holders of the required percentages of Bonds shall
have filed their consents to the Supplemental Resolution, the Trustee shall make and file with the Authority
and the Trustee a written statement that the Holders of such required percentages of Bonds have filed such
consents. Such written statement shall be conclusive that such consents have been so filed. At any time
thereafter notice, stating in substance that the Supplemental Resolution (which may be referred to as a
Supplemental Resolution adopted by the Authority on a stated date, a copy of which is on file with the
Trustee) has been consented to by the Holders of the required percentages of Bonds and will be effective as
provided in the Resolution, shall be given to the Bondholders by the Authority by mailing such notice to
the Bondholders and, at the discretion of the Authority, by publishing the same at least once not more than
ninety (90) days after the Holders of the required percentages of Bonds shall have filed their consents to the
Supplemental Resolution and the written statement of the Trustee hereinabove provided for is filed (but
failure to publish such notice shall not prevent such Supplemental Resolution from becoming effective and
binding as in this paragraph provided). The Authority shall file with the Trustee proof of the mailing of
such notice, and, if the same shall have been published to the Bondholders, of the publication thereof. A
transcript, consisting of the papers required or permitted by the Resolution to be filed with the Trustee,
shall be proof of the matters therein stated. Such Supplemental Resolution making such amendment or
modification shall be deemed conclusively binding upon the Authority, the Trustee, each Paying Agent and
the Holders of all Bonds at the expiration of thirty (30) days after the filing with the Trustee of the proof of
the mailing of such last mentioned notice, except in the event of a final decree of a court of competent
jurisdiction setting aside such Supplemental Resolution in a legal action or equitable proceeding for such
purpose commenced within such thirty (30) day period; provided, however, that the Authority, the Trustee
and any Paying Agent during such thirty (30) day period and any such further period during which any
such action or proceeding may be pending shall be entitled in their reasonable discretion to take such
action, or to refrain from taking such action, with respect to such Supplemental Resolution as they may
deed expedient.
(Section 10.02)

D-10
 Appendix D

Modifications by Unanimous Consent

The terms and provisions of the Resolution and the rights and obligations of the Authority and of the
Holders of the Bonds under the Resolution may be modified or amended in any respect upon the adoption
and filing with the Trustee by the Authority of a copy of a Supplemental Resolution certified by an
Authorized Officer and the consent of the Holders of all of the Bonds then Outstanding, such consent to be
given as provided in the Resolution, except that no notice to Bondholders either by mailing or publication
shall be required.
(Section 10.03)
Event of Default
Each of the following constitutes an “event of default” under the Resolution and each Series
Resolution if:
(a) Payment of the principal, Sinking Fund Installment, if any, or Redemption Price of any Bond shall
not be made when the same shall become due and payable, either at maturity or by proceedings for
redemption or otherwise; or
(b) Payment of an installment of interest on any Bond shall not be made when the same shall become
due and payable; or
(c) The Authority shall default in the due and punctual performance of the rebate covenants contained
in the Resolution, and, as a result thereof, the interest on the Bonds of a Series shall no longer be
excludable from gross income under Section 103 of the Code; or
(d) The Authority shall default in the due and punctual performance of any other of the covenants,
conditions, agreements and provisions contained in the Resolution or in the Bonds or in any Series
Resolution on the part of the Authority to be performed and such default shall continue for thirty (30) days
after written notice specifying such default and requiring same to be remedied shall have been given to the
Authority by the Trustee, which may give such notice in its discretion and shall give such notice at the
written request of the Holders of not less than twenty-five percent (25%) in principal amount of the
Outstanding Bonds, or, if such default is not capable of being cured within thirty (30) days, the Authority
fails to commence to cure such default within said thirty (30) days and diligently prosecutes the cure
thereof; or
(e) The Authority shall have notified the Trustee that an “Event of Default”, as defined in the Loan
Agreement, arising out of or resulting from the failure of the University to comply with the requirements of
the Loan Agreement shall have occurred and is continuing and all sums payable by the University under the
Loan Agreement shall have been declared to be immediately due and payable, which declaration shall not
have been annulled and the Authority shall have notified the Trustee of such “Event of Default.”
(Section 11.02)
Acceleration of Maturity
Upon the happening and continuance of any event of default (other than under paragraph (c) under the
heading “Event of Default” above), then and in every such case the Trustee may, and upon the written
request of the Holders of not less than twenty-five percent (25%) in principal amount of the Outstanding
Bonds shall, by a notice in writing to the Authority, declare the principal of and interest on all of the
Outstanding Bonds to be due immediately and payable. At the expiration of thirty (30) days from the giving
of notice of such declaration, such principal and interest shall become and be immediately due and payable,
anything in the Resolution or in the Bonds or any Series Resolution to the contrary notwithstanding. At any
time after the principal of the Bonds shall have been so declared to be due and payable, and before the entry
of final judgment or decree in any suit, action or proceeding instituted on account of such default, or before
the completion of the enforcement of any other remedy under the Resolution, the Trustee may with the
written consent of the Holders of not less than twenty-five percent (25%) in principal amount of the Bonds
not then due by their terms and then Outstanding and by written notice to the Authority, annul such

