Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 827]

EXTRACTED TEXT FROM PAGE:

824

BOARD OF TRUSTEES

[June 29

satisfaction, or other disposition of which provision satisfactory to the Trustee shall have made, and that this Indenture still constitutes a valid first lien on the Pledged Estate. Section 7.06. If the Foundation shall not have begun within ninety days after such damage or destruction so to repair, replace or rebuild, and shall not proceed, continuously and with all reasonably possible dispatch, to complete such work, the Trustee may, and upon the written request of the holders of a majority in principal amount of the Bonds at the time outstanding and upon being indemnified to its satisfaction, shall repair, replace or rebuild the damaged or destroyed property, or cause the same to be done, and in such event the Trustee shall apply to the cost thereof the insurance moneys deposited with it pursuant to the provisions of this Article; provided, however, that before so applying any such moneys, the Trustee shall obtain a certificate of an architect, engineer, or contractor satisfactory to it, approving the work and materials, the cost of which is to be paid with such moneys, stating that the amount proposed so to be paid 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. In the event that the Trustee shall proceed, as aforesaid, so to repair, replace or rebuild the damaged or destroyed property, the Trustee may use moneys in the Revenue Fund therefor and the Foundation from time to time on demand of the Trustee, shall pay to the Trustee out of other funds available for that purpose such sum or sums as shall be necessary, in addition to the insurance moneys and any other moneys deposited with the Trustee and available for that purpose pursuant to the provisions of this Article, fully to complete and pay for such repair, replacement or rebuilding. If upon completion of such work any moneys received by the Trustee pursuant to the provisions of this Article shall remain in its hands undisbursed, the Trustee shall apply such moneys: first, to the reimbursement of itself for any expenses incurred or advances made by it hereunder and to the reimbursement of any moneys advanced by any holder or holders of outstanding Bonds; and second, any surplus shall be transferred to the Bond Fund and used and applied as hereinabove provided. Whenever the Trustee shall have received a written notice from the holders of not less than ten per centum in principal amount of the Bonds at the time outstanding requesting it to take any of the action authorized by this Section, and shall have been offered indemnity satisfactory to it, and shall have failed to take such action within thirty days after the receipt of such notice, then the holders making such request are hereby authorized to take any such action, and in such event shall have the benefit of all of the provisions of this Section. Section 7.07. Notwithstanding any provisions hereinbefore in this Article contained, the Trustee shall not release or apply any insurance moneys received on account of damage to, or partial or total destruction of, the Trust Property, for or on account of the cost of repairing, replacing, or rebuilding the damaged or destroyed property, if such release or application would reduce the balance of all insurance moneys and all other moneys received by the Trustee pursuant to the provisions of this Article and then remaining on deposit with it below the amount specified in a certificate of an architect, engineer, or contractor satisfactory to the Trustee, to be the amount required (after application to the cost of such repair, replacement, or rebuilding of the amount to be so released or applied) to pay the cost of such portion of such repair, replacement, or rebuilding as shall then remain to be completed (it being understood that in the case of repairs, replacements or rebuilding pursuant to the provisions of Paragraph (b) of Section 7.03 hereof, the work to be completed may represent less than a complete repair, replacement or rebuilding of the Trust Property). Section 7.08. There shall be deposited with the Trustee at such reasonable times as it may request, and at least once in each fiscal year without any such request, a detailed statement of the policies of insurance effected by the Foundation (including those of its lessees) and then outstanding and in force. In case the Trustee shall at any time notify the Foundation in writing that it disapproves of any insurance company furnishing any insurance required here-