Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 867]

EXTRACTED TEXT FROM PAGE:

BOASD OF TRUSTEES

[June 29

(2) Waivers of liens executed by mechanics, materialmen, contractors, subcontractors and any other persons who might, under the laws of Illinois, have any liens, or inchoate liens upon the Project and the site thereof, in and by which waivers said persons: ( a ) When partly paid, shall waive, to the extent of such payments, all rights to assert liens upon the Project and the site thereof for all work, labor, services or materials furnished for the Project; and (b) W h e n finally paid, shall finally waive all rights to assert liens upon the Project and the site thereof for all work, labor, services, or materials furnished for the Project. (3) An opinion of counsel satisfactory to the Bank (which counsel may be counsel for the University or the Foundation) which shall: ( a ) State that the land, right-of-ways, easements, franchises, and property, for the acquisition or construction of which said expenditures shall have been made or indebtedness incurred, shall immediately after such payment be clear from all liens or encumbrances, except those that may be waived in writing by the Government; (b) State that the waivers of liens delivered to the Bank are duly executed and in proper form, and that all mechanics, materialmen, contractors, subcontractors and other persons furnishing any work, labor, services or materials on the Project have thereby duly waived, to the extent of the payments made to them, their respective rights to assert liens on the Project or the site thereof, for all work, labor, services or materials furnished for the Project or the site thereof; and further state that final waivers of lien have been delivered to the Bank covering all such work, labor, services and materials for which final payment has been m a d e ; and (c) State that neither the University nor the Foundation is in default under the provisions of the Offer and, if any Bonds are sold, that the Foundation is not in default under the Bonds or the Indenture. B. In the event that any Bonds are sold and the 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 by May 1. 1937, or the Certificate of Completion shall not be delivered to the Bank and the Government within thirty days after completion of the Project, the bondholders' trustee shall have the right (but not the duty, as more fully provided in the Indenture) to take over the construction of the Project and complete the same at the expense of the Foundation, and in such event any moneys in Construction Funds A and B may be withdrawn from time to time by the bondholders' trustee (instead of the Foundation and the University) for the purpose of paying or reimbursing the bondholders' trustee for expenditures made or for paying indebtedness incurred by it in connection with such construction, provided that such expenditures or indebtedness have first been approved in writing by the State Director (P.W.A.) or such other representative as the Government may designate. C. Upon delivery to the Bank and the Government of the following papers (the date of such delivery being herein and in the Indenture called the "Completion D a t e " ) : (1) A certificate signed and verified by the Director of Physical Plant and the Comptroller of the University and by the Executive Director of the Foundation, upon which shall be endorsed the approval of the State Director ( P . W . A . ) , stating that the construction of the Project has been completed in accordance with the plans and specifications submitted to and approved by the Government, and that all liabilities of the University and the Foundation incurred for, or in connection with, the construction of the Project have been paid or that provision for such payment has been made and, if there be an Inden-