Repository: UIHistories Project: Board of Trustees Minutes - 1904 [PAGE 257]

EXTRACTED TEXT FROM PAGE:

1903.]

PROCEEDINGS OF THE BOARD OF TRUSTEES

233

8. I t is understood and agreed by the parties hereto that upon the real estate belonging to the Chicago College of Dental Surgery and described herein, and which is to be transferred according to the terms of this instrument to the University of Illinois, there is an incumbrance of seventy-five thousand dollars ($75,000) in the form of bonds of the said Chicago College of Dental Surgery drawing interest at the rate of six per cent per annum, and secured by a first lien upon the real estate aforesaid, that of the said bonds $25,000 will be matured on J u l y 1, 1906, and $50,000 will be matured on June 1, 1908; and it is further understood and agreed that there is a floating indebtedness of the Chicago College 'of Dental Surgery amounting to about twenty-five thousand •dollars ($25,000) and that there is no other indebtedness of said corporation. 9. I t is further understood and agreed by the parties hereto that the Chicago College of Dental Surgery is hereby authorized and permitted to issue bonds of the corporation to be due in ten to thirty years from date to the amount of one hundred and twenty-five thousand dollars ($125,000) and to secure the same by a second lien upon the real estate of the corporation heretofore described, said bonds to draw interest at the r a t e hereinafter set forth; that twentyfive thousand dollars ($25,000) of the said bonds shall be marked " p r e f e r r e d ' f a n d one hundred thousand dollars ($100,000) of the said bonds shall be marked ' ' common;' J that the Chicago College of Dental Surgery shall out of the proceeds of the foregoing 11 preferred'' bonds pay all the aforesaid floating indebtedness of the said Chicago College of Dental Surgery; that the twenty-five thousand dollars ($25,000) of " preferred'' bonds shall draw interest at the rate of five per cent per annum, that the one hundred thousand dollars ($100,000) of '' common'' bonds shall bear no interest and that the holders and owners of the same shall have no claim for interest against either of the parties hereto until the sum of twenty-five thousand dollars ($25,000) of the first mortgage bonds or of the ' ' preferred'' bonds or of bonds issued in lieu thereof shall be paid and discharged and shall no longer be an indebtedness of either of the parties hereto, and in that event the " c o m m o n " bonds shall draw interest at the rate of one (1) per cent per annum and no more; that in the same manner when fifty thousand dollars ($50,000) of the first one hundred thousand dollars ($100,000) of bonded indebtedness has been paid and discharged then, and not till then, the " c o m m o n ' ' bonds shall bear interest at the rate of two (2) per cent per annum, and no more; that when seventy-five thousand dollars ($75,000) of the first one hundred thousand dollars ($100,000) of bonded indebtedness shall be paid and discharged the " c o m m o n " bonds shall then, and not till then, bear interest at the rate of three (3) per cent per aimm, and no more; and that when the whole of the first one hundred thousand dollars ($100,000) of bonded indebtedness shall be paid and discharged then, and not till then, the " c o m m o n " bonds shall bear interest a t the rate of four (4) per cent per annum, and that this agreement about interest on the " c o m m o n " bonds shall be incorporated in said " c o m m o n " bonds; and provided further, that all the bonds so issued under this section shall be registered by the Secretary of the University of Illinois in his office, and no bonds shall be binding until such registry is shown on the said bond under the seal of the University. 10. I t is further agreed by and between the parties hereto that the University of Illinois shall annually as it becomes due, out of the net earnings of the College of Dentistry, pay the interest on seventy-five thousand dollars ($75,000) of the first mortgage bonds, and the interest on such bonds as may be issued to retire an equal amount of the first mortgage bonds; the interest on the twenty-five thousand dollars ($25,000) of " p r e f e r r e d " second mortgage bonds, and the interest on the one hundred thousand dollars ($100,000) of " c o m m o n " second mortgage bonds, as agreed upon and herein above set forth. 11. AH the net earnings of the College of Dentistry shall annually be applied by the University of Illinois as follows: (a) to the payment of the first mortgage bonds till all are paid, or are exchanged for other bonds; (b) to the payment of the said bonds which are issued in exchange for the said first mortgage bonds; (c) to the payment of the said second mortgage bonds, giving first prefer-