$21,115,000 DELAWARE COUNTY AUTHORITY (Pennsylvania) Revenue Bonds (Eastern University) Series of 2012

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1 NEW ISSUE BOOK-ENTRY ONLY STANDARD & POOR S: BBB- (See RATING herein) In the opinion of Bond Counsel, under existing law and assuming continuing compliance by the Issuer and the University with the requirements of the Internal Revenue Code of 1986, as amended (the Code ), and the regulations thereunder, that relate to the 2012 Bonds, the interest on the 2012 Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. However, for the purpose of computing the alternative minimum tax imposed on certain corporations (as defined for federal income tax purposes), interest on the 2012 Bonds is taken into account in determining adjusted current earnings. In the opinion of Bond Counsel, under existing law, the 2012 Bonds are exempt from personal property taxes in Pennsylvania, and the interest on the 2012 Bonds is exempt from Pennsylvania personal income tax and Pennsylvania corporate net income tax. For a more complete discussion, see TAX MATTERS. $21,115,000 DELAWARE COUNTY AUTHORITY (Pennsylvania) Revenue Bonds (Eastern University) Series of 2012 Dated: Date of Delivery Principal Due: October 1, as shown on inside cover Interest Payable: April 1 and October 1 First Interest Payment: October 1, 2012 The Delaware County Authority (the Authority ) Revenue Bonds (Eastern University), Series of 2012 (the 2012 Bonds ) will be issued under and secured by a Trust Indenture dated as of June 1, 2012 (the Indenture ) by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the Trustee ). The 2012 Bonds will be issued only as fully registered bonds without coupons and, when issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ( DTC ), which will act as securities depository for the 2012 Bonds. Purchases of the 2012 Bonds will be made in book-entry form, in denominations of $5,000 or any integral multiple thereof. See, THE 2012 BONDS Book-Entry Only System herein. The principal or redemption price of the 2012 Bonds will be payable upon presentation and surrender thereof at the designated office of the Trustee. Interest on the 2012 Bonds will be payable on April 1 and October 1 each year, commencing October 1, 2012, by check mailed (or in certain circumstances by wire transfer) to the registered owners thereof by the Trustee. So long as DTC or its nominee, Cede & Co., is the registered owner of the 2012 Bonds, payments of the principal or redemption price of, and interest on, the 2012 Bonds will be made to DTC. The 2012 Bonds are payable from amounts received from Eastern University (the University ) pursuant to a Loan Agreement dated as of June 1, 2012 between the Authority and the University (described herein) and certain funds held under the Indenture. The proceeds of the 2012 Bonds will be used by the University to refund certain outstanding debt of the University, to finance certain capital projects of the University, to fund the Debt Service Reserve Fund for the 2012 Bonds and to pay the costs of issuing the 2012 Bonds. There are risks associated with an investment in the 2012 Bonds, some of which are described under RISK FACTORS herein. The 2012 Bonds will be subject to redemption prior to maturity as described herein. See THE 2012 BONDS Redemption herein. THE 2012 BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY AND ARE PAYABLE SOLELY FROM THE SOURCES REFERRED TO IN THE INDENTURE PURSUANT TO WHICH THE 2012 BONDS ARE ISSUED AND SECURED, AND THE 2012 BONDS SHALL NOT BE OR BE DEEMED AN OBLIGATION OF THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION THEREOF. NEITHER THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA NOR ANY POLITICAL SUBDIVISION THEREOF IS OR SHALL BE OBLIGATED TO PAY THE PRINCIPAL OR PURCHASE PRICE OF OR PREMIUM, IF ANY, OR INTEREST ON THE 2012 BONDS, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO SUCH PAYMENT. THE AUTHORITY HAS NO TAXING POWER. THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. Maturity Schedule on Inside Cover Page The 2012 Bonds are offered when, as and if issued by the Authority, subject to prior sale, withdrawal or modification of the offer without any notice and to the approving opinion of Reed Smith LLP, Philadelphia, Pennsylvania, Bond Counsel. Certain legal matters will be passed upon for the Underwriters by its counsel, McNees Wallace & Nurick LLC, Lancaster, Pennsylvania. Certain legal matters will be passed upon for the University by its counsel, Reed Smith LLP, Philadelphia, Pennsylvania. Certain legal matters will be passed upon for the Authority by McNichol, Byrne & Matlawski, P.C., Media, Pennsylvania.. It is expected that 2012 Bonds in definitive form will be delivered to the Trustee, as custodian for DTC, on or about June 29, PNC CAPITAL MARKETS LLC TD Securities (USA) LLC NW Capital Markets Inc. The date of this Official Statement is June 7, 2012.

2 $21,115,000 DELAWARE COUNTY AUTHORITY (Pennsylvania) Revenue Bonds (Eastern University) Series of 2012 Dated: Date of Delivery Principal Due: October 1, as shown below Interest Due: April 1 and October 1 First Interest Payment: October 1, 2012 MATURITY DATES, PRINCIPAL AMOUNTS, INTEREST RATES AND PRICES Maturity Principal Amount Interest Rate Yield Price CUSIP ** No $805, % 1.38% % KP , KQ , KR , KS , KT , KU , KV , KW7 $2,475, % Term Bonds Due October 1, 2022, priced to yield at 4.17%; CUSIP: KX5 $6,385, % Term Bonds Due October 1, 2027, priced to yield at 4.60%*; CUSIP: KY3 $6,965, % Term Bonds Due October 1, 2032, priced to yield at 4.90%*; CUSIP: KZ0 * Yield to first call date of October 1, **The above CUSIP (Committee on Uniform Securities Identification Procedures) numbers have been assigned by an organization not affiliated with the Authority, the University or the Underwriters, and such parties are not responsible for the selection or use of the CUSIP numbers. The CUSIP numbers are included solely for the convenience of bondholders and no representation is made as to the correctness of such CUSIP numbers. CUSIP numbers assigned to securities may be changed during the term of such securities based on a number of factors including, but not limited to, the refundings or defeasance of such issue or the use of secondary market financial products. None of the Authority, the University or the Underwriter has agreed to, and there is no duty or obligation to, update this Official Statement to reflect any change or correction in the CUSIP numbers set forth above.

3 DELAWARE COUNTY AUTHORITY Media, Pennsylvania BOARD MEMBERS Francis J. Catania, Esq., Chairman Thomas P. Wagner, Esq., Vice Chairman Paul J. Wechsler III, Secretary Patrick V. Larkin Jr., Treasurer Michael H. Dougherty, Assistant Secretary/Assistant Treasurer AUTHORITY COUNSEL McNichol, Byrne & Matlawski, P.C. Media, Pennsylvania UNIVERSITY Eastern University St. Davids, Pennsylvania UNIVERSITY COUNSEL Reed Smith LLP Philadelphia, Pennsylvania BOND COUNSEL Reed Smith LLP Philadelphia, Pennsylvania TRUSTEE The Bank of New York Mellon Trust Company, N.A. Philadelphia, Pennsylvania UNDERWRITERS PNC Capital Markets LLC Philadelphia, Pennsylvania TD Securities (USA) LLC New York, New York NW Capital Markets Inc. Rosemont, Pennsylvania UNDERWRITERS' COUNSEL McNees Wallace & Nurick LLC Lancaster, Pennsylvania FINANCIAL ADVISOR First Southwest Company Dallas, Texas

4 This Official Statement does not constitute an offering of any security, other than the original offering of the 2012 Bonds identified on the cover hereof. No dealer, broker, salesman or other person has been authorized by the Authority, the University or the Underwriters to give any information or to make any representation other than those contained in this Official Statement, and if given or made, such other information or representation must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, and there shall not be any sale of the 2012 Bonds by any person in any jurisdiction in which it is unlawful to make such offer, solicitation, or sale. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor the sale of the 2012 Bonds shall, under any circumstances, create any implication that the information herein is correct as of any time subsequent to the date hereof. The information set forth herein has been obtained from the Authority, the University, DTC and other sources that are believed to be reliable, but the Underwriters do not guarantee the accuracy or completeness of such information, such information is not to be construed as a representation by the Underwriters and, except for the information concerning the Authority, such information is not to be construed as a representation by the Authority. The order and placement of materials in this Official Statement, including the appendices, are not to be deemed a determination of relevance, materiality or importance, and this Official Statement, including the appendices, must be considered in its entirety. The captions and headings in this Official Statement are for convenience only and in no way define, limit or describe the scope or intent, or affect the meaning or construction, of any provisions or sections of this Official Statement. The offering of the 2012 Bonds is made only by means of this entire Official Statement. No quotations from or summaries or explanations of provisions of law and documents herein purport to be complete and reference is made to such laws and documents for full and complete statements of their provisions. This Official Statement is not to be construed as a contract or agreement between the Authority, the University and the purchasers or holders of any of the securities described herein. Any statements made in this Official Statement involving estimates or matters of opinion, whether or not expressly, so stated, are intended merely as estimates or opinions and not as representations of fact. The cover page here, list of officials, this page and the Appendices attached hereto are part of this Official Statement. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVER-ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 2012 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME WITHOUT PRIOR NOTICE. THE 2012 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 NOR HAS THE INDENTURE BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS, THE REGISTRATION OR QUALIFICATION OF THE 2012 BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS OF SECURITIES LAWS OF THE STATES IN WHICH THE 2012 BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN THE OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE 2012 BONDS OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER FEDERAL, STATE, OR OTHER GOVERNMENTAL ENTITY WILL HAVE PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT OR APPROVED THE 2012 BONDS FOR SALE.

5 TABLE OF CONTENTS Page OFFICIAL STATEMENT SUMMARY... i The Authority... i The University... i The Trustee... i The 2012 Bonds... i Security for 2012 Bonds... i Parity Obligations... ii Other Indebtedness... ii Risk Factors... ii INTRODUCTORY STATEMENT... 1 THE AUTHORITY... 2 EASTERN UNIVERSITY... 3 THE CAPITAL PROJECTS... 4 PLAN OF FINANCING... 4 Estimated Sources and Uses of Funds... 4 Sources of Funds... 4 Uses of Funds... 4 THE 2012 BONDS... 4 General... 4 Registration, Transfer and Exchange of 2012 Bonds... 5 Redemption... 6 Optional Redemption... 6 Mandatory Sinking Fund Redemption... 6 Extraordinary Redemption... 7 Procedure for Redemption... 7 Book-Entry Only System... 8 SECURITY AND SOURCES OF PAYMENT FOR 2012 BONDS The Indenture Debt Service Reserve Fund The Loan Agreement Pledge of University Collateral Additional Bonds and Other Indebtedness RISK FACTORS General Legislative and Regulatory Actions Competition Covenant to Maintain Tax-Exempt Status of the 2012 Bonds Risks Associated with the Loss of Tax Exempt Status of the University Enforceability of Remedies Bond Rating Investment Risks of the University Risks Relating to Security for the 2012 Bonds... 14

6 Potential Effects of Bankruptcy Recent Economic Downturn Other Risk Factors TAX MATTERS Federal Tax Exemption Pennsylvania CERTAIN LEGAL MATTERS CONTINUING DISCLOSURE UNDERTAKING FINANCIAL STATEMENTS LITIGATION LIMITED OBLIGATIONS RATING UNDERWRITING CERTAIN RELATIONSHIPS AMONG THE PARTIES FINANCIAL ADVISOR MISCELLANEOUS APPENDIX A - INFORMATION REGARDING THE UNIVERSITY... A-1 APPENDIX B -EASTERN UNIVERSITY AUDIT REPORT FOR FISCAL YEAR ENDED JUNE 30, B-1 APPENDIX C - DEFINITIONS OF CERTAIN TERMS AND SUMMARY OF CERTAIN PROVISIONS OF THE FINANCING DOCUMENTS... C-1 APPENDIX D - PROPOSED FORM OF OPINION OF BOND COUNSEL... D-1

7 OFFICIAL STATEMENT SUMMARY The following is a summary of certain information contained in this Official Statement, to which reference should be made for a complete statement thereof. The 2012 Bonds are offered to potential investors only by means of the entire Official Statement, which includes the cover page and reverse thereof, this Summary and the Appendices to the Official Statement. No person is authorized to detach this Summary from the Official Statement or otherwise use it without the entire Official Statement, including the cover page and reverse thereof, this Summary and the Appendices. The Authority Delaware County Authority is a public instrumentality of the Commonwealth of Pennsylvania and a body corporate and politic and a municipal authority created under the Pennsylvania Municipality Authorities Act, as amended. The University The University, a Pennsylvania nonprofit corporation, is a private nonsectarian, co-educational college of liberal arts and sciences with selected professional and pre-professional programs. The University's main campus is located in St. Davids, Radnor Township, Delaware County, Pennsylvania. The Trustee The Authority has appointed The Bank of New York Mellon Trust Company, N.A., a national banking association duly organized and validly existing under the laws of the United States of America, acting through its corporate trust office in the city of Philadelphia, Pennsylvania, to serve as the Trustee under the Indenture. The 2012 Bonds The 2012 Bonds are issued and secured pursuant to the Indenture. The 2012 Bonds are subject to optional and mandatory redemption, as set forth herein. (See THE 2012 BONDS -- Redemption herein.) The proceeds of the sale of the 2012 Bonds will be used to fund a loan to the University, to finance the (a) refunding of the entire outstanding aggregate principal amount of the Delaware County Authority College Revenue Bonds (Eastern College), Series B of 1999, (b) refunding of the entire outstanding aggregate principal amount of the Delaware County Authority College Revenue Bonds (Eastern College), Series C of 1999, (c) refunding of the entire outstanding principal balance of a Note issued by the University to Valley Forge Military Academy Foundation (the VFMA Note ) in connection with the acquisition of certain real property by the University, (d) funding of a portion of the costs of certain new capital projects of the University at its main campus, such new projects consisting generally of the construction, equipping and furnishing of a new student center and certain renovations and improvements to the McInnis Learning Center, (e) the funding of a Debt Service Reserve Fund, and (f) payment of the costs of issuance for the 2012 Bonds. See "PLAN OF FINANCING" herein. The Depository Trust Company ( DTC ) will act as securities depository for the 2012 Bonds, and the 2012 Bonds will be registered in the name of Cede & Co., as registered owner and nominee for DTC. Individual purchases of 2012 Bonds will be made in book-entry form, in the authorized denomination of $5,000 or any integral multiple thereof. So long as Cede & Co. or any successor nominee of DTC is the registered owner of the 2012 Bonds, references herein to the 2012 Bondholders, Holders, holders, owners or registered owners shall mean Cede & Co., or such successor nominee, and shall not mean the Beneficial Owners (hereinafter defined) of the 2012 Bonds. Principal of and interest on the 2012 Bonds are payable by the Trustee, to Cede & Co., as nominee for DTC, which will, in turn, remit such principal and interest to the DTC Participants for subsequent disbursement to the Beneficial Owners. See THE 2012 BONDS Book-Entry Only System herein. Security for 2012 Bonds The Authority and the University will enter into the Loan Agreement, pursuant to which the Authority will loan the proceeds of the 2012 Bonds to the University. Under the Loan Agreement, the University will be obligated to make loan payments at such times and in such amounts so as to enable the Authority to pay the principal or redemption i

8 price of, and interest on, all 2012 Bonds as and when due. The Authority will assign the Loan Agreement and its right to receive loan payments thereunder (other than certain fees and indemnification payments required to be made to the Authority and amounts required to be rebated to the federal government) to the Trustee as security for the 2012 Bonds. The 2012 Bonds also will be secured by money and investments from time to time on deposit in certain funds and accounts held by the Trustee under the Indenture, including the Debt Service Reserve Fund established under the Indenture. No party, other than the University, is providing any security for the University's obligations under the Loan Agreement or for the payments due on the 2012 Bonds. THE 2012 BONDS SHALL NOT BE OR BE DEEMED AN OBLIGATION OF THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION THEREOF. NEITHER THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA NOR ANY POLITICAL SUBDIVISION THEREOF IS OR SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE 2012 BONDS, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO SUCH PAYMENT. THE AUTHORITY HAS NO TAXING POWER. Parity Obligations The 2012 Bonds will be issued on a parity with respect to certain collateral with (a) the Authority's College Revenue Bonds (Eastern College), Series A of 1999 (Federally Taxable) (the "1999A" Bonds) issued under and pursuant to a Trust Indenture dated as of March 1, 1999 between the Authority and The Bank of New York Mellon Trust Company, N.A., as successor trustee; (b) the obligations of the University under a reimbursement agreement with respect to an irrevocable letter of credit issued by TD Bank, N.A. to secure the 1999A Bonds (the "TD Bank Reimbursement Agreement"); and (c) the Authority's Revenue Bonds (Eastern University), Series of 2006 (the "2006 Bonds," and together with the 1999A Bonds and the TD Bank Reimbursement Agreement, the "Parity Obligations"), issued under and pursuant to a Trust Indenture dated as of October 1, 2006 between the Authority and The Bank of New York Mellon Trust Company, N.A., trustee. The 2012 Bonds and the Parity Obligations will be secured on an equal and ratable basis, with each other and with certain other existing and future debt of the University, by a lien on certain revenues of the University, and by a mortgage lien on a building owned by the University (subject to release as described herein). Other Indebtedness. The Authority, at the request of the University, may issue Additional Bonds under the Indenture for certain specified purposes, upon compliance with the terms and conditions of the Indenture (any such Additional Bonds, together with the 2012 Bonds, are referred to herein collectively as the "Bonds"). Such Additional Bonds may be secured on a parity with the 2012 Bonds as to certain sources of payment or security, including the Debt Service Reserve Fund. The University may incur additional indebtedness, upon compliance with certain conditions set forth in the Loan Agreement. To the extent permitted under the Loan Agreement, such additional indebtedness may be secured by liens on and security interests in revenues and property of the University provided that, in certain cases, a parity security interest is also granted to secure the Bonds under the Indenture. See "SUMMARY OF CERTAIN PROVISIONS OF THE LOAN AGREEMENT Security for Permitted Indebtedness and Interest Rage Hedge Agreement" in APPENDIX C hereto. Risk Factors There are risks associated with an investment in the 2012 Bonds. There is no assurance that the University will generate sufficient revenues to meet its obligations under the Loan Agreement. For a discussion of certain risks associated with the purchase of the 2012 Bonds, see "RISK FACTORS" herein. ii

