Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 610]

EXTRACTED TEXT FROM PAGE:

1963]

UNIVERSITY OF ILLINOIS

565

charges. Such audit report shall also include statements of the status of each fund, reserve or account established under the terms of Article Five hereof showing the amount and source of the deposits therein, the amount and purpose of the withdrawals therefrom and the balance therein at the beginning and end of the fiscal year. There will also be included with each audit report a written opinion of the accountant that in making the examination necessary to said audit no knowledge of any default by the University in the fulfillment of any of the terms, covenants, provisions and conditions of this Resolution was obtained, or, if such accountant shall have obtained knowledge of such default a statement of the default or defaults thus discovered and the nature thereof. SECTION 7.10. Fire and Extended Coverage Insurance. T h a t as long as any of said Bonds authorized to be issued hereunder shall remain outstanding and unpaid, either as to principal or interest, or both, it will maintain insurance on said facilities, including all equipment thereof, against loss or damage by fire and windstorm and all other risks included in extended coverage insurance in amounts sufficient to provide for not less than full recovery of the insurable value whenever the loss from causes covered by such insurance does not exceed eighty per cent (80%) of the full insurable value of said buildings. Such insurance policy or policies shall be payable to T h e Board of Trustees of the University of Illinois, and all moneys collected on account of loss or damage covered by any such policy or policies of insurance shall be held in trust by the Board of Trustees and shall be used only for restoration of the property so damaged or, at the election of the Board of Trustees, deposited for credit to the Bond and Interest Sinking Fund Account. SECTION 7.11. T h a t as long as the funds and investments of the Bond and Interest Sinking Fund Account are less than the maximum debt service reserve required to be maintained under Section 5.02 (b) of this Resolution, it will procure and maintain Business Interruption Insurance on the Congress Circle Union Building in an amount not less than two years' debt service requirements. Such insurance policy or policies shall be payable to T h e Board of Trustees of the University of Illinois and all moneys collected on account of loss covered by any such insurance shall be held in trust by the Board of Trustees and credited to the Congress Circle Union Bond Fund. ARTICLE EIGHT

EVENTS OF DEFAULT

SECTION 8.01. Events of Default. T h e University shall be in default herein if one or more of the following events (herein called "events of default") shall happen, to-wit: (a) Failure to make due and punctual payment of the principal of or any redemption premium on any Bond when and as the same shall become due and payable; (b) Failure to make due and punctual payment of any installment of interest on any Bond when and as such interest installment shall become due and payable, and such default shall have continued for a period of thirty (30) days; (c) Failure to make due and punctual payment or satisfaction of any payment into the Bond and Interest Sinking Fund Account when and as such payments shall become due and payable as in this Resolution or any resolution supplemented hereto expressed and such default shall have continued for a period of one hundred eighty (180) days; ( d ) If the University shall default in the observance of any other covenants, agreements or conditions on its part in this Resolution or any resolution supplemental hereto or in the Bonds contained, and such default shall have continued for a period of ninety (90) days after notice thereof given to the University by the holder of any Bond setting forth the nature of such default. If an event of default shall happen and be continuing, then and in each and every such case the holders of not less than a majority in aggregate principal amount of the Bonds at the time outstanding shall be entitled, upon notice in writing to the University, to declare the principal of all of the Bonds then outstanding hereunder and the interest accrued thereon to be due and payable