Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 828]

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UNIVERSITY OF ILLINOIS

825

under or of the terms of any insurance policy, other insurance satisfactory to the Trustee shall forthwith be effected by the Foundation, but the Trustee shall be under no liability or responsibility for such disapproval or for failure or refusal so to disapprove. If the Foundation shall fail to procure any insurance required by the terms of this Indenture, the Trustee may procure any such insurance and may pay the premiums thereon out of any available moneys held by it in the Bond Fund and not irrevocably appropriated to some other purpose. The Trustee is hereby authorized in its own name to demand, collect, sue for and receipt for all insurance moneys which may become due and payable to it under any insurance policy. Any appraisement or adjustment of any loss or damage and any settlement and payment of indemnity therefor which may be agreed upon between the Foundation and any insurer, as evidenced by a certificate signed by the Secretary of the Foundation, may be assented to and accepted by the Trustee. Section 7.09. So long as the Government shall be the holder of any Bonds, the Trustee shall not approve or evidence its satisfaction as to any insurance company, or policy of insurance, or adjustment or settlement of loss or damage unless it shall have received a written statement from the Government to the effect that said companies, or policies, or adjustment, or settlement (as the case may be) are satisfactory to i t ; and, upon request of t i e Government, the Trustee shall give notice as aforesaid to the Foundation that it disapproves of any company or of the terms of any policy specified in such request. The Trustee shall also, in accordance with the request of the Government, make such further demands or requests and give such further notices with respect to insurance herein required as may be specified in such request. Section 7.10. The Foundation covenants and agrees that at all times until the principal of and interest on the Bonds issued hereunder shall have been paid in full (or a sufficient amount shall have been provided and deposited with the Trustee to pay the principal of and interest on the same as they m a t u r e ) , it will carry or cause to be carried: ( a ) General public liability insurance providing a coverage for each accident or disaster of not less than $10,000 for one person killed or injured therein, and of not less than $20,000 if there be more than one person killed or injured therein; and ( b ) Workmen's compensation insurance providing a coverage of not less than $10,000 for one employee killed or injured in any accident, and of not less than $20,000 if there be more than one person killed or injured therein.

ARTICLE V I I I

GENERAL COVENANTS

Section 8.01. T h e Foundation will promptly pay, out of any funds available for such purposes as herein provided, the principal of and interest on every Bond issued hereunder and secured hereby at the place or places and on the dates and in the manner herein and in the Bonds and coupons specified according to the true intent and meaning hereof and thereof. T h e principal of and interest on the Bonds are payable solely from the revenues of the Trust Property from whatever sources derived, and such revenues shall constitute special funds which shall be pledged to, and charged with, the payment of the principal of and interest on the Bonds as they respectively shall mature, in the manner and to the extent herein particularly specified. The Foundation will, upon application, reimburse (out of any funds available for such purpose as herein provided) to the holder of any Bond or Bonds any normal Federal income tax to the extent of but not exceeding two per centum ( 2 % ) per annum of the income derived from interest paid thereon which may be paid by such holder by reason of the deriving of income therefrom, and also will reimburse any Connecticut, Maryland, Ohio or Pennsylvania personal property or securities tax to the extent of but not exceeding five (5) mills per annum on each dollar of the taxable value thereof, or any Massachusetts or Wisconsin income tax to the extent of but not exceeding