9 OFFICIAL STATEMENT $21,115,000 DELAWARE COUNTY AUTHORITY (Pennsylvania) Revenue Bonds (Eastern University) Series of 2012 INTRODUCTORY STATEMENT This Official Statement, including the cover page, the table of contents page, the Official Statement Summary and the Appendices, is provided to furnish information with respect to the Revenue Bonds (Eastern University), Series of 2012 in the aggregate principal amount of $21,115,000 (the 2012 Bonds ) being issued by the Delaware County Authority (the Authority ). The 2012 Bonds are being issued pursuant to a Trust Indenture dated as of June 1, 2012 (the Indenture ) between the Authority and The Bank of New York Mellon Trust Company, N.A., a national banking association duly organized and validly existing under the laws of the United States of America, acting through its corporate trust office in the city of Philadelphia, Pennsylvania, as trustee (the Trustee ). The 2012 Bonds will be dated the date of their original issuance and initial authentication and delivery, will mature on the dates set forth on the inside cover page hereof and will be subject to redemption prior to maturity as described herein under THE 2012 BONDS -- Redemption. Capitalized terms used in this Official Statement have the meanings specified herein and in APPENDIX C hereto. Terms not otherwise defined in this Official Statement have the meanings provided in the specific documents. The Authority will issue the 2012 Bonds for the benefit of Eastern University (the University ), a Pennsylvania nonprofit corporation. The Authority will loan the proceeds of the 2012 Bonds to the University pursuant to a Loan Agreement dated as of June 1, 2012 (the Loan Agreement ), and in consideration of such loan, the University will agree to make payments to the Trustee in such amounts and at such times as are required to provide for timely payment of the principal, premium, if any, and interest on the 2012 Bonds. The Authority will assign the Loan Agreement and its right to receive loan payments thereunder (excepting only the right of the Authority to indemnification by the University under the Loan Agreement and to payments to the Authority or for its account for fees and expenses incurred by the Authority or its agents or employees on its behalf) to the Trustee as security for the 2012 Bonds. The proceeds of the 2012 Bonds will be used to provide funds to finance the project (the "Project") of the University, consisting generally of the (a) refunding of the entire outstanding aggregate principal amount of the Delaware County Authority College Revenue Bonds (Eastern College), Series B of 1999 (the Series B of 1999 Bonds ), (b) refunding of the entire outstanding aggregate principal amount of the Delaware County Authority College Revenue Bonds (Eastern College), Series C of 1999 (the Series C of 1999 Bonds ), (c) refunding of the entire outstanding principal balance of a Note issued by the University to Valley Forge Military Academy Foundation in connection with the acquisition of certain real property by the University from said Foundation (the VFMA Note, and together with the Series B of 1999 Bonds and the Series C of 1999 Bonds, the "Refunded Obligations"), (d) funding of a portion of the costs of certain new capital projects of the University at its main campus at 1300 Eagle Road, Radnor Township, Delaware County, Pennsylvania 19087, such new projects consisting generally of the construction, equipping and furnishing of a new student center and certain renovations and improvements to the McInnis Learning Center, (e) funding of the Debt Service Reserve Fund; and (f) the financing of the costs of issuance of the 2012 Bonds. (The refundings described in clauses (a), (b) and (c) are sometimes referred to as the "Refunding Project" and the capital projects described in clause (d) are sometimes referred to as the Capital Projects.") There is established and created under the Indenture, the Debt Service Reserve Fund which will be maintained for the payment of the principal of and interest on the 2012 Bonds (and, potentially, Additional Bonds issued under the 1

10 Indenture) in the event that other funds available under the Indenture for payment thereof are insufficient. Upon the issuance of the 2012 Bonds, there will be deposited in the Debt Service Reserve Fund an amount which will equal the initial Debt Service Reserve Requirement. See "SECURITY AND SOURCES OF PAYMENT FOR THE 2012 BONDS" herein and "DEFINITIONS OF CERTAIN TERMS AND SUMMARY OF CERTAIN PROVISIONS OF THE FINANCING DOCUMENTS" in APPENDIX C hereto. The 2012 Bonds will be issued on a parity with respect to certain collateral with (a) the Authority's College Revenue Bonds (Eastern College), Series A of 1999 (Federally Taxable) (the "1999A" Bonds) issued under and pursuant to a Trust Indenture dated as of March 1, 1999 between the Authority and The Bank of New York Mellon Trust Company, N.A., as successor trustee; (b) the obligations of the University under a reimbursement agreement with respect to an irrevocable letter of credit issued by TD Bank, N.A. to secure the 1999A Bonds (the "TD Bank Reimbursement Agreement"), and (c) the Authority's Revenue Bonds (Eastern University), Series of 2006 (the "2006 Bonds," and together with the 1999A Bonds and the TD Bank Reimbursement Agreement, the "Parity Obligations"), issued under and pursuant to a Trust Indenture dated as of October 1, 2006 between the Authority and The Bank of New York Mellon Trust Company, N.A., trustee. The 1999A Bonds are currently outstanding in the aggregate principal amount of $4,400,000 and the 2006 Bonds are currently outstanding in the aggregate principal amount of $14,425,000. The 2012 Bonds and the Parity Obligations will be secured on an equal and ratable basis, with each other and with certain other existing and future debt of the University by a lien on certain revenues of the University and by a mortgage lien on a building owned by the University (subject to release as described herein). See "SECURITY AND SOURCES OF PAYMENT FOR THE 2012 BONDS" herein and "DEFINITIONS OF CERTAIN TERMS AND SUMMARY OF CERTAIN PROVISIONS OF THE FINANCING DOCUMENTS" in APPENDIX C hereto. No party, other than the University, is providing any security for the University's obligations under the Loan Agreement or for the payments due on the 2012 Bonds. THE 2012 BONDS SHALL NOT BE OR BE DEEMED AN OBLIGATION OF THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION THEREOF. NEITHER THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA NOR ANY POLITICAL SUBDIVISION THEREOF IS OR SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE 2012 BONDS, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO SUCH PAYMENT. THE AUTHORITY HAS NO TAXING POWER. There follows herein brief descriptions of the Authority and the 2012 Bonds, together with summaries of the Indenture, the Loan Agreement, the Security Agreement, the Mortgage and the Collateral Agency Agreement (each as hereinafter defined). Information regarding the University, together with the University's audited financial statements, are included in APPENDIX A and APPENDIX B hereto, respectively. A summary of certain provisions of the Indenture, the Loan Agreement, the Security Agreement, the Mortgage and the Collateral Agency Agreement is included as APPENDIX C to this Official Statement. The description and summaries of the Indenture, the Loan Agreement, the Security Agreement, the Mortgage, the Collateral Agency Agreement and other documents contained herein do not purport to be comprehensive and are qualified in their entirety by reference to such documents, and all references to the 2012 Bonds are qualified in their entirety by the definitive form thereof included in the Indenture. Copies of such documents will be available for inspection during the initial offering period at the offices of PNC Capital Markets LLC, on behalf of itself and the other Underwriters shown on the cover hereof (the "Underwriters"), 1600 Market Street, Philadelphia, Pennsylvania, and thereafter at the corporate trust office of the Trustee in Philadelphia, Pennsylvania. THE AUTHORITY The Authority is a body politic and corporate created by an ordinance of the Board of County Commissioners (now the County Council) of the County of Delaware, Pennsylvania pursuant to the Pennsylvania Municipality Authorities Act, as amended (the "Act"). The Authority was incorporated under its original name, Delaware County 2

11 Hospital Authority, on August 15, By amendment of its Articles of Incorporation, the Authority s name was changed to its present name, effective August 17, The Authority s address is Delaware County Authority, 201 North Jackson Street, Media, Pennsylvania The Authority is authorized by the Act and by its Articles of Incorporation to finance, among other projects, buildings and facilities for private, nonprofit, nonsectarian colleges and universities, provided that, prior to approving any project for any college or university, the Authority determines, pursuant to regulations adopted by it, that such college or university qualifies as an "eligible educational institution" by being neither a theological seminary, or school of theology, nor a sectarian and denominational institution. The Authority has determined that the University qualifies as an "eligible educational institution" for financing through the Authority. The Act grants to the Authority the power to issue the 2012 Bonds, to enter into the Indenture and the Loan Agreement, and to perform its obligations thereunder. The governing body of the Authority is a Board (the "Board") consisting of five members appointed by the County Council, whose Council members are elected officials. Members of the Authority s Board are appointed for staggered five-year terms. A member of the Board may be reappointed at the expiration of his or her term. Board members serve until replaced. The present members of the Authority s Board are: Member Office Occupation Term Expires Francis J. Catania, Esq. Chairman Attorney January 1, 2014 Thomas P. Wagner, Esq. Vice Chairman Attorney January 1, 2013 Paul J. Wechsler III Secretary Businessperson January 1, 2016 Patrick V. Larkin Jr. Treasurer Businessperson January 1, 2015 Michael H. Dougherty Assistant Secretary/Assistant Treasurer Engineer January 1, 2017 The 2012 Bonds are limited obligations of the Authority. See "LIMITED OBLIGATIONS" herein. The Authority has heretofore issued other series of bonds and notes. Each series of bonds or notes issued by the Authority is payable only from revenues provided by the institution for which such series was issued, and the general funds of the Authority are not pledged to the payment or security of any such securities. Accordingly, moneys available for the payment of such other issues will not be available for the payment of the 2012 Bonds, nor will the moneys available for the payment of the 2012 Bonds be available for the payment of such other issues or any future bond or note issues, except to the extent that the 2012 Bonds are refunded thereby or such other bonds are issued under the Indenture, and except that certain collateral granted by the University to secure the 2012 Bonds will also secure the 1999A Bonds and 2006 Bonds and may secure future indebtedness issued by or on behalf of the University. The Authority has not prepared or assisted in the preparation of this Official Statement, except the statements with respect to the Authority contained under the caption "LITIGATION" and this caption and, except as aforesaid, the Authority is not responsible for any statements made in this Official Statement. Except for the execution and delivery of documents required to effect the issuance of the 2012 Bonds, the Authority has not otherwise assisted in the public offer, sale or distribution of the 2012 Bonds. Accordingly, except as aforesaid, the Authority disclaims responsibility for the disclosures set forth in this Official Statement or otherwise made in connection with the offer, sale and distribution of the 2012 Bonds. EASTERN UNIVERSITY The University, a nonprofit corporation organized and existing under the laws of the Commonwealth of Pennsylvania (the "Commonwealth"), is a private nonsectarian, co-educational college of liberal arts and sciences with selected professional and pre-professional programs. The University s 94-acre main campus is located in St. Davids, Radnor Township, Delaware County, Pennsylvania, about 30 minutes from downtown Philadelphia. The University has been determined by the Internal Revenue Service to be a charitable organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the Code ), and is exempt from taxes under Section 501(a) of the Code. 3

12 A more complete description of the University is included as APPENDIX A "INFORMATION REGARDING THE UNIVERSITY" to this Official Statement. THE CAPITAL PROJECTS The Capital Projects to be financed in part with the proceeds of the 2012 Bonds consists of the construction, equipping and furnishing of a new student center and renovations and improvements to the McInnis Learning Center, all to be located on the main campus of the University at 1300 Eagle Road, Radnor Township, Delaware County, Pennsylvania PLAN OF FINANCING The 2012 Bonds are being issued for the purpose of (i) financing the Refunding Project, (ii) financing the Capital Projects, (iii) funding of the Debt Service Reserve Fund for the 2012 Bonds, and (iv) financing the payment of certain costs and expenses in connection with the issuance of the 2012 Bonds. Estimated Sources and Uses of Funds Sources of Funds Uses of Funds The following table sets forth the estimated sources and uses of the proceeds of the 2012 Bonds: Par Amount... $ 21,115, Net Original Issue Premium... $ 396, Existing Debt Service Funds created for Refunded Obligations... $ 41, Existing Debt Service Reserve Fund created for Refunded Obligations... $ 1,498, Total Sources... $ 23,051, Refunding Project... $ 17,151, Capital Projects... $ 3,500, Debt Service Reserve Fund... $ 2,001, Costs of Issuance 1... $ 399, Total Uses... $23,051, (1) Includes Underwriters' discount, rating agency, legal, financial advisor, accounting and other fees and expenses of issuance, including fees of the Authority. General THE 2012 BONDS The 2012 Bonds will be issued as fully registered bonds, without coupons, in the aggregate principal amount set forth on the cover page hereof. The 2012 Bonds are issuable in the denomination of $5,000 each or any integral multiple thereof. The 2012 Bonds will be dated the date of issuance and delivery, will bear interest from such date at the rates and mature in the amounts and on the dates listed in the maturity schedule on the inside front cover hereof, and will be subject to optional and mandatory redemption prior to maturity as described below. Interest on the 2012 Bonds 4

13 will be payable semiannually on April 1 and October 1 of each year (each, a "Interest Payment Date"), commencing October 1, 2012, until maturity or redemption. The 2012 Bonds will bear interest from the Interest Payment Date to which interest has been paid next preceding the date of authentication, unless the date of authentication: (i) is an Interest Payment Date to which interest has been paid, in which event such 2012 Bonds shall bear interest from the date of authentication, or (ii) is on or prior to the first Interest Payment Date for such 2012 Bonds, in which event such 2012 Bonds shall bear interest from the date of initial issuance and delivery. The principal of any 2012 Bond shall be payable when due to the registered owner thereof upon presentation and surrender of such 2012 Bond at the designated office of the Trustee, and interest on any 2012 Bond shall be paid on each Interest Payment Date by check which the Trustee shall cause to be mailed on that date to the Person in whose name the 2012 Bond is registered at the close of business on the fifteenth (15 th ) day of the calendar month (whether or not a Business Day) preceding the applicable Interest Payment Date (the "Record Date"). If and to the extent that the Authority shall fail to make payment or provision for payment of interest on any 2012 Bond on any Interest Payment Date, that interest shall cease to be payable to the person who was the registered owner of that 2012 Bond as of the applicable Record Date, and instead may be paid to the person in whose name any 2012 Bond is registered at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee, notice of which shall be given to the registered holder of the 2012 Bond not less than ten days prior to such special record date, or may be paid at any time in any other lawful manner, all as more fully provided in the Indenture. Notwithstanding the foregoing, payment of principal or redemption price of and interest on the 2012 Bonds may be made by wire transfer of immediately available funds to any holder of $500,000 or more in aggregate principal amount of 2012 Bonds to an account at a bank located in the continental United States designated by such holder, provided such holder so requests in a written notice furnished to the Trustee not less than five days prior to the relevant Record Date or redemption date, as the case may be, but in the case of any payments of principal or redemption price of 2012 Bonds, only upon the presentation and surrender of such 2012 Bonds at the designated office of the Trustee. The 2012 Bonds will be issued initially in book-entry form only, as described under "Book-Entry Only System" below and, when issued, will be registered in the name of Cede & Co., as nominee for DTC. DTC will act as securities depository for the 2012 Bonds. Unless the book-entry system for the 2012 Bonds is discontinued (as described below), prospective purchasers will acquire beneficial ownership interests in the 2012 Bonds, in authorized denominations, as described below, but will not receive 2012 Bond certificates representing such ownership interests. As long as DTC or its nominee is the registered owner of the 2012 Bonds, payments of principal or redemption price of, and interest on, the 2012 Bonds will be made directly to DTC or its nominee, and all such payments will be valid and effective to satisfy fully and discharge the obligations of the Authority and the University with respect to, and to the extent of, the principal or redemption price of, and interest so paid. So long as DTC or its nominee is the registered owner of the 2012 Bonds, references herein to the registered owners of the 2012 Bonds shall be deemed to refer to DTC or its nominee and not to the owners of beneficial interests in the 2012 Bonds. Registration, Transfer and Exchange of 2012 Bonds The 2012 Bonds shall be registered upon original issuance and upon subsequent transfer or exchange. The Trustee shall act as registrar and transfer agent for the 2012 Bonds. The Authority will cause books for the registration and transfer of 2012 Bonds to be maintained and kept at the designated office of the Trustee. The Trustee shall keep such books and to make such registrations and transfers under such reasonable regulations as the Authority or the Trustee may prescribe. Upon surrender for transfer of any 2012 Bond at the designated office of the Trustee, the Authority shall execute and the Trustee shall authenticate and deliver in the name of the transferee or transferees a new 2012 Bond or 2012 Bonds of the same series and maturity and of like tenor as the surrendered 2012 Bond, in any authorized denomination, for the aggregate principal amount which the owner of the 2012 Bonds is entitled to receive. No transfer of any 2012 Bond will be effective until entered on the Bond registration books of the Authority kept by the Trustee. 5

