Repository: UIHistories Project: Board of Trustees Minutes - 1938 [PAGE 38]

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36

BOARD OF TRUSTEES

[September 30

second mortgage of Lois A. and John H. Boyden on 160 acres of land in Champaign County (which is among the securities given to the University as a part of the Babcock Endowment), provided that the makers of the mortgage make some payment before this extension is granted. The mortgage, when received by the University, was for $6,440.46 and it has been reduced by realization on certain collateral in the amount of $1,000, leaving a present balance of $5,440.46. There is also accrued and unpaid interest on this mortgage amounting to $1,925.52. The holders of a $16,000 first mortgage have agreed to an extension of that mortgage for five years, with payments of $2,000 required during that period, and they are asking the University to agree to the extension of the second mortgage. The alternative would be foreclosure, in which case the value of the second mortgage might disappear. The Finance Committee recommends that this mortgage be extended, if some payment on the principal be made. On motion of Mr. Mayer, this recommendation was concurred in.

PURCHASE OF SECURITIES

Mr. Mayer reported that on recommendation of the Finance Committee, and with the approval of the members of the Executive Committee, the Comptroller has purchased the following securities for the investment of University endowment funds which became available for reinvestment as the result of the call of various securities previously owned: $5,000 Southwestern Gas & Electric Company 1st mortgage D 4%, due i960, at 104. Yield 3.75. $2,000 Portland General Electric 1st mortgage 5%, due 1950, at io6*4Yield 4.4. $2,000 Portland General Electric 1st mortgage 5%, due 1950, at 1 0 6 ^ . Yield 4.37. The Comptroller reports that there still remains about $6,000 of uninvested cash in endowment funds and he is endeavoring to conclude further purchases from the list approved by the Finance Committee as soon as possible. On motion of Mr. Barrett, the purchase of securities was approved as reported.

RENEWAL OF POPE MORTGAGE

Mr. Mayer, for the Finance Committee, presented a report of the renewal for three years from October 1, 1936, of a first mortgage on 400 acres of land near Benton, Illinois, executed by B. W. Pope and others, amounting to $2,500 with interest at 6 per cent, which matures September 30, 1936. The mortgage is one of the University's endowment investments and when acquired was for $5,000, since when it has been reduced to $2,500. It is a high-class loan and has never been delinquent. This action was taken on the recommendation of the Finance Committee and with the approval of the Executive Committee. On motion of Mr. Mayer, this action was approved.