Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 874]

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UNIVERSITY OF ILLINOIS

87I

Bonds of the Foundation or interest coupons appurtenant thereto, unless the changes in said rental, terms or conditions are consented to in writing by the bondholders' trustee and (so long as it holds any Bonds of the Foundation or is under contract to purchase same) the Government. If there shall not be outstanding any Bonds of the Foundation or interest coupons appurtenant thereto, the Foundation may agree to such changes or revisions in the rental, terms or conditions of the lease to the University as it deems advisable. 2.04. In any lease of the Project, the Foundation may join as a party thereto the bondholders' trustee. Such lease may stipulate that the bondholders' trustee, in case of a default under the Bonds of the Foundation or the Indenture securing same shall, itself, have the right. ( a ) by mandamus, suit, action or proceeding, in law or in equity, to enforce the payment by the University or other lessee of any sums due under such lease or to compel the performance by the University or other lessee of any covenants or conditions contained therein; and (b) to take or compel the surrender to it of possession of the Project by the University or other lessee in case of a default under said lease, and thereafter to use, operate, manage and control the Project or lease same to others; which rights shall be exercised by the bondholders' trustee without its forfeiting or obtaining title to the Project through foreclosure proceedings or otherwise.

ARTICLE T H R E E ISSUANCE OF BONDS BY FOUNDATION

3.01. T h e Foundation shall have power to issue negotiable bonds, notes or interim receipts (herein called the "Bonds") for the purpose of aiding in financing the Project. Bonds of the Foundation shall be authorized by its resolution and may be issued in one or more series and shall bear such date or dates, mature at such time or times not exceeding twenty (20) years from the date thereof, bear interest at such rate or rates, not exceeding six per centum (6%) per annum, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption (with or without premium) as such resolution or its trust indenture may provide. T h e Bonds may be sold at not less than par. Neither the Foundation nor any person executing the Bonds shall be liable personally on the Bonds by reason of the issuance thereof. The Bonds and other obligations of the Foundation shall not be a debt of the University or the State of Illinois and neither the University nor the State shall be liable thereon, nor in any event shall they be payable out of any funds other than those held in trust by said Foundation or realized from its leasing or operation of the Project. 3.02. T h e Foundation may secure its Bonds by an Indenture to a bondholders' trustee. In connection with the issuance of Bonds, and in order to secure same, the Foundation in addition to its other powers, shall have power: ( a ) To pledge all or any part of its gross or net rents, fees, or revenues from the Project to which its right then exists or may thereafter come into existence; to assign any leases of the Project or any contracts made in connection with the Project. (b) To covenant against pledging all or any part of its rents, fees and revenues from the Project to which its right then exists or may thereafter come into existence or against permitting or suffering any lien thereon; to covenant against permitting or suffering any lien on the Project or any other property, then owned or thereafter acquired by the Foundation, as trustee hereunder; to covenant with respect to limitations on its right to lease or otherwise dispose of the Project or any part thereof; and to covenant as to what other, or additional bonds, debts or obligations may be issued or incurred by it.