14 2012 Bonds, upon surrender at such office of the Trustee with a written instrument of transfer satisfactory to the Trustee, or at such other office as the Trustee shall from time to time designate, duly executed by the holder of the 2012 Bonds or his attorney duly authorized in writing, may at the option of the holder thereof be exchanged for an equal aggregate principal amount of 2012 Bonds of the same series and maturity and of like tenor as the surrendered 2012 Bond, in any of the authorized denominations and registered in such name or names as may be requested. All 2012 Bonds presented for transfer, exchange, registration, redemption or payment (if so required by the Authority or the Trustee) shall be accompanied by a written instrument or instruments of transfer, in form and with guarantee of signature satisfactory to the Trustee, duly executed by the holder of the 2012 Bonds or by his duly authorized attorney. Any such exchange, transfer or registration shall be made without charge; provided that the Authority or the Trustee may require payment of a sum sufficient to pay any tax, fee or other governmental charge required to be paid with respect to such exchange, transfer or registration. New 2012 Bonds delivered upon any transfer or exchange shall be valid limited obligations of the Authority, evidencing the same debt as the 2012 Bonds surrendered, shall be secured by the Indenture and shall be entitled to all of the security and benefits thereunder to the same extent as the 2012 Bonds surrendered. Neither the Authority nor the Trustee shall be required to issue, transfer or exchange any 2012 Bonds during a period beginning at the opening of business on the fifteenth day next preceding any date of selection of 2012 Bonds to be redeemed and ending at the close of business on the day on which the applicable notice of redemption is given, or to transfer or exchange any 2012 Bonds selected or called for redemption in whole or in part. The person in whose name any 2012 Bond is registered shall be deemed the absolute owner thereof for all purposed under the Indenture, whether or not such 2012 Bond shall be overdue, and neither the Authority nor the Trustee shall be affected by any notice to the contrary. Redemption The 2012 Bonds are subject to redemption prior to maturity as follows: Optional Redemption. The 2012 Bonds maturing on and after October 1, 2023 shall be subject to redemption prior to maturity at the option of the Authority, upon the written direction of the University, in whole or in part on any date occurring on or after October 1, 2022 (and if in part, in any order of maturity or from among such specific maturities as may be designated in writing by the University, but within a particular maturity as selected by the Trustee at random or in such other manner as the Trustee in its discretion deems fair and appropriate) at a redemption price equal to 100% of the principal amount of the 2012 Bonds to be redeemed plus interest accrued to the date fixed for redemption. Mandatory Sinking Fund Redemption. The 2012 Bonds maturing on October 1, 2022, October 1, 2027 and on October 1, 2032 are subject to mandatory redemption prior to maturity by the Authority in direct order of maturity and with a maturity as selected at random in the principal amounts and on October 1 of the years set forth below, through the operation of the 2012 Bonds Sinking Fund Account established under the Indenture, at a redemption price equal to the principal amount of the 2012 Bonds to be so redeemed, plus accrued interest to the redemption date: Year * Principal Amount $790, , ,000 *Maturity 6

15 Year * Principal Amount $ 905,000 1,545,000 1,045,000 1,410,000 1,480,000 *Maturity Year * Principal Amount $1,555,000 1,640,000 1,190,000 1,255,000 1,325,000 *Maturity Prior to the August 1 immediately preceding the October 1 on which 2012 Bonds are subject to mandatory redemption, the Trustee, at the written direction of the University, may enter into contracts for the purchase from moneys to be deposited into the 2012 Bonds Sinking Fund Account of as many 2012 Bonds then subject to mandatory sinking fund redemption as can be purchased in the open market or pursuant to offers made at the time by the owners thereof, at prices not greater than the principal amount thereof specified in such written direction, together with accrued interest to the date of purchase, and the principal amount of 2012 Bonds to be redeemed on such October 1 shall be subject to reduction by the principal amount of 2012 Bonds so purchased or so agreed to be purchased, all as more fully provided in the Indenture. In addition, if 2012 Bonds of any maturity subject to mandatory redemption are selected for optional redemption at any time, the principal amount of 2012 Bonds of such maturity redeemed pursuant to such optional redemption shall be credited against the mandatory redemption requirements for such maturity of 2012 Bonds in such manner as the University shall determine. Extraordinary Redemption. In the manner and upon the terms and conditions provided in the Indenture and the Loan Agreement, the 2012 Bonds shall be subject to redemption prior to maturity at the option of the Authority, upon the written direction of the University, in the event of damage to or destruction or condemnation of all or any part of the University s facilities, in whole on any date or in part from time to time on any date (and if in part, in any order of maturity or from among such specific maturities as may be designated in writing by the University, but within a particular maturity as selected by the Trustee at random or in such other manner as the Trustee in its discretion deems fair and appropriate), in each case at the redemption price equal to 100% of the principal amount thereof to be redeemed plus interest accrued to the date fixed for redemption. Procedure for Redemption When required to redeem 2012 Bonds under the Indenture, or when directed to so do by the Authority or after receipt of University notification to the Trustee pursuant to the requirements of the Indenture, the Trustee shall cause notice of the redemption to be mailed by first-class mail not more than 60 nor less than 30 days prior to the redemption date to the registered owners of the 2012 Bonds to be redeemed at their registered addresses. Failure to mail any notice or defect in the mailed notice or in the mailing thereof in respect of any 2012 Bond shall not affect the validity of the redemption of any other 2012 Bond. Any such redemption shall be in the manner and upon terms and with the effect provided in the Indenture or after waiver of such notice shall have been filed in accordance with provisions of the Indenture. If at the time of mailing of notice of any optional redemption there shall not have been deposited with the Trustee moneys sufficient to redeem all or any of the 2012 Bonds called for redemption, such notice shall state that it is 7

16 conditional in that it is subject to the deposit of the redemption moneys (or that it is subject to the deposit of the redemption moneys from a specified source or sources) with the Trustee not later than 12:00 Noon, prevailing Eastern time, on the redemption date, and that such notice shall be of no effect unless such moneys (or such moneys from such specified source or sources) are so deposited. If less than all the 2012 Bonds of a particular maturity are to be redeemed at any particular time, the particular 2012 Bonds or portions of 2012 Bonds of such maturity to be redeemed shall be selected by the Trustee at random or in such other manner as the Trustee in its discretion deems fair and appropriate. In selecting 2012 Bonds for redemption the Trustee may select for redemption portions of the principal of 2012 Bonds of a denomination larger than the smallest authorized denomination then permitted, and in such case each 2012 Bond in excess of the smallest authorized denomination shall be treated as though it were divided into one or more separate 2012 Bonds of the smallest authorized denomination and one 2012 Bond of the smallest authorized denomination plus any portion of the actual principal amount of the 2012 Bond not divisible in whole by the smallest authorized denomination. Book Entry Only System DTC will act as securities depository for the 2012 Bonds. The 2012 Bonds will be issued as fullyregistered bonds 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 2012 Bond certificate will be issued for the 2012 Bonds, in the aggregate principal amount of the 2012 Bonds and will be deposited with the Trustee as custodian for DTC. The information contained in certain of the following paragraphs of this subsection "Book-Entry Only System" has been extracted from a schedule prepared by DTC entitled "SAMPLE OFFICIAL STATEMENT LANGUAGE DESCRIBING BOOK ENTRY ONLY ISSUANCE." The Authority, the University and the Underwriters make no representation as to the completeness or the accuracy of such information or as to the absence of material adverse changes in such information subsequent to the date hereof. DTC, the world s largest depository, 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 registered pursuant to the provisions of Section 17A of the Securities Exchange Act of DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-u.s. equity, corporate and municipal debt issues, and money market instrument (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 ). DTC has Standard & Poor s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at Purchases of 2012 Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the 2012 Bonds on DTC s records. The ownership interest of each actual purchaser of each 2012 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 2012 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 8

17 certificates representing their ownership interests in 2012 Bonds, except in the event that use of the book-entry system for the 2012 Bonds is discontinued. To facilitate subsequent transfers, all 2012 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 2012 Bonds with DTC and their registration in the name of Cede & Co. or such other nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2012 Bonds; DTC s records reflect only the identity of the Direct Participants to whose accounts such 2012 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. Beneficial Owners of 2012 Bonds may wish to take certain steps to augment transmission to them of notices of significant events with respect to the 2012 Bonds, such as redemptions, defaults, and proposed amendments to the security documents. For example, Beneficial Owners of 2012 Bonds may wish to ascertain that the nominee holding the 2012 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners, in the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of the notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the 2012 Bonds within a maturity are being redeemed, DTC s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the 2012 Bonds unless authorized by a Direct Participant in accordance with DTC s 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 2012 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments of principal, premium, if any, and interest on the 2012 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 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 (nor its nominee), the Trustee, or the Authority, subject to any statutory or regulatory requirements as may be in effect from time to time. Payments of principal, premium, if any, and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) are 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. DTC may discontinue providing its services as securities depository with respect to the 2012 Bonds at any time by giving reasonable notice to the Authority or the Trustee. Under such circumstances, in the event that a successor securities depository is not obtained, 2012 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, 2012 Bond certificates will be printed and delivered to DTC. Neither the Authority, the University, nor the Trustee shall have any responsibility or obligation to any Direct Participant or Indirect Participant with respect to: (i) the accuracy of the records of DTC, its nominee or any Direct Participant or Indirect Participant with respect to any beneficial ownership interest in any 2012 Bonds; (ii) the delivery to any Direct Participant or Indirect Participant or any other Person, other than the registered owner of a 2012 Bond, as shown in the 2012 Bond Register, of any notice with respect to any 2012 Bond, including, without limitation, any 9

18 notice of redemption; (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 2012 Bonds; (iv) the payment to any Direct Participant or Indirect Participant or any other Person other than the registered owner of a 2012 Bond, as shown in the 2012 Bond Register, of any amount with respect to the principal of, redemption price of, or interest on, any 2012 Bond; or (v) any consent given by DTC as registered owner. So long as the 2012 Bonds are registered in the name of DTC (or any successor securities depository) or DTC's partnership nominee, Cede & Co. or such other name as may be requested by an authorized representative of DTC, references herein to the Holders, holders, owners or registered owners of such 2012 Bonds shall mean DTC (or any successor securities depository) or DTC's partnership nominee, Cede & Co. or such other name as may be requested by an authorized representative of DTC, as applicable, and shall not mean the Beneficial Owners of such 2012 Bonds. The Indenture SECURITY AND SOURCES OF PAYMENT FOR 2012 BONDS The 2012 Bonds will be issued under and secured by the Indenture. The Indenture provides that all 2012 Bonds issued thereunder will be limited obligations of the Authority, payable solely from the sources identified therein, which, in the case of the 2012 Bonds, include: (i) payments required to be made by the University under the Loan Agreement (other than certain fees and indemnification payments required to be paid to the Authority), and (ii) certain moneys and securities held by the Trustee under the Indenture (including, in the case of the 2012 Bonds, those held in the Debt Service Reserve Fund discussed below). Debt Service Reserve Fund The 2012 Bonds will be secured by a Debt Service Reserve Fund to be established under the Indenture (the "Debt Service Reserve Fund"). Concurrently with the issuance of the 2012 Bonds, there shall be deposited to the credit of the Debt Service Reserve Fund (but not any separate account thereof) cash in an amount equal to the Debt Service Reserve Requirement for the 2012 Bonds. Concurrently with the issuance of any series of Additional Bonds, (i) if a separate account within the Debt Service Reserve Fund has been established for that series of Additional Bonds, there shall be deposited into that separate account an amount equal to the Debt Service Reserve Requirement for such series of Additional Bonds, or (ii) if a separate account within the Debt Service Reserve Fund has not been established for that series of Additional Bonds, the balance in the portion of the Debt Service Reserve Fund which is not in any such separate account shall be increased or otherwise adjusted to an amount equal to the Debt Service Reserve Requirement with respect to all Bonds then to be Outstanding (including the Additional Bonds then being issued) as to which a separate account within the Debt Service Reserve Fund has not been established. If a separate account within the Debt Service Reserve Fund is created for any series of Additional Bonds as aforesaid, the assets from time to time credited to such account shall secure only the related series of Bonds and not any other series of Bonds, but the assets within the Debt Service Reserve Fund which are not in such separate account shall not secure that series of Bonds. If, on the date of any permitted or required payment of principal of or interest on any series of Bonds, moneys in the Bond Fund are insufficient to make such payment, moneys in the Debt Service Reserve Fund or a separate account thereof allocable to such series shall be withdrawn and applied to cure the deficiency. The amount of any such withdrawal shall be restored to the Debt Service Reserve Fund in twenty-four (24) substantially equal monthly deposits from payments required to be made by the University for such purpose under the Loan Agreement. See "DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF PRINCIPAL LEGAL DOCUMENTS" in APPENDIX C hereto for a further description of the Debt Service Reserve Fund. The Loan Agreement Under the Loan Agreement, the University will be obligated to make loan payments in amounts necessary to provide for the payment as and when due of the principal or redemption price of, and interest on, the 2012 Bonds. The University is also obligated to pay any amounts that may be required to make up any deficiency that may occur in the Debt Service Reserve Fund or other funds and accounts established under the Indenture, and to provide for certain other payments required by the Indenture and the Loan Agreement. Pursuant to the Indenture, the Authority will assign 10

19 the Loan Agreement, including its right to receive loan payments thereunder (other than certain fees and indemnification payments required to be paid to the Authority and amounts required to be rebated to the federal government) to the Trustee as security for the 2012 Bonds and any Additional Bonds issued under the Indenture. The Loan Agreement is a general obligation of the University and the general credit of the University is pledged to secure the payments required thereunder. No party other than the University is providing any security for the University s obligations under the Loan Agreement or for the payments due on the 2012 Bonds. Pledge of University Collateral The Loan Agreement constitutes an Additional Parity Debt Agreement pursuant to the Collateral Agency and Intercreditor Agreement dated as of October 1, 2006, among the University, the Trustee, the Authority, The Bank of New York Mellon Trust Company, N.A., as collateral agent (the "Collateral Agent"), The Bank of New York Mellon Trust Company, N.A., as the 1999 Indenture Trustee and the 2006 Indenture Trustee referred to therein, TD Bank, N.A., and any other holders of Parity Obligations that are or may become parties thereto from time to time in accordance with the terms thereof (the "Collateral Agency Agreement"), and accordingly (a) all obligations of the University under the Loan Agreement constitutes Additional Parity Debt and part of the Parity Obligations within the meaning of the Collateral Agency Agreement; and (b) the Authority and the Trustee shall each be an Additional Parity Obligee and one of the Secured Parties within the meaning of the Collateral Agency Agreement with respect to the Loan Agreement and the 2012 Bonds. The Authority and the Trustee shall execute an appropriate joinder supplement to the Collateral Agency Agreement in order to establish them as Additional Parity Obligees under the Collateral Agency Agreement with respect to the Loan Agreement and the 2012 Bonds. The University and the Collateral Agent are parties to a certain Security Agreement dated as of October 1, 2006 (the "Security Agreement"), under which the University grants to the Collateral Agent a lien on certain collateral described in the Security Agreement, including all receipts, revenues, income and other moneys held, received or receivable by or on behalf of the University that are derived or that arise from tuition and fees charged to students at the University. Such grants of security to the Collateral Agent under the Security Agreement are made for the benefit of the Authority, the 1999 Indenture Trustee, the 2006 Indenture Trustee, the Trustee, TD Bank, N.A. and the other Secured Parties. The Security Agreement is a "Shared Security Document" for purposes of the Collateral Agency Agreement. By the Open-End Mortgage and Security Agreement dated as of October 1, 2006 (the "Mortgage"), the University granted a security interest in certain mortgaged property, as described in the Mortgage (a student residence facility on the campus of the University), to the Collateral Agent for the benefit of the Authority, the 1999 Indenture Trustee, the 2006 Indenture Trustee, TD Bank, N.A., and other Secured Parties (the "Mortgage Lien"). The Mortgage constitutes a "Shared Security Document" for purposes of the Collateral Agency Agreement. As a result, the Mortgage Lien will secure the obligations of the University to the holders of Additional Parity Debt, including the obligations of the University under the Loan Agreement, until such time as the Parity Obligations are satisfied. Pursuant to the terms and conditions of the Loan Agreement, the Authority agrees, at the request of the University, to direct the Trustee and the Collateral Agent to release any mortgage lien granted by the University to the Collateral Agent (including the Mortgage Lien) if: (i) the Authority s Revenue Bonds (Eastern University), Series of 2006 (the "2006 Bonds"), are no longer Outstanding within the meaning of the Trust Indenture, dated as of October 1, 2006 (the "2006 Trust Indenture"), between the Authority and The Bank of New York Trust Company, N.A., (now The Bank of New York Mellon Trust Company, N.A.), as trustee (the 2006 Trustee ), or (ii) the 2006 Trustee otherwise consents to such release. The Collateral Agency Agreement, as supplemented as described above, provides that amounts received by the Collateral Agent pursuant to the Security Agreement and the Mortgage will be distributed to the Trustee, the Authority and any other holder of Parity Obligations in accordance with the procedures described in the Collateral Agency Agreement. See "DEFINITIONS OF CERTAIN TERMS AND SUMMARY OF CERTAIN PROVISIONS OF THE FINANCING DOCUMENTS" in APPENDIX C hereto for a further description of the Collateral Agency Agreement, the Mortgage and the Security Agreement. For a discussion of certain risks relating to this collateral, see "BONDHOLDERS' RISKS -- Risks Relating to Security for the 2012 Bonds" herein. 11

