Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 517]

EXTRACTED TEXT FROM PAGE:

514

BOABD OF TRUSTEES

[May l;

(c) Failure to make due and punctual payment or satisfaction of #,* payment into the Bond and Interest Sinking Fund Account when and as such payments shall become due and payable as in this Resolution or anv resolution supplemental hereto expressed and such default shall have con. tinued for a period of one hundred eighty (180) days; (d) If the University shall default^ in the observance of any oilitr covenants, agreements or conditions on its part in this Resolution or anv resolution supplemental hereto or in the Bonds contained, and such, defauft shall have continued for a period of ninety (90) days after notice thereof given to the University by the holder of any Bond setting forth the nature of such default. If an event of default shall happen and be continuing, then and in each and every such case the holders of_ not less than a majority in aggregate principal amount of the Bonds at the time outstanding shall be entitled, upon notice in writing to the University, to declare the principal of all of the Bonds then outstanding hereunder and the interest accrued thereon to be due and paya^ immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Resolution or in the Bonds contained to the contrary notwithstanding. AH of the revenues of the facilities including all sums in the Student Services Building Bond Fund upon the date of the happening of any event of default and all revenues of the facilities thereafter received by the University, shall be applied by the University in the order following upon presentation of the several Bonds and coupons, and the stamping thereon of the payment if only partially paid, or upon the surrender thereof if fully paid: First, to the payment of the costs and expenses of the holders oj the Bonds in declaring such event of default, including reasonable compensation to their agents, attorneys and counsel; Second, in case the principal of the Bonds shall not have become <bx and shall not then be due and payable, to the payment of the interest in defaolt in the order of the maturity of the installments of such interest, with interest on the overdue installments at the rate now or hereafter provided by law, such payments to be made ratably to the persons entitled thereto without preference or priority; Third, in case the principal of the Bonds shall have become due lis} shall he then due and payable, to the payment of the whole amount then owing and unpaid upon the Bonds for principal and interest, with interest on the overdue principal at the rate or rates of interest specified in the Bonds and on installments of interest at the rate now or hereafter provided by law, and in case such moneys shall be insufficient to pay in full the whole amount so owing and unpaid upon the Bonds, then to the payment of such principal and interest without preference or priority of principal over interest, or of interest over priucipal, or of any installment of interest over any other installment of interest, ratably to the aggregate of such principal and interest SECTION 8.02. Rights of Holders of Bonds Upon Default, Subject to any contractual limitations binding upon the holders of any of the Bonds (includins any other limitations herein upon the exercise of any remedy to holders holding a specific proportion or percentage of the Bonds), any holder of Bonds shall have the right, for the equal benefit and protection of all holders of Bonds similarly situated: (a) By svlit at law or proceedings in equity to compel observance by the University or by any of its officers, agents, and employees of any oxitrad or covenant made by the University with the holders of bonds and coupon as provided in this Resolution, and to compel" the University and any of to officers, agents and employees, to perform any duties required to be Informed for the benefit of the holders of the Bonds or coupons as provided by this Resolution, and to enjoin the University and any of its officer!, agents or employees from taking any action in conflict with any contract °r s covenant with the holders of the Bonds and coupons as provided by * ™ Resolution; (b) By action or suit in equity to require the University to account a( if it were the trustee of an express trust; or