Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 255]

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252

BOARD OF TRUSTEES

[December 21

holders of any Bonds, certified reports of audit based on an examination suffi. ciently complete to comply with generally accepted auditing standards, prepared by a nationally recognized firm of independent public accountants, covering the operations of the facilities for the fiscal year next preceding, and showing the income and expenses for such period. Such audit report shall include a statement in reasonable detail of income from and expense of each separate facility and shall show the student enrollment of the University and the schedule of student service charges. Such audit report shall also include statements of the status of eadi fund, reserve or account established under the terms of Article Five hereof showing the amount and source of the deposits therein, the amount and purpose of the withdrawals therefrom and the balance therein at the beginning and end of the fiscal year. There will also be included with each audit report a written opinion of the accountant that in making the examination necessary to said audit no knowledge of any default by the University in the fulfillment of any of the terms, covenants, provisions and conditions of this Resolution was obtained, or, if such accountant shall have obtained knowledge of such default a statement of the default or defaults thus discovered and the nature thereof. SECTION 7.10. Fire and Extended Coverage Insurance. That as long as anv of said Bonds authorized to be issued hereunder shall_ remain outstanding and unpaid, either as to principal or interest, or both, it will maintain insurance 01 said facilities, including all equipment thereof, against loss or damage by fire and windstorm and all other risks included in extended coverage insurance in amounts sufficient to provide for not less than full recovery of the insurable value whenever the loss from causes covered by such insurance does not exceed eighty per cent (80%) of the full insurable value of said buildings. Such insurance policy or policies shall be payable to The Board of Trustees of the University of Illinois, and all moneys collected on account of loss or damage covered by any such policy or policies of insurance shall be held in trust by the Board of Trustees and shall be used only for restoration of the property so damaged or, at the election of the Board of Trustees, deposited for credit to the Bond and Interest Sinking Fund Account. SECTION 7.11. That as loug as the funds and investments of the Bond and Interest Sinking Fund Account are less than the maximum debt_ service reserve required to be maintained under Section 5.02 (b) of this Resolution, it will procure and maintain Business Interruption Insurance on the Illini Union Building in an amount not less than two years' debt service requirements. Such insurance policy or policies shall be payable to The Board of Trustees of the University v. Illinois and all moueys collected on account of loss covered by any such insuranK shall be held in trust by the Board of Trustees and credited to the Illini Union and Health Center Bond Fund. ARTICLE EIGHT

EVENTS OF DEFAULT

SECTION 8.01, Events of Default. The University shall he in default herein if one or more of the following events (herein called "events of default") shall happen, to-wit: (a) Failure to make due and punctual payment of the principal of «' any redemption premium on any Bond when and as the same shall become due and payable; (b) Failure to make due and punctual payment of any installment 0' interest on any Bond when and as such interest installment shall become due and payable, and such default shall have continued for a period <>'• thirty {30) days; (c) Failure to make due and punctual payment or satisfaction of air. payment into the Bond and Interest Sinking Fund Account when and a such payments shall become due and payable as in this Resolution or ffl resolution supplemental hereto expressed and such default shall have continued for a period of one hundred eighty (180) days; (d) If the University shall default in Uie observance of any other covenants, agreements or conditions on its part in this Resolution or »*J resolution supplemental hereto or in the Bonds contained, and such default shall have continued for a period of ninety (90) days after notice there"1