Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 606]

EXTRACTED TEXT FROM PAGE:

1963]

UNIVERSITY OF ILLINOIS

561

tained with the Continental Illinois National Bank and T r u s t Company of Chicago or its successor in the City of Chicago, Illinois, which bank is hereby designated as the depository for said account. T h e University shall deposit in said Bond and Interest Sinking Fund Account on or before March 1 and September 1 of each year a sum not less than one hundred thirty-five per cent (135%) of the interest becoming due on the next semiannual interest payment date plus sixty-seven and one-half per cent (671/2%) of the principal payments becoming due within the next succeeding twelve months to be paid from the Congress Circle Union Bond Fund, until such time as such funds and investments (valued at the lower of cost or m a r k e t ) , and the income and profits realized from any investments thereof, after providing for the next interest payment due on all then outstanding Bonds and for the principal payments due at the next maturity date for each series of Bonds outstanding (except that provision need be made only for one-half of the principal payments due more than six months after such deposit date), have created a debt service reserve in an amount equal to two hundred per cent (200%) of the annual amount to become due in the succeeding fiscal year for the payment of principal of and interest on all Bonds then outstanding, and thereafter in a like manner such sums semiannually as may be necessary to meet the then current debt service requirement and to maintain the aforesaid debt service reserve. Said funds shall be held and used for the payment of principal, interest and premium, if any, on the Bonds. For the purpose of this paragraph interest and principal accruing prior to the estimated completion date of the Project and deposited into the Bond and Interest Sinking Fund Account out of the proceeds of the Bonds or from a Construction Fund Account shall not be deemed to be interest or principal to become due on the Bonds. After setting aside funds for the payment of Bonds which have matured and for past due interest or interest coupons and for principal, accrued interest and premium, if any, on Bonds called for redemption but not paid, funds of the Bond and Interest Sinking Fund Account in excess of the principal and interest requirements for the next succeeding twelve (12) months may be invested by the depository from time to time by written order of the Comptroller in United States Government securities maturing not more than five (5) years from date of purchase. Funds held for interest and principal payments during the next succeeding twelve (12) months (excluding funds held for the payment of Bonds which have matured and for past due interest or interest coupons and for principal, accrued interest and premium, if any, on Bonds called for redemption but not paid) may be invested by the depository from time to time by written order of the Comptroller in United States Government securities maturing in such manner that at all times sufficient securities will mature not later than ten (10) days prior to each succeeding interest payment date to meet the interest and principal payments becoming due on each such date. (c) After setting aside all funds at the time required for the purposes specified in paragraph ( a ) above and all funds required to meet the next succeeding minimum deposit required to be made by paragraph (b) above, into said Bond and Interest Sinking Fund Account, the University shall establish on its books a Repair and Replacement Reserve (which shall consist of two parts, an equipment reserve and a repairs reserve) to which there shall be credited on or before the close of each fiscal year commencing with the fiscal year beginning July 1, 1965, (1) the sum of $30,000 or such portion thereof as is available for transfer annually for an equipment reserve until the funds a n d / o r investments in the equipment reserve portion of the Account shall aggregate $625,000 and thereafter such sums, but not more than $30,000 annually, as may be required to restore and maintain the balance of $625,000, and (2) the sum of $60,000 or such portion thereof as is available for transfer annually for a repairs reserve. All moneys in the Repair and Replacement Reserve may be drawn on and used by the University for the purpose of paying the cost of unusual or extraordinary maintenance or repairs, renewals and replacements, and the renovating or replacement of furniture and equipment not paid as part of normal operating expenses. Funds standing to the credit of said Repair and Replacement Reserve may be invested by the Comptroller in United States Government