Repository: UIHistories Project: Board of Trustees Minutes - 1960 [PAGE 491]

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488

BOARD O F T R U S T E E S

[June 23

at the dates and places, and in the manner provided in said Bonds, and in the coupons thereunto appertaining, according to the terms thereof. SECTION 7.04. Taxes. T h a t it will pay and discharge all taxes, assessments and Governmental charges which shall be lawfully imposed upon the facilities provided, however, that the University shall not be required to pay any such tax, assessment, charge or claim so long as the University in good faith and bv appropriate legal proceedings shall contest the validity thereof or its enforceability as a lien, and provided further that any such delay occasioned thereby shall not subject the facilities or any part thereof to forfeiture or sale. SECTION 7.05. Payment of Bondholders' Costs and Expenses. That it will pay all and singular the costs, charges and expenses including reasonable attorney fees incurred or paid at any time by the holder of any of the Bonds because of the failure on the part of the University to perform, comply with and abide by each and every of the stipulations, agreements, conditions and covenants of the Bonds and this Resolution, or either of them. SECTION 7.06. Construction of New Facilities, Maintenance, Repairs, Application of Income, Operation of Additional Facilities. That following the issuance of each series of Bonds under this Resolution it will cause the facilities for the account of which such Bonds were issued to be constructed with all reasonable dispatch; that it will at all time from income made available for such purpose maintain, preserve and keep all the facilities and all additions and betterments thereto and every part and parcel thereof in good repair, working order and operating condition; that it will continuously operate the facilities on a revenue producing basis; and that it will use and apply the income from the facilities only as provided in Article Five of this Resolution. SECTION 7.07. Student Service Charges and Rental Rates. T h a t so long as any Bonds herein authorized to be issued shall remain outstanding it will continuously operate and maintain the facilities, will adopt such rules and regulations and fix and maintain such student service charges, rates, rents, fees, and charges for the use of said facilities, as will assure maximum use of the facilities and will provide revenue sufficient (when supplemented to the extent set forth in Section 5.03) to pay the reasonable cost of operating and maintaining the facilities, and to provide Net Income Available for Debt Service of not less than one and twenty-five one hundredths (1.25) times the fixed annual debt service for the then current fiscal year and maintain the aforesaid Interest Account, Interest Reserve Account, Fixed Sinking Fund Account, and the Bond Retirement Account, and that it will collect and account for and apply the aforesaid income and revenues in accordance with and as provided by this Resolution. Student service charges for the use of the Project shall initially be charged at the rate of sixteen dollars ($16) per student per semester beginning with the semester following the date of substantial completion of the Project. SECTION 7.08. Record Keeping. That it will, so long as any of the Bonds issued hereunder remain outstanding and unpaid, keep proper and separate books of accounts and records in which full, true and correct entries will be made of all dealings and transactions relating to the properties, business and financial affairs of the University as related to the facilities and such records and books shall be open to inspection by the Bond holders and their agents or representatives. SECTION 7.09. Audit Reports and Furnishing of Same. T h a t it will on or before one hundred fifty (150) days after the end of each fiscal year commencing with the fiscal year ending June 30, i960 furnish upon written request therefor, to the holder or holders of any Bonds, certified reports of audit based on an examination sufficiently complete to comply with generally accepted auditing standards, prepared by an independent public accountant or firm of independent public accountants, covering the operations of the facilities for the fiscal year next preceding, and showing the income and expenses for such period. Such audit report shall include a statement in reasonable detail of income from each separate facility and shall show the student enrollment of the University and the schedule of student service charges. Such audit report shall also include statements of the status of each fund or account established under the terms of Article Five hereof showing the amount and source of the deposits therein, the amount and purpose of the withdrawals therefrom and the balance therein at the