Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 516]

EXTRACTED TEXT FROM PAGE:

1961]

UNIVERSITY OF ILLINOIS

513

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 w( j fa and maintain such student service charges, rates, rents, fees, and charges [or the use of said facilities, as will provide revenue sufficient to provide and maintain the aforesaid Bond and Interest Sinking Fund Account and the required reserves therefor, and to pay the reasonable cost of operating and maintaining ihe 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 oi 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 before one hundred fifty (150) days after the end of each fiscal year commencing with the fiscal year ending June 30, 1962, cause to be prepared and will furnish to the depository and (upon written request therefor) to the holder or holders of any Bonds, certified reports of audit based on an examination sufficiently complete to comply with generally accepted auditing standards, prepared b a nationally recognized firm of independent public accountants, covering the y 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 the facilities 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 each 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 Ihe 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 any of said Bonds authorized to be issued hereunder shall remain outstanding ana unpaid, either as to principal or interest, or both, it will maintain insurance on said facilities against loss or damage by fire and windstorm and all other risks included in extended coverage insurance in amounts sufficient to provide for not l«s 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 Building. 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 joss 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 !or 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. ARTICLE EIGHT

EVENTS OF DEFAULT

.. SECTION 8.01. Events of Default. The University shall be in default herein [1 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 or 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 of interest on any Bond when and as such interest installment shall become ™e and payable, and such default shall have continued for a period of •h'rty (30) days;