D-11
Appendix D

declaration and its consequences if: (i) moneys shall have accumulated in the Debt Service Fund sufficient
to pay all arrears of interest, if any, upon all of the Outstanding Bonds (except the interest accrued on such
Bonds since the last interest payment date); (ii) moneys shall have accumulated and be available sufficient
to pay the charges, compensation, expenses, disbursements, advances and liabilities of the Trustee and any
Paying Agent; (iii) all other amounts then payable by the Authority under the Resolution and under each
Series Resolution other than principal amounts payable only because of a declaration and acceleration
under the Resolution shall have been paid or a sum sufficient to pay the same shall have been deposited
with the Trustee; and (iv) every other default known to the Trustee in the observance or performance of any
covenant, condition or agreement contained in the Resolution (other than a default in the payment of the
principal of such Bonds then due only because of a declaration under this Section) or in the Bonds or any
Series Resolution shall have been remedied to the satisfaction of the Trustee. No such annulment shall
extend to or affect any subsequent default or impair any right consequent thereon.
(Section 11.03)
Enforcement of Remedies
Upon the happening and continuance of any event of default, then and in every such case, the Trustee
may proceed, or of the Holders of not less than twenty-five percent (25%) in principal amount of the
Outstanding Bonds or, in the case of the happening and continuance of an Event of Default described in
subparagraph (c) under the heading "Event of Default" above, upon the written request of the Holders of
not less than twenty-five percent (25%) in principal amount of the Outstanding Bonds of the Series affected
thereby, shall proceed (subject to the provisions of the Resolution), to protect and enforce its rights and the
rights of the Holders of the Bonds under the laws of the State or under the Resolution or under any Series
Resolution by such suits, actions or special proceedings in equity or at law, either for the specific
performance of any covenant contained under the Resolution and under any Series Resolution or in aid or
execution of any power therein granted, or for an accounting against the Authority as if the Authority were
the trustee of an express trust, or for the enforcement of any proper legal or equitable remedy as the Trustee
shall deem most effectual to protect and enforce such rights.
In the enforcement of any remedy under the Resolution and under each Series Resolution the Trustee
shall be entitled to sue for, enforce payment of, and receive any and all amounts then, or during any default
becoming, and at any time remaining, due from the Authority for principal or interest or otherwise under
any of the provisions of the Resolution or of any Series Resolution or of the Bonds, with interest on
overdue payments of the principal of or interest on the Bonds at the rate or rates of interest specified in
such Bonds, together with any and all costs and expenses of collection and of all proceedings under the
Resolution and under any Series Resolution and under such Bonds, without prejudice to any other right or
remedy of the Trustee or of the Holders of such Bonds, and to recover and enforce judgment or decree
against the Authority but solely as provided in the Resolution and in any Series Resolution and in such
Bonds, for any portion of such amounts remaining unpaid, with interest, costs and expenses, and to collect
in any manner provided by law, the moneys adjudged or decreed to be payable.
(Section 11.04)
Priority of Payments After Default
If at any time the moneys held by the Trustee under the Resolution and under each Series Resolution
shall not be sufficient to pay the principal of and interest on the Bonds as the same become due and payable
(either by their terms or by acceleration of maturity under the provisions of the Resolution), such moneys
together with any moneys then available or thereafter becoming available for such purpose, whether
through exercise of the remedies provided for in the Resolution or otherwise, shall be applied (after first
depositing in the Arbitrage Rebate Fund all amounts to be deposited therein and then paying all amounts
owing to the Trustee under the Resolution) as follows:
(a) Unless the principal of all the Bonds has become or been declared due and payable, all such
moneys shall be applied:

