Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 489]

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486

BOARD OF T R U S T E E S

[June 23

in any fiscal year in excess of the amount needed to satisfy the next succeeded Fixed Sinking Fund Payment and after all provisions in subsections ( a ) and ( b ) of this section have been met and all deficiencies have been made up, shall be deemed surplus moneys and shall be used for any of the following purposes: (1) for calling and redeeming the outstanding Bonds which by their terms are redeemable prior t o maturity; (2) for purchasing Bonds in the open market, with all unmatured interest coupon thereto attached at the lowest prices reasonably attainable, but not exceeding the amount at which such Bonds at the time are redeemable at the option of the University; (3) for investment by the comptroller in United States Government securities until such time as funds are needed for other purposes • (4) for unusual or extraordinary repairs, replacements or improvements to the facilities, for which no funds can be properly provided in subsection ( a ) hereinabove; and (5) for any lawful purpose as the Board of Trustees may direct. SECTION 5.03. Supplementation of Revenues. It is hereby determined by the Board of Trustees, and it is hereby covenanted that it is necessary to supplement revenues to be derived from the facilities, referred to in this Resolution, by the use of University income which is authorized by law to be retained in the Treasury of the University, and it is hereby further covenanted that if at the close of any fiscal year there is a deficiency in the Assembly Hall Revenue Bond Fund to provide for operating expenses of the facilities a n d / o r making the deposits in the Interest Account, the Interest Reserve Account, the Fixed Sinking Fund Account and the Bond Retirement Account provided for in Section 5.02 of this Resolution in the required amounts, the Board of Trustees shall within sixty (60) days after the close of the fiscal year deposit to the credit of the said Assembly Hall Revenue Bond Fund out of University income authorized by law to be retained in the Treasury of the University, a sum sufficient to make up such deficiency in order to meet the annual cost of maintenance and operation of the facilities, and provide for all the accounts and covenants provided for by this Resolution or any resolution supplemental hereto, but such amount shall not, however, exceed in any one fiscal year the lesser of ( a ) an amount which when added to the revenues to be derived from the facilities will be sufficient to meet the annual operating expenses of the facilities and to provide for the payments required to be made into the Interest Account, Interest Reserve Account, the Fixed Sinking Fund Account and the Bond Retirement Account established for the benefit of the Bonds in subsection ( b ) of Section 5.02 hereof or (b) $200,000, plus such additional sums as may be specified in any resolution supplemental hereto creating or authorizing the issuance of additional Bonds. ARTICLE SIX

APPLICATION OF PROCEEDS OF SALE OF BONDS

SECTION 6.01. Custody and Application of Bond Proceeds. T h e proceeds from the sale of Bonds to be issued from time to time hereunder shall be applied only toward the cost of acquiring, constructing, equipping, enlarging, or improving facilities, all as hereinbefore provided. W h e n received, the part of the purchase price of Bonds representing the interest accrued on Bonds to the date of payment of such purchase price shall be deposited in the Interest Reserve Account, together with such portion of the proceeds of the Bonds as is determined by the Board of Trustees to be necessary to so set apart representing interest to become due on such Bonds prior to the time the facilities for the account of which such Bonds have been issued become revenue producing and funds become available therefrom. T h e remaining part of such purchase price shall be retained by the University and accounted for as a separate fund or funds for each project to be known as a "Construction F u n d Account" for such project and such moneys shall be deposited in a bank or banks which are members of the Federal Deposit Insurance Corporation. T h e moneys in each Construction Fund Account shall be applied only toward the cost of construction in the manner and subject to the terms provided in any contract or agreement between the Board of Trustees and any purchaser of Bonds or as may be provided by a resolution supplemental hereto and relating to each separate series of Bonds to be issued hereunder, but in such a manner as to assure completion of the project