Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 225]

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222

BOARD OF TRUSTEES

[December iy

Notwithstanding any provision of this Resolution to the contrary, the University shall have, and it hereby reserves, the right, power and authority, exercisable by it in its sole and uncontrolled discretion without any limitation or restriction whatsoever by virtue of this Resolution, ( a ) to acquire property for and to erect, construct, equip, furnish, operate, control, manage and use and apply the income of all facilities (now existing or hereafter acquired) other than the facilities referred to in Section 5.01 and facilities for the account of which Bonds have been issued, authenticated and delivered under the terms of this Resolution; and (b) to issue and sell bonds under the provisions of Chapter 144 of the Illinois Revised Statutes, 1957, or otherwise, for the purpose of raising funds to acquire property for and to erect, construct, equip, furnish, operate, control and manage additional revenue producing buildings, which bonds are not, and need not be, issued under or secured by this Resolution; and (c) to raise, acquire or provide funds in any manner other than by the issuance and sale of Bonds under this or any other Resolution for the purpose of acquiring property for or to erect, construct, equip, furnish, operate, control and manage additional housing facilities. SECTION 7.07. Maintenance of Occupancy and Rental Rates. That so long as any Bonds herein authorized to be issued shall remain outstanding it will continuously operate and maintain the facilities, will adopt such parietal rules and regulations and fix and maintain such rates, rents, fees, and charges for the use of said facilities, as will assure maximum occupancy of the buildings and, when supplemented with student tuitions to the extent provided in Section 5.03, will provide revenue sufficient to pay the reasonable cost of operating and maintaining tine iaciYitics, and to pio\i<ie and maintain the aioresaid Bond and Interest Sinking Fund and the required reserves therefor, and that it will collect and account for and apply the aforesaid income and revenues in accordance with and as provided by this Resolution. SECTION 7.08. Record Keeping. That it will, so long as any of the Bonds issued hereunder remain outstanding and unpaid, keep proper and separate books of accounts and records in which full, true and correct entries will be made of all dealings and transactions relating to the properties, business and financial affairs of the University as related to the facilities and such records and books shall be open to inspection by the Bond holders and their agents or representatives. SECTION 7.09. Audit Reports and Furnishing of Same. That it will on or before one hundred fifty (150) days after the end of each fiscal year commencing with the fiscal year ending June 30, 1959, furnish to the Trustee and, upon written request therefor, to the holder or holders of any Bonds, certified reports of audit based on an examination sufficiently complete to comply with generally accepted auditing standards, prepared by an independent public accountant or firm of independent public accountants, covering the operations of the facilities for the fiscal year next preceding, and showing the income and expenses for such period. Such audit report shall include a statement in reasonable detail of income from each separate facility and shall show average occupancy of each facility and the schedule of rates for room rental, board and other charges. Such audit report shall also include statements of the status of each fund or account established under the terms of Article Five hereof showing the amount and source of the deposits therein, the amount and purpose of the withdrawals therefrom and the balance therein at the beginning and end of the fiscal year. There will also be included with each audit report a written opinion of the accountant that in making the examination necessary to said audit no knowledge of any default by the University in the fulfillment of any of the terms, covenants, provisions and conditions of this Resolution was obtained, or, if such accountant shall have obtained knowledge of such default a statement of the default or defaults thus discovered and the nature thereof. SECTION 7.10. Inspection of Records by Trustee. T h a t the books, documents and vouchers relating to the facilities will at all reasonable times be open to inspection by authorized agents of the Trustee. SECTION 7.11. Fire and Extended Coverage Insurance. T h a t as long as any of said Bonds authorized to be issued hereunder shall remain outstanding and unpaid, either as to principal or interest, or both, it will maintain insurance on said facilities, including all equipment thereof and the goods, wares, merchandise contained in the Central Food Stores portion of Project A, against loss or damage by fire and windstorm and all other risks included in extended coverage insurance