Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 809]

EXTRACTED TEXT FROM PAGE:

8o6

BOARD OF TRUSTEES

[June 29

under said lease (so long as it shall continue in force) will be at least sufficient to pay all costs of maintenance, repair and operation of the Trust Property and to meet and pay the principal of and interest on the Bonds as same shall mature, and to create and maintain a reserve for the payment of such principal and interest. The rent and other obligations of The Board of Trustees of the University of Illinois with respect to the payment or expenditure of money under said lease are payable solely from the Medical and Dental College Building Fund, into which said Lessee is required to deposit all receipts and collections which it is authorized by Senate Bill No. 542, approved July 11, 1935, to retain in its own treasury, all as more fully provided in said lease to which reference is hereby made. The Foundation covenants and has covenanted in the Indenture that it will at all times (whether or not the lease to The Board of Trustees of the University of Illinois shall be in force) charge and collect rents, fees, revenues and other issues and profits for the use and occupancy of the Trust Property at rates which shall be at least sufficient to pay all costs of maintenance, repair and operation of the Trust Property and to meet and pay the principal of and interest on the Bonds as same shall come due, and to create and maintain a reserve for the payment of such principal and interest. The Foundation further covenants and has further covenanted in the Indenture that it will cause all moneys due under said lease to The Board of Trustees of the University of Illinois, or under any other leases or contracts hereafter entered into relating to the demise or operation of the Trust Property, to be collected promptly and will cause each and every term and provision of such leases and contracts to be carried out and performed, and that it will take any and all action necessary for such purposes. Said Indenture provides that the gross revenues from the Trust Property will be deposited in a fund known as the "Revenue Fund," and that after paying therefrom all costs of maintenance, repair and operation of the Trust Property, all moneys then remaining in said Revenue Fund shall be paid semi-annually into a special fund known as the "Bond Fund," which special fund is pledged for the payment of the principal of and interest on, and for the purchase or redemption of, the Bonds, and for the purpose of creating and maintaining a reserve for the payment of such principal and interest. The Foundation shall not be obligated to pay this Bond or the interest thereon, except from the aforesaid special fund and the revenues of the Trust Property hereby and in the Indenture required to be paid therein. This Bond shall not constitute or be a debt, obligation or liability of any kind whatsoever (either within the meaning of any constitutional or statutory restriction or limitation or otherwise) of The Board of Trustees of the University of Illinois or the State of Illinois, and neither The Board of Trustees of the University of Illinois nor the State of Illinois shall be legally or morally liable or obligated hereon. No personal liability of the Foundation or any beneficiary under the Medical and Dental College Building Trust shall be asserted or be enforceable because or in respect of this Bond or of the making, issue or transfer thereof, all such liability, if any, being hereby expressly waived and released by each bearer or registered holder hereof and each holder of any coupon appertaining thereto, and each such bearer or registered holder hereof, and each such holder of any coupon appertaining hereto, accepts the same upon the express condition that this Bond and the interest coupons appertaining hereto shall be collectible only out of the aforesaid special fund and the revenues of the Trust Property hereby and in the Indenture required to be paid therein. The Foundation reserves and shall have the right in the manner and subject to the conditions provided in the Indenture to redeem the Bonds in whole or in part (in the inverse order of maturities; if less than all of the Bonds of any maturity are to be redeemed, the Trustee shall select by lot the Bonds of such maturity to be redeemed) on any interest payment date, upon at least thirty (30) days* prior notice by publication and otherwise as provided in said Indenture, and upon payment of the principal amount thereof and accrued interest thereon to the date of redemption and a redemption premium equal to one-fourth (14) of one per cent (1%) of the principal amount hereof for each twelve (12) months' period, or fraction thereof, between the date of redemption and the