Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 836]

EXTRACTED TEXT FROM PAGE:

1936]

UNIVERSITY OF ILLINOIS

833

without any discrimination or preference as between principal and interest, or any installment of interest over any other installment, or any Bonds or coupons so subordinated over any others so subordinated ; and (3) To the payment of the surplus, if any, to the Foundation or to whomsoever may be lawfully entitled to receive the same, or as any court of competent jurisdiction may direct; provided, however, that in case the principal of all the Bonds issued hereunder and then outstanding shall not then be due and payable hereunder (which event shall include the case where such principal shall have become due by declaration, but such declaration shall have been rescinded and annulled as hereinabove provided), and if payment shall be made in full from moneys arising as aforesaid, or by the Foundation, of whatever shall then be payable hereunder for principal and interest and of whatever shall then be payable hereunder for other purposes, and if the Foundation shall do such other acts and things as the Trustee may deem necessary in order to make good the default or defaults then existing and known to the Trustee, and if the Trustee has credited to the 1. Bond Fund, an amount which, together with moneys already held in the Bond Fund not allocated to some specific purpose, shall equal the amount required for the payment of the principal of and any interest on the Bonds becoming respectively due and payable on the two interest payment dates next succeeding the date of such restoring of the Trust Property, 2. Revenue Fund, the balance of any moneys then on hand derived from the operation of the T r u s t Property and the Pledged Estate, the Trustee may, and upon the request of the holders of a majority in principal amount of the Bonds then outstanding shall, restore the Trust Property to the Foundation and permit the Foundation to resume the collection of revenues therefrom and from the Pledged Estate and to exercise its powers under the leases and contracts constituting a part of the Pledged E s t a t e ; provided further, however, that in case there shall have occurred (either alone or among other events of default) the event of default enumerated in subparagraph (i) Section 9.01 hereof and the Trustee or a receiver or receivers shall have entered into a lease or leases demising all or any part of the Project, the Site thereof or the other Trust P r o p e r t y for purposes other than exclusively college, seminary, university or other exclusively public educational purposes, then and in such event the Trustee, so long as any such lease or leases respectively shall continue in force, shall not restore to the Foundation possession of so much of the Trust Property as is, and continues to be, demised under such lease or leases respectively (for said purpose of a retention by the Trustee or a receiver or receivers of possession of such demised property, but not otherwise, the event of default enumerated in said subparagraph (i) shall be deemed to exist during the period of such lease or leases), notwithstanding compliance by the Foundation with the conditions hereinabove prescribed in this Section. Any restoration of all or any part of the T r u s t Property to the Foundation shall not, nor shall any previous entry by the Trustee, or any action of the Trustee hereunder, be construed to exhaust or in any manner impair the powers of entry, or any powers or rights hereby granted to or conferred upon said Trustee upon the happening of subsequent events of default. Section 9.03. T h e Foundation covenants and agrees that the Trustee, upon the happening of any event of default and thereafter during the continuance of such event of default, unless the effect thereof shall have been waived as herein provided, shall be entitled, as a matter of right, if it shall so elect, forthwith and without declaring the principal of the Bonds issued hereunder to be due and payable, or after declaring the same to be due and payable, to the appointment of a receiver or receivers (the Foundation hereby irrevocably consents' and requests that such receiver be appointed in case of such election by the T r u s t e e ) of the Trust Property, the Pledged Estate and all the rents, issues, profits, income, earnings, charges, premiums and other benefits and revenues of the Trust Property, with such powers as the court making such appointment shall confer, which may comprise any or all of the powers which the Trustee is authorized