Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 508]

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506

BOARD OF TRUSTEES

[January 24

use exclusively for any of such purposes, the Trustee shall lease same to other for such use; and (3) that the Trustee shall hold such property during a designated period at the end of which the Trustee shall reconvey same to the University; (b) The University's depositing the grant, when and as received, in a Construction Account held by the Trustee under said trust agreement, such money to be disbursed for the purpose of constructing the Project and paying and reimbursing for the expenses incidental thereto; (c) The University's providing the sum of $1,091,000 to complete the construction of the Project, or the Trustee's providing said sum for such purpose by the issuance and sale of the bonds of such Trustee; ( d ) The amounts subject to requisition hereunder by way of intermediate grant shall not exceed 25% of the previously approved estimated cost of the Project. 3. This offer to purchase the bonds of said Trustee* is conditioned upon— ( a ) A trust agreement appointing said Trustee which shall be satisfactory in form and substance to the Administrator, and shall confer all necessary powers on the Trustee to manage the trust estate and to issue the bonds and execute an indenture as security therefor; (b) The Trustee's making of a year to year lease to the University with an option to renew each year, demising the completed Project to the University, such lease to be in form and substance satisfactory to the Administrator. The rental under such lease shall be sufficient (so long as said lease shall continue in effect) to enable the Trustee to pay the principal and interest on the bonds of the Trustee as same become due and to meet the costs of administering the trust, such rental to be payable from and secured by an exclusive first lien upon and pledge of the fund provided for in Senate Bill No. 543, approved by the Governor on July 11, 1935, which fund consists of the University's own receipts and collections in an amount not to exceed in the aggregate annually $100,000; (c) The execution and delivery, as security for said bonds, of an Indenture from the Trustee to a bank or trust company (satisfactory to the Administrator), which Indenture shall be in form and substance satisfactory to the Administrator and shall (1) provide for an exclusive first lien upon the aforesaid lease, the rent thereunder, and upon any other rents or revenues of the Trustee derived from the Project, (2) provide that in case the Trustee is unable to lease the Project for use exclusively for college, seminary, university or other public educational purposes, the grantee under said indenture shall take possession thereof and lease and operate same for any purposes, and (3) contain provisions as to the construction, maintenance, operation, title and insurance of the Project, the establishment of special funds, the fixing and collection of rentals, the furnishing of financial statements, the redemption of the bonds, the events of default, the rights and remedies thereunder (which shall not include foreclosure or sale), and such other matters as are customary in such instruments. U N I T E D S T A T E S O F AMERICA Federal Emergency Administrator of Public Works

By (Sgd.) HORATIO B. HACKETT

Assistant

Administrator

be and the same is hereby in all respects accepted.

*In the event that a loan and grant is made by the Government, the terms "Applicant" and "Owner" as used in the Rules and Regulations shall mean the University and the Trustee collectively, except that in Paragraphs 7, 9 and 10 of the general conditions, the term Applicant shall mean only the University. In the event that only a grant is made by the Government, the terms "Applicant" and "Owner" used therein shall mean the University.