Repository: UIHistories Project: Board of Trustees Minutes - 1980 [PAGE 335]

EXTRACTED TEXT FROM PAGE:

n*

BOARD OF TRUSTEES Resolution

[June 20

Whereas, in a Last Will and Testament dated February 19, 1974, Charles Chacey Kuehn provided: I bequeath Five Hundred Thousand Dollars to the U N I V E R S I T Y O r I L L I N O I S as an endowment fund to be used for scholarships in memory of and in the names of my mother and father, O L I V E CHACEY K U E H N and ALFRED L. K U E H N , both of whom graduated from that University, one-half of such scholarships to be awarded to needy, able, and deserving men students who are pursuing an engineering course (preferably but not necessarily civil engineering) and the other one-half to women students in the same character pursuing a general course in the literary school. T h e appropriate authorities may prescribe specific standards beyond those here suggested, but I request that each scholarship be in an amount sufficient to enable the holder to pay all expenses for tuition, board, and lodging (to the extent such holder shall not have other means to provide for some part thereof) without having to seek employment during the school year. Whereas, Charles Chacey Kuehn died April 25, 1978; and Whereas, the Harris Trust and Savings Bank, as Executor of the estate, has requested formal acceptance of the bequest by the Board of Trustees of the University of Illinois ; Therefore, Be It Resolved, that T h e Board of Trustees of the University of Illinois hereby accepts the bequest made to the University of Illinois by said Last Will and Testament of Charles Chacey Kuehn on the terms and conditions staled therein. O n m o t i o n of M r . H a h n , t h e foregoing r e s o l u t i o n w a s a d o p t e d .

Assignment of National Defense/Direct Student Loans

(53) Under recent federal regulations, certain defaulted notes in the National Defense and Direct Student Loan (NDSL) programs may be turned over to the federal government. If done prior to June 30. 1979, an institution can better its default ratio and enhance its eligibility for additional federal capital contributions for 1980-81. The loan funds are held in trust by the University and loaned to its students in accordance with criteria established by the federal government They consist of federal capital contributions plus "institutional" capital contributions in an amount equal to one-ninth of the federal contributions. Collections and earnings are added to the loan funds, and expenses of the program are credited. Under the law the loan and interest are cancelled in case of death or permanent and total disability. T o assist institutions in reducing their current default rates whi-h. in turn, will increase their eligibility for future funding, the federal government has revised and simplified its procedures for the assignment to it of not-s which were in default on or before December 24, 1976. Loans assigned to the federal government for collection will no longer be counted in determining the University's default rate, but the government will retain any funds it may recover on the assigned loans, including any portion thereof furnished by the University. The University's share is charged by the government with the cost of collecting the defaulted loans. T h e vice president for administration is of the opinion that the value to be derived from the assignment of these defaulted loans to the federal government is greater than the net recovery which might be anticipated from the University's continued efforts at collection. The university counsel is of the opinion that the assignment of defaulted NDSL loans to the federal government