D-12
 Appendix D

First: To the payment to the persons entitled thereto of all installments of interest then due, in the
order of the maturity of the installments of such interest, and, if the amount available shall not be sufficient
to pay in full any installment, then to the payment ratable, according to the amounts due on such
installment, to the persons entitled thereto, without any discrimination or preference;
Second: To the payment to the persons entitled thereto of the unpaid principal, Sinking Fund
Installments or Redemption Price of any of the Bonds which shall have become due whether at maturity or
by call for redemption, in the order of their due dates, and, if the amount available shall not be sufficient to
pay in full all amounts due on any date, then to the payment ratably, according to the amount of principal,
Sinking Fund Installments or Redemption Price due on such date, to the persons entitled thereto, without
any discrimination or preference.
(b) If the principal of all of the Bonds shall have become or been declared due and payable, all such
money shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds,
without preference or priority of principal over interest or of interest over principal, or of any installment of
interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the
amounts due respectively for principal and interest, to the persons entitled thereto, without any
discrimination or preference except as to the difference in the respective rates of interest specified in the
Bonds.
The provisions of this subdivision are in all respects subject to the provisions of the Resolution.
Whenever moneys are to be applied by the Trustee pursuant to the provisions of this subdivision, such
moneys shall be applied by the Trustee at such times, and from time to time, as the Trustee in its sole
discretion shall determine, having due regard to the amount of such moneys available for application and
the likelihood of additional moneys becoming available for such application in the future. The setting aside
of such moneys in trust for application in accordance with the Resolution shall constitute proper application
by the Trustee, and the Trustee shall incur no liability whatsoever to the Authority, to any Bondholder or to
any other person for any delay in applying any such moneys so long as the Trustee acts with reasonable
diligence, having due regard to the circumstances, and ultimately applies the same in accordance with such
provisions of the Resolution as may be applicable at the time of application by the Trustee. Whenever the
Trustee shall exercise such discretion in applying such moneys, it shall fix the date (which shall be on an
interest payment date unless the Trustee shall deem another date more suitable) upon which such
application is to be made, and upon such date interest on the amounts of principal to be paid on such date
shall cease to accrue. The Trustee shall give such notice as it may deem appropriate of the fixing of any
such date. The Trustee shall not be required to make payment to the Holder of any Bond unless such Bond
shall be presented to the Trustee for appropriate endorsement.
(Section 11.05)
Termination of Proceedings
In case any proceedings taken by the Trustee on account of any default shall have been discontinued or
abandoned for any reason or shall have been determined adversely to the Trustee, then and in every such
case the Authority, the Trustee, each Facility Provider, the University and the Bondholders shall be restored
to their former positions and rights under the Resolution, respectively, and all rights, remedies, powers and
duties of the Trustee shall continue as though no such proceeding had been commenced.
(Section 11.06)
Bondholders' Direction of Proceedings
Anything in the Resolution to the contrary notwithstanding, the Holders of a majority in principal
amount of the Outstanding Bonds or in the case of an event of default as specified in the Resolution, the
Holders of a majority in principal amount of the Outstanding Bonds of the Series affected thereby shall
have the right by an instrument in writing executed and delivered to the Trustee, to direct the method and
place of conducting all remedial proceedings to be taken by the Trustee under the Resolution and under

