UIHistories Project: A History of the University of Illinois by Kalev Leetaru
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Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 824]

Caption: Board of Trustees Minutes - 1936
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i936l

UNIVERSITY OF ILLINOIS

821

moneys may be withdrawn, however, only upon receipt by the Trustee of a duly executed check or other order of the Foundation accompanied by a voucher of the Foundation stating the purpose or purposes for which such moneys are withdrawn and that same are a reasonable expense of the Foundation in the maintenance, repair and operation of the Trust Property. In case an event of default has happened and is subsisting and the Trustee has elected to take possession of the Trust Property or to cause a receiver to be appointed therefor, the Foundation may be denied the right to withdraw moneys from the Revenue Fund and the Trustee or receiver (instead of the Foundation) may withdraw, disburse and use (or cause to be used) such moneys for the purpose of meeting the cost of maintenance, repair, and operation of the Trust Property. Section 6.02.—(Bond Fund)—On or before the 26th day of June and December of each year beginning with the 26th day of June or December next succeeding the Completion Date (as said term is defined in the Construction Fund Agreement), the Trustee shall transfer to a special account to be called (and herein referred to as) the "Bond Fund" all moneys in the Revenue Fund on said date exclusive of the sum of $2,000 to be reserved therein for the payment of the costs to the Foundation of maintenance, repair and operation of the Trust Property. Moneys in the Bond Fund shall be held as security for all of the Bonds issued hereunder without distinction or priority of one Bond over another (except as provided in Section 9.04) and such moneys shall be applied by the Trustee to the payment of (a) interest upon the Bonds as such interest becomes due and payable, (b) the principal of the Bonds as same becomes due and payable, (c) the purchase or redemption price of Bonds purchased or redeemed hereunder, and (d) the necessary fiscal agency charges for payment of such interest and payment or redemption of Bonds. In the event that on the day preceding any interest payment date the moneys in the Bond Fund not allocated to some other specific purpose shall be insufficient to pay the principal of and interest on the Bonds becoming respectively due and payable on said interest payment date and fiscal agency charges in connection therewith, the Trustee shall transfer to the Bond Fund from the Revenue Fund out of moneys therein derived from any source (including the aforesaid sums therein reserved for the payment of the costs to the Foundation of maintenance, repair and operation of the Trust Property) an amount of money which, together with the moneys in the Bond Fund available therefor, shall equal the amount required for the payment of the principal and interest on Bonds becoming respectively due and payable on said interest payment date and fiscal agency charges in connection therewith. In the event that on any principal payment date the moneys held in the Bond Fund shall be in excess of the amount required for the payment of such principal, interest and fiscal agency charges that are then due and payable and the principal and interest on the Bonds becoming respectively due and payable on the next two interest payment dates, such excess moneys, if same amount to more than $5,000, shall be applied by the Trustee as rapidly as reasonably practical to the purchase or redemption of Bonds as hereinafter provided.^ If the Trustee elects to purchase Bonds, it shall purchase Bonds of any maturities at prices (not exceeding the price at which same shall be redeemable at the next interest payment date) which shall be deemed by the Trustee to be_ the lowest price or prices obtainable without incurring undue cost for advertising. Such purchases shall be made in such manner (whether in the open market, by tender or otherwise, or at public or private sale) and at such times as the Trustee may deem proper; provided, however, that in case less than all of the Bonds outstanding are to be so purchased at any one time, such funds shall be applied (so far as the Trustee may deem practicable) to the purchase of the Bonds of the latest maturities at the time outstanding. Bonds so purchased or redeemed together with all appurtenant coupons shall be cancelled and no other Bonds shall be issued in lieu thereof. All moneys which the Bank under the Construction Fund Agreement shall be obligated to transfer to the Bond Fund from Construction Fund B on the Completion Date shall be applied by the Trustee to the purchase or redemption of Bonds.