Repository: UIHistories Project: Board of Trustees Minutes - 1944 [PAGE 1008]

EXTRACTED TEXT FROM PAGE:

1944]

UNIVERSITY OF ILLINOIS

I005

It is proposed that these and other bonds which can be secured be purchased; that the University ask the County Collector to carry out foreclosure proceedings on this property; that the University then make a bid on the entire property at a price which would represent a total cost to it of not to exceed $50,000.

PROPOSED PROCEDURE FOR ACQUISITION OF GALLIVAN THACT

I. The University will purchase at an agreed rate bonds from some of the principal holders representing at least 50% of the total outstanding (amount now available 60% June 16). Other bondholders will then be informed that the University stands ready to make additional purchases on the same basis. 2. Foreclosure proceedings will be initiated by the County Treasurer as Collector under the general equity powers of the local circuit court. Liens and taxes against the property now exceed its fair value. 3. The tract will be offered in single lots and as a unit; the University will enter a bid for the entire tract, which bid will be that proportion of the total of principal and interest of bonds outstanding plus unpaid taxes and penalties thereon as represented by the proportionate value of bonds paid by the University in its purchases. 4. The County Collector under the act must distribute the money received proportionately between (a) bonds, including interest, and (b) taxes, including penalties. The University will then submit the bonds which it holds and secure redemption on this proportion which will be the amount paid by it for its bonds. Other bondholders will submit their bonds and receive similar pro-rata payment. T h e county will collect from the sale a similar proportion of its taxes. 5. When all bonds and taxes have been redeemed, the University will receive a tax deed which is subject to redemption within a two-year period, after which a fee title goes to the University. 6. If any bid is offered that is higher than the bid offered by the University and which the University does not wish to meet, the University will stand to receive for the bonds which it has purchased an amount greater than their original cost. Thus, there is no possibility of the University losing by the transaction. 7. The following liens of record against the property will be cleared by attorneys representing the bondholders: (a) first mortgage, $15,000; (b) second mortgage, $50,000; (c) trust deed on Lot 6, $6,ooo. (It is understood that none of these liens is considered as having any value.) 8. In the foreclosure proceedings all parties, both known and unknown, who have or may have interest in these properties will be made parties. This will include five fraternities who are shown as the owners of record of five of the 11 lots.

On motion of Mr. McKelvey, the procedure recommended by the Committee and the Comptroller was authorized. On motion of Mr. Davis, the appropriation of $50,000 was made as recommended, by the following vote: Aye, Mr. Davis, Mr. Fornof, Mrs. Grigsby, Mr. Jensen, Mr. Karraker, Mr. Livingston, Mr. McKelvey ; no, none; absent, Mr. Green, Dr. Luken, Dr. Meyer, Mr. Nickell.

DEGREES CONFERRED

The Secretary presented for record the list of degrees conferred at Urbana, June 4, 1944, and in Chicago on June 4 and 24. (See pages

1006-1017.)

The Board adjourned.

H. E. CUNNINGHAM

PARK LIVINGSTON

Secretary

President