Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 253]

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250

BOARD OF TRUSTEES

[December 21

representing interest and principal, if any, to become due on such Bonds prior to the time the facilities for the account of which such Bonds have been issued become revenue producing and funds become available therefrom, shall be deposited in the Bond arid Interest Sinking Fund Account. The remaining part of such purchase price shall be retained by the University and accounted lor as a separate fund or funds to be known as a "Construction Fund Account" and such monies shall be deposited in a bank or banks which are members of the Federal Deposit Insurance Corporation. The monies in each Construction Fund Account shall fe applied only toward the cost of construction in the manner and subject to the terms provided in any contract or agreement between the Board of Trustees and any putchaser of Bonds or as may be provided by a resolution supplemental hereto and relating to each separate series of Bonds to be issued hereunder, but in such a manner as to assure completion of the project or improvement for the account of which such Bonds were issued free and clear of mechanic's liens and substantially in accordance with the plans and specifications therefor. SECTION 6.02. Investment of Construction Fund. Pending disbursement for the purpose aforesaid the Comptroller may from time to time invest all or any part of the moneys in the Construction Fund Account not to be needed within the next succeeding thirty (30) days for the purposes hereinabove set forth in bonds, or other direct and general obligations of the United States of America having a maturity date or becoming due at the option of the holder not more than eighteen (18) months subsequent to the date of investment therein. Interest accruing as a result of any such investments when received shall be credited to the Construction Fund Account. SECTION 6.03. Disposition of Surplus Funds. After completion of each construction or improvement project, the Comptroller of the University shall execute a certificate to the effect that said project has been fully completed according to the plans and specifications and the same filed in the office of the Secretary of the Board of Trustees. Subject to the terms and provisions of any contract or agreement between the Board of Trustees and any original purchaser of Bonds and relating to any separate series of Bonds to be issued hereunder, if there be funds remaining in a Construction Fund Account at the time of the filing ot such certificate with the Secretary, said funds shall be withdrawn by the Comptroller and deposited in the Bond and Interest Sinking Fund Account. Any contrad or agreement between the Board of Trustees and any original purchaser of Bon<fc may provide that any funds remaining in a Construction Fund Account established for the account of any series of Bonds being acquired by such purchaser be applied to the redemption of such Bonds or other Bonds then subject to redemption or to the purchase of Bonds on the open market. ARTICLE SEVEN

ADDITIONAL COVENANTS OF THE UNIVERSITY

T h e Board of Trustees of the University of Illinois hereby covenants and agrees as follows: SECTION 7.01. Authority for Bonds. That it is duly authorized under the laws of the State of Illinois and under all other applicable provisions of law to creau and issue the Bonds herein provided for, and to pledge and apply the net income of the facilities and student service charges as herein provided; that all corporate and other action on its part for the creation and issuance of the initial issue of Bonds has been duly taken; that said Bonds when issued and in the hands of the holders thereof will be valid and enforceable obligations of the University according to the import thereof; that this Resolution is and will remain a valid Resolution to secure the payment of said Bonds and that the University has complete and lawful authority and privilege to acquire, construct, equip, operate, enlarge, improve, maintain, control and manage the facilities as herein provided. SECTION 7.02. Right to Use and Occupancy of the Facilities and Not t> Encumber Same. T h a t it hereby warrants that it h a s a valid and existing right to the use and occupancy of the facilities and the sites thereof and the right to construct, equip, operate, enlarge, improve, maintain, control and manage the facilities and it, or the State of Illinois, has indefeasible title in fee simple to the sites of the facilities subject only to current taxes not in default; that it will not further encumber said property or the income therefrom and that it will not, while an}