Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 287]

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284

BOARD OF TRUSTEES

[May 15

called on July I, the next interest date, provided that thirty days written notice is given the holders and publication of such notice is made. Three days prior to the issuance of the notice there must be deposited with the trustees of the bond issue sufficient funds to retain the bonds and pay all interest and expenses to that date. Consequently, steps should be taken by the Board to authorize officers of the University, acting on the advice of the Finance Committee, to prepare a new issue of bonds and negotiate their sale and to request the University of Illinois Foundation to take necessary steps to call the present issue for payment as of July 1, 1941. M r . K a r r a k e r , for the F i n a n c e Committee, presented the following report: House Bill 471, which authorizes refunding of outstanding debt obligations on University properties, has been passed by the General Assembly. T h e Medical and Dental Building 4% bonds, in the amount of $921,000, may be called as of July 1, 1941, providing immediate steps are taken to that end. T h e investment firm of Charles K. Morris and Co., Chicago, who purchased these bonds and put them on the general market, have rendered valuable service in connection with the needed legislation as well as in other ways. Because of their familiarity with the Medical and Dental Building bonds, they are in a position to provide immediately the service needed by University and Foundation officials in marketing the new issue. It appears probable that a substantial saving in interest can be effected if the old bonds can be called on July 1. T h e Finance Committee recommends: 1. T h a t it be authorized to negotiate a settlement with Charles K. Morris & Co. for services rendered and expenses incurred to date, and report to the Board at a later d a t e ; 2. That Charles K. Morris & Co. be engaged to provide all legal and financial services and meet all expenses incident to the calling of the old and issuing of new bonds on the Medical and Dental Building, at a compensation of y-i of 1% of the total issue, payable only in the event such refinancing is undertaken; 3. That the Finance Committee be authorized to consider and approve proposals for such refinancing and to accept the lowest responsible bid if thereby a satisfactory saving to the University may be effected; 4. That the proper officers of the Board be authorized to execute any and all documents including bonds which may be required to carry out the refinancing operation. O n m o t i o n of M r . K a r r a k e r , these r e c o m m e n d a t i o n s w e r e a d o p t e d a n d a u t h o r i t y w a s g r a n t e d t o t h e F i n a n c e C o m m i t t e e a n d t h e officers of t h e B o a r d a s r e c o m m e n d e d . ADJUSTMENTS IN THE ATHLETIC ASSOCIATION BUDGET (16) T h e Board of Directors of the Athletic Association, at a meeting on May 9, made the following assignments from its reserve fund, subject to the approval of the Board of T r u s t e e s : 1. Service building and bleachers on Illinois Field $3 500 00 2. Installation of drinking fountains in the Skating Rink 350 00 This is two-thirds of the total cost, the other one-third to be paid by the Physical Plant Department on the basis of the policy of so dividing expenditures between the Athletic Association and the University. 3. Additional payment for the operating expense of the office of the Commissioner of Athletics of the Western Intercollegiate Conference 349 25 4. Appropriation to the University of Illinois Band 500 00 5. Certificates of award of " I " to all lettermen who have graduated since 1929 800 00 O n m o t i o n of M r . J e n s e n , t h e s e a d j u s t m e n t s w e r e a u t h o r i z e d .