Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 514]

EXTRACTED TEXT FROM PAGE:

1961]

UNIVERSITY OF ILLINOIS

511

invested by the depository from time to time by written order of the Comptroller in United States Government securities maturing not more than five (5) years from date of purchase. Funds held for interest and principal payments during the next succeeding twelve (12) months (excluding funds held for the payment of Bonds which have matured 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) may be invested by the depository from time to time by written order of the Comptroller in United States Government securities maturing in such manner that at all times sufficient securities will matnre not later than ten (10) days prior to each of the next two succeeding interest payment dates to meet the interest and principal payments becoming due on each of said dates. (c) All funds remaining in said Student Services Building Bond Fund in any fiscal year after the full debt service reserve prescribed in subsection (b) of this Section has been provided for and after all provisionsin subsections (a) and (b) of this Section have been met and all deficiencies have been made up, shall be deemed surplus moneys and shall be used for any of the following purposes: (1) for calling and redeeming the outstanding Bonds, which by their terms are redeemable prior to maturity; (2) for purchasing Bonds in the open market, with all unmatured interest coupons thereto attached at the lowest prices reasonably attainable, but not exceeding the amount at which such Bonds at the time are redeemable; (3) for investment by the Comptroller in United States Government securities until such time as funds are needed for other purposes; (4) for unusual or extraordinary repairs, replacements or improvements to the facilities, for which no funds can be properly provided in subsection (a) above; and (S) for any lawful purpose as the Board of Trustees may direct. ARTICLE SIX

APPLICATION OF PROCEEDS OP SALE OP BONDS

SECTION 6,01. Custody and Application of Bond Proceeds. The proceeds from the sale of Bonds to be issued hereunder shall be applied only toward the cost of acquiring, constructing, equipping, enlarging, or improving facilities, all as hereinbefore provided. When received, the part of the purchase price of Bonds representing the interest accrued on Bonds to the date of payment of such purchase price, together with that portion of the proceeds of the Bonds representing interest to become due on such Bonds prior to and including October 1, 1962, shall be deposited in the Bond and Interest Sinking Fund Account. The renaming part of such purchase price shall be retained by the University and accounted for as a separate fund to be known as the "Student Services Building Construction Fund Account," herein sometimes called "Construction Fund Account." The moneys in said Construction Fund Account shall be used for constructing and equipping the Student Services Building in such a manner as to assure completion of the project 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 port of the moneys in said Construction Fund Account not to be needed within ine 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 ^ehteen (18) months subsequent to the date of investment therein. Interest accruing as a result of any such investments when received shall be credited to said Construction Fund Account. SECTION 6.03. Disposition of Surplus Funds. After completion of the connvf'1Qn of the Project, the Comptroller shall execute a certificate to the effect ™i sard Project has been fully completed according to the plans and specifications *™ we same filed in the office of the Secretary of the Board of Trustees. If ijere be funds remaining in said Construction Fund Account at the time of the H™? ^f such certificate with the Secretary, said funds shall be withdrawn by the "-omptroller and deposited in the Bond and Interest Sinking Fund Account.