Repository: UIHistories Project: Board of Trustees Minutes - 1956 [PAGE 987]

EXTRACTED TEXT FROM PAGE:

984

BOARD OF TRUSTEES

[March 23

or damage by fire and windstorm and all other risks included in extended coverage insurance in an amount not less than the full insurable value of said properties or the principal amount of outstanding bonds, plus accrued interest and applicable premium to the next succeeding redemption date, whichever is less. Such insurance policy or policies shall be payable to The Board of Trustees of the University of Illinois, and all moneys collected on account of loss or damage covered by any such policy or policies of insurance shall be held in trust and shall be used only for restoration of the property so damaged. In the event said funds are insufficient to restore said properties to their former condition, then said funds shall be paid into the Bond and Interest Sinking Fund Account and held for the benefit of the bondholders as their interest may appear. h. That as long as the funds and investments of the Bond and Interest Sinking Fund Account are inadequate to meet the then current year's and the next succeeding two years' debt service on the bonds, it shall procure and maintain use and occupancy insurance on each building, the revenues of which are pledged to the payment of the bonds, in an amount sufficient to enable it to deposit in the Bond and Interest Sinking Fund Account, out of the proceeds of such insurance, an amount equal to the sum that would normally have been available for deposit in such Account from the revenues of the damaged building during the time the damaged building is non-revenue producing as a result of loss of use caused by hazards covered by fire and extended coverage insurance. SECTION 9. That the bonds authorized to be issued hereunder and from time to time outstanding shall not be entitled to priority one over the other in the application of the income and revenues derived from the collection of rents, rates, fees, and charges for the use of the aforesaid buildings, or with respect to the pledge of the revenue to be derived from the operation of said buildings. SECTION 10. That it is hereby further covenanted and agreed that after the issue and delivery of the bonds herein authorized and provided for to the purchaser thereof, additional bonds to share ratably and equally with the bonds hereby authorized shall only be issued in the event that funds are necessary to pay the cost of completing the project herein provided for in accordance with the plans and specifications now on file in the office of the Physical Plant Department, Administration Building, Urbana, Illinois, and in the event additional funds are necessary to pay the cost of completing the project herein provided for, said bonds shall not be issued until such time as the architects employed by the University for the construction of said buildings have submitted a certificate to The Board of Trustees of the University of Illinois setting forth an itemized statement of the work completed to date, the cost thereof, and an itemized statement of the work yet to be completed and the estimated cost of the work to be completed, and such certificate and estimate shall be presented to and approved by said Board of Trustees preceding the adoption of any resolution authorizing the issuance of additional bonds to share ratably and equally in the revenues of said buildings. Any additional bonds issued for the purpose of completing the project herein provided for, in accordance with this section, shall be payable serially with principal and interest amortized over a period not shorter than the remaining life of any of the then outstanding bonds, with principal payments beginning not more than three years from date of the additional bonds, in such manner as to make the total amount of principal of and interest on the additional bonds due in each year approximately the same in each year in which there is a maturity of principal. In addition to the foregoing, if prior to the payment of the bonds hereby authorized it shall be found desirable to refund all or a part of the bonds hereby authorized, said bonds may be refunded notwithstanding the restrictions as to the issuance of additional bonds set forth in this section (with the consent of the holders thereof if any bonds are to be refunded prior to maturity or prior to date of call and redemption) and any refunding bonds so issued shall share ratably and equally with the portion of the bonds hereby authorized which are not refunded in the revenues of said buildings and the pledge thereof under this resolution; provided, however, that if only a portion of said outstanding bonds are to be refunded at any time, such refunding obligations shall not mature at a date earlier than the final maturity of such bonds not refunded.