Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 605]

EXTRACTED TEXT FROM PAGE:

560

BOARD OF TRUSTEES

[June 19

date of said certificate, the cost thereof and an itemized statement of the work yet to be completed and the estimated cost of the work to be completed and such certificate of estimate shall be presented to and approved by said Board of Trustees preceding the adoption of any resolution authorizing the issuance of additional Bonds for such purpose, and (ii) In the event additional Bonds are issued for the purpose of paying the cost of equipping, enlarging or improving the Project as provided in clause B a n d / o r C above, the Net Income Available for Debt Service shall be equal to or greater than one and thirty-five hundredths (1.35) times the amount to become due in each succeeding fiscal year for the payment of principal and interest on the Bonds then outstanding hereunder and the Bonds then to be issued; provided that for any bonds issued prior to January 1, 1974, the income from student service charges shall not be based upon fail term student enrollments greater than 8,200 in 1965, 9,500 in 1966, 14,000 in 1967, 16,200 in 1968, 17,600 in 1969, 18,700 in 1970, 19,000 in 1971, 19,700 in 1972 and 20,000 in 1973 and each year thereafter, except that the most recent fall term enrollment figure may be substituted for the enrollment estimate for any year or years. All such additional Bonds shall be issued pursuant to a resolution supplemental hereto, duly adopted by the Board of Trustees, setting forth the form of such additional Bonds and the terms and conditions applicable thereto. For the purpose of this Section any computation of Net Income Available for Debt Service prepared and certified by the Comptroller, setting forth in detail the computation thereof and demonstrating that it is equal to or greater than the amount required above shall be binding and conclusive upon the Board of Trustees and the holders of all Bonds then outstanding hereunder and then to be issued. ARTICLE FIVE

PROVISIONS RELATING TO INCOME AND APPLICATION T H E R E O F

SECTION 5.01. Congress Circle Union Bond Fund. All revenues derived from the following sources are hereby pledged and shall be held in trust for the benefit of the Bond holders for the purpose of making the payments or deposits required to be made under subsections ( a ) , (b) and (c) of Section 5.02 of this Resolution: (1) the operation of the Project, (2) the operation of any other revenue producing facilities for the account of which additional Bonds may hereafter be issued; and (3) student service charges; and such revenues shall be deposited as collected in a general banking account of the University to the credit of a special fund which is hereby created and designated as the "Congress Circle Union Bond F u n d " said account to be maintained in a bank which is a member of the Federal Deposit Insurance Corporation and the Board of Trustees covenants that all revenues, income, receipts, profits, rates, rents or charges derived from the operation of such facilities shall be so credited within three working days after receipt in the Congress Circle Union Bond Fund and shall be used as provided in Section 5.02 hereof. SECTION 5.02. Disposition of Congress Circle Union Bond Fund. T h e funds in the Congress Circle Union Bond Fund shall be used in the manner and in the order hereinafter mentioned: ( a ) Funds in the Congress Circle Union Bond Fund representing revenues derived from student service charges shall first be used for the purpose of making the next succeeding deposit in the Bond and Interest Sinking Fund Account required to be made pursuant to subsection (b) below. All funds representing revenues derived from sources other than student service charges together with student service charges, if any, remaining after making the deposit in the Bond and Interest Sinking Fund of all amounts required to meet the next succeeding deposit required to be made by subsection (b) below, shall first be used to pay all current operating expenses and thereafter for the purposes specified in subsections ( b ) , (c) and (d) below. (b) There is hereby created an account to be designated the Congress Circle Union Bond and Interest Sinking F u n d Account (herein sometimes called the "Bond and Interest Sinking Fund Account"), which shall be main-