D-13
Appendix D

each Series Resolution, provided such direction shall not be otherwise than in accordance with law or the
provisions of the Resolution and of each Series Resolution and the Trustee shall have the right to decline to
follow any such direction which in the opinion of the Trustee would be unjustly prejudicial to Bondholders
not parties to such direction.
(Section 11.07)
Limitation of Rights of Individual Bondholders
No Holder of any of the Bonds shall have any right to institute any suit, action or proceeding in equity
or at law for the execution of any trust under the Resolution, or for any other remedy under the Resolution
unless such Holder previously shall have given to the Trustee written notice of the event of default on
account of which such suit, action or proceeding is to be instituted, and unless also the Holders of not less
than twenty-five per centum (25%) in principal amount of the Outstanding Bonds, or, in the case of an
event of default under paragraph (c) under the heading ("Event of Default" above, the Holders of not less
than twenty-five per centum (25%) in principal amount of the Outstanding Bonds of the Series affected
thereby, shall have made written request to the Trustee after the right to exercise such powers or right of
action, as the case may be, shall have accrued, and shall have afforded the Trustee a reasonable opportunity
either to proceed to exercise the powers granted by the Resolution or to institute such action, suit or
proceeding in its or their name, and unless, also, there shall have been offered to the Trustee reasonable
security and indemnity against the costs, expenses, and liabilities to be incurred therein or thereby, and the
Trustee shall have refused or neglected to comply with such request within a reasonable time. Such
notification, request and offer of indemnity are by the Resolution declared in every such case, at the option
of the Trustee, to be conditions precedent to the execution of the powers and trusts of the Resolution or for
any other remedy under the Resolution and in equity or at law. It is understood and intended that no one or
more Holders of the Bonds secured by the Resolution shall have any right in any manner whatever by his or
their action to affect, disturb or prejudice the security of the Resolution or to enforce any right under the
Resolution except in the manner provided in the Resolution, and that all proceedings at law or in equity
shall be instituted and maintained for the benefit of all Holders of the Outstanding Bonds. Notwithstanding
any other provision of the Resolution, the Holder of any Bond shall have the right which is absolute and
unconditional to receive payment of the principal of (and premium, if any) and interest on such Bond on
the stated maturity expressed in such Bond (or, in the case of redemption, on the redemption date) and to
institute suit for the enforcement of any such payment, and such right shall not be impaired without the
consent of such Holder.
(Section 11.08)
Defeasance
If the Authority shall pay or cause to be paid to the Holders of the Bonds of a Series the principal,
Sinking Fund Installments, if any, or Redemption Price of and interest thereon, at the times and in the
manner stipulated therein, in the Resolution, and in the applicable Series Resolution and Bond Series
Certificate, then the pledge of the Revenues or other moneys and securities pledged to such Bonds and all
other rights granted by the Resolution to such Bonds shall be discharged and satisfied. In such event, the
Trustee shall, upon the request of the Authority, execute and deliver such documents to evidence such
discharge and satisfaction as may be reasonably required by the Authority, and all moneys or other
securities held by it pursuant to the Resolution and to the applicable Series Resolution which are not
required for the payment or redemption of Bonds of such Series shall be paid or delivered by the Trustee as
follows: first, to the Arbitrage Rebate Fund, the amount required to be deposited therein in accordance with
the direction of an Authorized Officer of the Authority; second, to each Facility Provider, the Provider
Payments which have not been repaid, pro rata, based upon the respective Provider Payments then unpaid
to each Facility Provider; third, to the Authority the amount certified by an Authorized Officer of the
Authority to be then due or past due pursuant to the Loan Agreement for fees and expenses of the Authority
or pursuant to any indemnity; and, then, the balance thereof to the University. The securities so paid or

