Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 872]

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UNIVERSITY OF ILLINOIS

869

or may sell said Bonds to others than the Government. If the Foundation accepts the Offer of the Government to purchase said Bonds, the Foundation nevertheless may, with the consent of the Government, sell all or any part of said Bonds to purchasers other than the Government. T h e Foundation shall deposit with the Bank in Construction Fund B, the proceeds received from the sale of said Bonds including premiums thereon, such moneys to be used and disbursed for the purposes and in the manner provided by the Construction Fund Agreement. 1.05. T h e Foundation and the University shall join in the making of all checks, drafts and vouchers which may be necessary in withdrawing moneys from said Construction Funds and they and each of them shall take all other action necessary for the withdrawal of such moneys for use in the manner and for the purposes provided in the Construction Fund Agreement.

ARTICLE T W O LEASE AND U S E OF PROJECT

2.01. T h e Foundation hereby gives and grants unto the University the right and option to enter into a lease of the Project and the Site, as lessee, but not later than two o'clock p.m. of September I, 1936, such lease to conform in substance to the following: ( a ) Term: A year to year lease, the term commencing on January 1, 1937 (the date which is agreed upon by the Foundation and the University as the estimated date of the completion of the Project), with the privilege in the University of terminating or not renewing such lease for any year or years upon giving written notice to the Foundation six months prior to the expiration of any yearly term. ( b ) Use of Project: T h e lease shall provide that the Project and other demised property shall be used exclusively for college, seminary, university, or other exclusively public educational purposes. ( c ) Rental: T h e rental shall be $86,000 per year payable in equal monthly installments on the first day of each month. T h e lease shall provide that all expenses of the Project of any sort whatever from and after the commencement of the term shall be borne by the University to the end that said amount of $86,000 payable to the Foundation as yearly rental shall be received and enjoyed by the Foundation as a net sum. ( d ) Maintenance and Other Expenses: The lease shall provide that the University at its own expense, shall maintain the Project or cause the same to be maintained in good repair, order and condition suitable to the purposes thereof, and shall pay all water taxes accruing during the term thereof, together with any taxes and assessments lawfully levied after the date hereof. T h e lease shall further provide that the University shall pay to whoever may be entitled thereto all costs of maintenance, operation and repair of the Project and the other improvements located on the demised premises including (but without limitation) insurance, taxes, recording fees, assessments and charges, extraordinary as well as ordinary of every kind and nature whatsoever. ( e ) Insurance: T h e lease shall provide that the University at its own expense, shall keep the Project and all other improvements on the demised premises insured against loss or damage by fire, tornado and such other hazards as the Foundation may require thereby, to the full amount of the insurable value thereof. The lease shall further provide for general liability and boiler insurance protecting the lessor and the lessee against liability occasioned by accident or disaster in such amounts as the Foundation may require thereby. All such insurance policies shall be in form and with insurers satisfactory to the Foundation and shall be made payable to the University, the Foundation and any bondholders' trustee as their respective interests may appear. (f ) Security: T h e rental and other obligations of the University under the lease shall be payable solely from and secured by an irrevocable pledge of a special fund into which shall be deposited the receipts and collections