Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 832]

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UNIVERSITY OF ILLINOIS

829

contracts in connection therewith, or any part thereof, and that it will not mortgage, pledge or otherwise encumber the Trust Property or the Pledged Estate or any part of either thereof, and that it will not create, or suffer the creation of, any lien or charge upon the Pledged Estate.

ARTICLE IX

DEFAULT PROVISIONS AND REMEDIES

Section 9.01. If any one or more of the following events, hereby defined as and hereinafter called "events of default," shall happen, that is to say: ( a ) Default shall be made in the payment of the principal of any Bond issued hereunder when and as the same shall become due and payable by its terms, by call for redemption, by declaration or otherwise; or ( b ) Default shall be made in the payment of any interest on any Bond issued hereunder when and as the same shall become due and payable as therein and herein expressed, and such default shall continue for a period of sixty (60) d a y s ; or ( c ) T h e Foundation shall be enjoined by order of a court of competent jurisdiction from operating and maintaining the Trust Property or any part thereof or from carrying out the covenants and agreements contained in the Bonds issued hereunder, or in this Indenture; or ( d ) T h e construction of the Project shall be discontinued or unreasonably delayed or the same shall not be carried on with reasonable dispatch, or shall not be completed within the time provided in the Construction Fund Agreement, or the Certificate of Completion mentioned in said Agreement shall not be delivered to the Trustee within thirty (30) days after completion of the Project; or ( e ) A receiver or liquidator of the Trust Property or any part thereof, shall be appointed by an order of a court of competent jurisdiction, and such order shall not have been stayed, on appeal or otherwise, within a period of sixty (60) days, or the Foundation shall consent to the appointment of a receiver or liquidator of the Trust Property or any part thereof; or (f ) T h e T r u s t Property or any part thereof shall be destroyed or damaged to the extent that the operation thereof is unsafe or impracticable, and the Foundation shall fail to commence the reconstruction or repair of such Trust Property or of such damaged or destroyed portion within ninety (go) days or, having commenced, shall abandon or fail diligently to prosecute the same; or ( g ) T h e Foundation shall sell, mortgage or otherwise dispose of or encumber the Trust Property, the Pledged Estate or any part thereof or make a contract to take such action; or ( h ) T h e Foundation shall be dissolved or be discontinued, without satisfactory provision being made for a successor trustee under the Medical and Dental College Building Trust, such successor to be satisfactory to the Trustee and to the Government, so long as it holds any of the Bonds; or ( i ) T h e attached lease between the Foundation and the University shall not be renewed, or shall be terminated, or shall be otherwise discontinued in force, and the Foundation, within sixty days after the termination of the attached lease, shall not have entered into a lease or leases with a responsible lessee or lessees: (1) which shall demise the Project and the Site thereof, or any part or parts thereof, for use exclusively for college, seminary, university or other exclusively public educational purposes, and (2) which shall provide, in the aggregate, for an annual net rental (i.e., the annual rental for the demised premises remaining after payment of all costs of maintenance, repair, and operation of the demised premises, and all taxes and other charges, legally due thereon) not less than $86,000 (or such lesser aggregate rental as shall be consented to, pursuant to the provisions of Section 5.04 hereof) ; or