Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 868]

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UNIVERSITY OF ILLINOIS

865

ture, that said payments and provision therefor have been made in such manner as not to impair the lien of such I n d e n t u r e ; and (2) An opinion of counsel approved by the Government or counsel acceptable to the Bank (which counsel may be counsel for the University or the Foundation) stating that the University and the Foundation have completed the Project in the manner and within the time required hereby; that the Foundation has acquired title thereto and to the trust estate, free from all liens or encumbrances except those that may be waived in writing by the Government; that final waivers of lien have been obtained in proper form from all contractors, subcontractors and other persons who furnished any work, labor, services, or materials on the Project and that all rights have been waived to assert any liens on the Project or the site thereof for all work, labor or materials furnished on the Project; that all work, labor, services and materials furnished for the Project, the site thereof, or in connection therewith, have been fully and completely paid for and that no claim whatever exists out of which a mechanic's lien could ripen against the Project or the site thereof; and that there are no uncancelled mechanics', laborers', contractors', subcontractors', or materialmen's liens on Project on file in any public office where the same should be filed in order to be valid liens against any part of said property; the Bank shall dispose of the balances then remaining in the Construction Funds and not set aside for making payments on account of the construction costs of the Project or claims arising in connection therewith as follows: any such balances remaining in the Construction Fund A shall be paid to the University, and any such balances remaining in Construction Fund B shall be transferred to the Bond Fund (which will be more fully provided for in the Indenture). 5. It is expressly understood and agreed that the Bank shall be under no responsibility to make any investigation or analysis of any statement or information which may be certified to the Bank in the manner provided by this Agreement and that the Bank may accept without responsibility any statement, certificate or opinion which it may believe to be genuine and which may appear to be valid and authentic, provided the same shall comply to the best of its knowledge, information and belief with the requirements herein set forth. The Bank shall not be required to make any investigation as to the progress of the work or otherwise to inquire beyond the certificates; and said certificates shall constitute full and ample protection and authority to the Bank in making any disbursement and application hereunder. The Foundation and the University agree to furnish to the Bank specimen signatures of the Executive Director of the Foundation, the Director of the Physical Plant and Comptroller of the University or any other officials authorized to sign withdrawal orders on behalf of the University or the Foundation and to cause to be furnished to the Bank specimen signatures of the State Director of the Federal Emergency Administration of Public Works for the State of Illinois, or such other representative as the Government may from time to time designate to approve withdrawal orders on its behalf, and to furnish forms of certificates and orders showing the signatures of the persons authorized to sign such certificates and orders. The Bank shall not be liable for any mistake of judgment or other mistake of itself or its agents or employees, but shall be liable only for its wilful or fraudulent misconduct, and the Bank shall be absolutely protected in making payments on the certificates and orders hereinabove provided for which it, in good faith, believes to be genuine and to be signed by the proper party, and shall not be required to see to the application of said payments or to the progress of the construction of the Project, and shall not be required to obtain My of the certificates or affidavits required by the laws of the State of Illinois with respect to liens of mechanics, laborers, materialmen, contractors, subcontractors or other persons, and shall not be liable to make any payments except out of funds deposited with it. Notwithstanding the provisions of this Section, the Foundation agrees to obtain and deliver to the Bank any and all necessary