20 Additional Bonds and Other Indebtedness Under the Indenture, Additional Bonds may be issued by the Authority for the benefit of the University. Any such Additional Bonds may be secured on a parity with the 2012 Bonds, except with respect to amounts in any sinking fund account for the 2012 Bonds. See "DEFINITIONS OF CERTAIN TERMS AND SUMMARY OF CERTAIN PROVISIONS OF THE FINANCING DOCUMENTS" in APPENDIX C hereto. Under the Loan Agreement, the University may incur, guaranty or assume additional indebtedness upon compliance with specified requirements and limitations. Such indebtedness may be secured, inter alia, by revenues derived from the operation or sale of financed facilities and/or a mortgage lien on or security interest in the financed facilities. See "DEFINITIONS OF CERTAIN TERMS AND SUMMARY OF CERTAIN PROVISIONS OF THE FINANCING DOCUMENTS" in APPENDIX C hereto for a discussion of the requirements and limitations relating to the incurrence of and security for additional indebtedness which may be incurred by the University. Under the Collateral Agency Agreement, the holder of any additional indebtedness may have parity rights in the collateral held by the Collateral Agent thereunder. See "DEFINITIONS OF CERTAIN TERMS AND SUMMARY OF CERTAIN PROVISIONS OF THE FINANCING DOCUMENTS" in APPENDIX C hereto for a further description of the Collateral Agency Agreement. THE 2012 BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY AND ARE NOT A DEBT OF THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA, OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF. NEITHER THE GENERAL CREDIT OF THE AUTHORITY NOR THE CREDIT OR THE TAXING POWER OF THE COUNTY OF DELAWARE, THE COMMONWEALTH OF PENNSYLVANIA OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF, IS PLEDGED FOR THE PAYMENT OF THE PRINCIPAL OR REDEMPTION PRICE OF, OR INTEREST ON, THE 2012 BONDS. THE AUTHORITY HAS NO TAXING POWER. General RISK FACTORS The 2012 Bonds are limited obligations of the Authority and are payable solely from payments made pursuant to the Loan Agreement, certain funds held by the Trustee pursuant to the Indenture and certain other collateral pledged by the University. No representation or assurance can be given to the effect that the University will generate sufficient revenues to meet the University s payment obligations under the Loan Agreement. Future legislation, regulatory actions, economic conditions, legal matters or other factors could adversely affect the University s ability to generate such revenues. Some of such risk factors are described below. Neither the Underwriters nor the Authority has made any independent investigation of the extent to which any such factors could have an adverse impact on the revenues of the University. The following is intended only as a summary of certain risk factors attendant to an investment in the 2012 Bonds and is not intended to be exhaustive. In order to identify risk factors and make informed investment decisions, potential investors should be thoroughly familiar with the entire Official Statement (including each Appendix) in order to make a judgment as to whether the 2012 Bonds are an appropriate investment. Purchasers of the 2012 Bonds, particularly purchasers that are corporations (including S corporations and foreign corporations operating branches in the United States of America), property or casualty insurance companies, banks or other financial institutions or certain recipients of Social Security benefits, are advised to consult their tax advisors as to the tax consequences of purchasing or holding the 2012 Bonds. See TAX MATTERS herein. Legislative and Regulatory Actions. The University and its operations are subject to regulation, certification and accreditation by various federal, state and local government agencies and by certain nongovernmental agencies. No assurance can be given as to the effect on future operations of existing laws, regulations and standards for certification or accreditation or of any future changes in such laws, regulations and standards. 12

21 Competition. The University could face additional competition in the future from both private and public educational institutions that offer comparable services and programs to the population which the University presently serves. This could include the establishment of new programs and the construction, renovation or expansion of competing educational institutions, as well as tuition discounting programs of competing educational institutions. Covenant to Maintain Tax-Exempt Status of the 2012 Bonds The tax-exempt status of the 2012 Bonds is based on the continued compliance by the Authority and the University with certain covenants contained in the Indenture, the Loan Agreement and certain other documents executed by the Authority and the University. These covenants are aimed at satisfying applicable requirements of the Code and relate generally to use by the University of proceeds of the 2012 Bonds, maintenance of the status of the University as an organization meeting the requirement of Section 501(c)(3) of the Code, arbitrage limitations, rebate of certain excess investment earnings to the federal government and restrictions on the amount of issuance costs financed with the proceeds of the 2012 Bonds. Failure to comply with such covenants could cause interest on the 2012 Bonds to become subject to federal income taxation retroactive to the date of issuance of the 2012 Bonds. The 2012 Bonds may be, from time to time, subject to audits by the Internal Revenue Service ("IRS"). The University believes that the 2012 Bonds properly comply with the tax laws. In addition, Reed Smith LLP, Bond Counsel, will render an opinion with respect to the tax-exempt status of the 2012 Bonds, as described under the caption TAX MATTERS. The University has not sought to obtain a private letter ruling from the IRS with respect to the 2012 Bonds, and the opinion of Bond Counsel is not binding on the IRS. There is no assurance that an IRS examination of the 2012 Bonds will not adversely affect the market value of the 2012 Bonds. See TAX MATTERS herein. Risks Associated with the Loss of Tax Exempt Status of the University In recent years, the activities of tax-exempt organizations have been subjected to increasing scrutiny by federal, state, and local legislative and administrative agencies (including the United States Congress, the IRS, and local taxing authorities). Various proposals either have been considered previously or are presently being considered at the federal, state, and local level which could restrict the definition of tax-exempt status, impose new restrictions on the activities of tax-exempt organizations and/or tax or otherwise burden the activities of such organizations (including proposals to broaden or strengthen federal tax provisions respecting unrelated business income of nonprofit, tax-exempt organizations). There can be no assurance that future changes in the laws, rules, regulations, interpretations and policies relating to the definition, activities and/or taxation of tax-exempt corporations will not have material adverse effects on the future operations of the University. Failure of the University to be organized and operated in accordance with the Internal Revenue Service s requirements for the maintenance of its status as an organization described in Section 501(c)(3) of the Code, or to operate the facilities refinanced by the 2012 Bonds in a manner that is substantially related to the University s charitable purpose under the Code, may result in interest payable with respect to the 2012 Bonds being included in federal gross income, possibly retroactive to the date of the original issuance of the 2012 Bonds. Enforceability of Remedies The remedies available to Bondholders upon an Event of Default under the Indenture or the Loan Agreement are in many respects dependent upon judicial action which is subject to discretion or delay. Under existing law and judicial decisions, including specifically the Bankruptcy Code, the remedies (including, without limitation, specific performance) specified in the Indenture and the Loan Agreement may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the original delivery of the 2012 Bonds will be qualified as to enforceability of the various legal instruments by limitations imposed by bankruptcy, reorganization, insolvency or other similar laws or legal or equitable principles affecting creditors rights. 13

22 2012 Bond Rating There is no assurance that the rating assigned to the 2012 Bonds at the time of issuance will not be lowered or withdrawn at any time, the effect of which could adversely affect the market price for, and marketability of, the 2012 Bonds. Investment Risks of the University The University invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risk. Due to the level of risk associated with certain investment securities, it is possible that changes in the values of investment securities could occur in the near term and that such changes could materially affect the amounts reported in the University s consolidated statement of financial position. Risks Relating to Security for the 2012 Bonds The collateral pledged by the University under the Security Agreement and the Mortgage will also secure, on a parity basis, the Parity Obligations and any other parity indebtedness that the University may incur in the future. Although under the Mortgage the University grants to the Collateral Agent, for the benefit of the holders of the parity debt obligations of the University (including the 2012 Bonds), a mortgage lien on certain real property of the University (a student residence facility on the campus of the University), no assurance or representation can be made that the proceeds realized upon any foreclosure of the lien of the Mortgage will be sufficient to pay the 2012 Bonds in the event of any default. The location of the mortgaged property on a larger non-subdivided parcel on the campus of the University, the existing zoning classification of the mortgaged property, the specialized market for the property of this nature, and the presence of any hazardous substances on the mortgaged property are all factors that could affect the ability of the Collateral Agent to foreclose on the property and the value of the mortgaged property in the event of a foreclosure. No appraisal or other valuation of the mortgaged property has been obtained. Further, and pursuant to the terms and conditions of the Loan Agreement, any mortgage lien granted by the University to the Collateral Agent (including the Mortgage Lien) may be released if: (i) the 2006 Bonds are no longer Outstanding within the meaning of the 2006 Trust Indenture, or (ii) the 2006 Trustee otherwise consents to such release. As such, the mortgage lien may not be in place upon the occurrence of an event of any default as to the 2012 Bonds. The effectiveness of the security interest granted by the University to the Collateral Agent under the Security Agreement in tuition and fees is limited since a security interest in money generally cannot be perfected by the filing of financing statements under the Pennsylvania Uniform Commercial Code (the "UCC"). Rather, such a security interest is perfected by taking possession of the subject funds. The tuition and fees are not required to be transferred to or held by the Collateral Agent until an event of default has occurred and may be spent by the University or commingled with its other funds. Under such circumstances, the pledge of tuition and fees may not be perfected under the UCC. The effectiveness of the Mortgage and the Security Agreement may be limited by a number of other factors, including: (a) commingling of tuition and fees with other moneys of the University not so pledged under the Security Agreement; (b) statutory liens; (c) rights arising in favor of the United States of America or any agency thereof; (d) constructive trusts, equitable or other rights impressed or conferred by a federal or state court in the exercise of its equitable jurisdiction; (e) federal bankruptcy laws which may affect the enforceability of the security interest in the tuition and fees which are earned by the University within ninety (90) days preceding and after any effectual institution of bankruptcy proceedings by or against the University; (f) rights of third parties in tuition and fees converted to cash and not in the possession of the Collateral Agent; and (g) claims that might arise if appropriate financing or continuation statements are not filed in accordance with the UCC as from time to time in effect. 14

23 Potential Effects of Bankruptcy. If the University were to file a petition for relief under the United States Bankruptcy Code (or if such a petition were filed against the University), its revenues and certain of its accounts receivable and other property acquired after the filing would not be subject to the security interest granted under the Security Agreement. The filing would operate as an automatic stay of the commencement or continuation of most judicial or other proceedings against the University and its property, and as an automatic stay of any act or proceeding to enforce a lien on its property. If the bankruptcy court so ordered, the University s property could be used for the benefit of the University despite the claims of its creditors (including the Trustee acting on behalf of the Bondholders). In the event of a bankruptcy proceeding involving the University, the Trustee could be treated under the United States Bankruptcy Code as the holder of a secured claim to the extent provided in the Collateral Agency Agreement. Among other things, the potential effects of a bankruptcy of the University could be to delay substantially the enforcement of remedies otherwise available to the Collateral Agent and to allow the bankruptcy court, under certain circumstances (a) to substitute other assets of the University for collateral under the Security Agreement, (b) to sell all or part of the collateral under the Security Agreement without application of the proceeds thereof to the payment of the 2012 Bonds, (c) to subordinate the rights and liens securing the 2012 Bonds to any borrowing approved by the bankruptcy court, (d) to permit the University to cure defaults under the Loan Agreement, (e) to compel termination of the Loan Agreement by payment of an amount determined by the bankruptcy court to be the value of the collateral (even though less than the principal amount of the 2012 Bonds outstanding) or (f) to modify the terms of or payments due under the Loan Agreement. In a bankruptcy proceeding, the University could file a plan for the adjustment of its debts which modifies, under certain circumstances, the rights of creditors generally or the rights of any class of creditors, secured or unsecured. The plan, when confirmed by the court, binds all creditors who had notice or knowledge of the plan and discharges all claims against the debtor provided for in the plan. Except as described below, no plan may be confirmed unless, among other conditions, the plan is in the best interest of creditors, is feasible and has been accepted by each class of claims impaired thereunder. Each class of claims has accepted the plan if at least two thirds in dollar amount and more than one half in number of the allowed claims of the class that are voted with respect to the plan are cast in its favor. Even if the plan is not so accepted, it may be confirmed if the court finds, among other things, that the plan is fair and equitable with respect to each class of non accepting creditors impaired thereunder and does not discriminate unfairly. Such an approved plan could limit recoveries by the Bondholders and/or reduce the collateral pledged as security therefor. Recent Economic Downturn. Market dislocation over the past five years has effected higher education in a number of ways, including (1) a decrease in the funds spent by families on higher education, causing many colleges and universities to increase institutional scholarships, which are funded in part or in whole through an institution s operating budget; (2) fewer eligible students applying to some colleges and universities; and (3) reorganization of and new policies governing various state and federal student loan programs. While such events have not had a material adverse effect on the University s admissions or operations, there is no guaranty that a continuation or worsening of the overall economic situation will not have a negative effect on enrollment or the affordability of education offered by the University. Other Risk Factors In the future, the following factors, among others, may adversely affect the operations of the University to an extent that cannot be determined at this time. (1) Higher interest rates, which could strain cash flow or prevent borrowing for needed capital expenditures. (2) Reduced future University revenues as a result of a need to increase tuition discounting to attract students. (3) Changes in the demand for higher education in general or for programs offered by the University in particular. 15

24 (4) A decrease in student loan funds or other aids that permits many students the opportunity to pursue higher education. (5) Changes in management, personnel or the administration of the University, or in the University s strategic focus. (6) Increased costs and decreased availability of public liability insurance. (7) Employee strikes and other adverse labor actions that could result in a substantial reduction in revenues without corresponding decreases in costs. (8) Cost and availability of energy. (9) An increase in the costs of health care benefits, retirement plans, or other benefit packages offered by the University to its employees. (10) An inability to retain students, resulting in enrollment losses and reduced revenues. (11) Future deficits as a result of increased future expenses. (12) Reduced ability to attract future annual or capital campaign contributions, that may limit future projects and/or the ability to address deferred maintenance. (13) Reduced availability of qualified faculty to teach the programs offered by the University. (14) Claims presently unknown to the University. (15) Withdrawal of any current exemptions from local real estate taxes, business privilege taxes and similar impositions. (16) A downgrade in the University's bond rating or rating outlook at a level which prevents the University from being able to borrow at affordable rates in the future. Federal Tax Exemption TAX MATTERS In the opinion of Bond Counsel, under existing law, interest on the 2012 Bonds (including any original issue discount properly allocable to an owner of the 2012 Bonds) is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. It should be noted however, that with respect to certain corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on corporations. Certain of the 2012 Bonds are being sold with original issue discount (the OID Bonds ). For each maturity of the OID Bonds, original issue discount is the excess of the stated redemption price at maturity of such OID Bonds over the initial offering price to the public, excluding underwriters and other intermediaries, at which price a substantial amount of such OID Bonds were sold. The appropriate portion of such original issue discount allocable to the original and each subsequent holder will be treated as interest and excluded from gross income for federal income tax purposes and will increase a holder s tax basis in such OID Bonds for purposes of determining gain or loss upon sale, exchange, redemption, or payment at maturity. Owners of the OID Bonds should consult their own tax advisors with respect to the computation and determination of the portion of original issue discount which will be treated as interest and added to a holder s tax basis during the period the OID Bonds are held. 16

25 Any 2012 Bonds purchased, whether at original issuance or otherwise, for an amount greater than their principal amount payable at maturity (or, in some cases, at their earlier call date) (the Premium Bonds ), will be treated as having amortizable bond premium. No deduction is allowable for the amortizable bond premium on the Premium Bonds. However, a purchaser s basis in a Premium Bond, and under the Treasury Regulations the amount of taxexempt interest received, will be reduced by the amount of amortizable bond premium properly allocable to such purchaser. Owners of Premium Bonds should consent their own tax advisors with respect to the proper treatment of amortizable bond premium in their particular circumstances. Ownership of the 2012 Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, S corporations with excess net passive income and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry the 2012 Bonds. Bond Counsel expresses no opinion as to such collateral federal income tax consequences. The opinion of Bond Counsel on federal tax matters with respect to the 2012 Bonds will be based upon, and will assume the accuracy of, certain representations and certifications, and compliance with certain covenants, of the University and the Issuer to be contained in the transcript of proceedings and that are intended to evidence and assure that the 2012 Bonds are and will remain obligations the interest on which is excluded from gross income for federal income tax purposes. Bond Counsel will not independently verify the accuracy of those certifications and representations. The Code prescribes a number of qualifications and conditions for the interest on state and local obligations to be and to remain excluded from gross income for federal income tax purposes, some of which require future or continued compliance after issuance of the obligations in order for the interest to be and to continue to be so excluded from the date of issuance. Noncompliance with these requirements by the University or the Authority may cause the interest on the 2012 Bonds to be included in gross income for federal income tax purposes and thus to be subject to federal income tax retroactively to their date of issuance. The University and, subject to certain limitations, the Authority have each covenanted to take the actions required of it for the interest on the 2012 Bonds to be and to remain excluded from gross income for federal income tax purposes, and not to take any actions that would adversely affect that exclusion. Future legislation, if enacted into law, or clarification of the Code may cause interest on the 2012 Bonds to be subject, directly or indirectly, to federal income taxation, or otherwise prevent the owners of the 2012 Bonds from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such future legislation or clarification of the Code may also affect the market price for or marketability of the 2012 Bonds. Prospective purchasers of the 2012 Bonds should consult their own tax advisers regarding any pending or proposed federal tax legislation, as to which Bond Counsel expresses no opinion. The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel s judgment as to the proper treatment of the 2012 Bonds for federal income tax purposes. It is not binding on the Internal Revenue Service or the courts. Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the Issuer or the University, or about the effect of future changes in the Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the Internal Revenue Service. Pennsylvania In the opinion of Bond Counsel, under existing law, the 2012 Bonds are exempt from personal property taxes in Pennsylvania, and the interest on the 2012 Bonds is exempt from Pennsylvania personal income tax and Pennsylvania corporate net income tax. ****************************************************** Except as expressly stated above, Bond Counsel will not express any opinion as to any other tax consequences of acquiring, carrying, owning or disposing of the Bonds, and prospective purchasers of the 2012 Bonds should consult 17

