Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 55]

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44

BOARD OF TRUSTEES

[September 20

While the refinancing program just summarized in no way obligates the board to issue additional revenue bonds for improvements to the Auxiliary Facilities System, the payment stream on the Series 1984 Bonds has been structured so as to provide an opportunity to issue up to $50,000,000 in improvement bonds with relatively short maturities; to the extent that this opportunity is exercised, the system can achieve annual debt-service savings, versus traditional long-term revenue bonds. With respect to the Series 1984 Bonds, they are issuable as fully registered bonds and do not constitute an obligation of the State of Illinois, or of individual members, officers, or agents of the Board of Trustees of the University of Illinois, but are payable solely by the board from net revenues of the University of Illinois Auxiliary Facilities System and from student tuition and fees, as well as from certain other funds pledged to pay principal of, redemption premium, if any, and interest on the Series 1984 Bonds. All legal matters incidental to the authorization and issuance of the bonds by the board, the Official Statement, and the Bond Resolution have been approved by Chapman and Cutler, Bond Counsel, Chicago, Illinois. The president, with the concurrence of the appropriate administrative officers, recommends the following: 1. Approval of the Official Statement for the Board of Trustees of the University of Illinois Auxiliary Facilities System Revenue Bonds, Series 1984 (Refunding and Improvement) f 2. Adoption of a Resolution authorizing and providing for the issuance of Auxiliary Facilities System Revenue Bonds, Series 1984 (Refunding and Improvement) of the Board of Trustees of the University of Illinois prescribing all the details of said bonds, providing for the security and payment thereof, and providing for the prepayment and advance refunding of outstanding revenue bonds of the Board of Trustees of the University of Illinois; 1 3. Approval of the Contract of Purchase with John Nuveen & Co, Incorporated and Shearson/Lehman American Express, Inc., as representatives of the purchasers, wherein the purchasers, jointly and severally, agree to purchase from the board and the board agrees to sell to the purchasers all (but not less than all) of the Board of Trustees of the University of Illinois Auxiliary Facilities System Revenue Bonds, Series 1984 (Refunding and Improvement), dated as of their date of issuance and delivery, in the aggregate original principal amount, maturing and bearing interest at a rate or rates and having maturities as shown on Schedule A attached hereto. The purchase price will be $53,222,700.39, J 4. Approval of the Escrow Agreement with the First National Bank of Chicago, Chicago, Illinois, to serve as Escrow Agent, as defined in the Bond Resolution;' 5. Authorization for the prepayment of the board's University of Illinois Auxiliary Facilities System Revenue Bonds, Series A through L, presently owned by the United States Department of Education, and the execution by the appropriate officers of the board of any documents as shall be required by such department to facilitate such prepayment; 6. Authorization for the comptroller of the board t o give notice of the ad1 A copy is filed with the secretary of the board for record and the appropriate officers of the board are hereby authorized and directed to execute the same in the name and on behalf of the board in substantially the form presented to this meeting, or with such changes as may be approved by the officer or officers of the board executing the same, his or their execution thereof to constitute conclusive evidence of the board's approval of all changes from t the form thereof presented to this meeting; provided, however, that if any such changes constitute a substantial change in the form thereof presented to this meeting, they shall first be approved by the Executive Committee of the board, to which authority for such approval is delegated by the board. 1 A copy has been filed with the secretary of the board for record.