Repository: UIHistories Project: Board of Trustees Minutes - 1948 [PAGE 814]

EXTRACTED TEXT FROM PAGE:

1947]

UNIVERSITY OF ILLINOIS

813

I of each year, beginning with October I, 1950, up to and including October 1, 1957, redeemable as a whole prior to maturity on any interest payment date at the option of the Board of Trustees of the University of Illinois on or after October I, 1949, and up to and including April I, 1953, at par and accrued interest and a premium of two per cent of the principal amount thereof. Bonds numbered 286 to 425, inclusive, maturing October I of each year beginning with October 1, 1954, up to and including October 1, 1957 redeemable as a whole prior to maturity on any interest payment date at the option of the Board of Trustees of the University of Illinois or in part through operation of the sinking fund on or after October I, 1953 and until maturity at par and accrued interest and a premium of one per cent of the principal amount thereof. Bonds numbered 286 to 425, inclusive, called in part through the operation of the sinking fund shall be called and redeemed in the inverse order of their maturities. That is to say, bonds maturing on October 1, 1957 shall be called and paid before any bonds maturing October I, 1956 and so on. If sinking fund moneys are on hand sufficient to redeem some but not all of any of said bonds numbered 286 to 425, inclusive, of any maturity at any time when such bonds become redeemable, the said bonds to be redeemed shall be designated by lot in any usual manner by the Depositary, said bonds being payable both as to principal and interest, and registered as to principal only, at the office of The Northern Trust Compam,', as paying agent and registrar, in the City of Chicago and State of Illinois; and W H E R E A S the said bonds are payable both as to principal and interest and premium if any solely from the net revenues to be derived from the operation of the said building, the term "net revenues" as used herein meaning the gross revenues of the said building, less the reasonable cost of operating, insuring, maintaining and repairing the said building; and W H E R E A S the University has, in and by the said resolution, covenanted and agreed, for the benefit of the holders from time to time of the said bonds and the interest coupons thereto appertaining, that the net revenues of the said building will be from time to time deposited with the Depositary and used only for the payment of the fees and expenses of the Depositary, principal of, premium if any and the interest on the said bonds; and W H E R E A S the University has, in and by the said resolution, further covenanted and agreed that it would execute and deliver a Deposit Agreement in the form and terms hereof: N O W , T H E R E F O R E , in consideration of the premises and of the mutual covenants and agreements hereinafter set forth and pursuant to the terms and provisions of the said resolution, the University and the Depositary have agreed and do hereby agree as follows for the equal and proportionate benefit and security of the holders of the said bonds of the University and the interest coupons thereto appertaining; that is to say: SECTION I. The University covenants that proper books of record and account will be kept, in which full, true and correct entries will be made of all income, expenses and financial transactions of and in relation to the said building, and that it will furnish to the Depositary, on or before September 1, 1948, for that period from October I, 1947 to June 30, 1948 and on or before September 1 in each year thereafter so long as am' bonds remain outstanding, a statement certified as correct by the Comptroller and Treasurer of the University, showing the gross operating revenues, the operating expenses and the net revenues of the building for the twelve months period ended on the next preceding June 30. The Depositary shall have no duty to request any such information nor any duty relative to the statements from time to time furnished by the University, except to preserve the same for the inspection of the holders of the bonds during usual business hours. SECTION 2. The University has covenanted with the holders of the bonds hereinabove referred to that all of the revenues, income, receipts, profits, charges, fees, rents and returns derived from the said building and the operation thereof shall be collected by the University and, after setting aside therefrom the reasonable cost of operating, maintaining, insuring and repairing the said building, shall be paid over to the Depositary semi-annually not later than September 15th for the previous six months period ending June 30th each year and March 15th each year for the previous six months period ending December 31 of each year, provided,