Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 803]

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BOARD OF TRUSTEES

[June 29

university, college or educational buildings on whicbysaid Board shall be given a year to year or other lease or the privilege thereto," (herein called the "Enabling Act") and pursuant to a resolution of the Board adopted at its regular meeting held on April 18, 1936, in conformity with said Enabling Act, and in order to induce the Government to make a grant to it to aid in financing the project (hereinafter described, which is hereby found and declared to consist of the construction and equipping of a university, college and educational building) on which the Board has been given the option and privilege of entering into the lease described below, the Board has heretofore entered into a Trust Agreement dated as of April 7, 1936, with the Government and the Foundation, in and by which the Medical and Dental College Building Trust was created for the purpose of constructing said project, providing for the use thereof during the period provided thereby and for other purposes, all more fully provided in said Trust Agreement; and that the Trust Agreement provides the powers and duties of the Foundation, as active Trustee thereunder, said powers and duties being necessary or convenient to accomplish the purposes of the Trust. (b) T h a t the United States of America (herein called the "Government"), acting by and through the Federal Emergency Administrator of Public Works, has heretofore agreed to make, and is making a grant to the Board for the purpose of aiding in financing the construction and equipping of the Medical and Dental College Building (herein called the "Project") in Chicago, Illinois, upon the site described in the lease; that the making of said grant has been induced, and a part of said grant has heretofore been obtained by the Board, as a result of the Board's having entered into the aforesaid Trust Agreement. (c) That the Board is given the privilege and option by said Trust Agreement of entering into the year to year lease of the project and that the lease hereinafter set forth is in conformity with the lease described in the option granted to the Board by the Trust Agreement. ( d ) That the Board, at its aforesaid regular meeting held on April 18, 1936, considered at length the advantage to it of said option to lease and determined that the rental stipulated in the option was substantially less than the fair rental value of the project; and that the Board has determined that it is to the best interests and advantage of the Board to exercise the aforesaid option to lease the project and to execute the proposed lease. ( e ) That the University of Illinois Foundation (herein called the "Foundation") as trustee under the Medical and Dental College Building Trust, in order to provide the necessary funds to complete the construction of the project, has determined to issue its bonds, designated "Medical and Dental College Building Trust Bonds," and to secure said bonds by a trust indenture from it (as trustee under the Medical and Dental College Building T r u s t ) to the First National Bank of Chicago, as Trustee, (herein called the bondholders' trustee). ( f ) That the Board has not heretofore incurred any obligations under an act of the Legislature of the State of Illinois entitled "An Act to authorize the Board of Trustees of the University of Illinois to enter into contracts with the United States for the erection of buildings and improvements, pursuant to Public Resolution 11, 74th Congress, First Session, House Joint Resolution 117, approved by the President of the United States April 8, 1935, at 4:00 p.m., and to authorize the financing of such improvements in conformity with such resolution, the National Industrial Recovery Act and such other acts of Congress enacted for the purpose of aiding the processes of national recovery," approved July 11, 1935, or under the aforesaid Enabling Act, or under both of said acts; and that the Board has not heretofore pledged for the payment of any obligations (other than those which may be incurred under a lease of the project) any part of the receipts and collections which it is authorized by Senate Bill No. 542 (herein called "Senate Bill No. 542") of the Legislature of the State of Illinois, entitled "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.