Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 875]

EXTRACTED TEXT FROM PAGE:

BOARD OF TRUSTEES

[June 29

(c) To covenant as to the Bonds to be issued and as to the issuance of such Bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof; to provide for the replacement of lost, destroyed or mutilated Bonds; to covenant against extending the time for the payment of its Bonds or interest thereon; to redeem the Bonds and to covenant for their redemption and to provide the terms and conditions thereof. (d) To covenant as to the rents to be charged for the Project, the amount to be raised each year or other period of time by rents and other revenues, and as to the use and disposition to be made thereof; to create or to authorize the creation of special funds for moneys held for construction or operating costs, contingencies, debt service, reserves, or other purposes, and to covenant as to the use and disposition of the moneys held in such funds. (e) To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, and amount of Bonds the holders of which must consent thereto and the manner in which such consent may be given. (f) To covenant as to the use of any or all of its real or personal property; to warrant its title; and to covenant as to the maintenance of the Project and its real and personal property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys. (g) To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation; and to covenant and prescribe as to events of default, the consequences thereof, and terms and conditions upon which any or all of its Bonds or obligations shall become or may be declared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived. ( h ) To vest in the bondholders' trustee the right to enforce the payment of the Bonds or any covenants securing or relating to the Bonds, to provide for the powers and duties of the bondholders' trustee, to limit liabilities thereof and to provide the terms and conditions upon which the bondholders' trustee or the holders of Bonds or any proportion of them may enforce any such covenant. (i) To confer upon the bondholders' trustee the power, in case of a default under the Bonds or Indenture securing same, to enforce the payments of all sums due under leases of the Project, to compel the performance of any covenants or conditions therein, to take possession, use, operate, manage and control the Project and collect and dispose of the rents therefrom; in the event that such powers are conferred upon the bondholders' trustee, same shall be exercised by it without its forfeiting or obtaining title to the Project through foreclosure proceedings or otherwise. (j) To confer upon the bondholders' trustee the power, in case of a default under the Bonds or Indenture securing same, to lease, use or operate the Project for purposes other than those for which the Foundation itself, as trustee hereunder, may lease, use or operate same; the conferring of such power upon the bondholders' trustee shall not, however, affect the validity or exclusively public educational character of this trust or the property held by the Foundation hereunder. ( k ) To vest in the bondholders' trustee or in bondholders the right, in case of a default under the Bonds or Indenture securing same: (1) to cure any such default and to advance any moneys necessary for such purpose, the moneys so advanced to be an additional obligation of the Foundation with such interest, security and priority as the Indenture or other agreement of the Foundation may provide; (2) to obtain the appointment of a receiver of the Project and of the rents and profits therefrom; and (3) to require said Foundation to account as if it were the trustee of an express trust for the bondholders and the bondholders' trustee; to provide for or restrict the exercise of such rights by bondholders to the holders of a specified amount in Bonds.