Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 820]

EXTRACTED TEXT FROM PAGE:

i93 6 l

UNIVERSITY OF ILLINOIS

817

vided for in the Construction Fund Agreement may be used by the Trustee for such purpose. For the purpose of so completing the construction of the Project, the Trustee may make any and all contracts and incur any and all indebtedness deemed by it to be necessary for architects, engineers, and contractors, and for work, labor, materials, supplies, and equipment in connection therewith; such contracts may be made and such indebtedness incurred in the name of the Foundation and as its attorney-in-fact hereby irrevocably appointed for such purpose; and the Trustee may enforce compliance with any contracts or agreements theretofore made by or on behalf of the Foundation, may make payments thereunder and do any and all things whatsoever that the Foundation might do in such connection, and may sign the name of the Foundation to any new contracts and to any and all papers and documents deemed by it necessary or advisable for such purpose; or the Trustee, at its election, may make any such contracts and incur any such indebtedness in its own name as Trustee of an express trust. In any such event, the Trustee may pay at any time any outstanding bills or liability or indebtedness contracted or incurred by or on behalf of the Foundation or by the Trustee in its own name or on behalf of the Foundation, and may make up any deficit in connection with the construction or equipment of the Project, regardless of whether or not any mechanics' liens or any other liens or claims have been filed or established in any of the foregoing instances, or the Trustee may advance directly to the Foundation any and all sums which it may deem necessary in its discretion for the above purposes or any of them. Any funds advanced or expended by the Trustee (except any moneys received from the Construction Fund) in completing the construction of the Project shall be repayable at once with interest at the rate of four per centum (4%) per annum, out of any funds available hereunder for the payment of the principal of and interest on the Bonds or as a reserve therefor, and all funds so advanced or expended, with interest thereon, shall be secured hereby in priority to the indebtedness evidenced by the Bonds and coupons issued hereunder; but no such completion of the Project by the Trustee shall be deemed to relieve the Foundation from any default hereunder.

ARTICLE IV REDEMPTION OF BONDS

Section 4.01. The Bonds shall be redeemable, as a whole or in part (in the inverse order of maturities), at the option of the Foundation (unless to the knowledge of the Trustee an event of default shall have occurred and shall be subsisting) or by operation of the Bond Fund herein provided for, upon any interest payment date, after notice given in the manner herein provided, at the principal amount thereof plus interest accrued thereon to the redemption date, plus a premium of one-quarter of one per centum of such principal amount for each year or fraction thereof from the redemption date to the stated maturity thereof (the aggregate of such principal, interest and premium with respect to any Bond being herein called the "redemption price" thereof). If the Foundation shall determine to redeem Bonds pursuant to this Section, it shall give written notice to the Trustee of its intention so to do, specifying the principal amount and the maturities of the Bonds to be redeemed and the redemption date, and requesting the Trustee to give notice of such redemption. If less than all of the Bonds of any maturity are to be redeemed, the Trustee shall select the Bonds of such maturity to be redeemed by lot in any usual manner approved by it. In case the Foundation shall notify the Trustee of its intention to redeem Bonds and, at least three days prior to the date fixed for the mailing of notice of such redemption (or for the first publication thereof, if published notice shall be required), shall have deposited with the Trustee in cash an amount which, together with any moneys then held by the Trustee for the account of the respective persons entitled to interest on the Bonds to be redeemed, shall be sufficient to pay the aggregate redemption prices thereof, and shall also have deposited with the Trustee a sum sufficient to pay the proper expenses and