26 with their own tax advisors as to the applicability of these and any other collateral tax consequences of ownership of the Bonds. THE FOREGOING IS NOT INTENDED AS AN EXHAUSTIVE LIST OF THE PROVISIONS OF FEDERAL OR STATE TAX LAW WHICH MAY HAVE AN EFFECT ON INDIVIDUALS AND CORPORATIONS HOLDING THE 2012 BONDS OR RECEIVING INTEREST THEREON. PROSPECTIVE PURCHASERS OF THE 2012 BONDS SHOULD CONSULT WITH THEIR OWN TAX ADVISORS REGARDING THE EFFECT ON THEIR AFFAIRS OF HOLDING THE 2012 BONDS OR RECEIVING INTEREST THEREON, INCLUDING, BUT NOT LIMITED TO, THE EFFECT OF STATE AND LOCAL TAX LAWS. CERTAIN LEGAL MATTERS Certain legal matters incident to the authorization, issuance and sale of the 2012 Bonds will be passed upon by Reed Smith LLP, Bond Counsel, Philadelphia, Pennsylvania, whose approving opinion will be delivered with the 2012 Bonds. Certain legal matters will be passed upon for the University by its counsel, Reed Smith LLP, Philadelphia, Pennsylvania, for the Authority by its counsel, McNichol, Byrne & Matlawski, P.C., Media, Pennsylvania, and for the Underwriters by its counsel, McNees Wallace & Nurick LLC, Lancaster, Pennsylvania. The various legal opinions to be delivered concurrently with the delivery of the 2012 Bonds express the professional judgment of the attorneys rendering the opinion as to the legal issues explicitly addressed therein. In rendering a legal opinion, the attorney does not become an insurer or guarantor of that expression of professional judgment, of the transaction opined upon, or the future performance of the parties to the transaction. In addition, the rendering of an opinion does not guarantee the outcome of any legal dispute that may arise out of the transaction. CONTINUING DISCLOSURE UNDERTAKING The University will undertake the responsibilities for continuing disclosure described below, and the Authority has no responsibility or liability to the Holders or any other person with respect to such disclosure. The University will enter into a Continuing Disclosure Certificate for the benefit of the registered owners from time to time of the 2012 Bonds (the Disclosure Certificate ) pursuant to United States Securities and Exchange Commission ( SEC ) Rule 15c2-12 (the "Rule"). Pursuant to the Disclosure Certificate, the University will provide directly or through a dissemination agent, to the appropriate national repository (currently, EMMA, as hereinafter defined) within six (6) months of the end of each fiscal year of the University, commencing with the fiscal year ending June 30, 2012, certain financial information and other operating data with respect to the University (collectively, the "Annual Report"), as follows: The financial statements of the University for the most recent fiscal year, with information of the type presented in Appendix B of this Official Statement, and prepared in accordance with generally accepted accounting principles, applied on a consistent basis, and audited by the University's certified public accountants in accordance with generally accepted auditing standards; and Annual financial and operating data of the University of the nature contained in the following sections of Appendix A of this Official Statement: Enrollment; Tuition and Fees; Financial Aid; Employees; Pension Program; Gifts, Contributions and Grants; Financial Information and Outstanding Indebtedness. The Disclosure Certificate will also provide that the University will file in a timely manner, not to exceed ten business days after occurrence, with the Municipal Securities Rulemaking Board (the MSRB ) as set forth below, notice of the occurrence of any of the following events with respect to the 2012 Bonds: (i) principal and interest payment delinquencies; (ii) non-payment related defaults, if material; (iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their failure to perform; (vi) adverse tax opinions, the issuance by the Internal Revenue Service (the IRS ) of proposed or final determinations of taxability, notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the 2012 Bonds or other 18

27 events affecting the tax status of the 2012 Bonds; (vii) modifications to rights of holders of the 2012 Bonds, if material; (viii) 2012 Bond calls, if material; (ix) defeasances; (x) release, substitution, or sale of property securing repayment of the 2012 Bonds, if material; (xi) rating changes; (xii) tender offers; (xiii) bankruptcy, insolvency, receivership or similar proceeding of the University; (xiv) consummation of a merger, consolidation or acquisition involving the University or the sale of all or substantially all of the assets of the University, other than in the ordinary course of business, the entry of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to such actions, other than pursuant to its terms, if material; and (xv) appointment of a successor or additional trustee or the change of name of a trustee, if material. The SEC requires the listing of (i) through (xv) in the preceding paragraph, although some of such events are not applicable to the 2012 Bonds. For example, items (iv) and (v) are not applicable to the 2012 Bonds because there is no credit or liquidity enhancement providing for the payment of the 2012 Bonds. The University shall file in a timely manner with the MSRB s Electronic Municipal Market Access System ( EMMA ), accessible at which is currently the only national repository. A failure by the University to comply with the Disclosure Certificate will not constitute a default or Event of Default under the Indenture or the Loan Agreement, and the holders will have only the remedies set forth in the Disclosure Certificate itself. Nevertheless, a failure to make an annual filing under the Disclosure Certificate must be reported in accordance with the Rule and may be expected to be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the 2012 Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the 2012 Bonds and their market price. The University has complied with all of its continuing disclosure requirements pursuant to the Rule with respect to its other series of bonds. FINANCIAL STATEMENTS The financial statements of the University at June 30, 2011 and for the year then ended, which are included in Appendix B to this Official Statement, have been audited by Marcum LLP, independent certified public accountants, to the extent and for the periods indicated in their report thereon which also appears in Appendix B. Such financial statements have been included in reliance upon the report of Marcum LLP. The University represents that there has been no material adverse change in the financial condition of the University since June 30, 2011, the fiscal year ending on such date being the most recent period for which audited financial statements of the University are available as of the date of this Official Statement. LITIGATION There is no action, suit, proceeding, inquiry or investigation at law or in equity or before any court, public board or body pending or, to the knowledge of the University or the Authority, threatened (or any meritorious basis for such an action, suit, proceeding, inquiry or investigation) at the date of this Official Statement to restrain or enjoin the issuance, sale, execution or delivery of the 2012 Bonds or any proceedings of the University or the Authority taken with respect thereto, or wherein an unfavorable decision, ruling or finding: (i) would adversely affect the transactions contemplated by this Official Statement or the validity or enforceability of the 2012 Bonds, the Indenture, the Loan Agreement or any other agreement or instrument which is used or contemplated for use in the consummation of the transactions contemplated by this Official Statement or (ii) would materially adversely affect the financial condition or operations of the University. LIMITED OBLIGATIONS The 2012 Bonds are limited obligations of the Authority, payable solely from the sources described under "SECURITY AND SOURCES OF PAYMENT FOR THE 2012 BONDS" herein. The Authority has no taxing power. Neither the credit nor the taxing power of the County of Delaware, the Commonwealth of Pennsylvania or of any political subdivision thereof is pledged for the payment of the 2012 Bonds, nor shall the 2012 Bonds be or be deemed to be an obligation of the County of Delaware, Pennsylvania, the Commonwealth of Pennsylvania, or of any political subdivision, agency or instrumentality thereof. Except as stated above, the Authority shall not be liable on its 19

28 obligations in respect to the 2012 Bonds, nor are the members, officers or employees of the Authority personally liable on such obligations. RATING Standard & Poor s Ratings Group, a division of The McGraw-Hill Companies, Inc. ("Standard & Poor s") has assigned the rating of "BBB-" to the 2012 Bonds. Such rating reflects only the view of such organization, and an explanation of the significance of such rating may be obtained from Standard & Poor s. A rating is not a recommendation to buy, sell or hold securities. There is no assurance that any rating will continue for any given period of time or that it will not be revised downward or withdrawn entirely by the rating agency if in the judgment of such rating agency circumstances so warrant. Neither the Underwriters, the Authority, nor the University has undertaken any responsibility either to bring to the attention of the holders of the 2012 Bonds any proposed change in or withdrawal of a rating of the 2012 Bonds or to oppose any such proposed change or withdrawal. A downward revision or withdrawal of such rating may have a substantial adverse effect on the market price of the 2012 Bonds. UNDERWRITING The 2012 Bonds are being purchased by the Underwriters. The Underwriters have agreed to purchase the 2012 Bonds at an aggregate purchase price of $21,358,742.60, which represents the par amount of the 2012 Bonds ($21,115,000), less the underwriters' discount ($153,102.80), plus net original issue premium ($396,845.40). The Bond Purchase Agreement among the Underwriters, the Authority and the University, provides, among other things, that the Underwriters will purchase all the 2012 Bonds, if any are purchased. The Bond Purchase Agreement also provides that the University will indemnify the Underwriters and the Authority against losses, claims and liabilities arising out of any materially incorrect statement or information contained in or material information omitted from this Official Statement pertaining to the University. The initial public offering prices set forth on the inside front cover page of this Official Statement may be changed by the Underwriters from time to time without any requirement of prior notice. The Underwriters reserve the right to sell bonds to certain dealers and others at prices lower than those offered to the public. TD Securities (USA) LLC, one of the Underwriters of the 2012 Bonds, has entered into a negotiated dealer agreement (the "TD Dealer Agreement") with TD Ameritrade for the retail distribution of certain securities offerings, including the 2012 Bonds, at the original issue prices. Pursuant to the TD Dealer Agreement, TD Ameritrade will purchase the 2012 Bonds from TD Securities (USA) LLC at the original issue prices less a negotiated portion of the selling concession applicable to any 2012 Bonds that TD Ameritrade sells. CERTAIN RELATIONSHIPS AMONG THE PARTIES Reed Smith LLP is acting as Bond Counsel and as counsel to the University in this transaction and also acts as counsel to the University and to certain of the Underwriters and their affiliates from time to time on unrelated matters. McNees Wallace & Nurick LLC is acting as counsel to the Underwriters in this transaction and also acts as counsel to PNC Capital Markets LLC and its affiliates in unrelated transactions. FINANCIAL ADVISOR The University has retained First Southwest, Dallas, Texas as Financial Advisor with respect to the authorization and issuance of the 2012 Bonds. The Financial Advisor is not obligated to undertake or assume responsibility for, nor has it undertaken or assumed responsibility for, an independent verification of the accuracy, completeness or fairness of the information contained in this Official Statement. 20

29 MISCELLANEOUS The references herein to the 2012 Bonds, the Indenture, the Loan Agreement and the other security documents are brief outlines of certain provisions thereof. Such outlines do not purport to be complete. For full and complete statements of such provisions, reference is made to the Indenture, the Loan Agreement and the other security documents, copies of which are available for inspection at the corporate trust office of the Trustee in Philadelphia, Pennsylvania. The agreement of the Authority and the University with the owners of the 2012 Bonds is fully set forth in the Indenture, the Loan Agreement and the other security documents, and neither advertisements of the 2012 Bonds nor this Official Statement are to be construed as constituting an agreement with the owners of the 2012 Bonds. Statements made in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended merely as such and not as representations of facts. If and when included in this Official Statement, the words "expects", "forecasts", "projects", "intends", "anticipates", "estimates", "assumes", and analogous expressions are intended to identify forward-looking statements and such statements inherently are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those that have been projected. Such risks and uncertainties include, among others, changes in economic conditions and various other events, conditions and circumstances, many of which are beyond the control of the Authority or the University. Such forward-looking statements speak only as of the date of this Official Statement. The Authority and the University disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any changes in the Authority s or the University s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The attached Appendices are integral parts of this Official Statement and should be read together with all foregoing statements. The Authority and the University have authorized the execution and distribution of this Official Statement. DELAWARE COUNTY AUTHORITY By: /s/francis J. Catania, Esq. Chairman EASTERN UNIVERSITY By: /s/david R. Black President By: /s/j. Pernell Jones Vice President for Finance and Operations 21

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31 APPENDIX A General and financial information regarding Eastern University. A - 1

32 EASTERN UNIVERSITY History and Philosophy of the University Eastern University ( Eastern University or the University ) is a Pennsylvania not-for-profit corporation that owns and operates a private, nonsectarian, co-educational, comprehensive university offering a high quality education that integrates faith, reason and justice in undergraduate, graduate and accelerated adult programs. It was founded in 1932 as a department of Eastern Baptist Theological Seminary. On April 17, 1951, the Board of Trustees voted to secure a charter and organize Eastern Baptist College as a separate institution. Eastern Baptist College became a separate institution in 1952 and purchased the Charles S. Walton estate, located along Philadelphia's historic "Main Line," where it is currently located. In 1972, the legal name of the College was changed to "Eastern College: A Baptist Institution. University status was granted by the Pennsylvania Department of Education in Fall 2001 and the name was changed to Eastern University. The University reunited with Eastern Baptist Theological Seminary during The corporate merger of Eastern Baptist Theological Seminary into Eastern University was approved by the Pennsylvania Department of Education in February 2004 and became effective with the Pennsylvania Department of State in March For financial purposes the merger was effective July 1, The Department of Education also transferred to Eastern University the authority to offer the programs and award the degrees previously offered by Eastern Baptist Theological Seminary. The Seminary s name was legally Eastern Baptist Theological Seminary: a professional school of Eastern University. In July 2005 the Seminary s name was changed to Palmer Theological Seminary in honor of their longest serving President. The University was founded with a unique mission that incorporated Biblical education and philosophy, community service, traditional liberal arts education, and vocational learning in a common environment. The University now also incorporates graduate, professional and Seminary education. The mission is encapsulated by the phrase, faith, reason and justice. This mission serves as the philosophical and operational foundation in every facet of the academic, administrative, and student collegiate experience at the University. This amalgamation of philosophy, ideology and action has resulted in more than 50 years of student training to selflessly and morally serve the interests of the community, the family and the business world. Governance of the University The affairs of Eastern University are managed by its Board of Trustees (the Board ). The current Bylaws of the University establish the size of the Board at no less than 25 elected members nor more than 42 elected members, exclusive of the President of the University who serves as an ex-officio member of the Board with the privilege to vote. The Board currently consists of thirty-one persons, excluding the President of the University. The Trustees are elected by a majority vote of the Board for a period of three years. There are three staggered classes of Trustees of nearly equal number with approximately one third completing their term annually. The Board has nine Trustees Emeriti who do not vote. The Board of Trustees convenes three times annually, typically in February, May and October. Most Board business is conducted by standing committees: Executive; Finance and Property/Administration, HR and Technology; Academic Affairs; Student Development; Development/Marketing and Enrollment; Strategic Planning; Governance and Seminary Committee. Additional committees may be established at the discretion of the Board. A majority of the elected members of the Board must be members of a Baptist Church. The approval by a minimum of 75% of the members of the Board is required to decide matters pertaining to: (a) the interpretation, application or amendment of the Doctrinal Statement of the University set forth in the Bylaws, (b) issues of denominational affiliation, (c) the disposition of the University's properties, and (d) the alteration, transfer, merger, or dissolution of the corporation. Each member of the Board (as well as each administrative officer, professor, teacher, or instructor) is required under the Bylaws to subscribe and adhere to a Doctrinal Basis set forth in the Bylaws. A - 2

33 Board of Trustees The Board of the University is currently comprised of the following individuals*: Member Term Board of Trustees Position Since Expires Occupation Arthur W. Hill Interim Chair of the Board of Trustees Retired David R. Black, Ph.D. Boardmember 1997 President Eastern University Marjean B. Brauch, D.O. Boardmember Retired Delores F. Brisbon Boardmember Retired Dr. Jacob Chatman Boardmember Senior Pastor, Pinn Memorial Basptist Church Steven Clemens Boardmember Partner, Kirkland and Ellis LLP Rev. Danny Cortes Boardmember Executive Vice President, Esperanza Inc. Rev. Albert G. Davis, Jr. Boardmember Senior Pastor, Mt. Calvery Baptist Church Dr. Rev. Richard A. Dent Boardmember Pastor, First African Baptist Church Ronald B. Evans Boardmember Consultant, P&R Publishers Ms. E. Shepard Farrar Boardmember Chief, Investment Management Rev. Dr. W. Wilson Goode, Sr. Boardmember National Director, Amachi W. Donald Gough Boardmember President, Gough Management Company John C. Honor, Jr. Boardmember Retired Mrs. Lucy Huff Boardmember Retired Aljit Joy Boardmember Senior Vice President, Comcast Dr. Michael Mandarino Boardmember Medical Doctor Richardson T. Merriman Boardmember President and CEO, The Pennsylvania Trust Company Stephen O'Hearn Boardmember Principal, Corbinian, Inc. Charles A. Olson III Boardmember President, The Olson Research Group, Inc. Thomas M. Petro Boardmember President and CEO, Fox Chase Bank Dr. Janis Plostnieks Boardmember Retired James H. Rogers Boardmember Chairman, Vision Business Products, Inc. R. Richard E. Rusbuldt Boardmember Retired Malcolm Street Boardmember Assisted Living Dr. John A. Sundquist Boardmember Retired Dennis Tanner, Ph.D. Boardmember Vice President Marketing, PrincetonIM John M. Templeton, Jr., M.D. Boardmember President, John Templeton Foundation F. Ardell Thomas, M.D. Boardmember Retired George Torggler Boardmember Retired Rev. Dr. Alyn E. Waller Boardmember Pastor, Enon Tabernacle Baptist Church Mrs. Kelly Wilbraham Boardmember Homemaker Source: Eastern University Office of the President Board Director * Teresa Klaassen was included in the list of members of the Board of Trustees in Appendix A as appended to the Preliminary Official Statement dated May 29, 2012, as supplemented, with a term expiring in In fact, the term of Teresa Klaassen expired on May 31, As such, she is not included on this list. A successor has not yet been appointed. A - 3

