Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 870]

EXTRACTED TEXT FROM PAGE:

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UNIVERSITY OF ILLINOIS TRUST AGREEMENT

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MEDICAL AND DENTAL COLLEGE BUILDING T R U S T T R U S T A G R E E M E N T dated as of April 7, 1936, but actually executed on the date hereinafter set forth, by and between the Board of Trustees of the University of Illinois, a duly organized and existing public corporation in the State of Illinois (herein called the "University") party of the first part, and the University of Illinois Foundation, a duly organized and existing private nonprofit corporation in the State of Illinois (herein called the "Foundation") party of the second part, and the United States of America (herein called the "Government") party of the third part. W H E R E A S , the University and the Government recognize that there is need for a new medical and dental college building (herein called the "Project") in Chicago, Illinois and have created this Medical and Dental College Building Trust for the purpose, among other things, of causing said building to be constructed for the uses and purposes and upon the trusts herein set forth; and W H E R E A S , the Government, acting through the Federal Emergency Administrator of Public Works, has made an offer (said offer or any superseding offer made and accepted in lieu thereof is herein called the "Offer") to aid in financing the construction of the Project by making a grant to the University in an amount of forty-five per cent (45%) of the cost of the Project upon completion but not to exceed in any event the sum of $366,000, and by purchasing from the Foundation certain bonds (herein sometimes called the "Bonds") issued by it as trustee hereunder in the aggregate principal amount of $1,091,000, secured by an indenture (herein called the "Indenture") to a trustee for the holders of such Bonds (herein called the "bondholders' trustee"), all upon the terms and conditions stated in said Offer and subject to the rules and regulations contained and set forth in P.W.A. Form No. 166, July 22, 1935, as amended to date; and W H E R E A S , said Offer of a grant has been duly accepted by the University and said Offer of a loan is open for acceptance by the Foundation after its appointment as trustee hereunder; and W H E R E A S , by virtue of (1) "An Act to authorize the Board of Trustees of the University of Illinois to create trusts, to convey property in trust, to enter into trust agreements providing the powers and duties of the trustee and providing for the issuance of bonds by such a trustee and providing for the payment and securing thereof; to enter into year to year or other leases, to pledge for the performance of its obligations under such leases certain receipts and collections which the board is authorized by 'An Act to amend Section 6 of "An Act in relation to State Finance," approved June 10, 1919, as amended,' approved July 11, 1935, to retain in its own treasury, and to enter into covenants with the United States or any agency thereof and to take other action for the purpose of obtaining grants from the United States to aid in financing the construction and equipping of university, college or educational buildings on which said board shall be given a year to year or other lease or the privilege thereto," and ( 2 ) Senate Bill N o . 543, approved July i l , 1935 (hereinafter sometimes called the "Enabling Acts") the University is authorized and empowered to join in creating this trust and to enter into this agreement and exercise its rights and carry out its duties hereunder; and W H E R E A S , the University, the Foundation and the First National Bank of Chicago (herein called the "Bank") have entered into a Construction Fund Agreement of even date herewith for the purpose of providing that the proceeds of the grant and of the sale of any bonds issued by the Foundation and of any other moneys provided for the construction of the Project shall be deposited with said Bank in certain special accounts (therein and herein called "Construction Fund A" and "Construction Fund B") and held and disbursed by it for the purpose of constructing the Project and paying and reimbursing for the expenses incidental thereto, all in the manner provided by said Construction Fund Agreement; and