Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 490]

EXTRACTED TEXT FROM PAGE:

19591

UNIVERSITY OF ILLINOIS

487

or improvement for the account of which such Bonds were issued free and clear of mechanic's liens and substantially in accordance with the plans and specifications therefor. SECTION 6.02. Investment of Construction Fund. Pending disbursement for the purpose aforesaid the Comptroller may from time to time invest all or any part of the moneys in the Construction Fund Account not to be needed within the next succeeding thirty (30) days for the purposes hereinabove set forth in bonds, or other direct and general obligations of the United States of America having a maturity date or becoming due at the option of the holder not more than three (3) years subsequent to the date of investment therein. Interest accruing as a result of any such investments when received shall be credited to the Construction Fund Account. SECTION 6.03. Disposition of Surplus Funds. After completion of each construction or improvement project, the Comptroller of the University shall execute a certificate to the effect that said project has been fully completed according to the plans and specifications and the same filed in the office of the Secretary of the Board of Trustees. Subject to the terms and provisions of any contract or agreement between the Board of Trustees and any original purchaser of Bonds and relating to any separate series of Bonds to be issued hereunder, if there be funds remaining in a Construction Fund Account at the time of the filing of such certificate with the Secretary, said funds shall be withdrawn by the Comptroller and deposited in the Assembly Hall Revenue Bond Fund. Any contract or agreement between the Board of Trustees and any original purchaser of Bonds may provide that any funds remaining in a Construction Fund Account established for the account of any series of Bonds being acquired by such purchaser be applied to (i) the redemption of such Bonds or other Bonds then subject to redemption, (ii) the purchase of Bonds on the open market, or (iii) the construction of additional facilities by the transfer of such funds to another Construction Fund Account. ARTICLE SEVEN

ADDITIONAL COVENANTS OF T H E UNIVERSITY

The Board of Trustees of the University of Illinois hereby covenants and agrees as follows: SECTION 7.01. Authority for Bonds. T h a t is duly authorized under the laws of the State of Illinois and under all other applicable provisions of law to create and issue the Bonds herein provided for, and to pledge and apply the net income of the facilities as herein provided; that all corporate and other action on its part for the creation and issuance of the initial issue of Bonds has been duly taken; that said Bonds when issued and in the hands of the holders thereof will be valid and enforceable obligations of the University according to the import thereof; that this Resolution is and will remain a valid Resolution to secure the payment of said Bonds and that the University has complete and lawful authority and privilege to acquire, construct, equip, operate, enlarge, improve, maintain, control and manage the facilities as herein provided. SECTION 7.02. Right to Use and Occupancy of the Facilities and Not to Encumber Same. T h a t it hereby warrants that it has a valid and existing right to the use and occupancy of the Project Site and the right to construct, equip, operate, enlarge, improve, maintain, control and manage the Project and it, or the State of Illinois, has indefeasible title in fee simple to the Project Site subject only to current taxes not in default; that it will not further encumber said property or the income therefrom and that it will not, while any Bonds are oustanding hereunder encumber the title to or pledge or agree to pay to others the income from any of the said facilities; that it will within three months after the same shall accrue pay and discharge or cause to be paid and discharged, all lawful claims and demands of mechanics, laborers and others which if unpaid might by law become liens upon the facilities or the sites thereof. SECTION 7.03. To Pay Principal and Interest. T h a t it will duly and punctually pay or cause to be paid the principal sum and the interest accruing on said principal, on each and every one of the Bonds secured or to be secured hereby,