Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 249]

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246

BOARD OF TRUSTEES

[December 21

such holder to the University that such payment has been so endorsed shall be conclusive evidence of such endorsement and payment. SECTION 3,02. Pro Rata Redemption Among Series. In any case of the redemption at the option of the University of less than all of the outstanding Bonds then suhject to redemption, no Bonds of any series may be redeemed unless Bonds of each other series then subject to redemption are redeemed at the same time in proportion to the amount of each such Series originally issued; provided, however, that in any case of the redemption of all of the outstanding Bonds of any one or more series, as a result of or in anticipation of the refunding or refinancing oE one or more such series by the application of funds derived from other borrowings or the issuance of additional Bonds hereunder, no Bonds of any other series need be redeemed unless so required in the resolution supplemental hereto, creating or authorising any additional series of Bonds. Nothing in this section shall be deemed to restrict the redemption by the University of a portion of the Bonds of any Series out of surplus funds remaining in a Construction Fund Account held for the account of Bonds of such series in any case where the University is required or permitted to redeem such Bonds out of such surplus funds. SECTION 3.03. Selection of Bonds for Redemption. In case the University shall have elected to redeem less tlian all of the outstanding Bonds of a single series and maturity, the Bonds to be redeemed shall be selected by lot except as herein otherwise expressly provided. In each such instance the University shall, at least five days before the date upon which the first publication of the notice of redemption hereinbefore mentioned is required to be made (or the mailing of such notice in case no publication is required as hereinafter specified), draw by lot, from the outstanding Bonds of such series and maturity, in any manner deemed by it proper, the identifying numbers of the Bonds to be redeemed. In any such selection by lot each Bond of a denomination in excess of $1,000 shall be given a separate uumber for each $1,000 of the principal amouut thereof. SECTION 3.04. Deposit of Funds for Redemption. Said notice having been given, as above provided, the Bonds designated for redemption shall, on the date specified in such notice, become due and payable, at the then applicable redemption price, and on or before the day preceding the date fixed for redemption the University shall deposit with the Continental Illinois National Bank and Trust Company of Chicago, or its successor in the City of Chicago, Illinois, as depository, the redemption price of the Bonds called for redemption and accrued interest thereon to the date fixed for redemption. Upon such deposit having been made and on presentation, if required, of such Bonds in accordance with such notice at the place at which the same are expressed in such notice to be redeemable, with all appertaining coupons, if any, maturing after said redemption date, such Bonds shall forthwith after the making of such deposit be paid by the depository, on behalf of the University, at such redemption price. Such payment of the redemption price shall be made to the bearer of any such Bonds, unless it shall then be registered, in which case such payment shall be made to the registered owner. All unpaid interest installments represented by coupons which shall have matured on or prior to the date of redemption specified in such notice, shall continue to be payable to the bearers, severally and respectively, and the redemption price payable to the holders of Bonds presented for redemption shall not include such unpaid installments of interest unless coupous representing such installments shall be attached to the Bonds presented for redemption. SECTION 3.05. Effect of Redemption. If the amount necessary to redeem all of the Bonds called for redemption as aforesaid shall have been deposited with the paying agent, for the account of the holder or holders of such Bonds on or before the day preceding the date specified for such redemption, and the notice hereinbefore mentioned shall have been duly given, and all charges and expenses of the paying agent in connection with such redemption, or otherwise hereunder, shall have been fully paid or provided for, the University shall be privileged to consider such Bonds redeemed from the holder or holders thereof, and interest on such Bonds shall cease on the date specified for such redemption, and the University shall thereupon (subject to the provisions of Article Ten hereof) be discharged from and after the redemption date specified in such notice from further liability in respect of the Bonds so called for redemption, and thereafter such Bonds shall not be entitled to any benefit of or from this Resolution. In case