Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 823]

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820

BOARD OF TRUSTEES

[June 29

the Trustee, and the Trustee shall not give its consent to any changes in the annual rental of $86,000 payable under said lease without first receiving the approval of such action by at least a majority of the holders of the Bonds outstanding, nor shall it give its consent to any changes in the other terms and conditions of said lease without first receiving the approval of such action by at least ten per cent of the holders of the Bonds, and (b) by the Government so long as it holds any of the Bonds. Section 5.04. In the event that the University fails to renew the attached lease at any time, the Foundation covenants and agrees to lease the Project and Site to others than the University for use exclusively for college, seminary, university or other exclusively public educational purposes, such lease or leases to be on the most favorable terms obtainable; provided, however, that no lease or leases demising the Project and the Site thereof shall be made which shall provide, in the aggregate, for a net rental less than $86,000 annually, unless such lesser rental is consented to in writing (a) by 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) by the Government «o long as it holds any of the Bonds. Section 5.05. The Foundation covenants that it will at all times (whether or not the attached lease to the University shall be in force) charge and collect rents, fees, revenues and other issues and profits for the use of the Trust Property at rates which 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 come due (including fiscal agency charges in connection with the payment thereof) and to create and maintain a reserve for the payment of such principal and interest. With reference to any leases or contracts hereafter entered into by the Foundation demising or otherwise relating to the Trust Property or the operation thereof or the rents, issues, profits or other revenues therefrom, the Foundation covenants that it will cause each and every term and provision of said leases and contracts to be carried out and performed, that it will cause all moneys due to it under said leases and contracts to be collected promptly, and that it will take any and all action necessary for such purposes. In the event that there shall be a default in the performance of any obligation under such leases or contracts, the Foundation shall take such action and pursue such remedies as it deems necessary in order to collect all sums due under said leases and contracts or to compel the performance of any other obligations under said leases and contracts 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 of the Foundation to take such action or pursue such remedies as are deemed necessary in order to collect all sums due under such leases and contracts or to compel the performance of any obligation under such leases and contracts or otherwise to take advantage of the provisions thereof. The Foundation agrees to comply with every such request of the Trustee.

ARTICLE VI DEPOSIT OF REVENUES OF TRUST PROPERTY IN CERTAIN SPECIAL FUNDS

Section 6.01.—(Revenue Fund)—The Foundation covenants that it will deposit with the Trustee promptly the gross revenue of the Trust Property, as collected, in a special account, to be called and herein referred to as the "Revenue Fund." The gross revenues of the Trust Property shall consist of all sums collected by the Foundation under its lease to the University or under any other leases or contracts entered into by the Foundation in connection with the demising or operation of the Trust Property or any part thereof and shall include all other revenues collected by the Foundation as rent, issues, profits or other receipts from the Trust Property. So long as it is not in default hereunder, the Foundation may withdraw moneys from the Revenue Fund for the purpose of making expenditures or paying indebtedness incurred by it in connection with the maintenance, repair and operation of the Trust Property. Such