Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 484]

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472

BOARD O F T R U S T E E S Construction Fund Earnings Capitalized Interest Sub Account Earnings Total Sources Uses: Project Costs Refunding Escrow Capitalized Interest Debt Service Reserve Deposit Issuance Costs Underwriters Discount Bond Insurance (if any) Total Uses

[January 18 $ 3 825 000 340 000 $67 000 000 400 125 930 345 370 630 200 $67 000 $52 4 4 4 000 000 000 000 000 000 000 000

With respect to the bonds, they are issuable as fully registered bonds and do not constitute an obligation of the State of Illinois, or of individual members, officers, or agents of the Board of Trustees, but are payable solely by the board from net revenues of the Auxiliary Facilities System and from student tuition and fees, as well as certain other funds pledged to pay principal of, redemption premium, if any, and interest on the bonds. All legal matters incidental to the authorization and issuance of the bonds by the board, the Official Statement, the Fifth Supplemental Bond Resolution, the Escrow Agreement, and the Continuing Disclosure Agreement, have been approved by Chapman and Cutler, bond counsel, Chicago, Illinois. Certain legal matters will be passed upon by Bell, Boyd and Lloyd, underwriter's counsel, Chicago, Illinois. The vice president for business and finance recommends: 1. Approval of the Official Statement for the Bonds. l 2. Adoption of the Fifth Supplemental System Revenue Bond Resolution. 3. Approval of the Form of the Bond Purchase Agreement with Lehman Brothers, Inc., as representatives of the purchasers, wherein the purchasers, jointly and severally, agree to purchase from the Board and the Board agrees to sell to the purchasers (but not less than all) of the Bonds in aggregate original principal amount not exceeding $63,500,000 (net of original issue discount, if any). The price at which the Bonds will be purchased from the University by the Underwriters will not be less than 99 percent of the price at which the Bonds will be offered to the public, and the all-in cost of borrowing for the issue will not exceed 6.00 percent.1 4. Approval to purchase bond insurance if such purchase is deemed economically beneficial following consultation with Financial Advisor and Underwriters. 5. Approval of First Chicago Capital Markets, Inc., Grigsby Brandford & Co., Mesirow Financial, Inc., and Stephens, Inc., as Co-managers. 6. Approval of the addition of the Academic Services Building to the projects previously approved in the amount of $1.8 million. 7. Approval of the issuance of approximately $4,125,000 to advance refund $3,840,000 principal amount Sangamon State University Auxiliary Facilities System Revenue Bonds, Series 1992; and to include those units of UIS in the AFS, and the escrow Agreement with FFG Trust, Inc., pertaining thereto.

1 A copy is filed with the secretary of the board for the record and the appropriate officers of the board are hereby authorized and directed to execute the same in the name and on behalf of the board in substantially the form presented to this meeting, or with such changes as may be approved by the officer or officers of the board executing the same, his/her or their execution thereof to constitute conclusive evidence of the board's approval of all changes from the form thereof presented to this meeting; provided, however, that if any such changes constitute a substantial change in the form thereof presented to this meeting they shall first De approved by the Executive Committee of the board to which authority for such approval is delegated by the board.