D-14
 Appendix D

delivered shall be released from any trust, pledge, lien, encumbrance or security interest created by the
Resolution or by the Loan Agreement.
Bonds for the payment or redemption of which moneys shall have been set aside and shall be held in
trust by the Trustee (through deposit of moneys for such payment or redemption or otherwise) at the
maturity or redemption date thereof shall be deemed to have been paid within the meaning and with the
effect expressed in the preceding paragraph. All Outstanding Bonds of any Series or any maturity within a
Series or a portion of a maturity within a Series shall prior to the maturity or redemption date thereof be
deemed to have been paid within the meaning and with the effect expressed in the preceding paragraph if
(a) in case any of such Bonds are to be redeemed on any date prior to their maturity, the Authority shall
have given to the Trustee, in form satisfactory to it, irrevocable instructions to give as provided in the
Resolution notice of redemption on such date of such Bonds, (b) there shall have been deposited with the
Trustee either moneys in an amount which shall be sufficient, or Defeasance Securities the principal of and
interest on which when due will provide moneys which, together with the moneys, if any, deposited with
the Trustee at the same time, shall be sufficient to pay when due the principal, Sinking Fund Installments, if
any, or Redemption Price, if applicable, and interest due and to become due on such Bonds on and prior to
the redemption date or maturity date thereof, as the case may be, (c) the Trustee shall have received the
written consent to such defeasance of each Facility Provider which has given written notice to the Trustee
and the Authority that amounts advanced under a Credit Facility or Liquidity Facility issued by it or the
interest thereon have not been repaid to such Facility Provider, and (d) in the event such Bonds are not by
their terms subject to redemption within the next succeeding sixty (60) days, the Authority shall have given
the Trustee, in form satisfactory to it irrevocable instructions to give, as soon as practicable, by First class
mail, postage prepaid, to the Holders of said Bonds at their last known addresses appearing on the
registration books, and, if directed by an Authorized Officer of the Authority, by publication, at least twice,
at an interval of not less than seven (7) days between publications, in an Authorized Newspaper, a notice to
the Holders of such Bonds that the deposit required by (b) above has been made with the Trustee and that
such Bonds are deemed to have been paid in accordance with this Section and stating such maturity or
redemption date upon which moneys are to be available for the payment of the principal, Sinking Fund
Installments, if any, or Redemption Price, if applicable, of and interest on such Bonds. The Authority shall
give written notice to the Trustee of its selection of the Series and maturity the payment of which shall be
made in accordance with this Section. The Trustee shall select the Bonds of like Series and maturity
payment of which shall be made in accordance with this Section in the manner provided in the Resolution.
Neither the Defeasance Securities nor moneys deposited with the Trustee pursuant to the Resolution nor
principal or interest payments on any such Defeasance Securities shall be withdrawn or used for any
purpose other than, and shall be held in trust for, the payment of the principal, Sinking Fund Installments, if
any, or Redemption Price, if applicable, of and interest on such Bonds; provided, however, that any moneys
received from such principal or interest payments on such Defeasance Securities deposited with the
Trustee, if not then needed for such purpose, shall, to the extent practicable, be reinvested in Defeasance
Securities maturing at times and in amounts sufficient to pay when due the principal, Sinking Fund
Installments, if any, or Redemption Price, if applicable, of and interest to become due on such Bonds on
and prior to such redemption date or maturity date thereof, as the case may be; and provided further,
however, that moneys and Defeasance Securities may be withdrawn and used by the Authority for any
purpose upon (i) the simultaneous substitution therefor of either moneys in an amount which shall be
sufficient, or Defeasance Securities the principal of and interest on which when due will provide moneys
which without regard to reinvestment, together with the moneys, if any, held by or deposited with the
Trustee at the same time, shall be sufficient to pay when due the principal, Sinking Fund Installments, if
any, or Redemption Price, if applicable, and interest due and to become due on such Bonds on and prior to
the redemption date or maturity date thereof, as the case may be, and (ii) receipt by the Trustee of a letter or
other written report of a firm of independent certified public accountants verifying the accuracy of the
arithmetical computations which establish the adequacy of such moneys and Defeasance Securities for such
purpose. Any income or interest earned by, or increment to, the investment of any such moneys so
deposited, shall, to the extent certified by the Trustee to be in excess of the amounts required by the