34 Trustees Emeriti Member Emeritus Trustees Emeriti Since Status Occupation Honorable Louis Williams Bishop Pennsylvania State Representative John W. Boyer, Jr Retired Kenneth W. Goff, Sc.D Retired Conrad J. Fowler Retired Eleanore V. Guzewicz Retired A. Gilbert Heebner, Ph.D Reitred Leon E. Lombard Retired Earl G. Russell, Sr Retired Dr. Cora Sparrowk Retired Maurice C. Workman Retired Source: Eastern University Office of the President Board Director Administration and Management Dr. David R. Black is the President and Chief Administrative Officer of the University. The President is elected by the Board and is responsible for implementing the policies of the Board. Name Position Tenure Dr. David R. Black President 15 Years Dr. Christopher A. Hall Chancellor 21 Years Dr. Kenton Sparks Interim Provost 12 Years J. Pernell Jones Vice President for Finance and Operations 1 Year Dr. Thomas Ridington Senior Vice President and Chief Marketing Officer 31 Years Dr. Bettie Ann Brigham Vice President for Student Development 37 Years Derek Ritchie Vice President for Development 18 Years Diana S. H. Bacci Vice President for Administration and University Registrar 42 Years Source: Eastern University Office of Human Resources. David R. Black, President The Board of Trustees appointed Dr. David R. Black as the President of Eastern University effective December 1, 1997, as the result of an extensive national search. Under his leadership the University has added to its academic programs The Templeton Honors College and the Campolo College of Graduate and Professional Studies. In addition, University status was awarded and the merger with Palmer Theological Seminary occurred under his leadership. Dr. Black came to Eastern from Lakeland College in Sheboygan, Wisconsin, where he served nine years as President. Under his leadership Lakeland grew dramatically in both traditional and non-traditional programs. Prior to assuming the presidency of Lakeland College in 1989, Dr. Black held executive positions at the University of Rio Grande in Ohio; Lincoln Memorial University in Tennessee; and Lee College in Tennessee. Dr. Black earned his Ph.D. in organizational development and psychology from Ohio University and his Master of Science degree in counseling from the University of Tennessee. His undergraduate degree in history and psychology was completed at Lee College. In the spring of 2012, President David Black announced his retirement, following 14 years of laudable service to Eastern University. The Board of Trustees has appointed a search committee, and is actively engaged in seating Dr. Black s successor. It is anticipated that this process will conclude during fall Dr. Black has agreed to continue as President until his successor has been employed. Christopher A. Hall, Chancellor Dr. Christopher A. Hall is the Chancellor of Eastern University, reporting directly to the President. Dr Hall is the Dean of Palmer Theological Seminary of Eastern University, and is actively involved in fundraising and teaching for the institution. Dr. Hall has been at Eastern since He has graduate degrees from the University of California at Los Angeles, Fuller Theological Seminary, and Regent College (Vancouver, BC), and a Ph.D. from Drew University. A - 4

35 Dr. Kenton Sparks, Interim Provost Dr. Kenton Sparks currently serves as Interim Provost at Eastern University. Kent has served at Eastern University for 12 years. Prior to his appointment as Interim Provost in 2012, Kent served on the Eastern faculty as a professor of biblical studies and in various administrative roles, including Assistant Provost and Special Assistant to the Provost. In addition to his education and experience in administration, Kent is an accomplished scholar and teacher. He has written five books and numerous articles, has served as the regional president for the Society of Biblical Literature, and has been named as Teacher of the Year at Eastern University. He is also a recipient of the Lindback Foundation Award for Excellence in Teaching. Sparks is an ordained pastor and came to Eastern after serving seven years ( ) on the pastoral staff of Providence Baptist Church in Raleigh, NC, where he was responsible for teaching, preaching and administrative duties in missions, evangelism and worship. During this period, he served on the Board of Directors for Regent School of Raleigh (now Trinity Academy), a private K-12 Christian school. In prior years, Kent was the Director of Technical Services at Fleece Library, Columbia International University. Dr. Sparks earned his Bachelor's degree in Biblical Studies from Johnson University, the Master's degree in Old Testament from Columbia International University, the Master's in Business Administration from Kennesaw State University, and the Doctor of Philosophy in Religious Studies from the University of North Carolina, Chapel Hill. J. Pernell Jones, Vice President for Finance and Operations J. Pernell Jones is the chief financial officer of the University and reports to the President. He has executive-level responsibility for the University s budget and financial operations, human resources, facilities, and student accounts. Mr. Jones has 20 years of experience in higher education at public and private institutions. Prior to his employment at Eastern University (July 2011), he was employed as Vice President for Finance and Administration at College of the Southwest, Hobbs, NM ( ); Vice President for Business Services at Grayson College, Denison, TX ( ); and Vice President for Business Services at San Juan College, Farmington, NM ( ). Thomas Ridington, Senior Vice President and Chief Marketing Officer Thomas Ridington, Ph.D., is Eastern University s Senior Vice President and Chief Marketing Officer. His current responsibilities include university marketing, strategic institutional partnerships and service to the board of trustees executive committee. Over the past thirty years, Dr. Ridington has contributed to the development of Eastern University as Vice President of Development, Director of Foundation, Corporate and Government Relations and as interim Dean of the School of Leadership and Development. Dr. Ridington s prior employment included institutional advancement roles at Fuller Theological Seminary and Eastern Baptist Theological Seminary. Additionally, he has worked with philanthropic organizations, including the Pew Charitable Trusts, John Templeton Foundation and Lilly Endowment, to strengthen the capacity of faith-based nonprofit organizations. He has consulted with more than thirty colleges, international nongovernmental organizations, urban community development corporations and membership associations in matters of fundraising, strategic planning and institutional governance. Dr. Ridington has served on several governing boards including Educational Concerns for Hunger Organization (ECHO), Good Works Inc., Young Life and Tel Hai Services. Dr. Ridington completed his Ph.D. in Curricular Studies at the University of Stellenbosch, South Africa and published his findings in Transformation: An International Journal of Holistic Mission Studies. Bettie Ann Bringham, Vice President for Student Development Bettie Ann Brigham has an extensive background of experience at Eastern University, specifically in Student Development. Her career in Student Development began with her position as a residence hall director from 1976 to She served as the Assistant Dean of Students at Eastern from 1982 to 1986; Associate Dean of Students from 1987 to 1991; and Dean of Students from 1992 to May of Since 2004, Brigham has served the University as Vice President for Student Development, leading the unit's 18 departments of Student Development/Affairs, and employee and student support. Brigham graduated from Eastern College with a B.A. in Communication Arts, with a Secondary Education Certification. She earned her M.S. in Counseling and Human Relations in Higher Education from Villanova University, and the Ed.D. of Higher Education Leadership from University of Calgary in Alberta, Canada. Other achievements include membership in two National Honor Societies; Phi Kappa Phi, and Kappa Delta Pi. She is also a National Certified Counselor. Derek C. Ritchie, Vice President for Development Derek C. Ritchie is the Vice President of Development and reports to the President. Mr. Ritchie is in charge of raising $3-4 million annually plus additional funds for special programs and capital projects. He earned a bachelor of science degree in business (1989) and a master of business administration (2007) from Eastern University. Mr. Ritchie served as the Director of Marketing for an events company before returning to work at Eastern as Alumni Director in A - 5

36 Diana S. H. Bacci, Vice President for Administration and University Registrar Diana Bacci is the information, technology and compliance officer of the University and reports to the President. She has executive-level responsibility for the University s academic records, compliance with higher education regulations, instructional space, and technology. Ms. Bacci earned the Master of Business Administration and has 42 years of experience within the University. She is the current University Registrar. Accreditation and Memberships The University is accredited by the Middle States Commission on Higher Education, Commission on Accreditation of Athletic Training Education, the Council on Social Work Education for the Baccalaureate Major in Social Work, the Commission on Allied Health Education Programs, the Commission on Collegiate Nursing Education and the Association of Theological Schools for the degrees of Master of Divinity, Master of Theological Studies and Doctor of Ministry. Academic Programs and Structure of the University Academic programming within the University s colleges, namely, its College of Arts and Sciences, Esperanza College, the Campolo College of Graduate and Professional Studies and Palmer Theological Seminary, is a multifaceted combination of traditional, non-traditional, graduate, and undergraduate opportunities. The many innovative academic and scholarly programs expand institutional diversity and broaden appeal. In addition to the College of Arts and Sciences, the Templeton Honors College, initiated in Fall 1999, appeals to undergraduate students who are academic leaders. Esperanza College is dedicated to the service of the Hispanic and local communities. The Campolo College of Graduate and Professional Studies offers graduate courses, many of which are education courses for teachers in the urban schools, and works with other international, urban, nonprofit and faith-based organizations to develop leaders for our changing world. The School of Management Studies within the Campolo College offers accelerated programs for working adults at both the undergraduate and graduate levels. The core academic component emphasizes a faith-based approach to all institutional courses and programming. Enrollment patterns in the University s colleges at both the undergraduate and graduate level validate the success of each program. The University offered 34 undergraduate majors and 15 graduate degree programs in the academic year. Esperanza College and the Campolo College offer the Associate of Arts in Liberal Arts. In some disciplines, only the Bachelor of Arts (B.A.) or Bachelor of Science (B.S.) degree is offered, while in other fields the student has the option of fulfilling the major requirements for either degree. Social Work majors receive the Bachelor of Social Work (B.S.W.) degree, while those majoring in Nursing receive a Bachelor of Science in Nursing (B.S.N.) degree. The University also offers: Doctor of Arts (Marriage and Family) Doctor of Ministry (Renewal of the Church for Mission) Doctor of Philosophy (Organizational Leadership) Master of Arts in Counseling Psychology Master of Arts in Organizational Leadership Master of Arts in School Counseling Master of Arts in International Development Master of Arts in Urban Studies Master of Business Administration (Management, Health Administration and Economic Development) Master of Divinity Master of Education (Multicultural, School Health Services) Master of Science in Health Services Management Master of Science in Nonprofit Management Master of Science in School Psychology Master of Theological Studies The following provides a brief description of major academic programs and departments: Allied Health The University offers three majors in the allied health arena: Athletic Training, Exercise Sciences and Nursing. The Biokinetics facilities provide classroom and laboratory space for theoretical and practical training. Astronomy Students have the opportunity to design an individualized major and conduct research using the facilities of the Bradstreet Observatory. Biblical and Theological Studies Bachelor of Arts degrees are offered in Biblical Studies and Theological Studies. The Master of Theological Studies seeks to provide meaningful grounding in the theological disciplines for further graduate study, personal pursuit or related careers. Biology The University offers a variety of programs in the Biology areas, leading to a B.A. or a B.S. Vocational opportunities include biologically related careers, education, and pre-professional fields. There is also preparation for graduate studies and preparatory education for allied health. A - 6

37 Biochemistry The University offers the B.S. degree in Biochemistry, a discipline combining the academic rigor of both biology and chemistry. This discipline prepares students for graduate study or vocational opportunities in education, biochemically related careers, and preprofessional fields. Business The University offers the B.S. degree in Management or Accounting and Finance, as well as an M.B.A. program. The Bachelor of Arts in Entrepreneurial Studies, Economic Development or Marketing is also an option for students. The Master of Science programs in Economic Development and Nonprofit Management provide a sound grounding in business and interpersonal skills with a faith-based emphasis. A unique Master of Arts in International Development prepares students to work with indigenous or urban populations. Additionally, an accelerated, Fast-Track M.B.A. program provides the opportunity for graduates to study in an accelerated format while specializing in Management or Health Administration. Chemistry The Chemistry curriculum prepares the student for entering the chemical industry or for graduate study, and provides basic preparation for advanced study in the fields of medicine, dentistry, and medical technology. The B.S. degree is offered in Chemistry, and the B.A. is offered in a major that combines Chemistry with business skills to prepare managers for pharmaceutical firms. Counseling The Master of Arts in Counseling offers a sound theoretical foundation and practical instruction in applying counseling skills. The School Counseling curriculum offers certification programs in elementary and secondary school counselor and leads to a Master of Arts in School Counseling degree. The Master of Science in School Psychology program includes certification for School Psychologist. Communication Studies The B.A. in Communication Studies has concentrations in Interpersonal/Relational, and Media Rhetoric. Dance The B.A. in Dance as an independent major was introduced in Fall 2003 as a response to growing interest among students. The dance history and technique courses are combined with creative process and dance education to draw on foundational biology and kinesiology knowledge. Education The department offers a program of study to students who desire to be certified as teachers or work in an educational setting. The Bachelor of Science degree is offered in Early Childhood, Middle Level and Elementary Education. A Secondary Education option is available for students who choose another discipline as their primary major. The University also offers the Master of Education (M.Ed.) degree in Multicultural Education and School Health Services. English The English department offers English concentrations in journalism, literature and writing. A Bachelor of Arts degree is offered in each concentration. Environmental Studies This is an interdisciplinary major with a strong biological emphasis, but drawing from the social sciences and humanities to provide a framework for policy and ethics. A Bachelor of Arts degree is offered. History Programs are offered for those who plan to teach or pursue graduate studies in History. A Bachelor of Arts degree is offered. Languages The chief aim of the program offered by the department is to provide the students a firm command of the spoken and written foreign language. Bachelor of Arts majors are offered in Spanish and International Area Studies/Business. Other course offerings include French, German, Greek and Hebrew. Mathematics A Bachelor of Arts is offered in Mathematics for students interested in graduate school preparation or Secondary Teacher Certification. The 3/2 transfer program with Villanova University offers advanced students an opportunity to major in Engineering as well. Ministry The Master of Divinity is offered in Wynnewood, PA and Ripley, WV, as the first professional degree for persons who expect to engage in some form of ordained ministry. The Doctor of Arts in Marriage and Family is designed to enable persons in the ministry to become agents for healthy family relationships in the parish context. The Doctor of Ministry in the Renewal of the Church for Missions is also offered. Missions and Anthropology The integrated core curriculum with concentrations in Anthropology and Missions prepares the graduate for placement in mission organizations or advanced study in graduate school. Music The Bachelor of Arts in Music is offered in four concentrations: Church Music, Composition/Electronic Music, Performance and Teacher Certification. Nursing The Department of Nursing offers a major leading to a Bachelor of Science in Nursing for registered nurses as an accelerated program. In response to the national shortage of registered nurses, Eastern initiated a pre-licensure program for men and women who already hold bachelor s degrees in other fields. Organizational Leadership Programs leading to the Bachelor of Arts and Master of Arts attract adult students from a variety of careers and life experiences. A distinctive Ph.D. program offers interdisciplinary training for individuals who currently occupy positions of leadership in business, education or non-profit sectors. The aim of the program is to equip students with the skills and knowledge they will need in order to effectively engage in the transformation of their organizations, communities and society and to influence positive, meaningful change as practitioners and scholars in their chosen fields. A - 7

38 Political Science A Bachelor of Arts is offered in Political Science. Students gain knowledge of national and international issues as they prepare for advanced study and public service opportunities. Psychology The Psychology curriculum is designed (1) to prepare the student for entry into graduate school in one of the major areas of Psychology, (2) to combine with another area of study, and (3) to prepare the student for a specific vocational choice. Both the Bachelor of Arts and Bachelor of Science degrees are offered. Social Work The primary objective of the Social Work department is to prepare students for beginning social work practice or graduate school. The Bachelor of Social Work degree program is accredited by the Council on Social Work Education. Sociology The Bachelor of Arts in Sociology is designed to promote critical reflection and greater understanding of the human condition to enable students to more effectively engage the world as agents of change and redemption. Urban Studies The Master of Arts in Urban Studies addresses the critical need for effective leadership in today s urban areas. It seeks to develop leaders who are committed to the task of transforming urban communities. There are three concentrations. The Arts in Transformation concentration prepares artist practitioners to become effective leaders committed to transforming urban communities through a broad range of artistic expressions. The Community Development concentration produces professionals who, as advocates for the poor, can serve as catalysts to revitalize the physical, economic and social infrastructure of urban communities. The Youth Leadership concentration produces professionals who are theologically, academically and culturally competent to serve with excellence in an urban context. It addresses the specific needs of leaders in the fields of urban youth development and urban youth ministry. Youth Ministries This department offers a Bachelor of Arts degree in Youth Ministries, which includes field placement in participating churches or faith-based organizations. Facilities and Housing Eastern University is situated on 95.5 acres in St. Davids, Radnor Township, Delaware County, Pennsylvania. Approximately, 50% of the terrain has remained in its natural state, while the remaining acreage is continually groomed. Small lakes and streams, complete with diverse flora and fauna, provide a picturesque environment ideal for scholarship, recreation, and community enjoyment. In spring 2010, Eastern purchased an additional 19.4 acres of property nearby for a total of acres in St. Davids. The usage of the new property, West Campus, is in the planning stage. Additionally, Eastern University is located within 30 minutes of downtown Philadelphia, Pennsylvania and within easy driving distance of New York City, Baltimore, Maryland and Washington, D.C. Of the University's 22 buildings on the St Davids campus, the primary academic facility is the McInnis Learning Center. It contains smart classrooms and offices for faculty and administrators and a 300-seat auditorium. Other features include: the Biology Science Center, a biokinetics classroom, the Curriculum Laboratory for training future teachers, the Planetarium, the Instructional Technology Support Center, a computer-assisted language laboratory, a computer resource center for faculty and a student computer center. The building also houses the University s Bradstreet Observatory that was constructed during the summer of The observatory houses two, sixteen-inch computerized telescopes. The observatory is linked through a media control station that permits real-time network delivery of telescopic images to McInnis classrooms. This linking station also permits the delivery of educational programming individually or in mass to classrooms. The Dish Network system also provides educational programming. Secure, authenticated wireless network access was installed throughout the building in the Summer of In October 2011 the Board of Trustees approved a cosmetic renovation to McInnis. Warner Memorial Library houses over 300,659 volumes (ACRL Formula), including 325 print periodical subscriptions, over 868,762 microforms, and a collection of 17,009 DVDs, video and audio recordings. Database subscriptions connect to 65,754 online periodicals. Students also have access to special collections of books donated to the University. These include the Vodges collection on Marcus Aurelius, and Harry S. Goebel's collection of books on fine printing, bookplates, illustrated books, and book collecting. Additional libraries throughout the region are accessible through the 45 member Tri-state College Library Cooperative. Books from other libraries are available using Inter-Library Loans. Over 55 million volumes are available through the OCLC catalogue. The library is also a member of PALCI, the Pennsylvania Academic Library Consortium, Inc, and has over 36,000,000 books available within 2-3 days through direct EZ Borrow Inter-library loan system. The library has online fulltext periodical database indexes like ATLAS, Ebscohost, JSTOR, Lexis-Nexis, Sageand Proquest. Other full text online tools like Encyclopedia Britannica, Facts.com, and "Annual Reviews" offer current scholarly information. Besides the print collection, access is available to a collection of over 118,000 online books through ebrary, Netlibrary and Psycbooks and the reference database, Credo. Refworks, a citation manager, is available to students. The library maintains a Facebook account, and communicates through Twitter. Libguides are provided on our homepage to direct research by academic area. The library uses TLC, an automated library catalogue system, and maintains forty computer workstations. The Catalog and all databases are available to students on and off campus using the MyAthens proxy interface. The Mazie Hall room maintains a collection of African American books. On August 7, 2005, the Harold C. Howard Center, a 20,800 square foot addition to the library, was completed which doubled the building s physical size, adding shelf space, study rooms, study tables, compact shelving, a media room and a net increase of 3 classrooms and a seminar room. All of the classrooms are equipped with a permanent data video projector, VCR, DVD and instructor computer with a touch screen control panel. Secure, authenticated wireless network access A - 8

