Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 222]

EXTRACTED TEXT FROM PAGE:

1958]

UNIVERSITY OF ILLINOIS

219

( b ) A Bond and Interest Sinking Fund is hereby established with the Trustee to be held in trust for the benefit of the Bonds and the holders thereof by the Trustee and the University shall deposit in said Bond and Interest Sinking Fund a sum equal to sixty-seven and one-half per cent (67]^%) of the debt service requirements for the then current fiscal year semi-annually, within sixty (60) days following June 30 and December 31 of each year, to be paid from the Housing Revenue Bond Fund, until such time as such funds and investments (valued at the lower of cost or m a r k e t ) , and the income and profits realized from any investments thereof are at least equal to the debt service requirements on all then outstanding Bonds for the then current fiscal year plus a debt service reserve in an amount equal to two hundred per cent (200%) of the annual amount to become due in the succeeding fiscal year for the payment of principal of and interest on all Bonds then outstanding and thereafter in a like manner such sums semi-annually as may be necessary to meet the then current fiscal year's debt service and to maintain the aforesaid debt service reserve. F o r the purpose of this paragraph interest accruing prior to the completion date of any facilities for the account of which Bonds shall have been issued, shall not be deemed to be a debt service requirement on such Bonds. After setting aside funds for the payment of Bonds which have matured and for past due interest or interest coupons and for principal, accrued interest and premium, if any, on Bonds called for redemption but not paid, funds of the Bond and Interest Sinking Fund in excess of the principal and interest requirements for the next succeeding twelve (12) months may be invested by the Trustee from time to time by written order of the Comptroller in United States Government securities maturing not more than five (5) years from date of purchase. Funds held for interest and principal payments during the next succeeding twelve (12) months (excluding funds held for the payment of Bonds which have matured and for past due interest or interest coupons and for principal, accrued interest and premium, if any, on Bonds called for redemption but not paid) may be invested by the Trustee from time to time by written order of the Comptroller in United States Government securities maturing not later than ten (10) days prior to the next interest payment date. ( c ) Reserves for the replacement of equipment and expenditures for minor capital additions to the facilities may, at the option of the University, be made after setting aside all funds required under paragraphs ( a ) and (b) above. ( d ) All funds remaining in said Housing Revenue Bond Fund in any fiscal year after the full debt service reserve prescribed in subsection ( b ) of this Section has been provided for and after all provisions in subsections ( a ) , (b) and ( c ) of this section have been met and all deficiencies have been made up, shall be deemed surplus moneys and shall be used for any of the following purposes: (1) for calling and redeeming the outstanding Bonds, which by their terms are redeemable prior to maturity; (2) for purchasing Bonds in the open market, with all unmatured interest coupons thereto attached at the lowest prices reasonably attainable, but not exceeding the amount at which such Bonds at the time are redeemable; (3) for investment by the Comptroller in United States Government securities until such time as funds are needed for other purposes; (4) for unusual or extraordinary repairs, replacements or improvements to the facilities, for which no funds can be properly provided in subsection ( a ) hereinabove; and (5) for any lawful purpose as the Board of Trustees may direct. SECTION 5.03. Supplementation of Revenues. It is hereby determined by the Board of Trustees, and it is hereby covenanted that it is necessary to supplement revenues to be derived from the facilities, referred to in this Resolution, by the use of student tuitions which are authorized by law to be retained in the Treasury of the University, and it is hereby further covenanted that if at the close of any fiscal year there is a deficiency in the Housing Revenue Bond Fund to provide for operating expenses of the facilities and/or making the deposits in the Bond and Interest Sinking Fund provided for in Section 5.02 of this Resolution in the required amounts, the Board of Trustees shall within sixty (60) days after the close of the fiscal year deposit to the credit of the said Housing Revenue Bond Fund out of student tuitions, a sum sufficient to make up such deficiency in order to meet the annual debt service required on the Bonds, the annual cost of mainte-