Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 219]

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216

BOARD OF TRUSTEES

[December 17

state that payment of the redemption price shall be made only upon presentation of such Bonds ( a ) for the notation thereon of such payment on account of principal, or ( b ) for surrender in exchange for a coupon Bond or Bonds or a registered Bond or Bonds without coupons (as the holder may elect) of authorized denominations in aggregate principal amount equal to the unpaid portion of the principal amount thereof; and in such case, if coupon bonds or registered Bonds without coupons are so to be delivered in exchange, the University shall execute and the Trustee shall authenticate and deliver to or upon the written order of the registered owner of any Bonds, a portion only of which is to be redeemed, and at the expense of the University, a new Bond or Bonds for the principal amount of the surrendered Bond, less the principal amount thereof paid on surrender. In the event of the payment of a portion of the principal amount of any fully registered Bond registered in the name of any original purchaser in whose name Bonds of that series were first registered and named in a written order of an Authorized Officer filed with the Trustee and stating that the provisions of this paragraph shall be applicable thereto, the Trustee shall make payment to such Bond holder without requiring presentation of such Bond and, in lieu of noting such payment thereon or of authenticating and delivering a new Bond or Bonds of an aggregate principal amount equal to the unredeemed portion of the principal amount of such Bond, the Trustee shall, in its letter transmitting payment to such Bond holder, instruct such holder or his authorized agent to endorse such payment on such Bond and a written representation from such holder to the Trustee that such payment has been so endorsed shall be conclusive evidence of such endorsement and payment. SECTION 3.02. Pro Rata Redemption Among Series. In any case of the redemption at the option of the University of less than all of the outstanding Bonds then subject to redemption, no Bonds of any series may be redeemed unless the same proportion of the outstanding Bonds of each other series then subject to redemption are redeemed at the same time; provided, however, that in any case of the redemption of all of the outstanding Bonds of any one or more series, as a result of or in anticipation of the refunding or refinancing of one or more such series by the application of funds derived from other borrowings or the issuance of additional Bonds hereunder, no Bonds of any other series need be redeemed unless so required in the resolution supplemental hereto, creating or authorizing any additional series of Bonds. Nothing in this section shall be deemed to restrict the redemption by the University of a portion of the Bonds of any series out of surplus funds remaining in a Construction Fund Account held for the account of Bonds of such series in any case where the University is required or permitted to redeem such Bonds out of such surplus funds. SECTION 3.03. Selection of Bonds for Redemption. In any case of redemption of less than all the outstanding Bonds of a single series and maturity, the Bonds to be redeemed shall be selected by the Trustee by lot except as herein otherwise expressly provided. In each such instance the University shall, at least ten (10) days before the date upon which the first publication of the notice of redemption hereinbefore mentioned is required to be made, notify the Trustee in writing of such election and of the aggregate principal amount of Bonds to be redeemed, and thereupon the Trustee shall draw by lot, from the outstanding Bonds, in any manner deemed by it proper, the Bonds to be redeemed, and shall notify the University in writing of the numbers of the bonds so drawn. In any such selection by lot each Bond of a denomination in excess of $1,000 shall be given a separate number for each $1,000 of the principal amount thereof. SECTION 3.04. Deposit of Funds for Redemption. On or before the redemption date specified in the notice above provided for, the University shall, and it hereby covenants that it will, deposit with the Trustee an amount of cash sufficient to effect the redemption of the Bonds specified in such notice, or cause the Trustee to apply to such purpose moneys theretofore deposited with the Trustee under the provisions hereof and properly available for such purpose. All moneys deposited by the University with the Trustee, or set apart by the Trustee, under the provisions of this Article Three, for the redemption of Bonds, shall be held for account of the holders thereof and shall be paid to them respectively upon presentation and surrender of said Bonds accompanied by all interest coupons maturing on and after the date fixed for redemption thereof; provided, however, if any such