Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 822]

EXTRACTED TEXT FROM PAGE:

1936]

UNIVERSITY OF ILLINOIS

819

All unpaid interest installments represented by coupons which shall have matured prior to such redemption date shall continue to be payable to the respective bearers thereof, and such coupons shall be presented for payment in the usual manner, and the notice of redemption herein provided for may so state.

ARTICLE V PLEDGED LEASES AND CONTRACTS

Section 5.01. The Foundation certifies and declares that the lease attached hereto and marked "Exhibit I" is a copy of a lease duly entered into between the Foundation, as lessor, and the University, as lessee, as of the date thereof, which said lease is at the date of execution and delivery hereof in full force and effect and unmodified. The Foundation covenants that it will cause each and every term and provision of said lease to be carried out and performed, that it will cause all moneys due to it under said lease to be collected promptly, and that it will take any and all action necessary for such purposes. In the event that the University shall default in the performance of any of its obligations under said contract, the Foundation shall take such action and pursue such remedies as it deems necessary in order to collect all sums due under said lease or to compel the performance by the University of its other obligations under such lease or otherwise to take advantage of the provisions thereof. The Trustee may, and upon the written request of at least ten per cent of the holders of the Bonds shall, make written request to the Foundation to take such action and pursue such remedies as are deemed necessary in order to collect all sums due from the University under the lease or to compel the performance by the University of its other obligations under such lease or otherwise to take advantage of the provisions thereof. The Foundation agrees to comply with every such request of the Trustee. In the event that the University shall be in default under said lease, the Foundation shall not terminate the rights of the University under said lease except with the consent of ( a ) the Trustee, and the Trustee shall not give such consent without first receiving the approval of such action by at least ten per cent of the holders of the Bonds, and (b) the Government so long as it shall hold any of the Bonds. Nothing in this Section, however, shall be construed as imposing any obligation upon the University, as lessee under said lease, to pay its rent and other obligations under said lease out of any funds other than the Medical and Dental College Building Fund pledged by said lease for the payment thereof and the receipts and collections thereby required to be paid into said special fund, it being expressly stipulated and agreed that neither the Foundation nor the Trustee shall have the right to demand the payment of rent or the discharge of the other obligations of the University as lessee under said lease out of any funds other than said special fund and the receipts and collections thereby required to be paid therein. Section 5.02. The Foundation certifies and declares that the rental and other sums required to be paid to it under the lease attached hereto as Exhibit I (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 to pay the principal of and the interest on the Bonds secured hereby as the same shall become respectively due and payable (including the fiscal agency charges in connection with the payment thereof) and to create and maintain a reserve for the payment of such principal and interest. All such sums collected under said lease shall be paid into the Revenue Fund as required by Section 6.01 hereof for the purposes stated therein. Section 5x53. In the event that the University terminates or fails to renew the attached lease at any time, the Foundation shall not thereafter lease the Project and the Site thereof to the University, as lessee, except at the same rental and upon the same terms and conditions as those set forth in the attached lease, so long as there shall be any Bonds or interest coupons outstanding hereunder or shall be any other unpaid indebtedness secured hereby, unless the changes in said rental, terms and conditions are consented to in writing (a) by