Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 608]

EXTRACTED TEXT FROM PAGE:

1963]

UNIVERSITY OF ILLINOIS

563

funds remaining in a Construction Fund Account at the time of the filing of such certificate with the Secretary, said funds shall be withdrawn by the Comptroller and deposited in the Bond and Interest Sinking Fund Account. Any contract or agreement between the Board of Trustees and any original purchaser of Bonds may provide that any funds remaining in a Construction Fund Account established for the account of any series of Bonds being acquired by such purchaser be applied to the redemption of such Bonds or other Bonds then subject to redemption or to the purchase of Bonds on the open market. ARTICLE SEVEN

ADDITIONAL COVENANTS OF THE UNIVERSITY

The Board of Trustees of the University of Illinois hereby covenants and agrees as follows: SECTION 7.01. Authority for Bonds. That it is duly authorized under the laws of the State of Illinois and under all other applicable provisions of law to create and issue the Bonds herein provided for, and to pledge and apply the net income of the facilities and student service charges as herein provided; that all corporate and other action on its part for the creation and issuance of the initial issue of Bonds has been duly taken; that said Bonds when issued and in the hands of the holders thereof will be valid and enforceable obligations of the University according to the import thereof; that this Resolution is and will remain a valid Resolution to secure the payment of said Bonds and that the University has complete and lawful authority and privilege to acquire, construct, equip, operate, enlarge, improve, maintain, control and manage the facilities as herein provided. SECTION 7.02. Right to Use and Occupancy of the Facilities and Not to Encumber Same. That it hereby warrants that it has a valid and existing right to the use and occupancy of the facilities and the sites thereof and the right to construct, equip, operate, enlarge, improve, maintain, control and manage the facilities and it, or the State of Illinois, has indefeasible title in fee simple to the sites of the facilities subject only to current taxes not in default, except for the sites of parking lots, for which it has a valid contract for the acquisition of the sites; that it will not further encumber said property or the income therefrom and that it will not, while any Bonds are outstanding hereunder encumber the title to or pledge or agree to pay to others the income from any of the said facilities; that it will within three months after the same shall accrue pay and discharge or cause to be paid and discharged, all lawful claims and demands of mechanics, laborers and others which if unpaid might by law become liens upon the facilities or the sites thereof unless contested in good faith and by appropriate legal proceedings. Any assessment or attempt to assess property shall not be considered an encumbrance within the meaning of this section so long as the University takes proper action to prevent judgment being entered against said property. Nothing contained in this Resolution shall be construed to prevent the University from using any portion of land included in a project site, other than the specific land on which the facilities are located, for any lawful purposes so long as the use and occupancy of the facilities are not impaired. Any project site, or portion thereof, used as a parking lot may be used for purposes other than parking so long as (1) an equal or greater number of parking spaces are constructed at another location on the Congress Circle Campus to replace those parking spaces which are eliminated for such reason and the revenues to be derived from the new spaces are pledged for the benefit of the Bondholders and held and applied as in Article Five provided or (2) the Net Income Available for Debt Service for each succeeding fiscal year thereafter (after giving effect to the elimination of such parking spaces and the substitution, if any, of other spaces) shall be equal to or greater than 1.35 times the amount to become due in each succeeding fiscal year for the payment of principal of and interest on the Bonds then outstanding hereunder. SECTION 7.03. To Pay Principal and Interest. That it will duly and punctually pay or cause to be paid the principal sum and the interest accruing on said principal, on each and every one of the Bonds secured or to be secured hereby, at the dates and places, and in the manner provided in said Bonds, and in the coupons thereunto appertaining, according to the terms thereof. SECTION 7.04. Taxes. That it will pay and discharge all taxes, assessments and Governmental charges which shall be imposed upon the facilities provided,