Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 45]

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34

Date 6/20 6/24 6/26 6/26 6/26 6/27 6/27 6/27 6/27 6/30 6/130 net

BOARD OF TRUSTEES

[July 17

Number Description Cost/Yield Amount $ 9 000 J. P. Morgan demand notes 8.32% $ 9 000 00 1 000 000 Continental Bank VA percent time deposit due 12/22/80 7.75 1 000 000 00 2 000 000 Continental Bank 8V6 percent time deposit due 7/28/80 8.13 2 000 000 00 1 000 000 Continental Bank 7*4 percent time deposit due 11/20/80 7.50 1 0 0 0 000 00 120 000 Merrill Lynch demand notes 8.33 120 000 00 217 260 Community Bank of Morton 8'4 percent certificate of deposit due 7/28/80 8.75 217 259 74 1 000 000 U.S. Treasury bills due 8/21/80 7.28 989 000 00 3 000 000 U.S. Treasury bills due 9/18/80 7.63 2 948 124 99 3 000 000 U.S. Treasury bills due 1 1 / 2 0 / 8 0 . . . 7.65 2 909 723 40 5 300 000 U.S. Treasury bills due 1 0 / 2 3 / 8 0 . . . 8.05 5 167 095 13

103 274 First National Bank of Chicago 5*4 percent open-end time deposit 5.25 103 273 61 O n m o t i o n of M r . N e a l , this r e p o r t w a s a p p r o v e d as p r e s e n t e d .

Student Indebtedness to the University

(34) In March of 1973 the Board of Trustees restated an earlier (1915) policy which prohibited the registration or the issuance of a transcript for any student who was in debt to the University at the end of any academic term until the indebtedness was paid or suitable arrangements for payment had been made. At the time of the 1973 restatement it was noted that, while a student's indebtedness might be discharged in bankruptcy proceedings, the bankruptcy did not cancel the debt but only barred any remedy for its enforcement or collection through the courts. T h e University Counsel has advised that recent amendments to the Revised Bankruptcy Act indicate that the filing of a bankruptcy petition (and any subsequent discharge in bankruptcy) operates as a stay or injunction against "any act to collect" a prepetition debt, whether by formal or informal means. The withholding of registration and transcript solely because the student's indebtedness remains unpaid after the same has been included in the student's bankruptcy petition or discharge may be inconsistent with the provisions of the Revised Bankruptcy Act. Accordingly, it is recommended that the board's March 1973 action be amended to read as follows (new material is in italics): A student who is in debt to the University at the end of any academic term shall not be permitted to register in the University again and shall not be entitled to receive an official statement or transcript of credits until the indebtedness has been paid or suitable arrangements for payment have been made unless there is pending a bankruptcy petition of the student seeking discharge of all such indebtedness or all such indebtedness has been discharged. 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 .

Smithsonian Research Grant, Urbana (Authorization of University Bank Account in Burma)

(35) T h e Smithsonian Institution may offer research grants using "excess" foreign currencies owned by the United States. Such grants require the grantee to draw the funds in local currency from the U . S . Embassy in the country involved and to disburse them within that country.