Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 230]

EXTRACTED TEXT FROM PAGE:

1958]

UNIVERSITY OF ILLINOIS

227

( b ) Failure to make due and punctual payment of any installment of interest on any Bond when and as such interest installment shall become due and payable, and such default shall have continued for a period of thirty (30) days; ( c ) Failure to make due and punctual payment or satisfaction of any payment into the Bond and Interest Sinking Fund when and as such payments shall become due and payable as in this Resolution or any resolution supplemental hereto expressed and such default shall have continued for a period of two hundred seventy (270) days; ( d ) If the University shall default in the observance of any other covenants, agreements or conditions on its part in this Resolution or any resolution supplemental hereto or in the Bonds contained, and such default shall have continued for a period of ninety (90) days after notice thereof given to the University by the Trustee setting forth the nature of such default. If an event of default shall happen and be continuing, then and in each and every such case the holders of not less than a majority in aggregate principal amount of the Bonds at the time outstanding shall be entitled, upon notice in writing to the University and to the Trustee, to declare the principal of all of the Bonds then outstanding hereunder and the interest accrued thereon to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Resolution or in the Bonds contained to the contrary notwithstanding. All of the revenues of the facilities including all sums in the Housing Revenue Bond Fund upon the date of the happening of any event of default and all sums thereafter received by the Trustee hereunder, shall be applied by the Trustee in the order following upon presentation of the several Bonds and coupons, and the stamping thereon of the payment if only partially paid, or upon the surrender thereof if fully paid: First, to the payment of the costs and expenses of the holders of the Bonds in declaring such event of default, including reasonable compensation to their agents, attorneys and counsel, and to the payment of all compensation, claims and expenses of the Trustee in carrying out the provisions of this Section 10.01 and all other services performed under this Resolution including reasonable compensation to its agents, attorneys and counsel; Second, in case the principal of the Bonds shall not have become due and shall not then be due and payable, to the payment of the interest in default in the order of the maturity of the installments of such interest, with interest on the overdue installments at the rate now or hereafter provided by law, such payments to be made ratably to the persons entitled thereto without preference or priority; Third, in case the principal of the Bonds shall have become due and shall be then due and payable, to the payment of the whole amount then owing and unpaid upon the Bonds for principal and interest, with interest on the overdue principal at the rate or rates of interest specified in the Bonds and on installments of interest at the rate now or hereafter provided by law, and in case such moneys shall be insufficient to pay in full the whole amount so owing and unpaid upon the Bonds, then to the payment of such principal and interest without preference or priority of principal over interest, or of interest over principal, or of any installment of interest over any other installment of interest, ratably to the aggregate of such principal and interest. SECTION 10.02. Rights of Holders of Bonds Upon Default. Subject to any contractual limitations binding upon the holders of any of the Bonds (including the provisions of Section 10.03 hereof and any other limitations herein upon the exercise of any remedy to holders holding a specific proportion or percentage of the Bonds), any holder of Bonds shall have the right, for the equal benefit and protection of all holders of Bonds similarly situated: ( a ) By suit at law or proceedings in equity to compel observance by the University or by any of its officers, agents, and employees of any contract or covenant made by the University with the holders of Bonds and coupons as provided in this Resolution, and to compel the University and any of its officers, agents and employees, to perform any duties required to be performed for the benefit of the holders of the Bonds or coupons as provided by this