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Appendix D

Resolution to pay the principal, Sinking Fund Installments, if any, or Redemption Price, if applicable, of
and interest on such Bonds, as realized, be paid by the Trustee as follows: first, to the Arbitrage Rebate
Fund, the amount required to be deposited therein in accordance with the direction of an Authorized Officer
of the Authority; second, to each Facility Provider, the Provider Payments which have not been repaid, pro
rata, based upon the respective Provider Payments then unpaid to each Facility Provider; third, to the
Authority the amount certified by an Authorized Officer of the Authority to be then due or past due
pursuant to the Loan Agreement for fees and expenses of the Authority or pursuant to any indemnity; and,
then, the balance thereof to the University, and any such moneys so paid by the Trustee shall be released of
any trust, pledge, lien, encumbrance or security interest created by the Resolution or by the Loan
Agreement.
For purposes of determining whether Variable Interest Rate Bonds shall be deemed to have been paid
prior to the maturity or redemption date thereof, as the case may be, by the deposit of moneys, or
Defeasance Securities and moneys, if any, in accordance with the Resolution, the interest to come due on
such Variable Interest Rate Bonds on or prior to the maturity date or redemption date thereof, as the case
may be, shall be calculated at the Maximum Interest Rate permitted by the terms thereof; provided,
however, that if on any date, as a result of such Variable Interest Rate Bonds having borne interest at less
than such Maximum Interest Rate for any period, the total amount of moneys and Defeasance Securities on
deposit with the Trustee for the payment of interest on such Variable Interest Rate Bonds is in excess of the
total amount which would have been required to be deposited with the Trustee on such date in respect of
such Variable Interest Rate Bonds in order to satisfy clause (ii) of the second sentence of the preceding
paragraph, the Trustee shall, if requested by the Authority, pay the amount of such excess to the Authority
free and clear of any trust, pledge, lien, encumbrance or security interest created by the Resolution or by the
Loan Agreement.
Option Bonds shall be deemed to have been paid in accordance with the Resolution only if, in addition
to satisfying the requirements of clauses (i) and (iii) above, there shall have been deposited with the Trustee
moneys in an amount which shall be sufficient to pay when due the maximum amount of principal of and
Redemption Price, if any, and interest on such Bonds which could become payable to the Holders of such
Bonds upon the exercise of any options provided to the Holders of such Bonds; provided, however, that if,
at the time a deposit is made with the Trustee pursuant to the Resolution, the options originally exercisable
by the Holder of an Option Bond are no longer exercisable, such Bond shall not be considered an Option
Bond for purposes of this paragraph. If any portion of the moneys deposited with the Trustee for the
payment of the principal of and Redemption Price, if any, and interest on Option Bonds is not required for
such purpose, the Trustee shall, if requested by the Authority, pay the amount of such excess to the
Authority free and clear of any trust, pledge, lien, encumbrance or security interest created by the
Resolution or by the Loan Agreement.
Anything in the Resolution to the contrary notwithstanding, any moneys held by the Trustee in trust for
the payment and discharge of any of the Bonds of a Series or the interest thereon which remain unclaimed
for one (1) year after the date when all of the Bonds of such Series have become due and payable either at
their stated maturity dates or by call for earlier redemption, if such moneys were held by the Trustee at such
date, or for one (1) year after the date of deposit of such moneys if deposited with the Trustee after such
date when all of the Bonds of such Series become due and payable, shall, at the written request of the
Authority, be repaid by the Trustee to the Authority as its absolute property and free from trust, and the
Trustee shall thereupon be released and discharged and the Holders shall look only to the Authority for
payment of such Bonds; provided, however, that, before being required to make any such payment to the
Authority, the Trustee may, at the expense of the Authority cause to be published in an Authorized
Newspaper a notice that such moneys remain unclaimed and that, after a date named in such notice, which
date shall be not less than thirty (30) nor more than sixty (60) days after the date of publication of such
notice, the balance of such moneys then unclaimed shall be returned to the Authority.
(Section 12.01)

