Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 515]

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512

BOARD OF TRUSTEES

[May 17

ARTICLE SEVEN

ADDITIONAL COVENANTS OF THE UNIVERSITY

The Board of Trustees of the University of Illinois hereby covenants ^ agrees as follows: SECTION 7.01. Authority for Bonds. That it is duly authorized under the W of the State of Illinois and under all other applicable provisions of law to crate 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 iii 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 Resold tion to secure the paymentof said Bonds and that the University has complete ami lawful authority and privilege to acquire, construct, equip, operate, enlarge, in. prove, maintain, control and manage the facilities as herein provided. SECTION 7.02. Right to Use and Occupancy of the Facilities and Not to Encumber Same. That it hereby warrants that it has 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 facility and it, or the State of Illinois, has indefeasible title in fee simpieto the sites of the facilities subject only to current taxes not in default; that it will not further HIcumber said property or the income therefrom and that it will not, while any Bonds are outstanding hereunder encumber the title to or 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 discharge^ 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 contests in good faith and by appropriate legal proceedings. Any assessment or attempt to assess property shall 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 shall be construed to prevent the University from using any portion of land included in tlie Project site, other than the specific land on which the facilities are located, icr any 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 will duly and punctually pay or cause to be paid the principal sum and the interest accruing 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 lax, 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 such delay occasioned thereby shall not subject the facilities or any part thereof to forfeiture or sale. SECTION 7.05. Payment of Bondholder/ 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 oi the Donds and this Resolution, or either of them. SECTION 7.06. Construction of New Facilities, Maintenance, Repairs, ^/f'1" cation of Income, Operation of Additional Facilities. That following the issuaw* of Bonds under this Resolution it will cause the facilities to be constructed w* all reasonable dispatch; that it will at all times from income made available foj such purpose maintain, preserve and keep a)] the facilities and all additions anil betterments thereto and every part and parcel thereof in good repair, workial order and operating condition; and that it will use and apply the student se"1ol ^ charges and other income from the facilities only as provided in Article Five this Resolution.