Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 251]

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248

BOARD OF TRUSTEES

[December 21

pared and certified by the Comptroller, setting forth in detail the computation thereof and demonstrating that it is equal to or greater than the amount required above shall be bmding and conclusive upon the Board of Trustees and the holders of all Bonds then outstanding hereunder and then to be issued. ARTICLE FIVE

PROVISIONS RELATING TO INCOME AND APPLICATION THEREOF

SECTION 5.01. IHint Union and Health Center Bond Fund. All revenues derived from the following sources are hereby pledged and shall be held in trust for the benefit of the Bond holders for the purpose of making the payments or deposits required to be made under subsections (a), (b) and (c) of Section 502 of this Resolution: (1) the operation of the present Illini Union Building in Urbana, Illinois, (2\ the operation of the Project, (3) the operation of any other revenue producing facilities for the account of which additional Bonds may hereafter be issued; and (4) student service charges; and such revenues shall be deposited as collected in a general banking account of the University to the credit of a special fund which is hereby created and designated as the "Mini Union and Health Center Bond Fund" said account to be maintained in a bank which is a member of the Federal Deposit Insurance Corporation and the Board of Trustees convenants that all revenues, income, receipts, profits, rates, rents or charges derived from the operation of such facilities shall be so credited within three working days after receipt in the Illini Union and Health Center Bond Fund and shall be used as provided in Section 5.02 hereoi. SECTION 5.02. Disposition of Illini Union and Health Center Bond Fund. The funds in the Illini Union and Health Center Bond Fund shall be used in the manner and in the order hereinafter mentioned: (a) Funds in the Illini Union and Health Center Bond Fund representing revenues derived from student service charges shall first be used for the purpose of making the next succeeding deposit in the Bond and Interest Sinking Fund Account required to be made pursuant to subsection (b) below. All funds representing revenues derived from sources other than student service charges together with student service charges, if any, remaining after making the deposit in the Bond and Interest Sinking Fund of all amounts required to meet the next succeeding deposit required to be made by subsection (b) below, shall first be used to pay all current operating expenses and thereafter for the purposes specified in subsections (b), (c) and (d) below. (b) There is hereby created an account to be designated the Illini Union and Health Center Bond and Interest Sinking Fund Account (herein sometimes called the "Bond and Interest Sinking Fund Account"), which shall be maintained with the Continental Illinois National Bank and Trust Company of Chicago or its successor in the City of Chicago, Illinois, which bank is hereby designated as the depository for said account The University shall deposit in said Bond and Interest Sinking Fund Account on or before March 1 and September 1 of each year a sum equal to one hundred thirty-five per cert (i35%) of the interest becoming due on the next semiannual interest payment date plus sixty-seven and one half per cent (67^2%) of the principal payment? becoming due on the next October 1, to_ be paid from the Illini Union and Health Center Bond Fund, until such time as such funds and investment! (valued at the lower of cost or market), and the income and profits realized from any investments thereof are at least equal to the debt service requirements on all then outstanding Bonds for the then current fiscal year plus a debt service reserve in an amount equal to two hundred per cent (200%) of the annual amount to become due in the succeeding fiscal year for the payment of principal of and interest on all Bonds then outstanding and thereafter in a like manner such sums semiannually as may be necessary to meet the then current fiscal year's debt service and to maintain the aforesaid debt seryke reserve. Said funds shall be held and used for the payment of principalinterest and premium, if any, on the Bonds. For the purpose of this paragraph interest and principal accruing prior to the estimated completion date of the Project and deposited into the Bond and Interest Sinking Fund Account cut