Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 447]

EXTRACTED TEXT FROM PAGE:

1935]

UNIVERSITY OF ILLINOIS

445

such meeting of such charges as may be preferred against him by the majority of the Board of Directors. SECTION 7. Surety Bonds. All officers and employees of the Foundation who handle Foundation funds shall furnish adequate surety bonds to be approved by the University Counsel and by the Board of Directors of the Foundation.

ARTICLE IV

FINANCES

SECTION I. Finance Committee. Each year the president of the Foundation shall appoint a finance committee consisting of the treasurer and three members of the Board of Directors of the Foundation, one of whom shall also be a member of the Board of Trustees of the University of Illinois. One of the four members so appointed shall be designated as chairman of such committee. This committee shall prepare and submit to the Board of Directors of the Foundation each year for its approval a budget covering the operating expenses of the Foundation for the succeeding year. The finance committee under the direction of the Board of Directors shall have charge of the funds and investments of the Foundation. SECTION 2. Funds and Securities. The funds of the Foundation shall be deposited in a bank, under state or national supervision having a capital, surplus, and undivided profits of not less than $5,000,000. T h e securities of the Foundation shall be deposited under an Agency Agreement with the T r u s t Department of another institution of equal financial strength. T h e Agency Agreement shall provide, among other things, for the safekeeping of such securities; for the collection of principal and interest; and for notification regarding calls, rights, and the customary stipulations in this behalf. The funds of the Foundation shall be invested by the Board of Directors; but it shall be the duty of the finance committee to make specific recommendation as to securities to be purchased and sold. SECTION 3. Auditing of Accounts. The accounts of the Foundation shall be audited and examined each year by or under the supervision of the chairman of the finance committee and the comptroller of the University, with regular reports to the Board of Trustees of the University and to the Board of Directors of the Foundation. SECTION 4. Operating Finances. T h e budget referred to in Section 1 of this article, after approval by the Board of Directors of the Foundation, shall be presented to and used by the Board of Trustees of the University of Illinois as a basis for the transfer of funds to the account of the Foundation at stated periods, to be agreed upon by the Foundation and the executive officers of the University, for the purpose of paying the salaries of the executive director and the clerical staff, together with the expenses of the Foundation within the limitations of the budget and subject to the terms of the agreement with the Board of Trustees of the University of Illinois, and until such time as the Foundation shall become self-supporting.

ARTICLE V

AMENDMENTS AND B Y - L A W S

SECTION I. Amendments. This constitution may be amended by a two-thirds vote of the Board of Directors of the Foundation, but in case of amendments affecting the relation of the Foundation to the Board of Trustees of the University of Illinois, such amendments shall not become effective until concurred in by the Board of Trustees. SECTION 2. By-Laws. By-laws not in conflict with this constitution may be adopted, amended, or repealed by majority vote of the Board of Directors of the Foundation. SECTION 3. Copy of Constitution and By-Laws. T h e executive director of the Foundation shall at all times keep in the office of the Foundation a true and correct copy of the constitution and by-laws.