Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 1522]

EXTRACTED TEXT FROM PAGE:

1962]

UNIVERSITY OF ILLINOIS

1519

tion, Household Finance Corporation, General Electric Credit Corporation, International Harvester Credit Corporation, Ford Motor Credit Company, Montgomery W a r d Credit Corporation. Investment in certificates of deposit, special interest-bearing accounts, or commercial paper will be made when the yield is in excess of the yield on United States government securities for the period involved. The Vice-President and Comptroller recommends the approval of this broadened program. Authorization for Sale of Capital Stocks All capital stock owned by the Board is in its name. The present procedure for sale or transfer requires an approval by the Finance Committee of the Board followed by a resolution from the Board authorizing such. This is awkward and time consuming and may result in a loss, since several weeks may elapse from the time the recommendation is received from the investment counsel and approved by the Finance Committee until it is possible to secure the resolution and make the sale. Accordingly, the Finance Committee recommends that the following resolution be adopted by the Board, which will eliminate the necessity of submitting each transaction to the Board for specific approval and will enable the Treasurer of the Board of Trustees of the University to execute documents necessary to sell capital stock.. Resolution Resolved, that the Treasurer of The Board of Trustees of the University of Illinois, a public corporation, is authorized in his discretion to sell, assign, or transfer to any assignee or transferee for or on behalf of this corporation and in its name any and all shares of capital stock or any voting trust certificates representing the right to receive shares of stock or any registered bonds or other securities of any other corporation owned by this corporation and for the purpose of effecting any such sale or transfer, C. W. Weldon, the Treasurer of this corporation, be and he hereby is authorized to execute in the name of this corporation and on its behalf all assignments which may be necessary and that A. J. Janata, Secretary of this corporation, be and he hereby is authorized to attest to the authority of C. W. Weldon, Treasurer, to execute the aforesaid documents. The Treasurer will exercise the authority granted by such resolution only alter being notified by the Comptroller of the approval of the Finance Committee for the sale as provided in the following procedure. The Secretary of the Board will attest to the validity of the resolution and to the authority of the Treasurer to sign the documents. Procedures Endowment and Loan Funds The "prudent man" concept, as authorized by statute of the state of Illinois providing for investment by a Trustee, shall be followed in the investment of endowment funds. Such investments may be made in various types of securities, including but not limited to bonds and common and preferred stocks. These are the types of investment media utilized by the Board at the present time. Real estate is often received as a gift to create an endowment fund and may be retained. However, all purchases of real estate or real estate mortgages shall be presented to the Board for special approval. Cash in student loan funds, if temporarily not needed for loans, may be invested in United States government securities. A bank will continue to be engaged to act as investment counsel and safekeeping agent for all investments of these funds, and will submit recommendations to the Comptroller for the purchase and sale of securities. Such advice, together with the comments of the Comptroller, shall be submitted to the Finance Committee of the Board of Trustees for approval.' T h e decision of the Finance Committee will be returned to the Comptroller, if favorable orders shall be placed with the bank for the purchase or sale of securities. Such orders shall be signed by the Comptroller and the Secretary, or their designates, acting for the Board of Trustees. After execution of the order, if a purchase, the Comptroller shall make payment, and if a sale, he will notify, if required, the Treasurer of the University who has been authorized by the Board to execute any required documents. Common and preferred stock will be registered in the name of the

1 The 1939 Board policy provides for such approval by the full Board except when emergency action is required.