Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 488]

EXTRACTED TEXT FROM PAGE:

1959]

UNIVERSITY OF ILLINOIS

485

each of which accounts shall be maintained with Sears Bank and T r u s t Company or its successor in the City of Chicago, Illinois, which bank is hereby designated as the depository for said accounts and into which there shall be deposited in the manner and in the order hereinafter mentioned, monies held in the Assembly Hall Revenue Bond Fund after first complying with the provisions of subsection ( a ) above, in accordance with the following provisions: (i) There shall be deposited to the credit of the Interest Account, semiannually not later than ten days prior to April 1 and October 1 of each year, funds which, together with any funds then on deposit in said account, will be sufficient to pay the interest becoming due on the next ensuing interest payment date and such funds shall be used for the payment of said interest. (ii) T h e r e shall be deposited to the credit of the Interest Reserve Account semiannually within sixty days following June 30 and December 31 of each year all funds remaining in the Assembly Hall Revenue Bond Fund until such time and until such funds and investments (valued at the lower of cost or market) and the income and profit realized from any investment thereof are at least equal to all interest due and to become due on all then outstanding bonds for the succeeding twentyfour month period. Said funds shall be held and used only for the payment of interest due on said bonds by transferring said funds to the Interest Account at any time when there are no other funds available to pay interest then due on said Bonds, and to the extent necessary, funds to the credit of the Interest Reserve Account shall be transferred to the credit of the Interest Account for payment of interest, and if at any time by reason of such transfer, said Interest Reserve Account is reduced below an amount equal to the interest due and to become due on all the then outstanding Bonds for the next succeeding twenty-four month period, funds shall again be deposited to the credit of said Interest Reserve Account from the Assembly Hall Revenue Bond Fund in the manner hereinbefore provided until said Interest Reserve Account contains an amount equal to all interest due and to become due on all then outstanding Bonds for the next succeeding twenty-four month period. T h e funds of said Interest Reserve Account may be invested in United States Government Securities maturing not more than three (3) years after the date of purchase. If, at any time and from time to time, said funds on deposit in the Interest Reserve Account shall exceed an amount equal to all interest due and to become due on all then outstanding Bonds for the next succeeding twenty-four month period, the excess, if any, may at the option of the University, be transferred to the Interest Account in anticipation of interest to become due on the Bonds on succeeding interest payment dates. (iii) After complying with the provisions of subsections (i) and (ii) above there shall be deposited to the credit of the Fixed Sinking Fund Account such amount as shall be necessary to meet the Fixed Sinking F u n d payments required to be made by Article Eight during the next succeeding twelve (12) month period. (iv) Annually within sixty (60) days following June 30, 1966 and June 30 of each year thereafter there shall be credited to the Bond Retirement Account an amount equal to the greater of (1) 12^2% of the sum of ( x ) the Fixed Sinking F u n d Payment required to be made on the next ensuing October I pursuant to Article Eight hereof plus (y) the interest paid or accrued on all Bonds outstanding during the 12 months period preceding such June 30 or (2) fifty per cent ( 5 0 % ) of all funds credited to the Assembly Hall Revenue Bond Fund during the preceding fiscal year after deduction for all amounts withdrawn from said Fund pursuant to subsection ( a ) above and clauses ( i ) , (ii) and (iii) of this subsection ( b ) . Funds so credited to the Bond Retirement Account shall be used for the redemption of Bonds in accordance with the provisions of Article Nine hereof, (c) All funds remaining in said Assembly Hall Revenue Bond Fund