Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 877]

EXTRACTED TEXT FROM PAGE:

874

BOARD OF TRUSTEES

[June 29

4.02. T h e Foundation hereby accepts the trusts imposed upon it by this Trust Agreement, but only upon and subject to the following express terms and conditions: ( a ) The Foundation shall be protected in acting upon any notice, requisition, request, consent, certificate, order, affidavit, letter, telegram, or other paper or document believed by it to be genuine and correct and to have been signed, sent or delivered by the person or persons by whom surh paper or document purports to have been signed, sent or delivered. (b) T h e Foundation shall not be liable for any action taken or omitted to be taken by it in good faith and in the exercise of reasonable care and believed by it to be within the discretion or power conferred upon it by this agreement. (c ) T h e Foundation shall not be personally liable hereunder or on its Bonds or for any other debts contracted by it, or for damages to persons or to personal property injured or damaged, or for salaries, or for nonfulfillment of contract. ( d ) T h e Foundation shall be entitled to be reimbursed for all proper outlays of every sort and nature by it made or incurred in the acceptance or discharge of its duties hereunder, with interest.

ARTICLE FIVE DURATION AND PURPOSE OF T R U S T

5.01. This trust is created for the purpose, among other things, of causing the Project to be constructed and used for the purposes and upon the trusts herein set forth. T h e Site, the Project and any other improvements constructed thereon shall be held in trust hereunder exclusively for college, seminary, university or other exclusively public educational purposes. All said property shall be held in trust for such purposes for the benefit, not only of the University as one of the beneficiaries hereunder, but also for the public of the State of Illinois as beneficiary. If there be any failure on the part of the Foundation to perform this trust in accordance with this Trust Agreement, the State's Attorney of Cook County, Illinois, or the Attorney General of the State of Illinois, may enforce the same on behalf of the public as such beneficiaries. Nothing contained in this Section, however, shall be construed as in any way affecting or prejudicing the power of the Foundation 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, nor shall the provisions of this Section be construed as in any way affecting or prejudicing the right of the bondholders' trustee to exercise the powers so conferred upon it by leasing, using or operating the Project for any purposes whatsoever and not merely for college, seminary, university or other educational purposes. 5.02. This trust shall continue for a period of twenty-one years and thereafter until all the liabilities of the Foundation, as trustee hereunder, have been met and its Bonds have been paid in full or such liabilities or Bonds have otherwise been discharged. Upon the expiration of this trust, title to the Site shall revert to the University, together with the Project and any other improvements constructed upon the Site. Any moneys then remaining in the hands of the Foundation in trust hereunder shall be paid to the University to be used exclusively for college, seminary, university or other exclusively public educational purposes. 5.03. In the event that the Foundation has not issued any Bonds or incurred any indebtedness in order to aid in financing the construction and completion of the Project (but has obtained funds by gifts, donations or otherwise in an amount which, together with the proceeds of the aforesaid grant to the University, were sufficient to finance the construction and completion of the Project) the net rents, issues and profits collected by the Foundation from its leasing or other use of the Project shall be paid to the University on the first day of each and every month, such moneys to be used by the University ex-