Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 865]

EXTRACTED TEXT FROM PAGE:

862

BOARD OF TRUSTEES

[June 29

Agreement (herein called the "Trust Agreement") of even date herewith between the University, the Foundation, and the Government, known as the Medical and Dental College Building T r u s t ; and W H E R E A S , said Offer provides that the amount paid on account of the grant and the proceeds of the sale of the Bonds (or if no Bonds are to be sold, the amount provided for the Project in lieu of such Bond proceeds) shall be deposited in a construction account or accounts held by a depositary satisfactory to the Government, the Bank being satisfactory to the Government as such depositary; and W H E R E A S , the University and the Foundation desire that such moneys shall be deposited with the Bank and shall be held by a Bank and disbursed only as herein provided, and the Bank is willing to accept such deposits upon the terms and conditions hereinafter set forth and to hold and disburse said moneys as hereinafter provided, and in evidence of its acceptance of the duties imposed hereby, the Bank has joined in the execution hereof; and W H E R E A S , the execution and delivery of this Construction Fund Agreement, by the parties hereto, has been in all respects duly authorized and all things necessary to constitute this Construction Fund Agreement, when executed and delivered, the valid, legal and binding obligations of the parties hereto, in accordance with its terms have been done or performed or have happened ; N O W , T H E R E F O R E , This Agreement WITNESSETH: That in consideration of the premises and of the covenants herein contained and of One Dollar ($1.00) by each party unto the other party in hand paid and other good and valuable consideration, receipt whereof is hereby acknowledged, the parties hereto agree as follows: 1. T h e University and the Foundation hereby designate the Bank as the depositary of the proceeds of the grant and, in the event that no Bonds are to be sold, of the money to be provided for the Project by the University and the Foundation in lieu of such Bond proceeds, and agree to deposit or cause to be deposited with the Bank all such moneys. T h e Bank hereby agrees to accept said moneys and to credit same to the University and Foundation in an account designated and herein called "Construction Fund A" and to hold the same until disbursed in the manner hereinafter provided for the purpose of paying indebtedness incurred by the University or the Foundation, or of reimbursing them for expenditures made, in connection with the construction of the Project and expenses incidental thereto (other than for interest on the Bonds or costs or expenses in connection with the Bonds or the Indenture). 2. The Foundation hereby designates the Bank as the depositary of the proceeds received from the sale of the Bonds and agrees to deposit or cause to be deposited with the Bank all of such proceeds, and the Bank hereby agrees to receive and accept said moneys and to credit same to the Foundation in an account designated and herein called "Construction Fund B," and to hold same until disbursed in the manner hereinafter provided for the purpose (in addition to withdrawals by the Bank as provided in Section 3 hereof) of paying indebtedness incurred by the University or the Foundation, or of reimbursing them for expenditures made, in connection with the construction of the Project and expenses incidental thereto, the cost to the Foundation of preparing, executing and delivering the Bonds and the Indenture and all taxes and recording fees in connection therewith, the cost of obtaining all legal opinions or title certificates or policies to be furnished by the Foundation under the Indenture, the Offer and this Construction F u n d Agreement, and any other fees and expenses which may be approved by the Government. 3. In the event that any Bonds are sold, all accrued interest received thereon at the time of the delivery thereof shall be paid into an account held by the Bank designated and herein called the "Bond Fund," which Fund will be more fully provided for in the Indenture. Out of the proceeds of the Bonds so sold, there shall also be deposited in said Bond Fund an amount which (together with the accrued interest deposited in the Bond Fund, as aforesaid)