Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 507]

EXTRACTED TEXT FROM PAGE:

1936]

UNIVERSITY OF ILLINOIS

505

Dental College Building in Chicago, Illinois (herein called the "Project"), by making a grant to the Board of Trustees of the University of Illinois (herein called the "University") in the amount of 45 percent of the cost of the Project upon completion, as determined by the Federal Emergency Administrator of Public Works, but not to exceed, in any event, the sum of $366,000, and by purchasing, at the principal amount thereof plus accrued interest thereon, from a Trustee (herein called the "Trustee") appointed by the University and the Administrator, obligations of the description set forth below (or such other description as shall be mutually satisfactory) in the aggregate principal amount of $1,091,000, less such amount of such obligations, if any, as such Trustee may, with the consent of the said Administrator, sell to purchasers other than the United States of America: (a) Obligor: Trustee appointed by the University and the Administrator ; (b) Type: Negotiable, revenue, coupon bonds; (c) Denomination: $1,000; (d) Date: January 1, 1936; (e) Interest rate and interest payment dates: Four percent (4%) per annum, payable semi-annually on January 1 and July 1 in each year; (f) Place of Payment: At the principal office of the bank or trust company referred to in 3(c) hereof or, at the option of the holder, at a bank or trust company in the Borough of Manhattan, City and State of New York; (g) Registration privileges: Registerable, at the option of the holder, as to principal only; (h) Maturities: Payable on January 1 in years and amounts as follows: 1938 and 1039 $40,000 1940 - 1042 45,000 1943 - 1945 50,000 1946 and 1947 55.000 1948 and 1949 60,000 1950 and 1951 65,000 1952 and 1953 70,000 1954 and 1955 75.000 1956 76,000 (i) Redemption provisions: Redeemable in whole or in part at the option of the Trustee on any interest payment date, in the inverse order of maturities (selection as between bonds of the same maturities to be made by lot or as provided in the Indenture) at a price per bond equal to the principal amount thereof plus accrued interest to the redemption date and a redemption premium of one-fourth (J^) of one percent of the principal amount for each year or fraction thereof over the number of full years from the redemption date to the stated maturity thereof; (j) Payable as to both principal and interest from and secured by an exclusive first lien upon and pledge of the year to year lease of the Project to the University of Illinois, the rent thereunder, and the rents or revenues of the Trustee, or of the grantee under the Indenture securing the bonds, derived from any other lease or use of the Project. 2. This offer to make the grant to the University* is conditioned upon— (a.) The University's conveyance of title to the site of the Project to the Trustee appointed by the University and the Administrator, in consideration solely of the making of the grant by the Government to the University, such property to be held under a trust agreement satisfactory in form and substance to the Administrator which shall provide: (1) that the University shall be given the privilege of leasing such property for use exclusively for college, seminary, university or other public educational purposes; (2) that in case the University fails to lease such property for

"See footnote on page 506.