39 was installed throughout the entire building during the summer of The University bookstore was expanded and moved into the lower level of the addition with a separate outside entrance. Palmer Theological Seminary s Austen K. deblois Library cooperates as a sister library in the Eastern University system. The collection of the seminary library numbers exceeds 133,500 items, primarily in theology and Biblical studies. Students from each of the University s schools have access to the library services, collections, and databases of both the Warner and deblois libraries. Andrews Hall houses facilities for the Departments of Business, Chemistry, and Communication Studies. In addition to faculty offices on three floors, two classrooms, reception and kitchen areas, the scientific facilities include two teaching laboratories, an experimental research lab, chemical prep and storage rooms, and two temperature-controlled instrumentation rooms. Instrumentation includes computer-interfaced 300 MHz FT-IR, GC-MS, HPLC, FPLC, FT-IR, DSC, diode-array UV-Vis, AAS, and various other equipment. The University's gymnasium provides space for intercollegiate and intramural sports, aerobics, and weight training. A 7,000 square foot recreational gymnasium was opened for the students in fall 2002 along with a new dance studio. A fully equipped human performance laboratory and facilities for health science and physical education are also housed in the gymnasium complex. Outdoor athletic facilities include baseball, field hockey, soccer and softball fields, four all-weather tennis courts, a health fitness trail, and an outdoor pool. The tennis courts were resurfaced in the summer of Both the soccer and hockey fields were resurfaced with synthetic turf in the summer of Outdoor wireless access was added to the field side of the gymnasium in the fall of Walton Hall, a 40-room estate manor house, serves as the University's student center. It accommodates the student dining commons, a coffee shop, the campus mailroom, and a small chapel. In addition, the building houses the Student Development Office, Student Government Association Office, Center for Christian Faith and Practice, writing center, career counseling center, conference rooms, lounge areas, and other administrative offices. During the summer of 2004 a new paver brick patio and walkway were installed. Secure, authenticated wireless network access was added to the coffee shop and lounge areas in the summer of Wireless access was added to the outdoor space between McInnis, Walton and Warner library in the fall of Adjacent to the student center is the Janet Long Mall Cottage, which contains offices for Financial Aid and Student Accounts. This area was recently renovated to include a conference room and reception area and to enhance student service areas. Fowler Hall (formerly Heritage House), a 16,000 square-foot Tudor manor house with six acres of beautifully landscaped grounds and a reflecting pool, houses the University s undergraduate admissions offices, the Templeton Honors College, the President s and Provost s Offices and the Evangelical Association for the Promotion of Education. Fowler Hall has an acoustically designed Great Room, classrooms, and office facilities and a smart classroom/ student computer laboratory. Adjacent to Fowler Hall is Workman Hall, a 12,000 square foot mansion with six acres of landscaped grounds. This facility houses the University s growing Music Department. It provides space for a modern electronic music studio, listening room, ensemble room, practice rooms, classrooms and faculty offices. In addition, there are classrooms for the performing arts. The Breezeway Café is located on the north side of campus between two of the residence halls. This facility provides an additional place for students to socialize and eat. Expansion of the facility was completed in December Secure, authenticated wireless network access was installed in the Breezeway Café in the summer of Eagle Learning Center, a 30,000 square foot office and classroom facility which opened in late December 2007, serves as the primary office location for the Campolo College of Graduate and Professional Studies which previously leased office space offcampus. The facility houses 4 smart classrooms which can be reconfigured into two larger rooms, 5 smart seminar rooms, a technical nursing facility, two sound attenuated psychology laboratories with monitoring technology, 46 offices and 42 cubicle style offices, 3 conference rooms, employee lunch room and first floor lounge and eating area with refrigerator, vending and microwave for students along with an outside brick patio. The building is equipped with wired and wireless network and Internet access. The Campolo College offers programs at the associate s, bachelor s, master s and doctoral levels and is responsible for the University s traditional graduate programs in Counseling, Education, School Health Services and School Counseling, the School of Nursing, the School for Social Change, the School of Management Studies and the School of Leadership and Development. The School of Management Studies includes the accelerated undergraduate programs in Business Administration and Organizational Leadership, and the accelerated graduate Fast-Track MBA programs. The School of Leadership and Development includes the graduate program in International Development The School for Social Change moved off-campus in August 2001 to office and classroom space in Philadelphia and relocated in summer 2009 to a new leased location in Philadelphia. The facility has a new technology infrastructure and is connected to the University s wide area network. The School offers an M.A. in Urban Studies with three concentrations which seek to develop leaders committed to the task of transforming urban communities. The School also offers non-credit seminars and workshops and provides a unique experience for students and faculty to engage in the life and needs of the city, seeking to empower practitioners and build up the capacity of churches and community organizations already functioning, by providing knowledge, training, support, research, technical assistance, consultation, networking and theological perspective. The Palmer Theological Seminary of Eastern University is situated on 7.8 acres on Lancaster Avenue in Wynnewood, PA. The Seminary offers programs for persons who expect to engage in ordained ministry and also for those who desire grounding in the theological disciplines for their own pursuit or for further graduate study. The main building, Palmer Hall, houses classrooms, faculty and administrative offices, the deblois Library, student and dining facilities, bookstore and resident living quarters. The A - 9

40 Curtis Lee Laws Chapel houses the Seminary's main worship facility on the first floor and Doane Hall on the ground floor. Doane Hall contains classrooms and offices, including the Woodruff Learning Center and the Doctor of Ministry offices. The technology infrastructure for the Seminary was upgraded during the summer of 2006 and secure, authenticated wireless network access was added to the library, classrooms, public areas and housing in the summer of The Seminary is part of the University s wide area network. The University has a number of residential halls that accommodate approximately 1,250 students each year. Rooms are occupied by 1-3 students either in a basic double room, semi-private, suite, single, or apartment layout. Men and women are housed on separate floors or in separate sections of a residence hall. As of summer 2007, all on-campus housing provides wireless network access. Residential students have access to a variety of meal plans in the University s Food Service operations. Residential halls at Eastern University include: Doane Hall Doane is a coed facility with four lounge areas, laundry facilities, and a homey environment. Hainer Hall Built originally in 1959 and expanded in 1999, Hainer houses both men and women. The hall includes a large laundry facility and lounge in the basement. Kea/Guffin Hall Kea Hall (built in 1965) and Guffin Hall (built in 1940 and extended in 1962) are conjoined. The rooms enjoy large closets and drawer spaces, and a community-inviting lounge area. The Breezeway Café is located here, providing late night food and beverage options for all residential students. Gallup Center Gallup Center includes Gallup and Clemens for women; Kresge House for men; and the Alumni House for men and women. There are 5 student apartments in Gallup with the remainder accommodations being suites that share bathrooms with one or two rooms. These four buildings share a lounge and computer lab. Gough Hall Gough has a combination of suites and long hall traditional style floors. Constructed in 1997, Gough includes a large laundry facility, an exercise room, mail room, kitchen and lounges. Sparrowk Hall Opened in January 2001, Sparrowk offers a mixture of suites and traditional floors as well as full size double and triple occupancy rooms. The residence hall also boasts a large laundry facility, mailroom, and spacious lounges. Eagle Hall Eagle Hall was opened in the Fall of 2007, and includes variations of suites and traditional floors. The suites include common rooms. Eagle Hall is equipped with laundry facilities, mailroom, recreational and study lounges. The Village Apartments - Located less than one mile from the St. Davids campus, the Village consists of 5 buildings with 4 apartments in each. These units provide a residential option for graduate and/or seminary students. In June 2000, the University (as lessor) entered into a ground lease agreement with Collegiate Housing Foundation, an Alabama nonprofit corporation (as lessee), with respect to the construction of the Sparrowk Hall student residence facility. Collegiate Housing Foundation owns the facility and financed its construction with bonds issued by the Delaware County Authority. The University manages and operates the facility without compensation under a separate management agreement with the Foundation, but the University is not liable or responsible to make any payments with respect to the bonds issued to finance the facility. Under certain circumstances, the University is entitled to receive annual rent under the ground lease equivalent to the sum of the gross cash revenue received from the operation of the facility plus interest earnings received less annual operating and debt service costs. For its fiscal year ended June 30, 2011, the University received a rental payment of approximately $398,000 from the ground lease. The ground lease is scheduled to expire in March, 2030 at which time the University will become the owner of the facility. A - 10

41 Enrollment The following table reflects the College of Arts and Sciences traditional undergraduate applications received and acceptances; first time first-year and transfer student enrollments; and mean SAT scores for first year students for the to academic years. SAT scores reflect recentered scoring established by the Educational Testing Service * Total Applications 1,549 1,528 1,753 1,653 1,793 Total Acceptances 1,171 1,129 1,225 1,158 1,246 Percent Accepted 75.6% 73.9% 69.9% 70.1% 69.5% Enrolled (First Year and Transfer) Percent Enrolled 43.6% 46.7% 41.9% 40.6% 39.6% Enrollee Average SAT Score Source: Eastern University Office of Enrollment. * Census A - 11

42 The following table includes the enrollment for each of the colleges of the University for the academic years indicated: * College of Arts and Sciences Full-time 1,655 1,599 1,572 1,552 1,555 Part-time Total 1,790 1,755 1,754 1,712 1,664 F.T.E. 1,700 1,651 1,633 1,605 1,591 Campolo College of Graduate and Professional Studies Full-time 1,137 1,293 1,079 1,113 1,069 Part-time ,063 1,021 Total 1,757 1,856 2,000 2,176 2,090 F.T.E. 1,447 1,575 1,503 1,588 1,538 Esperanza College Full-time Part-time Total F.T.E Palmer Theological Seminary Full-time Part-time Total F.T.E Total Enrolled Full-time 3,056 3,157 2,939 2,970 2,966 Part-time 1, ,392 1,506 1,397 Total 4,089 4,156 4,331 4,476 4,363 Total FTE 3,551 3,644 3,585 3,650 3,623 Source: Eastern University Office of Institutional Research. * Census Primary student marketing efforts are focused regionally; however, the University attracts a diverse national and international student population. The current geographic and ethnic diversity of the student body reflects a marketing campaign over a broad region. Approximately 72% of the student body is native to Pennsylvania, 9% are from New Jersey, 15.4% from other states, 3% are international students who are studying in the U.S. and 0.5% are students in international partnership programs overseas. Each program attracts diverse student groups. Since the academic year, total traditional undergraduate enrollment in the College of Arts and Sciences has declined from 1,790 to 1,664 in , a 7.0% decrease, and full-time equivalent enrollment has decreased from 1,700 in to 1,591 in , a 6.4% decrease. At the same time total enrollment in Esperanza College has grown from 129 in to 244 in , an 89.1% increase, and full-time equivalent enrollment in Esperanza College has grown from 127 to 225 in the same period. Combined, the enrollment for the Associate of Arts program of Esperanza College and the College of Arts and Sciences programs are stable in the period of to A - 12

43 The University s Campolo College of Graduate and Professional Studies, which offers multiple academic programs at the associate s, bachelor s, master s and doctoral levels, has experienced significant enrollment increases over the past five years. Graduate programs in Education and Counseling are offered on a traditional semester basis. Education is now offering a program in an accelerated, cohort format as well. The School of Management Studies provides accelerated programs at both the graduate and undergraduate level. The graduate programs, referred to as Fast-Track MBA, provide a Masters of Business Administration with concentrations in Management and Health Administration, or a Master of Science with concentrations in Health Services Management and Non-Profit Management. The accelerated programs at the undergraduate level provide a Bachelor of Arts in Organizational Leadership and a Bachelor of Science in Business Administration. Accelerated programs leading to a Bachelor of Science in Nursing and the Bachelor of Science in Education are provided by the departments in their respective professional areas. The School of Leadership and Development offers a non-traditional program in Economic Development leading to the MBA. In addition, programs leading to the M.A. in Organizational Leadership and M.A. in International Development are offered to the staff of non-government organizations. The Doctor of Philosophy in Organizational Leadership was introduced in 2007 to provide a 60 credit advanced research degree with a focus on transformational leadership. A Doctor of Arts in Marriage and Family was introduced in 2011 with a focus on creating positive change in families. These programs attract a market niche of older students seeking a quality education delivered in a format suited to their busy schedules. Total enrollment in the Campolo College of Graduate and Professional Studies has increased 19.0% from 1,757 in to 2,090 in Full-time equivalent enrollment has increased 6.3% in the same period. The Palmer Theological Seminary has shown a 11.6% decline in total enrollment from 413 in to 365 in Full-time equivalent enrollment has declined 2.9% in this same period. Total Enrollments FTE Enrollments % Change % Change College of Arts & Sciences 1,790 1, % 1,700 1, % Campolo College of Graduate & Professional Studies 1,757 2, % 1,447 1, % Esperanza College % % Palmer Theological Seminary % % Total 4,089 4, % 3,551 3, % Source: Eastern University Office of Institutional Research. As depicted above, the University s total student enrollment has grown from 4,089 in to 4,363 in , representing a 6.7% increase. Total institutional F.T.E over that period has grown from 3,551 to 3,623, representing a 2.0% increase. Tuition and Fees The following table summarizes the annual undergraduate tuition, room and board charges at the University from through : Source: Eastern University Office of Finance Tuition $21,350 $22,670 $23,770 $24,550 $25,800 Mandatory Fees $0 $0 $0 $0 $100 Tuition and Fees $21,350 $22,670 $23,770 $24,550 $25,900 Room $4,550 $4,690 $4,830 $4,950 $5,080 Board $3,800 $3,920 $4,040 $4,140 $4,250 Room & Board $8,350 $8,610 $8,870 $9,090 $9,330 Total $29,700 $31,280 $32,640 $33,640 $35,230 A - 13

44 Competition The University believes that students' decisions to apply and enroll in the University s undergraduate programs are based primarily upon the quality of education offered, the relatively small size of the University, the core component of ethics and faithbased values intrinsic to every course, and the opportunity to work closely with individual members of the faculty. Based upon location, similar curricula, and College Board statistics, the University believes its most significant competitors are those listed in the following table: Room University/College Tuition and Board Total Saint Joseph's University $ 36,480 $ 12,206 $ 48,686 Arcadia University 33,490 11,640 45,130 Cabrini College 32,266 11,742 44,008 Gordon College 29,330 8,434 37,764 Wheaton College 28,960 8,220 37,180 Messiah College 27,536 8,420 35,956 Eastern University 25,800 9,330 35,130 Taylor University 27,200 7,532 34,732 Calvin College 25,340 8,760 34,100 Houghton College 25,994 7,550 33,544 Roberts Wesleyan College 24,386 9,076 33,462 Geneva College 23,330 8,560 31,890 Philadelphia Biblical University-Langhorne 20,688 8,275 28,963 Nyack College 20,500 8,250 28,750 Liberty University 17,806 6,680 24,486 Lancaster Bible College 16,530 7,470 24,000 Valley Forge Christian College 15,652 7,603 23,255 Grove City College 13,598 7,410 21,008 (Tuition and Room and Board values are for the academic year.) Source: Eastern University Office of Finance. A - 14

45 Financial Aid Approximately 96% of traditional undergraduate students received some form of financial aid for the last academic year. Financial assistance is designed to supplement the contribution that a student and family can provide toward the payment of tuition and other educational expenses. Sources of aid include institutionally funded grants, federal grants and guaranteed loans, scholarships, and funding from private sources. The following table presents the primary sources of financial aid during the fiscal years shown: ** Pell Grants $ 1,469,177 $ 1,762,385 $ 2,309,295 $ 3,434,893 $ 4,284,367 Federal Supp Educ Opp Grant * 202, , , , ,216 Federal Work-Study Program 285, , , , ,866 Federal Grants, Other 64,227 76,550 98, ,375 Eastern University Funding 15,064,122 17,325,011 18,811,121 18,046,776 18,119,031 Subtotal: $ 17,085,830 $ 19,663,468 $ 21,688,093 $ 22,155,162 $ 23,029,855 Loan Programs: Perkins Loan $ 230,439 $ 249,555 $ 257,600 $ 259,816 $ 264,450 Stafford/Direct Loan Programs 24,389,043 27,058,465 29,966,529 31,596,542 34,665,990 Subtotal: $ 24,619,482 $ 27,308,020 $ 30,224,129 $ 31,856,358 $ 34,930,440 TOTAL: $ 41,705,312 $ 46,971,488 $ 51,912,222 $ 54,011,520 $ 57,960,295 * Federal Supplemental Educational Opportunity Grant ** For Fiscal Pell Grants are reflected on the balance sheet of the audited financial statements as a pass through item. Source: Marcum LLP. Employees Faculty For the academic year, the University employed 148 full-time teaching faculty members; 80% hold doctoral degrees and 43% are tenured. The University's full-time faculty is augmented by a part-time faculty of 396 members for the Fall 2011 semester. The full-time equivalent student/faculty ratio is 12.9:1. Total Employees The University has a total of 915 employees, including faculty, in The following is a breakdown: Faculty Full-time 148 Part-time 396 Administration (Executive) Full-time 8 Part-time 0 Staff Full-time 302 Part-time 61 Total 915 Source: Eastern University Office of Human Resources. A - 15

