Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 484]

EXTRACTED TEXT FROM PAGE:

1959]

UNIVERSITY OF ILLINOIS

481

time and place of such redemption; (b) if the Bonds to be redeemed are less than all of the Bonds of any series or maturity, designate the numbers, the maturity date or dates and the aggregate principal amount of such Bonds; and (c) state that on the designated date of redemption such Bonds will be redeemed by payment of the principal amount thereof (or for the portion thereof to be redeemed) and all unpaid interest accrued thereon to the date of redemption plus the applicable premium, if any, and that from and after such designated redemption date interest in respect of the Bonds (or portions thereof) so called for redemption shall cease. A copy of said notice shall be mailed by the University, postage prepaid, at least 30 days prior to the redemption date to all registered owners of Bonds so to be redeemed at their last addresses appearing on the registration books of the University, but such mailing shall not be a condition precedent to the validity of the redemption of any Bond. In case of redemption of Bonds through the operation of any sinking fund or the Bond Retirement Account, Bonds shall be selected for redemption and such redemption shall likewise be made upon publication a n d / o r mailing of notice in the manner and with the effect provided in this Article. SECTION 3.02. In case the University shall have elected to redeem less than all of the outstanding Bonds of any series or maturity, or in case less than all the outstanding Bonds of any series or maturity shall be redeemed through the operation of any sinking fund applicable thereto or of the Bond Retirement Account, the Bonds to be redeemed shall be selected by lot except as herein otherwise expressly provided. In each such instance the University shall, at least five days before the date upon which the first publication of the notice of redemption hereinbefore mentioned is required to be made (or the mailing of such notice in case no publication is required as hereinafter specified), draw by lot, from the outstanding Bonds of such series and maturity, in any manner deemed by it proper, the identifying numbers of the Bonds to be redeemed. In any such selection by lot each Bond of a denomination in excess of $1,000 shall be given a separate number for each $1,000 of the principal amount thereof. In case any fully registered Bonds are to be redeemed in part only, said notice shall specify the respective portions of the principal amounts thereof to be redeemed (which shall be $1,000 or any multiple thereof) and shall state that pa3'ment of the redemption price shall be made only upon presentation of such fully registered Bonds (a) for the notation thereon of such payment on account of principal, or (b) for surrender in exchange for a coupon Bond or Bonds or a fully registered Bond or Bonds of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the principal amount thereof; and in such case, if coupon Bonds or fully registered Bonds are so to be delivered in exchange, the University shall execute and deliver to or upon the written order of the registered owner of any fully registered Bonds, a portion only of which is to be redeemed, and at the expense of the University, a new Bond or Bonds of the same series and maturity for the principal amount of the surrendered fully registered Bond less the principal amount thereof paid on surrender. In the event of the payment of a portion of the principal amount of any fully registered Bond registered in the name of any initial purchaser in whose name Bonds of that series were first registered, or registered in the name of any subsequent holder for the benefit of whom University shall elect that the provisions of this paragraph shall be applicable thereto (which election shall be subject to the condition that such subsequent holder shall first agree not to make any sale or transfer of any Bond or Bonds registered in its name without presentation of such Bond or Bonds for transfer and exchange), then in such event the University shall make payment to such Bond holder without requiring presentation of such Bond and, in lieu of noting such payment thereon or of delivering a new Bond or Bonds of an aggregate principal amount equal to the unredeemed portion of the principal amount of such Bond, the University shall, in its letter transmitting payment to such Bond holder, instruct such holder to endorse such payment on such Bond and a written representation from such holder to the University that such payment has been so endorsed shall be conclusive evidence of such endorsement and payment. The foregoing is subject to the condition that if, at the close of business on the fortieth day prior to a redemption date on which the University shall elect