Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 221]

EXTRACTED TEXT FROM PAGE:

218

BOABD OF TRUSTEES

[December 17

this Resolution as then supplemented, that all conditions precedent to the issuance of additional Bonds have been complied with and the University is entitled to issue such additional Bonds; (4) A certificate prepared and certified by the Comptroller of the University, together with a certificate of an independent public accountant or firm of independent public accountants (which accountant's certificate may state that it is made in reliance on information supplied by the University, that they have made no independent examination of the books and records of the University in connection therewith, but that they know of no reason why such information is incorrect) setting forth in detail the computation of Net Income Available for Debt Service and demonstrating that it is equal to or greater than the amount required in subsection B above; (5) An opinion of University Counsel to the effect that the University or the State of Illinois has, or will have, indefeasible title in fee simple and a valid and existing right to the use and occupancy of the proposed site and the right to construct, operate and manage the facilities thereon and that such site is not, or will not be, subject to any existing lien or other charge, and (6) An opinion of Bond Counsel to the effect that such additional Bonds when executed, authenticated and delivered by the Trustee and issued by the Board of Trustees, will be valid and binding obligations of the Board of Trustees and will be secured by this Resolution as then supplemented, equal and pro rata with all other Bonds at the time outstanding. ARTICLE FIVE

PROVISIONS RELATING TO INCOME AND APPLICATION THEREOF

SECTION 5.01. Housing Revenue Bond Fund. All revenues derived from the following sources are hereby pledged for the purpose of making the payments or deposits required to be made under subsections ( a ) , ( b ) and (c) of Section 5.02 of this Resolution: (1) the operation of Project A ; (2) the operation of any other revenue producing facilities for the account of which additional Bonds may hereafter be issued; (3) the operation of the revenue producing facilities currently securing the payment of the following obligations of the University from and after the payment in full of such outstanding obligations: ( a ) Women's Residence Halls Revenue Bonds, dated February 15, 1949; ( b ) Student-Staff Apartments (2nd Unit) Revenue Bonds, dated May 1, 1950; ( c ) Residence Halls Revenue Bonds of 1952, dated March 1, 1952; ( d ) Dormitory Revenue Bonds of 1956, dated April 1, 1956; ( e ) Women's Residence Halls Revenue Bonds of 1956, dated October 1, 1956; ( f ) Men's Residence Halls Revenue Bonds of 1957, dated April I, 1957; and (4) the operation of the Student-Staff Apartments (1st Unit) when conveyed to the Board of Trustees pursuant to the existing agreement with the University of Illinois Foundation; and such revenues shall be deposited as collected in a general banking account of the University to the credit of a special fund which is hereby created and designated as the "Housing Revenue Bond Fund" said account to be maintained in a bank which is a member of the Federal Deposit Insurance Corporation and the Board of Trustees covenants that all revenues, income, receipts, profits, rates, rents or charges derived from the operation of such facilities shall be so credited within three working days after receipt in the Housing Revenue Bond Fund and shall be used as provided in Section 5.02 hereof. SECTION 5.02. Disposition of Housing Revenue Bond Fund. T h a t the funds in the Housing Revenue Bond Fund shall be used in the manner and in the order hereinafter mentioned: ( a ) All current operating expenses shall first be paid from the Housing Revenue Bond Fund.