Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 1308]

EXTRACTED TEXT FROM PAGE:

1962]

UNIVERSITY OF ILLINOIS

1305

White, Weld, and Company, who handled the original bond sale, received consent from the present holders for the issuance of the additional bonds. Two of the original purchasers have agreed to purchase the supplemental issue at an effective interest rate of 3.90 per cent. This compares with a rate of 4.32 per cent on the original issue and is in line with changes in the market since 1959. The bonds will become due through the operation of the sinking fund after the original bonds have been retired. I concur in the foregoing recommendation. The Finance Committee has also been consulted and concurs in recommendations that the bonds be sold at an effective interest rate of 3.90 per cent, and that bonds totalling $400,000 be sold to Allstate Insurance Company and $200,000 to State F a r m Mutual Automobile Insurance Company; that White, Weld, and Company be paid a fee of $2.00 per $1,000 for its services in connection with the sale; and that Chapman and Cutler be employed as counsel for the bond issue. A formal resolution will be presented to the Board for adoption at a subsequent meeting. O n m o t i o n of M r . S w a i n , t h e s u p p l e m e n t a l i s s u e of r e v e n u e b o n d s was a u t h o r i z e d , a n d t h e r e c o m m e n d a t i o n s r e l a t i n g t o t h e s a m e w e r e approved by the following vote: Aye, M r . Clement, M r . Dilliard, Mr. H a r e w o o d , M r . Johnston, M r . P o g u e , M r . Swain, M r s . W a t k i n s , Mr. W i l l i a m s o n ; n o , n o n e ; a b s e n t , M r . H u g h e s , M r . K e r n e r , M r .

Wilkins.

HOUSING AND HOME FINANCE AGENCY LOAN FOR CONSTRUCTION OF ILLINOIS STREET RESIDENCE HALLS (12) The Vice-President and Comptroller and the Director of the Physical Plant recommend authorization of: An application to the Housing and Home Finance Agency for a loan of $3,350,000 for construction of the Illinois Street Residence Halls; An issue of revenue bonds to be sold publicly to finance the remainder of the construction cost; Employment of Chapman and Cutler, Chicago, as counsel for the bond issue; Advertisements for bids on the construction of the Halls and for the sale of bonds at times deemed most appropriate by the Vice-President and Comptroller. I concur in these recommendations. O n m o t i o n of M r s . W a t k i n s , t h e s e r e c o m m e n d a t i o n s w e r e a p p r o v e d , and a u t h o r i t y w a s g i v e n , a s r e q u e s t e d , t h i s a c t i o n b e i n g t a k e n b y t h e following v o t e : A y e , M r . C l e m e n t , M r . D i l l i a r d , M r . H a r e w o o d , M r . Johnston, M r . Pogue, M r . Swain, M r s . W a t k i n s , M r . W i l l i a m s o n ; no, none; absent, M r . H u g h e s , M r . K e r n e r , M r . W i l k i n s . HOUSING AND HOME FINANCE AGENCY LOAN FOR CONSTRUCTION OF CONGRESS CIRCLE UNION BUILDING (13) The Vice-President and Comptroller and the Director of the Physical Plant recommend authorization of: An application to the Housing and Home Finance Agency for a loan of $5,000,000 for construction of the Congress Circle Union Building, this amount representing approximately one-half of the estimated cost; An issue of $5,000,000 of revenue bonds to be sold publicly to finance part of the construction cost, and to be amortized from student fee income; Employment of Chapman and Cutler, Chicago, as counsel for the bond issue; Advertisements for bids on the construction of the Union Building and for the sale of bonds at times deemed most appropriate by the Vice-President and Comptroller. An assignment from the state capital appropriations from the Universities Building Fund will also be recommended for the construction of this building since