Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 591]

EXTRACTED TEXT FROM PAGE:

546

BOARD OF TRUSTEES

[June 19

are under construction or for which a full fiscal year's operating experience is not available; plus (c) the estimated annual net income of revenue producing facilities not then completed, the cost of which is to be financed through the proceeds of the sale of additional Bonds at the time proposed to be issued; plus ( d ) the net income during the preceding fiscal year from investments of funds in the Congress Circle Union Bond and Interest Sinking Fund Account. F o r the purpose of this definition net income shall be determined by deducting from the gross revenues or estimated gross revenues for the period in question (which revenues shall include student service charges for the use of the facilities pledged for the payment of all Bonds then outstanding and then to be issued at an amount adjusted as hereinafter provided) all operating expenses or estimated operating expenses for such period and the amounts required to be credited to the Improvement and Replacement Reserve. Also, for all purposes of this definition, student service charges shall be included in net income at an amount which is based on the reasonable estimate of anticipated student enrollment for the year for which the computation is made, that is to say that in computing Net Income Available for Debt Service for any future year, the amount of student service charges included in gross revenues shall (regardless of actual receipts for any current or preceding fiscal year) be appropriately adjusted for each such year to reflect the reasonable estimate of anticipated student enrollment for each such year but shall assume that such student service charges will remain unchanged from the then current rate per student. Other revenues and operating expenses of facilities to be constructed shall be estimated in writing by an independent consulting engineer. All computations of Net Income Available for Debt Service shall be made by the Comptroller of the University who shall certify thereto, and whose certificate shall be accompanied by a certificate signed by a nationally recognized firm of independent public accountants (which accountant's certificate may state that it is made in reliance on information supplied by the University and that they have made no independent examination of the books and records of the University in connection therewith) stating that they know of no reason why such computation is incorrect. T h e term "operating expenses" shall mean and include all reasonable expenses of operation and maintenance of the facilities, including without limiting the generality of the foregoing, salaries, wages, cost of materials, supplies, insurance, light, heat, power, reasonable repairs necessary to properly maintain such facilities (including reasonable reserves therefor), taxes (if a n y ) , fees and expenses of the depository and paying agents and any expenses required to be paid pursuant to this Resolution but excluding depreciation, provisions for the Improvement and Replacement Reserve hereinafter provided, and all general administrative expenses of the University. The term "student service charge" shall mean any student fee or portion thereof assessed against students enrolled at the Congress Circle campus of the University for the general use of the facilities (whether assessed as a separate charge or as a specific allocation of a multi-purpose fee or charge), but shall not include general student tuitions or student fees assessed for any other purpose. T h e term "owner" or "holder" whenever employed herein with respect to a Bond which shall be registered as to principal or fully registered without coupons shall mean the person, firm or agency in whose name such Bond shall be registered and, whenever employed herein with respect to a coupon Bond which shall not be registered as to principal or a coupon, shall mean the bearer of such Bond or coupon. T h e term "Paying Agent" shall mean the Continental Illinois National Bank and Trust Company of Chicago or its successors in the City of Chicago, Illinois, and shall also mean the Morgan Guaranty Trust Company of New York or its successors in the Borough of Manhattan and City and State of New York and shall also mean the Bank of America N.T.&S.A. in the City of San Francisco and State of California. T h e term "depository" and the term "Registration Agent" shall mean the Continental Illinois National Bank and T r u s t Company of Chicago or its successor in the City of Chicago, Illinois. The term "Resolution" shall mean this Resolution as originally adopted or as it may from time to time be supplemented, modified or amended by any resolution supplemental hereto, pursuant to the provisions hereof.