Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 623]

EXTRACTED TEXT FROM PAGE:

620

BOARD OF TRUSTEES

[April 18

in any public office where the same should be filed in order to be valid liens against any part of said property; the Bank shall dispose of the balances then remaining in the Construction Funds and not set aside for making payments on account of the construction costs of the Project or claims arising in connection therewith as follows: any such balances remaining in the Construction Fund A shall be paid to the University, and any such balances remaining in Construction Fund B shall be transferred to the Bond Fund (which will be more fully provided for in the I n d e n t u r e ) . 5. It is expressly understood and agreed that the Bank shall be under no responsibility to make any investigation or analysis of any statement or information which may be certified to the Bank in the manner provided by this Agreement and that the Bank may accept without responsibility any statement, certificate or opinion which it may believe to be genuine and which may appear to be valid and authentic, provided the same shall comply to the best of its knowledge. information and belief with the requirements herein set forth. The Bank shall not be required to make any investigation as to the progress of the work or otherwise to inquire beyond the certificates; and said certificates shall constitute full and ample protection and authority to the Bankin making any disbursement and application hereunder. The Foundation and the University agree to furnish to the Bank specimen signatures of the Executive Director of the Foundation, the Director of the Physical Plant and Comptroller of the University or any other officials authorized to sign withdrawal orders on behalf of the University or the Foundation and to cause to be furnished to the Bank specimen signatures of the State Director of the Federal Emergency Administration of Public W o r k s for the State of Illinois, or such other representative as the Government may from time to time designate to approve withdrawal orders on its behalf, and to furnish forms of certificates and orders showing the signatures of the persons authorized to sign such certificates and orders. The Bank shall not be liable for any mistake of judgment or other mistake of itself or its agents or employees, but shall be liable only for its wilful or fraudulent misconduct, and the Bank shall be absolutely protected in making payments on the certificates and orders hereinabove provided for which it, in good faith, believes to be genuine and to be signed by the proper party, and shall not be required to see to the application of said payments or to the progress of the construction of the Project, and shall not be required to obtain any of the certificates or affidavits required by the laws of the State of Illinois with respect to liens of mechanics, laborers, materialmen, contractors, subcontractors or other persons, and shall not be liable to make any payments except out of funds deposited with it. Notwithstanding the provisions of this Section, the Foundation agrees to obtain and deliver to the Bank any and all necessary or desirable affidavits and waivers of liens executed by the mechanics. materialmen, contractors, subcontractors and any other persons who might. under the laws of Illinois, have any liens or inchoate liens upon the Project and the site thereof, in and by which waivers said persons shall waive (to the extent of partial or final payments made to them respectively) all rights to assert liens upon the Project and the site thereof. T h e Bank shall be entitled to be reimbursed for all proper outlays of every sort and nature by it made or incurred in the acceptance or discharge of it? duties hereunder with interest, and to receive reasonable and proper compensation for any and all duties that it may at any time perform hereunder, and for all damages sustained or incurred by the Bank by reason or on account of any negligence of any attorney or agent selected and retained with reasonable care in the performance or attempted performance of any of its duties hereunder. 6. This Construction Fund Agreement shall inure to the benefit of and be valid and binding upon the parties hereto, their respective legal representatives, successors and assigns and, cannot be amended, rescinded or modified in any way by the parties hereto without the prior written consent of the Government. 7. This Constitution Fund Agreement may be executed in several counter-