Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 192]

EXTRACTED TEXT FROM PAGE:

1985]

UNIVERSITY OF ILLINOIS

181

Affairs concluded that Chicago students are interested in and willing to support the establishment of a service supported by student fees. I recommend approval. O n m o t i o n of M r . H o w a r d , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d .

Transfer of Hedging Account, University Farms

(16) Commodities produced on the University's endowment farms generate funds for a variety of programs, including scholarships, fellowships, maintenance of the Allerton Park and Conference Center, student loans, and 4-H. Hedging commodities is a part of farm management, reducing the risk associated with commodity production and sales, and is conducted through a registered commodity futures representative employed by a clearing member of the major commodity exchanges. On June 16, 1983, the Board of Trustees approved the transfer of the account to Shearson/American Express Inc. The company has recently closed its local office. Authority now is requested to transfer the University's hedging account to Stotler and Company, Champaign. The University will be required to pay Stotler its standard brokerage fee for the transactions handled. The fee is a regular farm expense, similar to feed, seed, or fertilizer, and will be paid from endowment farm income. Accordingly, the dean of the College of Agriculture has recommended the continuance of a hedging account to be administered by the farm manager under his responsibility for marketing crops grown on endowment farms. The chancellor at Urbana-Champaign, with the concurrence of the vice president for business and finance, has recommended that the board adopt the following resolutions authorizing the establishment of such an account with Stotler and Company. I concur.

Corporate Resolutions

First: The Comptroller of T h e Board of Trustees of the University of Illinois, or Professor Donald G. Smith, University Farm Manager; or Dennis W. Gehrt, Associate University Farm Manager; Darrel L. Good, Associate Professor, Agricultural Economics, or any person so designated by the Dean of the College of Agriculture, be, and each of them hereby is, authorized and empowered, for and on behalf of the University of Illinois (herein called the "University") to establish and maintain agricultural commodity margin accounts with Stotler and Company for the purpose of purchasing, investing in, or otherwise acquiring, selling (including short sales), possessing, transferring, exchanging, pledging, or otherwise disposing of, or realizing upon, and generally dealing in and with any and all agricultural commodities, commodity options a n d / o r contracts for the future delivery thereof, whether represented by trust, participating a n d / o r other certificates or otherwise, to execute any and all documents and agreements with Stotler and generally to do and take all action necessary in connection with the accounts, or considered desirable by such officer a n d / o r agent with respect thereto. Second: Stotler may deal with any and all of the persons directly or indirectly by the foregoing resolution empowered, as though they were dealing with the University directly and may rely upon any certification given in accordance with these resolutions, as continuing fully effective until and unless Stotler shall receive written notice to the contrary. Third: The Secretary of the Board of Trustees of the University of Illinois be, and is authorized, empowered and directed to certify, under the seal of the University, or otherwise to Stotler: (a) a true copy of these resolutions; (b) specimen signatures of each and every person empowered by these resolutions; (c) a certification that the University is duly organized and existing, that its charter empowers it to transact the business by these resolutions.