Repository: UIHistories Project: Board of Trustees Minutes - 1956 [PAGE 986]

EXTRACTED TEXT FROM PAGE:

1956]

UNIVERSITY OF ILLINOIS

983

The Board of Trustees of the University of Illinois shall on the first days of February and July in each year credit to the said Dormitory Revenue Bond Fund of 1956 out of the pledged student fees and tuition which said University is authorized to retain in its treasury, a sum sufficient to make up such deficiency in order to meet the annual debt service required on the bonds, the annual cost of maintenance and operation of the buildings, and provide for all the accounts and covenants provided for by this Bond Resolution, but such amount shall not, however, exceed $56,250 in any fiscal year. SECTION 8. That The Board of Trustees of the University of Illinois hereby covenants as follows: a. That as long as the bonds herein authorized to be issued shall remain outstanding it will continuously operate and maintain said buildings constructed and equipped with the proceeds derived from the issue of said bonds, that it will adopt such parietal rules and regulations and fix and maintain such rates, rents, fees, and charges for the use of said buildings, when supplemented with student fees and tuition as hereinafter pledged, as will assure maximum occupancy of the buildings that will provide revenue sufficient to pay the reasonable cost of operating and maintaining said buildings, and to provide and maintain the aforesaid Bond and Interest Sinking Fund Account and the required reserves therefor, and that it will collect and account for and apply the aforesaid income and revenues in accordance with and as provided by this resolution. b. That it will set aside from student fees and tuition authorized by law to be retained in the University treasury an amount which when added to the revenues to be derived from the operation of said buildings will be sufficient to meet the annual costs of maintenance and operation of the buildings and to meet the semiannual Bond and Interest Sinking Fund Account requirements as hereinbefore provided, but in no event shall the amount of student fees and tuition so retained for this bond issue exceed $56,250 a year. c. That it will not voluntarily create or cause to be created any debt or lien, charge or encumbrance on any of the revenues to be derived from the operation of such buildings having a priority to or parity with the pledge of the bonds issued under this resolution, and that it will not sell, mortagage, lease, or otherwise dispose of or encumber said buildings or any part thereof during the time when the bonds issued hereunder shall remain outstanding and unpaid, except as provided for in Section 10 hereof. • d. That as long as any of the bonds issued hereunder remain outstanding and unpaid, either as to principal or interest, or both, it will at all times exercise all of its lawful powers to preserve and protect the security of the bonds and the rights of the bondholders under this resolution. e. That it shall cause to be kept proper books of records and accounts separate and apart from all other records and accounts in which complete and correct entries shall be made of all transactions relating to the cost of constructing and equipping the aforesaid buildings, the expenditures for maintaining, operating, and repairing the said buildings, and all revenues collected therefrom, which said record shall be kept and shall be available for the information of all bondholders; and that there shall be furnished to the original purchaser of said bonds and to any holder of any of said bonds, on the written request therefor, prior to October I of each year, complete operating and income statements of said buildings, in reasonable detail, for said preceding fiscal year. f. That it will faithfully and punctually perform or cause to be performed all of the duties and obligations with reference to the said buildings as are required by the provisions of this resolution and the statutes under which the said bonds are issued, including the completion of the aforesaid buildings and the operation and maintenance of said buildings as herein provided, the making and collecting of sufficient rates, fees, and charges for the use thereof, the segregation of the income and revenues therefrom to the respective accounts created under the provisions of this resolution, and the proper application of said funds. g. That as long as any of said bonds authorized to be issued hereunder shall remain outstanding and unpaid, either as to principal or interest, or both, it will maintain insurance on said buildings, including all equipment thereof, against loss