Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 518]

EXTRACTED TEXT FROM PAGE:

516

BOAKD OF TRUSTEES

[January

24

George L. Turner for five j'ears from March 1, 1936, at 5 per cent, secured by a first mortgage on 80 acres of improved farm land in Champaign, subject to inspection of the land by and satisfactory report by representatives of the Finance Committee, the College of Agriculture, and the Comptroller's Office. On motion of Mr. Barrett, these recommendations were approved.

ASSIGNMENT OF FUNDS FOR COLLECTION OF STUDENT LOANS

Mr. Karraker, for the Finance Committee, presented also a recommendation that the Comptroller be authorized to employ, temporarily, and as a matter of trial, as a member of his staff, a person, or persons, to follow up delinquent student loans and to incur such additional expense as might be necessary for travel, postage, and legal services to secure collection of loans which are delinquent without good cause—the cost of this to be charged against the income from interest on student loans. From $8,000 to $10,000 a year is being realized in interest on these loans, which is accumulating unused, since the present demand for loans is not sufficient to use available money, and during the past year there has been constantly on hand between $25,000 and $50,000 surplus in these funds for which there is no demand. During the past ten years the amount of outstanding loans has increased from approximately $60,000 in 1925 to $165,000 in 1930, and to $200,000 in 1935; the amount of delinquent loans during 19341935 increased from $47,478 to $62,057. This is partly due to the inability of the Comptroller's Office to devote the time necessary in following up delinquencies. Funds are not available in the budget of his office to add to his staff or to meet other additional expenses which such a program would require. The total expense which would be incurred in following up delinquent loans in any one year would probably not exceed twenty-five per cent of the interest income of that year. The program could be discontinued at any time. On motion of Mr. Barrett, this recommendation was adopted.

SETTLEMENT OF HART MORTGAGE

Mr. Karraker, for the Finance Committee, presented also a recommendation that an offer for the settlement of the Hart mortgage, by the makers thereof, be accepted. By the terms of this offer the 300 acres of land covered by the mortgage will be deeded to the University, subject to unpaid taxes and assessments; the matter of a deficiency judgment will be waived; and $4500 par value of orders issued by Franklin County will be assigned to the University. These orders were issued to Marion Hart, one of the signers of the notes held by the University, in payment of his salary as a county officer. While these orders can not be cashed at the present time, and have very little market value, a proposal is now under consideration for the county to issue bonds to take up all outstanding orders. If this is done the principal of these orders will be paid. On motion of Mr. Barrett, this settlement was accepted.