D-16
 Appendix E

FORM OF APPROVING OPINION

OF BOND COUNSEL
[THIS PAGE INTENTIONALLY LEFT BLANK]
 Appendix E

FORM OF APPROVING OPINION OF BOND COUNSEL

RELATING TO THE SERIES 2009A BONDS

[Date of Issuance]

Dormitory Authority of the

State of New York
515 Broadway
Albany, New York 12207
Ladies and Gentlemen:
We have examined a record of proceedings relating to the issuance of $117,000,000 aggregate principal amount
of Columbia University Revenue Bonds, Series 2009A (the “Series 2009A Bonds”), by the Dormitory Authority of
the State of New York (the “Authority”), a body corporate and politic constituting a public benefit corporation of the
State of New York, created and existing under and pursuant to the Constitution and statutes of the State of New
York, including the Dormitory Authority Act, being Title 4 of Article 8 of the Public Authorities Law of the State of
New York, as amended to the date hereof, including, without limitation, by the Healthcare Financing Consolidation
Act, being Title 4-B of the Public Authorities Law of the State of New York, as amended to the date hereof (the
“Act”). We have also examined such certificates, documents, records and matters of law as we have deemed
necessary for the purpose of rendering the opinions hereinafter set forth.
The Series 2009A Bonds are issued under and pursuant to the Act and the Columbia University Revenue Bond
Resolution of the Authority, adopted September 27, 2000, as amended and supplemented to the date hereof (the
“Resolution”), the Series Resolution Authorizing Up To $117,285,000 Columbia University Revenue Bonds,
adopted April 29, 2009 (the “Series 2009A Resolution”), and the Bond Series Certificate, dated as of May , 2009,
executed by the Authority and relating to the Series 2009A Bonds (the “Bond Series Certificate”). Said resolutions
and Bond Series Certificate are herein collectively called the “Resolutions.” Unless otherwise defined herein,
capitalized terms used herein have the respective meanings given to them in the Resolutions.
The Series 2009A Bonds are part of an issue of bonds of the Authority (the “Bonds”) which the Authority has
established and created under the terms of the Resolution and is authorized to issue from time to time for the
purposes authorized by the Act and the Resolution, as then in effect, and without limitation as to amount, except as
provided in the Resolutions or as may be limited by law. The Series 2009A Bonds are being issued for the purposes
set forth in the Resolutions.
The Authority is authorized to issue Bonds, in addition to the Series 2009A Bonds, only upon the terms and
conditions set forth in the Resolution and such Bonds, when issued, will with the Series 2009A Bonds be entitled to
the equal benefit, protection and security of the provisions, covenants and agreements of the Resolution.
The Series 2009A Bonds are dated the date hereof and mature on September 1, 2039 in the aggregate principal
amount of $117,000,000. The Series 2009A Bonds are initially issued as Variable Interest Rate Bonds and, until
converted to a different Rate Mode, bear interest at Weekly Rates determined in accordance with the Bond Series
Certificate. The Series 2009A Bonds are issued in the form of fully registered bonds in denominations of $100,000
or an integral multiple of $5,000 in excess thereof. The Series 2009A Bonds are subject to redemption and purchase
in lieu of optional redemption prior to maturity, and to mandatory and optional tender for purchase, as provided in
the Bond Series Certificate.
The Series 2009A Bonds are being issued to finance a loan by the Authority to the Trustees of Columbia
University in The City of New York (the “University”). The Authority and the University have entered into a Loan
Agreement, dated as of September 27, 2000 as amended and supplemented (the “Loan Agreement”), by which the
University is required to make payments sufficient to pay, when due, the principal and Redemption Price of and
interest on the Outstanding Bonds, including the Series 2009A Bonds as well as a part of the Authority’s annual
administrative expenditures and costs. All amounts payable under the Loan Agreement for payment of the principal
or Redemption Price of or interest on the Bonds are required to be paid to the Trustee under the Resolution and have
been pledged by the Authority for the benefit of the Holders of the Bonds, including the Series 2009A Bonds.

