Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 254]

EXTRACTED TEXT FROM PAGE:

1960]

UNIVERSITY OF ILLINOIS

251

Bonds are outstanding hereunder encumber the title to oj pledge or agree to pay to others the income from any of the said facilities; that it will within three months after the same shall accrue pay and discharge or cause to be paid and discharged, all lawful claims and demands of mechanics, laborers and others which if unpaid might by law become liens upon the facilities or the sites thereof unless contested in good faith and by appropriate legal proceedings. Any assessment or attempt to assess property shaft not be considered an encumbrance within the meaning of this section so long as the University takes proper action to prevent judgment being entered against said property. Nothing contained in this Resolution snail be construed to prevent the University from using any portion of land included in a project site, other than the specific land on which the facilities are located, forany lawful purposes so long as the use and occupancy of the facilities are not impaired. SECTION 7.03. To Pay Principal and Interest. That it wilt duly and punctually pay or cause to be paid the principal sum and the interest accniing on said principal, on each and every one of the Bonds secured or to be secured hereby, at the dates and places, and in the manner provided in said Bonds, and in the coupons thereunto appertaining, according to the terms thereof. SECTION 7.04. Taxes. That it will pay and discharge all taxes, assessments and Governmental charges which shall be imposed upon the facilities provided, however, that the University shall not be required to pay any such tax, assessment, charge or claim SO long as the University in good faith and by appropriate legal proceedings shall contest the validity thereof or its enforceability as a lien, and provided further that any snch delay occasioned thereby shall not subject the facilities or any part thereof to forfeiture or sale. Section 7.05. Payment of Bondholders' Costs and Expenses. That it will pay all and singular the costs, charges and expenses including reasonable attorney fees incurred or paid at any time by the holder of any of the Bonds because of the failure on the part of the University to perform, comply with and abide by each and every of the stipulations, agreements, conditions and covenants of the Bonds and this Resolution, or either of them. SECTION 7.06. Construction of New Facilities, Maintenance, Repairs, Appli~ cation of Income, Operation of Additional Facilities. That following the issuance of each series of Bonds under this Resolution it will cause the facilities for the account of which such Bonds were issued to be constructed with all reasonable dispatch; that it will at all time from income made available for such purpose maintain, preserve and keep all the facilities and all additions and betterments thereto and every part and parcel thereof in good repair, working order and operating condition; that it will continuously operate the facilities on a revenue producing basis; and that it will use and apply the income from the facilities only as provided in Article Five of this Resolution. SECTION 7.07. Student Service Charges and Rental Rates. That so long as any Bonds herein authorized to be issued shall remain outstanding it will continuously operate and maintain the facilities, will adopt such rules and regulations and fix and maintain such student service charges, rates, rents, fees, and charges for the use of said facilities, as will assure maximum use of the facilities and will provide revenue sufficient to provide and maintain the aforesaid Bond and Interest Sinking Fund Account and the required reserves therefor, to pay the reasonable cost of operating and maintaining the facilities and to provide and maintain the Improvement and Replacement Reserve, and that it will collect and account for and apply the aforesaid income and revenues in accordance with and as provided by this Resolution. SECTION 7.08. Record Keeping. That it will, so long as any of the Bonds issued hereunder remain outstanding and unpaid, keep proper and separate books of accounts and records in which full, true and correct entries will be made of all dealings and transactions relating to the properties, business and financial affairs of the University as related to the facilities and such records and books shall be open to inspection by the Bond holders and their agents or representatives. SECTION 7.09. Audit Reports and Furnishing of Same. That it will on or wfote one hundred fifty (150) days after the end of each fiscal year comniencing with the fiscal year ending June 30, IO6I, cause to be prepared and will turmsh to the depository and (upon written request therefor) to the holder or