Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 826]

EXTRACTED TEXT FROM PAGE:

i936l

UNIVERSITY OF ILLINOIS

823

If such proceeds shall be sufficient to pay the principal of and accrued interest on all outstanding Bonds to maturity, or to redeem said Bonds, all the proceeds of such insurance and all moneys held by the Trustee hereunder (including moneys in the Revenue Fund) shall be applied to the payment of the principal of and accrued interest on all outstanding Bonds issued hereunder, or to the redemption thereof; If such moneys also shall be insufficient to pay the principal of and interest on the Bonds to maturity, or to redeem said Bonds, and if the attached lease shall still be in force (without the University having given any notice of intention not to renew the lease) all the proceeds of such insurance, together with any amounts available from the Revenue Fund and any other moneys available therefor, shall be applied to the repair or reconstruction of the damaged or destroyed property to the extent that the available insurance moneys will permit; provided, however, that if the attached lease shall not then be in force or if notice of intention not to renew the lease shall have been given by the University, all the proceeds of such insurance and all moneys held by the Trustee hereunder (including moneys in the Revenue Fund) shall be applied to the pro rata payment of the principal of and accrued interest on all outstanding Bonds issued hereunder. Section 7.04. In the event of any loss or damage of the character referred to above, the Foundation shall forthwith commence and diligently prosecute the repair or reconstruction of the damaged or destroyed property, and shall pay or cause to be paid, out of the proceeds of such insurance or other funds available for that purpose, all costs or expenses in connection therewith so that the same shall be completed and the property be free and clear of all mechanics' and other liens and claims except this Indenture. Section 7.05. If the proceeds received by the Trustee by reason of any loss or damage of the character referred to above shall not exceed $10,000, such proceeds shall be paid over by the Trustee to or upon the order of the Foundation, and the Foundation covenants and agrees that such proceeds shall be applied to the repair or reconstruction as aforesaid of the damaged or destroyed property. If the proceeds received by reason of any such loss shall exceed $10,000, such proceeds shall likewise be paid out by the Trustee, from time to time, to or upon the order of the Foundation, but only upon receipt by the Trustee of: (1) A written instrument, requesting the disbursement of a specified amount of such moneys, describing in reasonable detail the work done and material purchased by way of repairing, replacing or rebuilding the damaged or destroyed property, and stating that such amount is required to reimburse the Foundation for expenditures made on account of the cost thereof or that, immediately upon its receipt by the Foundation, such amount will be applied by it to the payment of indebtedness incurred in respect to the cost thereof, and further that no reimbursement or advance has been made previously by the Trustee, under any provision of this Indenture, for the expenditures made or to be made on account of which such request is made; (2) A certificate of an architect, engineer, or contractor, satisfactory to the Trustee, approving the work and materials described in said written request, stating that the amount specified therein is not in excess of the reasonable cost of such work and materials, and specifying the additional amount, if any, required to complete the repair, replacement, or rebuilding of the damaged or destroyed property; and (3) In case the Trust Property has been repaired, replaced or rebuilt, an opinion of counsel satisfactory to the Trustee (who may be counsel for the Foundation) to the effect that the Foundation has acquired title to the Trust Property so repaired, replaced or rebuilt, free from all liens and encumbrances except those specified and for the discharge,