Repository: UIHistories Project: Board of Trustees Minutes - 1940 [PAGE 510]

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19391

U N I V E R S I T Y OF I L L I N O I S

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that in his opinion the discovery would possess no particular commercial value. I concur in the recommendations of this Committee.

On motion of Mr. Pogue, these contracts were released as recommended.

COMPTROLLER'S REPORT OF CONTRACTS (28) T h e following report from the Comptroller of contracts executed since the last report:

CONTRACTS EXECUTED BY THE COMPTROLLER M A Y 14, 1939, TO J U L Y 5, 1939

Contract executed under specific action of Board of Trustees:

With Whom Mrs, J e n n i e Brownfield, e t aJ. For P u r c h a s e of Brownfield W o o d s Amount to be paid by the University # I 0 10.; Bait J u n e 20, 10.V1

Lease executed under general regulations of Board of Trustees:

With Whom ProsperFournie Property M a d i s o n C o u n t y orchard land Tenure Y e a r IQ39 Amount to be paid by the University #50 Date J u n e 3, 1939

This report was received for record.

PROPOSED CHANGES IN BY-LAWS AND PROCEDURE RELATING TO INVESTMENTS (29) It has become evident that certain changes are needed to expedite the handling of investments, the procedure for which has not been modified since April, 1925. T h e matter has been reviewed by the Chairman of the Finance Committee and the Comptroller, who submit the following proposals, in which 1 concur: 1. Change Article I I I , Section 4, by omitting the words "or sale of bonds." 2. Change Article IV, Section 3, paragraph 2, to read "It shall not have the power to lease, sell, or purchase real estate unless previously authorized by the Board in session or a majority of the members individually in writing." 3. Adopt a revised "Policy for Investment of Trust Funds" to replace "Rules l o r Investment of Trust F u n d s " approved April 8, 1925. PROCEDURE FOR PURCHASE AND SALE OF INVESTMENTS Present Procedure Under Article IV, Section 3, paragraph 2, of the By-laws of the Board of Trustees, the authority to sell bonds or other securities is retained by the full Board except that the Executive Committee, on recommendation of the Finance Committee, may authorize the purchase or sale of securities "when the interests of the University require." Under procedure adopted April 8, 1925, advice concerning funds requiring investment of securities needing attention is submitted to the President of the University, who reports the matter to the Finance Committee. T h e Finance Committee must then make a recommendation to the Board or to the Executive Committee, after which the transaction can be carried out. Problems Involved The investments of the University have increased greatly since this procedure was adopted, and problems of investment arise much more frequently and with much greater urgency than at that time. In the meantime the Board of Trustees has engaged an investment counsel to advise concerning all matters of investment. T h e Comptroller, with the approval of the President, has communicated problems relating to investment directly to the Finance Committee. T h e procedure provided by the By-laws and by the action of April 8, 1925, therefore no longer properly describes the procedure now being followed and