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Appendix E

We are of the opinion that:

1. The Authority is a body corporate and politic constituting a public benefit corporation of the State of New
York, with the right and lawful authority and power to adopt the Resolutions and to issue the Series 2009A Bonds
thereunder.
2. The Series 2009A Resolution has been duly adopted by the Authority in accordance with the provisions of
the Resolution and is authorized and permitted by the Resolution. The Resolutions have been duly and lawfully
adopted by the Authority, are in full force and effect and are legal, valid and binding obligations of the Authority
enforceable in accordance with their respective terms.
3. The Series 2009A Bonds have been duly and validly authorized and issued in accordance with the
Constitution and statutes of the State of New York, including the Act, and in accordance with the Resolutions. The
Series 2009A Bonds are legal, valid and binding special obligations of the Authority payable as provided in the
Resolutions, are enforceable in accordance with their terms and the terms of the Resolutions and are entitled,
together with all other Bonds issued under the Resolutions, to the equal benefits of the Resolutions and the Act.
4. The Authority has the right and lawful authority and power to enter into the Loan Agreement and the Loan
Agreement has been duly authorized, executed and delivered by the Authority and constitutes a legal, valid and
binding obligation of the Authority enforceable in accordance with its terms.
5. The Internal Revenue Code of 1986, as amended (the “Code”) sets forth certain requirements that must be
met subsequent to the issuance and delivery of the Series 2009A Bonds for interest thereon to be and remain
excluded from gross income for federal income tax purposes. Noncompliance with such requirements could cause
the interest on the Series 2009A Bonds to be included in gross income for federal income tax purposes retroactive to
the date of issue of the Series 2009A Bonds. The Authority has covenanted in the Series 2009A Resolution and the
Tax Certificate as to Arbitrage and the Provisions of Sections 141-150 of the Internal Revenue Code (the “Tax
Certificate”) and the University has covenanted in the Loan Agreement and the Tax Certificate to comply with the
applicable requirements of the Code in order to maintain the exclusion of the interest on the Series 2009A Bonds
from gross income for federal income tax purposes pursuant to Section 103 of the Code. In addition, the Authority
and the University have made certain representations and certifications in the Tax Certificate. We have also relied
on the opinion of counsel to the University as to all matters concerning the status of the University as an
organization described in Section 501(c)(3) of the Code and exempt from federal income tax under Section 501(a) of
the Code. We have not independently verified the accuracy of those certifications and representations or that
opinion.
Under existing law and assuming compliance with the tax covenants described herein, and the accuracy of the
aforementioned representations and certifications, interest on the Series 2009A Bonds is excluded from gross
income for federal income tax purposes under Section 103 of the Code. We are also of the opinion that such interest
is not treated as a preference item in calculating the alternative minimum tax imposed under the Code with respect to
individuals and corporations. Interest on the Series 2009A Bonds is excluded from adjusted current earnings of
corporations for purposes of computing the alternative minimum tax imposed on corporations.
6. Interest on the Series 2009A Bonds is exempt, by virtue of the Act, from personal income taxes of the State
of New York and its political subdivisions, including The City of New York and the City of Yonkers.
Except as stated in paragraphs 5 and 6 above, we express no opinion as to any other federal or state tax
consequences of the ownership or disposition of the Series 2009A Bonds. Furthermore, we express no opinion as to
any federal, state or local tax law consequences with respect to the Series 2009A Bonds, or the interest thereon, if
any action is taken with respect to the Series 2009A Bonds or the proceeds thereof upon the advice or approval of
other counsel.
We have examined an executed Series 2009A Bond and, in our opinion, the form of said Bond and its execution
are regular and proper.
The opinions contained in paragraphs 2, 3 and 4 above are qualified to the extent that the enforceability of the
Resolutions, the Loan Agreement and the Series 2009A Bonds may be limited by bankruptcy, insolvency,
moratorium, reorganization or other laws affecting creditors’ rights generally or as to the availability of any
particular remedy.

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 Appendix E

In connection with the delivery of this opinion, we are not passing upon the authorization, execution and
delivery of the Loan Agreement by the University. We have assumed the due authorization, execution and delivery
of the Loan Agreement by the University.
Very truly yours,

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