Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 448]

EXTRACTED TEXT FROM PAGE:

446

BOARD OF TRUSTEES

BY-LAWS (As Revised November, 1935)

ARTICLE I INVESTMENTS

[October

25

SECTION I. Savings and Checking Accounts. T h e treasurer shall deposit all funds belonging to the Foundation as received in the name of the Foundation. Deposits may be made in either savings or checking accounts, as the treasurer may consider advisable. Deposits may be made only in banks that have previously been approved by the Board of Directors. Checks shall be drawn by the treasurer on order of the president of the Board of Directors of the Foundation and countersigned by the secretary-executive director, except that salary checks issued monthly or at regular intervals, appropriations for which have already been set up in the approved budget of the Foundation, shall not require an order from the president. SECTION 2. Surety Bonds. T h e treasurer shall furnish a surety bond in favor of the Foundation, renewable from year to year on July 1, for an amount not less than the value of negotiable securities and the total balances in the savings and checking accounts as per audited statement of June 1 next preceding the renewal of such a bond. T h e form of the bond and the company issuing said bond shall be approved by the Board of Directors or executive committee. Other officers and employees shall furnish adequate surety bonds as specified by the Board of Directors. All surety bonds shall be filed with the president of the Foundation and the cost thereof shall be paid by the Foundation. SECTION 3. Purchase of Securities. The treasurer, when directed by the finance committee, shall sell securities owned by the Foundation and deposit the proceeds as provided in Section 1 of the by-laws. Available amounts in the checking and savings accounts shall be invested from time to time by the treasurer as directed by the finance committee. At its meeting next following the purchase of any securities, the Board of Directors shall approve the securities purchased or order them sold and the proceeds reinvested. No funds of the Foundation shall be invested in the securities of any fraternity, sorority, house association, or other organization connected directly or indirectly with the University of Illinois. Investments shall be made with due regard to proper diversification and safety of principal. Not more than 5% of the net assets of the Foundation shall be invested in any one security other than United States Government bonds. Neither shall more than 5% of the net assets of the Foundation be invested in securities issued by any one individual, partnership, or corporation; provided, however, that securities owned at the time of the adoption of this by-law may be retained. SECTION 4. Safekeeping of Securities. All securities owned by the Foundation or held under its control shall be deposited with one bank, or trust company, under a safekeeping agreement. T h e form of agreement shall provide that the bank will remit the current income to the treasurer and that securities may be withdrawn or the proceeds from the payment or sale of securities may be withdrawn only as provided by Section 5 of this article. SECTION 5. Withdrawal of Securities. The secretary-executive director shall notify the treasurer and the depository of all actions of t h e Board of Directors or of the finance committee, acting under authority of the Board, which involve the withdrawal of securities from safekeeping. T h e depository shall be authorized upon receipt of such advice from the secretary-executive director to deliver to the treasurer or to his order securities covered by such actions. The president or the chairman of the finance committee is authorized to act for either the secretary-executive director or the treasurer provided that the same officer may not act in both capacities in connection with the same transaction.

ARTICLE I I EXPENSES OF EXECUTIVE DIRECTOR

SECTION I. Working Fund. A working fund may be advanced to the executive director out of which payment may be made by him for routine and