Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 609]

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564

BOARD OF TRUSTEES

[June 19

however, that the University shall not be required to pay any such tax, assessment, charge or claim so long as the University in good faith and by appropriate legal proceedings shall contest the validity thereof or its enforceability as a lien and provided further that any such delay occasioned thereby shall not subject the facilities or any part thereof to forfeiture or sale. Section 7.0S. Payment of Bondholders' Costs and Expenses. That it will pay all and singular the costs, charges and expenses including reasonable attorney fees incurred or paid at any time by the holder of any of the Bonds because of the failure on the part of the University to perform, comply with and abide by each and every of the stipulations, agreements, conditions and covenants of the Bonds and this Resolution, or either of them. SECTION 7.06. Construction of New Facilities, Maintenance, Repairs, Application of Income, Operation of Additional Facilities. That following the issuance of each series of Bonds under this Resolution it will cause the facilities for the account of which such Bonds were issued to be constructed with all reasonable dispatch; that it will at all time from income made available for such purpose maintain, preserve and keep all the facilities and all additions and betterments thereto and every part and parcel thereof in good repair, working order and operating condition; that it will continuously operate the facilities on a revenue producing basis; and that it will use and apply the income from the facilities only as provided in Article Five of this Resolution. SECTION 7.07. Student Service Charges and Rental Rates. That so long as any Bonds herein authorized to be issued shall remain outstanding it will continuously operate and maintain the facilities, will adopt such rules and regulations and fix and maintain such student service charges, rates, rents, fees, and charges for the use of said facilities as will provide revenue sufficient to provide and maintain the aforesaid Bond and Interest Sinking Fund Account and the required reserves therefor, to pay the reasonable cost of operating and maintaining the facilities and to provide and maintain the Repair and Replacement Reserve, and that it will collect and account for and apply the aforesaid income and revenues in accordance with and as provided by this Resolution. Student service charges for the general use of the facilities will be assessed against and charged to each and every student enrolled for credit in the University of Illinois at Congress Circle as a condition precedent to enrollment, except that exemptions from the payment of the student service charges may be granted under policies established from time to time by the Board of Trustees for certain limited classes of students (such as scholarship students and graduate students holding staff appointments) if the University then has unallocated funds authorized by law to be retained in the Treasury of the University in an amount equal to all student service charges for which exemptions are then being granted and if the University shall forthwith deposit into the Congress Circle Union Bond fund an amount equal to the aggregate of all such exempted student service charges; provided, however, that no such deposit need be made by the University at any time when the only effect of such deposit would be to create surplus moneys in the Congress Circle Union Bond fund, under sub-section (d) of Section 5.02 of this Resolution. SECTION 7.08. Record Keeping. That it will, so long as any of the Bonds issued hereunder remain outstanding and unpaid, keep proper and separate books of accounts and records in which full, true and correct entries will be made of all dealings and transactions relating to the properties, business and financial affairs of the University as related to the facilities and such records and books shall be open to inspection by the Bond holders and their agents or representatives. SECTION 7.09. Audit Reports and Furnishing of Same. That it will on or before one hundred fifty (ISO) days after the end of each fiscal year commencing with the fiscal year ending June 30, 1964, cause to be prepared and will furnish to the depository and (upon written request therefor) to the holder or holders of any Bonds, certified reports of audit based on an examination sufficiently complete to comply with generally accepted auditing standards, prepared by a nationally recognized firm of independent public accountants, covering the operations of the facilities for the fiscal year next preceding, and showing the income and expenses for such period. Such audit report shall include a statement in reasonable detail of income from and expense of each separate facility and shall show the student enrollment of the University and the schedule of student service