Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 532]

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S30

BOARD OF TRUSTEES

[February 22

MATTERS PRESENTED BY PRESIDENT WILLARD

The Board considered the following matters presented by the President of the University.

LEGISLATION TO AID IN F I N A N C I N G T H E MEDICAL AND DENTAL BUILDING PROJECT

(1) The completion of the legal and financial arrangements in the United States Government's offer of an outright grant of $366,000 and a loan of $1,091,000 for the construction of the second unit of the Medical and Dental College Laboratories Building will require some additional legislation. In accordance with the authorization of the Executive Committee of the Board on February 12, the following bills have been introduced in the first special session of the 59th General Assembly: HOUSE BILL 121.—A bill to amend the Act approved January 16, 1936, which transferred conditionally the title to the site on which the building is to be erected to the University. The Government requires that the title be unconditional so that the bonds to be issued to finance the construction will meet all legal requirements. HOUSE BILL 122.—A bill authorizing the Board of Trustees to create trusts, to convey property in trust, to enter into trust agreements providing the powers and duties of the trustee and providing for the issuance of bonds by such a trustee and providing for the payment and securing thereof, to enter into yearto-year or other leases, to pledge for the performance of its obligations under such leases certain receipts and collections which the Board is authorized by State law to retain in its own treasury, and to enter into covenants with the United States or any agency thereof and to take other action for the purpose of obtaining grants from the United States to aid in financing the construction and equipping of buildings. According to the Government's legal experts, existing legislation does not fully meet the situation.

This report was received for record.

TRUSTEES FOR MEDICAL A N D DENTAL BUILDING PROJECT (2) A report that the Federal Emergency Administration of Public Works has accepted the First National Bank of Chicago as disbursing agent and Trustee under the indenture for the holders of bonds to be issued in financing the construction of the second unit of the Medical and Dental College Laboratories Building, and the University of Illinois Foundation as the active Trustee in the Administration of this grant. The University Counsel has also conferred with officers of the Chicago Title and Trust Company concerning a title guarantee policy. The regular fee for such a policy will be $2,500, but it is possible that some reduction can be secured. In the meantime, he has suggested to the Federal authorities that the policy be dispensed with entirely, or that it be not purchased at this time but only at such time as the Government might need it in order to market the bonds. If the Government retains the bonds the opinion of a competent law firm as to a title should suffice, and this opinion could be obtained on a cost basis which would be considerably less than the cost of a title guarantee policy.

This report was received for record. On motion of Mr. Mayer, the President of the University was requested to report on methods of clearing the University's title to the land on which the medical buildings are located.

APPROPRIATION FOR BUSINESS OFFICE EQUIPMENT

(3) A recommendation that an appropriation of $1,050, or so much thereof as may be necessary, be made from the General Reserve Fund for the purchase of adding, calculating, and dictating machines for the Business Office as replacements for old equipment.

On motion of Mr. Barrett, this appropriation was made, by the following vote: Aye, Mr. Barrett, Mr. Karraker, Mr. Mayer, Dr.