Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 608]

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i936J

UNIVERSITY OF ILLIKOIS

605

( a ) To construct, reconstruct, improve, alter and repair any such project; to hold, manage, operate, use, insure, lease or rent any project; (b) To issue negotiable bonds, notes or interim receipts (herein called the "bonds") maturing over a period not exceeding 30 years for the purpose of aiding in financing any project and to make covenants securing the bonds or relating to the bonds and the disposition and use of the proceeds thereof; (c) To secure such bonds by an indenture to a trustee or trustees for the holders of such bonds (herein called the "bondholders' trustee") providing the rights and powers of such trustee and of the bondholders, their respective rights to enforce the payment of the bonds or any covenants securing or relating to same, which shall not, however, include the right to forfeit or obtain title to the project through foreclosure proceedings or otherwise; to covenant as to events of default, the consequences thereof and the conditions upon which bonds may become or be declared due before maturity; (d) To confer upon the bondholders' trustee the power, in case of a default under the bonds or indenture securing same, to enforce the payments of all sums due under leases of any project, to compel the performance of any covenants or conditions therein, to take possession, use, operate, manage and control any project and collect and dispose of the rents therefrom; in the event that such powers are conferred upon the bondholders' trustee, same may he exercised by it without its forfeiting or obtaining title to the project through foreclosure proceedings or otherwise; (e) To confer upon the bondholders' trustee the power, in case of a default under the bonds or indenture securing same, to lease, use or operate a project for purposes other than those for which the active trustee itself may lease, use or operate same; the conferring of such power upon the bondholders' trustee shall not, however, affect the validity or exclusively public educational character of a trust or the property held by the active trustee thereunder; (f) To execute all instruments and contracts and to do all things necessary or convenient to carry out the powers conferred by such trust agreement. 3. To enter into agreements creating or authorizing the creation of special funds for moneys held for the construction of any project and to convenant as to the use and disposition of the moneys held in such funds; 4. To enter into a year to year or other lease on any such projects, with the privilege in the Board of terminating or not renewing such lease for any year or years, upon giving such notice as may be prescribed in such lease; such lease shall be in such form, with such rental, terms, parties and conditions as the Board may determine; to obtain options to lease any such projects from year to year, and to exercise such options; to vest in its lessor and in a trustee for the holders of bonds issued by its lessor, the right by mandamus, suit, action or proceedings in law or in equity, to enforce the payment by the Board of any sums due under any such lease or to compel its performance of any covenants or conditions contained therein; provided, however, that all sums due under such leases shall be payable exclusively from the Board's own receipts and collections which it is authorized by "An Act to amend section 6 of 'An Act in relation to State Finance,' approved June 10, 1919, as amended," approved July 11, 1935, to retain in its own treasury, exclusive of the working cash fund; 5. To agree with the Government that if the Board leases any such project or projects from an active trustee, a bondholders' trustee or otherwise, the Board shall pledge for the payment of its rentals or the performance of its obligations under any such lease its own receipts and collections which it is authorized by "An Act to amend section 6 of 'An Act in relation to State Finance,' approved June 10, 1919, as amended," approved July 11, 1935 to retain in its own treasury for the performance of any contract or undertaking with the Government in connection with any grant, advance, loan or contract for the erection of a building or buildings; to pledge and use said receipts and collections for the payment of its rents or for the performance of its obligations under any such lease; provided, however, that the aggregate amount pledged by the Board for the payment in any year of rentals or obligations under such leases (together with all sums pledged for the payment in any such year of other