Repository: UIHistories Project: Board of Trustees Minutes - 1932 [PAGE 545]

EXTRACTED TEXT FROM PAGE:

1932]

UNIVERSITY OF ILLINOIS

543

T h e First National Bank of Chicago will keep on deposit with said First Union Trust and Savings Bank from time to time United States Government bonds or other United States Government securities of such character and in such amounts as will at all times and under all conditions secure the funds so deposited at the current market value of such securities, under the following conditions, to wit: (a) T h e securities so pledged shall be deposited for safe keeping with the First Union Trust and Savings Bank of Chicago, without expense to the Board of Trustees of the University of Illinois. (b) Substitutions and exchanges of securities of the type hereinbefore specified may be made from time to time upon the approval of the Treasurer, or an authorized deputy. (c) N o withdrawal, otherwise than for concurrent substitution or exchange as hereinbefore specified, shall be made except upon the approval of the Treasurer and the Comptroller of the University of Illinois, or their authorized deputies,firstobtained; provided, however, that on the fifth day following the giving of notice to you and the Comptroller, by depositing a letter in the mail addressed to you and the Comptroller, respectively, to the effect that the First National Bank of Chicago desires to withdraw as the Depository hereunder, the First National Bank of Chicago m a y deliver to you, or your successor as Treasurer, its check for the full amount, with interest, of such deposit and upon the second day following such delivery shall be entitled to withdraw all securities lodged hereunder to secure the payment of such deposits. (d) That the First National Bank of Chicago will pay such interest on current balances as m a y be agreed upon from time to time by it and you, and such interest shall be credited to your account as Treasurer of the University of Illinois. (e) That the Board of Trustees of the University of Illinois shall be subrogated to all the rights hereunder of Frank M . Gordon as Treasurer of the Hoard of Trustees of the University of Illinois and that such Board may. through any officer or agent it m a y designate, exercise and assert all the rights of the said Treasurer under this letter, concerning the securities which m a y be deposited, in the event of any failure or neglect on the part of ourselves as such depository to perform all the stipulations, conditions and agreements set forth herein relating to the deposit of funds and the payment thereof and the deposit of collateral to secure such funds. The Board of Trustees of the University of Illinois m a y exercise all the rights and privileges of the Treasurer hereunder given him if, upon instructions from the Board, the President of the University, or the Chairman of the Finance Committee of the Board, the Treasurer fails or neglects to exercise the rights given him hereunder concerning the deposit of funds and of collateral to secure the same. In case of decline in market value of the United States Government bonds or securities delivered to secure your deposit as such Treasurer or of any part thereof, the First National Bank of Chicago agrees on its o w n initiative or on demand by you to deliver and pledge additional United States Government bonds or United States Government securities sufficient to cover fully such deposit of funds at the current market prices of such securities. U p o n failure to give additional security as aforesaid, or upon failure or inability from any cause to pay the whole or any part of the amount of money deposited with us by you as Treasurer, you shall have the right to require delivery by the First Union Trust and Savings Bank of all such securities to you immediately, and to sell, assign and deliver any or all of the said securities and substitutions therefor, and additions thereto, or any part thereof, at any Brokers' Board or at public or private sale at your option and without notice, advertisement or demand of any kind and with the right on your part or of the or redemption, and as hereinafter under this agreement, waive any and allBoard, Board costs or sale oror purchase successorto be or any part thereof;allreasonable of event of anyexpenses for collection, in office, after at any Brokers' equity theany of Trustees, you, or your agreed,sale and delivery, including that we, in other public sale sales of such securities purchaser deducting legal and