46 The University does not maintain collective bargaining agreements with any employee group, and enjoys good relations with both faculty and staff. Pension Program The University sponsors a defined contribution pension program designed to provide investment in annuities and in shares of regulated investment companies (mutual funds). After one year, all full-time employees are eligible to participate. These plans are administered by the University. Funds are invested by TIAA/CREF. Pension costs, which are charged to unrestricted fund expenditures, were $1,558,000 and $1,731,000 for fiscal years 2010 and 2011, respectively. Such costs are funded as incurred and are determined based upon as much as 8% of the employee s annual salary. The University has no unfunded pension liabilities. The University has paid 100% of the Defined Contribution on an annual basis. The University has no post employment benefits. Planning and Budgeting The University annually prepares a detailed financial plan to assist in managing and controlling the current and long-term operations of the University. Revenue plans, which incorporate tuition, enrollment, fund-raising, and auxiliary support, are developed in December and January. Tuition and fee rates for the upcoming academic year are reviewed by the Board of Trustees and approved at the Board meeting held in February. Based upon established revenue plans, expense guidelines are developed and operating budgets are prepared in the spring for approval by the Board of Trustees in May. Annual budgets become effective as of July 1, the start of the fiscal year. The Executive Leadership Team reviews periodic reports comparing expenditures with budget projections. Executives and department managers are able to access the University s central computer system via a secure website to view real-time statements itemizing their respective revenues, expenditures, and budgets. Additionally, the University has an ongoing five-year strategic planning process which both operationally and financially examines macroeconomic and demographic trends, as well as the specific opportunities and challenges confronting the University. The University s Board of Trustees, through its various committees, is involved in the strategic planning and budgeting processes. Operating and capital budgets are formally presented and recommended to the Board's Property and Finance Committee, and the Board of Trustees approves annual operating budgets and the Strategic Plan. A - 16

47 Gifts, Contributions, and Grants The University has a development staff consisting of six professionals and five support specialists. Development activities are organized around a marketing plan which targets specific individuals and organizations based upon their relationship to the University. Individual support constituencies and monetary goals, which are based upon the University's financial plans, are assigned to specific staff members. Monthly development reports from staff members and support areas are reviewed by the President, Vice Presidents and principal Board members. Endowment Fund: As of June 30, 2011, the University s endowment reported a fund balance of $21.6 million. This total includes amounts endowed by donors to the University, as well as quasi-endowments established by the University s Board of Trustees. The audited financial statements present donor endowments as Permanently Restricted net assets, and Quasi-Endowments as Unrestricted net assets Beginning Balance $ 12,817,907 $ 13,765,936 $ 13,119,600 $ 11,535,316 $ 17,452,990 Revenues: Contributions $ 380,701 $ 162,161 $ 861,454 $ 4,843,683 $ 1,588,635 Earning 1,105,494 (350,617) (1,915,175) 1,440,239 3,156,535 Funds Available $ 14,304,102 $ 13,577,480 $ 12,065,879 $ 17,819,238 $ 22,198,160 Expenditures Operations $ 307,546 $ 273,589 $ 247,150 $ 104,356 $ 304,878 Scholarships 230, , , , ,612 Ending Balance $ 13,765,936 $ 13,119,600 $ 11,535,316 $ 17,452,990 $ 21,630,670 Source: Eastern University Office of Finance. Composition of Endowment Fund by Class of Assets Stocks/Funds $ 14,069, % Bonds 4,282, % Real Estate 3,500, % Cash 450, % $ 22,303,719 Source: Eastern University Office of Finance. A - 17

48 Accounting Matters The University s Audited Financial Statements as of June 30, 2011 and related notes, including the report of Marcum LLP, independent auditors, accompany this Official Statement as a separate document. In the opinion of the University, there has been no material adverse change in the financial condition of the University since June 30, Commencing with the fiscal year ending June 30, 1996, the University began presenting its financial statements in accordance with the reporting and accounting standards established by the Financial Accounting Standards Board for not-for-profit organizations Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-For-Profit Organizations (Superseded by Financial Accounting Standards Board Accounting Standards for Non-Profit Sector 958 [ ASC 958 ]). Under ASC 958, the University is required to report information regarding its financial position and activities according to classes of net assets. Resources are grouped into separate classes of net assets based on the existence or absence of donorimposed use and/or time restrictions. Net assets, which have similar characteristics, are combined into one of the three net asset classes briefly described below: Unrestricted net assets result from revenues from providing services, receiving unrestricted contributions and earning income from investments including investment gains and losses (unless such income is permanently or temporarily restricted by donor stipulation or law) less expenses for providing revenue and performing various academic and administrative functions. Temporarily restricted net assets result from contributions received from donors who impose purpose and/or passage of time restrictions on the use of their gifts. Permanently restricted net assets result from contributions received from donors who stipulate that the principal of their gifts may never be expended. The basic financial statements required by the Financial Accounting Standards Board focus on the institution as a whole and include a Balance Sheet, a Statement of Activities, and a Statement of Cash Flows as well as accompanying notes to the financial statements. The University s balance sheets as of June 30, 2011 and June 30, 2010, and the related statements of changes in activities and statement of cash flows, and related notes to financial statements, have been audited by Marcum LLP, independent certified public accountants. Financial Information The Statement of Activities is a summary of the revenues and expenses related to the current reporting period, showing the details of revenues by source, expenditures by function, and all other changes in net assets. Current revenues include: (1) all unrestricted resources received and/or earned during the reporting period; (2) all temporarily restricted resources received and/or earned during the reporting period; and (3) revenues earned from permanently restricted assets during the reporting period. Current expenditures comprise all expenses incurred during the reporting period. For the fiscal year ended June 30, 2011, the University s Revenue totaled $92,161,281 compared to Expenses of $87,887,476. Net assets increased $4,273,805 during the year. A - 18

49 The following table sets forth the University s Statements of Activities for fiscal years ended June 30, REVENUES: Education and General: Tuition and fees $52,957,191 $58,311,630 $62,975,571 $63,532,456 $67,933,499 Investment income (loss), net 2,550, ,422 (1,508,469) 1,876,753 3,501,925 Gifts 5,484,945 4,546,963 4,098,867 11,410,815 6,164,759 Grants 4,157,612 4,422,490 4,900,777 1,747,604 1,569,494 Other Sources 383, , , ,649 1,297,420 Auxiliary Enterprises 9,448,668 9,779,883 11,073,827 11,458,516 11,694,184 Total revenues $74,982,495 $77,764,223 $81,869,912 $90,824,793 $92,161,281 EXPENSES: Educational program services: Instruction $21,455,816 $22,380,897 $24,831,262 $25,290,181 $25,874,907 Academic support 5,666,358 5,761,850 6,841,921 4,574,655 4,870,849 Student services 4,410,802 4,734,180 4,761,582 9,591,790 9,758,494 Scholarships and student aid 17,085,830 19,663,468 21,688,093 20,237,475 23,029,855 Auxiliary enterprises 5,691,066 6,316,576 6,710,466 4,974,772 4,999,089 Supporting services: Institutional support 11,205,951 11,587,220 12,961,412 8,892,941 10,668,649 Operation and maintenance of plant 4,966,155 4,615,772 4,437,951 7,969,428 8,685,633 Total expenses $70,481,978 $75,059,963 $82,232,687 $81,531,242 $87,887,476 Change in net assets 4,500,517 2,704,260 (362,775) 9,293,551 4,273,805 Net assets, beginning of year 41,848,728 46,349,245 49,053,505 48,690,730 57,320,342 Prior period adjustment (663,939) Net assets, end of year $46,349,245 $49,053,505 $48,690,730 $57,320,342 $61,594,147 Source: FYE 2008, 2009, 2010 and 2011 Audits. A - 19

50 The following table sets forth the University s Balance Sheet at June 30, ASSETS: Cash and cash equivalents $ 13,070,224 $ 11,436,039 $ 14,058,306 $ 19,397,009 $ 19,884,350 Short-term investments 169, ,789 97, Receivables: Students 3,147,297 3,818,361 4,700,773 3,773,228 2,264,415 Student loans 1,179,266 1,255,868 1,365,891 1,453,789 1,550,962 Other federal funds ,125, ,438 Contributions receivable 479, , , , ,824 Prepaid expenses and other assets 2,726,459 1,133,145 1,440, ,089 1,058,510 Cash and cash equivalents - permanently restricted 743, , ,223 14,701 14,638 Investments 25,024,792 18,980,195 17,401,297 15,243,766 20,245,711 Property, plant and equipment 46,690,760 54,149,289 53,154,527 61,685,571 59,451,447 Bond issue costs 614, , , , ,378 Beneficial intersts in perpetual trusts 1,097, , , , ,089 Due (to) from other funds Due from Collegiate Housing Foundation 168, , ,430 1,024, ,151 Total assets $ 95,111,793 $ 93,961,646 $ 94,915,205 $106,170,626 $ 107,352,913 LIABILITIES: Accounts payable and accrued expenses $ 5,508,346 $ 3,051,528 $ 3,403,836 $ 2,229,688 $ 1,165,545 Accrued payroll 1,919,815 1,952,631 2,557,424 3,129,392 2,782,283 Deferred income 4,032,642 3,707,491 4,845,974 3,476,326 2,797,305 Student deposits 212, , , , ,300 Annuities payable 814, , , ,423 1,089,049 Accrued interest 392, , , , ,938 Advances from Federal government for student loans , ,939 Note payable ,989,178 4,855,021 Bonds payable 35,883,153 34,934,095 33,944,910 32,922,116 31,861,386 Total liabilities $ 48,762,548 $ 44,908,141 $ 46,224,475 $ 48,850,284 $ 45,758,766 Net Assets Unrestricted: Undesignated $ 28,752,014 $ 33,960,147 $ 33,860,199 $ 36,318,753 $ 35,758,238 Board designated fund - - 1,806,985 1,893,975 2,139,487 Loan funds , ,079 $ 28,752,014 $ 33,960,147 $ 35,667,184 $ 38,769,397 $ 38,472,804 Temporarily restricted $ 5,133,284 $ 3,385,616 $ 2,481,192 $ 2,892,015 $ 3,684,598 Permanently restricted: Endowment fund $ 11,325,261 $ 10,406,177 $ 9,339,967 $ 15,658,930 $ 19,436,745 Loan Funds 1,138,686 1,301,565 1,202, Total Permanently restricted $ 12,463,947 $ 11,707,742 $ 10,542,354 $ 15,658,930 $ 19,436,745 Total Net Assets $ 46,349,245 $ 49,053,505 $ 48,690,730 $57,320,342 $ 61,594,147 Total Liabilities and Net Assets $ 95,111,793 $ 93,961,646 $ 94,915,205 $ 106,170,626 $ 107,352,913 Source: FYE 2008, 2009, 2010 and 2011 Audits. A - 20

51 Management s Discussion and Analysis of Financial Conditions and Results of Operations The discourse that follows seeks to illuminate the key aspects of the financial performance of Eastern University for the five year period ending June 30, 2011 with management s insight and understanding. Eastern University is dedicated to the preparation of undergraduate, theological and graduate students for thoughtful and productive lives of faith, leadership and service. While many colleges seek the integration of faith and reason, the University challenges its students to integrate faith, reason, and justice. The viability of the Eastern University brand is manifested in the University s financial performance from July 1, 2006 to June 30, Over this five year span, the university s total net assets increased by 47.2%--from $41.85 million to $61.59 million. (Unrestricted net assets also increased by 46%--from $26.34 million to $38.47 million.) These results were born from prudent stewardship, a mission-driven mix of enrollment opportunities, and affirmation of the University s mission by students and donors. Balance Sheet As of June 30, 2011, the University s balance sheet reported total assets of $ million, which was primarily comprised of Cash and Cash Equivalents (18.5%), Investments (18.9%), and Property, Plant and Equipment (55.4%). Historically, Eastern University has maintained an effective cash position. As of June 30, 2011, cash and cash equivalents totaled $19.90 million. The University has demonstrated strong liquidity over the reported period. The ratio of current assets to current liabilities (i.e., the current ratio) ranged from 1.63 at the end of fiscal 2007 to 2.91 at the end of fiscal Investments held primarily for the University s endowment totaled $20.25 million. The University s investment policy targets a real rate of return of 4%, stipulating an investment allocation of 70% equities and 30% bonds of nonreal estate holdings. Since its inception in 2005, the annualized return of the portfolio has measured 6.37%, which was 100 basis points higher than its blended benchmark. Student receivables (not including direct loans), as a percentage of total assets, decreased from 3.3% as of June 30, 2007 to 2.1% on June 30, Property, Plant & Equipment grew by 55.3%--from $38.28 million at June 30, 2006 to $59.45 million at June 30, The increase is substantially related to construction of Eagle Hall and Eagle Learning Center, which were placed into service during the 2007 fiscal year; and the 2010 acquisition of 19.2 acres from the Valley Forge Military Academy (VFMA) proximately located near the University s main campus in St. Davids, PA. Long-term debt increased by $14.43 million from $22.28 million at June 30, 2006 to $36.72 million at June 30, The increase is predominantly attributable to the financing of Eagle Hall, Eagle Learning Center, and the 19.2 acre land acquisition from VFMA. Statement of Activities The University s total net assets increased by approximately $20 million over the five year period ended June 30, This increase equates to an average 4% return on total assets. Not surprisingly, gross tuition and fees accounted for 73.2% of the total revenue reported for the indicated period. This total grew from $52.96 million in fiscal 2007 to $67.93 million in fiscal The primary academic units of the University include: The College of Arts & Sciences (CAS) the University s traditional undergraduate program serves a largely residential population. The Templeton Honors College (THC) is technically a separate academic unit of the University; however, financial results for THC are presented in consolidation with CAS. The Campolo College of Graduate & Professional Studies (CCGPS) This unit offers a myriad of undergraduate and graduate programs that typically target adult learners in an accelerated or alternative delivery format. CCGPS offerings are held at the University s main campus in St. Davids, PA; various locations throughout Pennsylvania, and Washington, DC; and on five continents. Esperanza College (EC) Esperanza College is a branch of Eastern University that serves a predominantly minority population at a campus location in north Philadelphia. Esperanza is a joint venture between Eastern University and Esperanza, Inc. one of the largest Hispanic Faith-Based Evangelical networks in the United States. Palmer Theological Seminary Formerly Eastern Baptist Theological Seminary, the Seminary gave birth to Eastern University (then, as Eastern Baptist College) in In 1987, the entities reorganized into two, administratively distinct schools, only to rejoin in 2004, with Palmer becoming the Seminary of Eastern University. A - 21

52 As the chart below depicts, each academic unit has demonstrated growth over the five year report period. The growth of CCGPS, Esperanza College, and PTS has served to diversify the University s tuition and fees. In fiscal 2007, CAS accounted for 59.4% of the University s Tuition and Fees. That proportion was down to 53.8% for fiscal Tuition Revenue $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 FY2007 FY2008 FY2009 FY2010 FY2011 CAS CCGPS EC PTS The University completed its Middle States reaccreditation site visit in March The University anticipates reaffirmation of its accreditation when the Middle States Commission on Higher Education convenes in June. Auxiliaries comprised approximately 12.8% of total revenue reported by the University during the 5-year reporting period primarily related to residence halls and food service. Gifts accounted for 7.6% of total revenue for the five year period from fiscal 2007 to fiscal In fiscal 2010, the University reported total gifts of $11.41 million or 12.6% of total revenue. The increase in gifts for that fiscal year primarily resulted from a single bequest. From fiscal 2007 to fiscal 2011, total expenses increased from $70.48 million to $87.89 million an annualized increase of 6.2%. In fiscal 2011 and retroactively for fiscal 2010 the University revised its methodology for reporting functional expenditures, implementing a methodology that more closely aligned with the parameters propagated by the National Association for College and University Business Officers (NACUBO). As a result of this change, functional expenditure amounts for fiscal years 2010 and 2011 may not effectively compare with amounts for fiscal years 2007, 2008 and The University is a voluntary participant in the NACUBO tuition discounting survey. In fiscal 2011, Eastern reported an undergraduate (i.e. College of Arts & Sciences) discount of 44.4% compared to 38.1% for similarly sized institutions. The University has identified its tuition discount strategy as an opportunity for expense containment over the next 3-4 years. The University projects the following tuition revenue results for the fiscal year that ends 06/30/2012: CAS up 2.2% from FY11; CCGPS down.6% from FY11; EC up 9.2% from FY11; and PTS up 18.8% from FY11. The University s revised budget for unrestricted operations anticipated a deficit of approximately $500,000 for the fiscal year ending June 30, 2012 largely attributable to a slight decline in tuition revenue projected for the Campolo College of Graduate & Professional Studies, a decline in unrestricted contributions, and an increase in institutional scholarship and grants. As of the date of this Official Statement, results reported for the eleven month period ended May 31, 2012 project an operating deficit of approximately $148,000 for the fiscal year ending June 30, This improved projection results from stronger performance by the Campolo College of Graduate & Professional Studies for the last quarter of the fiscal year and increases in tuition revenue for Palmer Theological Seminary. (The amounts reported herein are unaudited.) A - 22