Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 607]

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562

BOAED OF TRUSTEES

[June 19

securities until such time as funds are needed. In the event that there is any deficiency in the funds required to be deposited semiannually into the Bond and Interest Sinking Fund Account or there is a deficiency in the debt service reserve, as provided in paragraph (b) above, sufficient funds shall be transferred from the Repair and Replacement Reserve and deposited in the Bond and Interest Sinking Fund Account to eliminate such deficiency. (d) All funds remaining in said Congress Circle Union Bond Fund in any fiscal year after the full debt service reserve prescribed in subsection (h) of this Section has been provided for and after all provisions in subsections (a), (b) and (c) of this section have been met and all deficiencies have been made up, shall be deemed surplus moneys and shall be used for any of the following purposes: (1) for calling and redeeming the outstanding Bonds, which by their terms are redeemable prior to maturity; (2) for purchasing Bonds in the open market, with all unmatured interest coupons thereto attached at the lowest prices reasonably attainable, but not exceeding the amount at which such Bonds at the time are redeemable; (3) for investment by the Comptroller in United States Government securities until such time as funds are needed for other purposes; (4) for unusual or extraordinary repairs, replacements, or improvements to the facilities, for which no funds can be properly provided in subsection (a) above or which are in excess of the amount available therefor in the Repair and Replacement Reserve; and (5) for any lawful purpose as the Board of Trustees may direct. ARTICLE SIX

APPLICATION OF PROCEEDS OF SALE OF BONDS

SECTION 6.01. Custody and Application of Bond Proceeds. The proceeds from the sale of Bonds to be issued from time to time hereunder shall be applied only toward the cost of acquiring, constructing, equipping, enlarging, or improving facilities, all as hereinbefore provided. When received, the part of the purchase price of Bonds representing the interest accrued on Bonds to the date of payment of such purchase price, together with such portion of the proceeds of the Bonds as is determined by the Board of Trustees to be necessary to be so set apart representing interest and principal, if any, to become due on such Bonds prior to the time the facilities for the account of which such Bonds have been issued become revenue producing and funds become available therefrom, shall be deposited in the Bond and Interest Sinking Fund Account. The remaining part of such purchase price shall be retained by the University and accounted for as a separate fund or funds to be known as a "Construction Fund Account" and such monies shall be deposited in a bank or banks which are members of the Federal Deposit Insurance Corporation. The monies in each Construction Fund Account shall be applied only toward the cost of construction in the manner and subject to the terms provided in any contract or agreement between the Board of Trustees and any purchaser of Bonds or as may be provided by a resolution supplemental hereto and relating to each separate series of Bonds to be issued hereunder, but in such a manner as to assure completion of the project or improvement for the account of which such Bonds were issued free and clear of mechanic's liens and substantially in accordance with the plans and specifications therefore. SECTION 6.02. Investment of Construction Fund. Pending disbursement for the purpose aforesaid the Comptroller may from time to time invest all or any part of the moneys in the Construction Fund Account not to be needed within the next succeeding thirty (30) days for the purposes hereinabove set forth in bonds, or other direct and general obligations of the United States of America having a maturity date or becoming due at the option of the holder not more than three years subsequent to the date of investment therein. Interest accruing as a result of any such investments when received shall be credited to the Construction Fund Account. SECTION 6.03. Disposition of Surplus Funds. After completion of each construction or improvement project, the Comptroller of the University shall execute a certificate to the effect that said project has been fully completed according to the plans and specifications and the same filed in the office of the Secretary of the Board of Trustees. Subject to the terms and provisions of any contract or agreement between the Board of Trustees and any original purchaser of Bonds and relating to any separate series of Bonds to be issued hereunder, if there be