Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 513]

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510

BOARD OF TRUSTEES

[May I?

the construction of said facilities have submitted a certificate to The Board of Trustees of the University of Illinois setting forth an itemized statement of the work completed to date, the cost thereof, and an itemized statement of the *orl< yet to be completed and the estimated cost of the work to be completed, and suci certificate and estimate shall be presented to and approved by said Board of Trus. tees preceding the adoption of any resolution authorizing the issuance of additional Bonds to share ratably and equally in the revenues o f said facilities. Any additional Bonds issued for the purpose of completing the Project herein provided for, in accordance with this Section, shall be payable serially with principal and interest amortized over a period not shorter than the remaining life of any of \\lt then outstanding Bonds. ARTICLE FIVE

PROVISIONS RELATING TO INCOME AND APPLICATION THEBEOF

SECTION 5.01. Student Services Building 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 5.02 of this Resolution: 1) the operation of the Project, and 2) 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 antl designated as the "Student Services Building Bond Fund" and the Board of Trustees covenants that all student service charges and other revenues, income, receipts, rents or charges derived from the operation of such facilities shall be so credited within three working days after receipt in the Student Services Building Bond Fund and shall be used as provided in Section 5.02 hereof. SECTION 5.02. Disposition of Student Services Building Bond Fund. Tht funds in the Student Services Building Bond Fund shall be used in the manner and in the order hereinafter mentioned: (a) Funds in the Student Services Building Bond Fund representing revenues derived from student service charges and funds representing revenues derived from sources other than student service charges, if any, shall first be used to pay all current operating expenses and thereafter for the purposes and in the order specified in subsections (b) and (c) below. (b) There is hereby created an account to be designated the Studenl Services Building Bond and Interest Sinking Fund Account (herein sometimes called the "Bond and Interest Sinking Fund Account1'}, which shall be maintained with the American 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 I, 1963 and on or before March 1 and September I of each year thereafter a sum equal to one hundred thirty-five per cent (135%) of the interest becoming due on the next semiannual interest payment date plus sixty-seven »«l one half per cent (67^%) of the principal payments becoming due on die next October 1, to be paid from the Student Services Building Bond Fund until such time as such funds and investments (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 the amount of $200,000 and thereafter in a hke manner such sums semiannual!) as may be necessary to meet the then current fiscal year's debt service requirements and to maintain the aforesaid debt service reserve. Said fun* shall be held and used for the payment of principal, interest and premium,« any, on the Bands. , After setting aside funds for the payment of Bonds which have mature and for past due interest or interest coupons and for principal, accrued interest and premium, if any, on Bonds called for redemption but not paid, funds ol the Bond and Interest Sinking Fund Account in excess of the principal a£ interest requirements for the next succeeding twelve (12) months may K