Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 841]

EXTRACTED TEXT FROM PAGE:

838

BOARD OF TRUSTEES

[June 29

advance or expenditures at the rate of four per cent (4%) per annum, shall be an additional special obligation secured by this Indenture and shall be a lien and charge on the Pledged Estate in addition to and prior and paramount to the lien of the Bonds and shall be payable by the Foundation (out of any funds available for that purpose as in this Indenture provided) to the Trustee on demand. The Foundation agrees on demand to execute a note or certificate in proper form payable, out of any funds available for that purpose as in this Indenture provided, to the order of the Trustee or bearer, evidencing any and all sums so advanced or expended by the Trustee, and any and all instruments so executed shall be in all respects secured by this Indenture. The Trustee shall not be obligated to inquire into the validity of any tax title or tax assessment or charge or tax sale or into the validity of any lien or other claim in advancing moneys for the payment thereof as authorized in this Section. Section 10.02. Whenever the Trustee shall have received a written notice from the holders of not less than a majority in principal amount of Bonds issued hereunder and at the time outstanding requesting it to take any action authorized by the preceding Section 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 the provisions of such preceding Section. Section 10.03. Any action taken by the Trustee or by such bondholders under the provisions of the two preceding Sections shall be without prejudice to, and not exclusive of, any other rights hereunder by reason of the default of the Foundation which shall give rise to such action, and the provisions hereof shall not be construed as obligatory or as requiring any affirmative action on the part of the Trustee or such bondholders.

ARTICLE XI CONCERNING THE TRUSTEE

Section 11.01. The Trustee hereby accepts the trusts imposed upon it by this Indenture, but only upon and subject to the following express terms and conditions: ( a ) The Trustee may execute any of the trusts or powers hereof and perform any duties required of it by or through attorneys, agents, or receivers, and shall be entitled to advice of attorneys concerning all matters of trust hereof and its duties hereunder, and may in all cases pay such reasonable compensation as it shall deem proper to all such attorneys, agents, and receivers as may reasonably be employed in connection with the trusts hereof, and all such outlays and expenditures shall be repaid to the Trustee out of the revenue of the Trust Property. ( b ) The Trustee shall be entitled to be reimbursed out of the revenue of the Trust Property for all proper outlays of every sort and nature by it made or incurred in the acceptance or discharge of its duties hereunder with interest, and to receive reasonable and proper compensation for any and all duties that it may at any time perform hereunder, and for all damages sustained or incurred by the Trustee by reason or on account of any negligence of any attorney or agent se\ected and retained with reasonable care in the performance or attempted performance of any of its duties hereunder. ( c) Except for its certificate of authentication upon the Bonds issued hereunder, the Trustee shall not be responsible for any recitals herein or in said Bonds (which recitals shall be deemed to be made solely by the Foundation), or for the validity of the Bonds or the coupons appurtenant thereto, or for insuring any property, or for the sufficiency of the security for the Bonds issued under or intended to be secured hereby, or for the value or title of the Trust Property or any of the Pledged Estate but the Trustee shall have the right (but not the duty) to require of the Foundation full information and advice as to the condition of the Trust Property and the Pledged Estate.