Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 226]

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UNIVERSITY OF ILLINOIS

223

in amounts sufficient to provide for not less than full recovery of the insurable value whenever the loss from causes covered by such insurance does not exceed eighty per cent (80%) of the full insurable value of said buildings. Such insurance policy or policies shall be with a company or companies and in a form acceptable to the Trustee and be payable to The Board of Trustees of the University of Illinois, and all moneys collected on account of loss or damage covered by any such policy or policies of insurance shall be held in trust by the Board of Trustees and shall be used only for restoration of the property so damaged or, at the election of the Board of Trustees, deposited with the Trustee for credit to the Bond and Interest Sinking Fund. SECTION 7.12. Business Interruption Insurance. Whenever the Snack Bar and Service Building portion of Project A becomes revenue producing and so long thereafter as the funds and investments of the Bond and Interest Sinking Fund are less than the maximum debt service reserve required to be maintained under Section 5.02(b) of this Resolution, it will procure and maintain Business Interruption Insurance on the Snack Bar and Service Building in an amount sufficient to enable it to credit to the Housing Revenue Bond Fund, out of the proceeds of such insurance an amount equal to the sum that would normally have been available for credit to such fund from the revenues of the damaged building during the time the damaged building is non-revenue producing as a result of loss of use caused by the perils covered by fire and extended coverage insurance. Such Business Interruption Insurance policy shall be with a company or companies and in form acceptable to the Trustee and shall be payable to the Board of Trustees of the University of Illinois and all moneys collected on account of loss covered by any such insurance shall be held in trust by the Board of Trustees and credited to the Housing Revenue Bond Fund. ARTICLE EIGHT

ABANDONMENT OF FACILITIES

SECTION 8.01. Conditions Under Which Facilities May Be Abandoned. Anything in this Resolution to the contrary notwithstanding, the University may at any time and from time to time permanently abandon the use of any of its facilities if the University determines that the facility to be abandoned is to be replaced by another facility which is estimated to produce net income (after making provision for any debt service or obligations, if any, issued to finance such replacement facility) equal to or greater than the facility to be abandoned and the net income of such replacement facility will be pledged and applied as herein provided in the case of the facilities constituting Project A. In addition the University may at any time, after the final maturity of any series of Bonds or any other obligation initially issued to provide funds for the original construction of a particular facility, permanently abandon the use of anysuch facility upon a determination by the Board of Trustees that age or physical condition of the facility proposed to be abandoned does not permit the economical operation thereof; provided the Net Income Available for Debt Service after giving effect to such abandonment will be equal to or greater than one and thirty-five one hundredths (i.3S) times the maximum annual amount to become due in any succeeding fiscal year for the payment of principal of and interest on the Bonds then outstanding hereunder. SECTION 8.02. Evidence of Right of Abandonment. All findings and determinations required to be made under this Article Eight shall be evidenced by a resolution adopted by the Board of Trustees, a certified copy of which shall be filed with the Trustee. ARTICLE NINE

CONCERNING THE TRUSTEE, PAYING AGENT AND BOND REGISTRAR

SECTION 9.01. Trustee, Paying Agent, Bond Registrar, Appointment and Acceptance of Duties. T h e First National Bank of Chicago, a national banking association, is hereby appointed Trustee, Paying Agent and Bond Registrar. The Trustee shall signify its acceptance of the duties and obligations imposed upon it by this Resolution as Trustee, Paying Agent and Bond Registrar, by executing the Certificate of Authentication endorsed upon the Bonds, and, by executing such certificate upon any Bond the Trustee shall be deemed to have accepted such duties and obligations not only with respect to the Bond so authenticated, but with respect to all Bonds thereafter to be issued which the Trustee shall authenticate, upon