Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 224]

EXTRACTED TEXT FROM PAGE:

1958]

UNIVERSITY OF ILLINOIS ARTICLE SEVEN

ADDITIONAL COVENANTS OF THE UNIVERSITY

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The Board of Trustees of the University of Illinois hereby covenants and agrees as follows: SECTION 7.01. Authority for Bonds. T h a t it is duly authorized under the laws of the State of Illinois and under all other applicable provisions of law to create and issue the Bonds herein provided for, and to pledge and apply the net income of the facilities as herein provided; that all corporate and other action on its part for the creation and issuance of the initial issue of Bonds has been duly taken; that said Bonds when issued and in the hands of the holders thereof will be valid and enforceable obligations of the University according to the import thereof; that this Resolution is and will remain a valid Resolution to secure the payment of said Bonds and that the University has complete and lawful authority and privilege to acquire, construct, equip, operate, enlarge, improve, maintain, control and manage the facilities as herein provided. SECTION 7.02. Right to Use and Occupancy of the Facilities and not to Encumber Same. That it hereby warrants that it has a valid and existing right to the use and occupancy of the facilities described or referred to in Section 5.01 in perpetuity and it, or the State of Illinois, has indefeasible title in fee simple to the sites of said facilities (other than the Student-Staff Apartments (1st Unit) title to which has not yet been conveyed to the University) and it has the right to construct, equip, operate, enlarge, improve, maintain, control and manage the same, subject only to the provisions and covenants applicable to outstanding obligations established by resolutions of the Board of Trustees bearing previous date referred to and described in Section 5.01 and the rights of the holders of such obligations and to current taxes not in default; that it will not further encumber said property or the income therefrom and that it will not, while any Bonds are outstanding hereunder encumber the title to or pledge or agree to pay to others the income from any of the said facilities; that it will within three months after the same shall accrue pay and discharge or cause to be paid and discharged, all lawful claims and demands of mechanics, laborers and others which if unpaid might by law become liens upon the facilities or the sites thereof. SECTION 7.03. To Pay Principal and Interest. That it will duly and punctually pay or cause to be paid the principal sum and the interest accruing on said principal, on each and every one of the Bonds secured or to be secured hereby, at the dates and places, and in the manner provided in said Bonds, and in the coupons thereunto appertaining, according to the terms thereof. SECTION 7.04. Taxes. That it will pay and discharge all taxes, assessments and Governmental charges which shall be lawfully imposed upon the facilities provided, however, that the University shall not be required to pay any such tax, assessment, charge or claim so long as the University in good faith and by appropriate legal proceedings shall contest the validity thereof or its enforceability as a lien, and provided further that any such delay occasioned thereby shall not subject the facilities or any part thereof to forfeiture or sale. SECTION 7.05. Payment of Trustees and the Bondholders' Costs and Expenses. That it will pay all and singular the costs, charges and expenses including reasonable attorney fees incurred or paid at any time by the Trustee or any successor Trustee, or by the holder of any of the Bonds because of the failure on the part of the University to perform, comply with and abide by each and every of the stipulations, agreements, conditions and covenants of the Bonds and this Resolution, or either of them. SECTION 7.06. Construction of New Facilities, Maintenance, Repairs, Application of Income, Operation of Additional Facilities. That following the issuance of each series of Bonds under this Resolution it will cause the facilities for the account of which such Bonds were issued to be constructed with all reasonable dispatch; that subject to the right of abandonment as permitted and provided in Article Eight of this Resolution it will at all times from income made available for such purpose maintain, preserve and keep all the facilities and all additions and betterments thereto and every part and parcel thereof in good repair, working order and operating condition; that it will continuously operate the facilities on a revenue producing basis; and that it will use and apply the income from the facilities only as provided in Article Five of this Resolution.