Repository: UIHistories Project: Board of Trustees Minutes - 1948 [PAGE 818]

EXTRACTED TEXT FROM PAGE:

1947]

UNIVERSITY OF ILLINOIS

8l7

SECTION 7. Said University hereby 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 and to the original purchaser of said bonds on or before September I in each year so long as any 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 said Building for the twelve months' period ending on the next preceding June 30. SECTION 8. The University covenants that while any of the bonds authorized hereunder remain outstanding it will establish charges and fees for the use of said building, adjusted so as to provide revenues at all times sufficient to pay the reasonable cost of maintaining, operating, insuring and repairing the said building, to pay the interest from time to time becoming due on the said bonds from time to time outstanding, and to provide for the payment of the principal of such bonds at maturity. SECTION 9. It is hereby covenanted and agreed that while any revenue bonds issued hereunder are outstanding no additional revenue bonds shall be issued which, by their terms, are payable from the revenues of said Illini Union Building, unless and until all revenue bonds issued pursuant to the terms of this resolution have been paid in full, both as to principal and interest, or until provision shall have been made for such payment in full. SECTION 10. That the fees and charges heretofore established for the use of said Illini Union Building in accordance with the terms of the trust to be terminated with the proceeds derived from the sale of the bonds hereby authorized and the method of the collection thereof now in full force and effect, shall remain in full force and effect until revised or changed in accordance with the terms of the covenants of this resolution. Said fees and charges as collected are hereby pledged and shall be applied to the payment of the reasonable maintenance and operation costs of said Illini Union Building and to the payment of the principal and interest of the bonds hereby authorized, all in accordance with the terms and covenants of this resolution. SECTION I I . Said University of Illinois hereby covenants and agrees with the holder or holders of the bonds herein proposed to be issued, or any of them, that it will punctually perform all duties with reference to said building required by the Constitution and Laws of the State of Illinois, including the making and collecting of sufficient charges and fees for the use of said building, and segregating the revenue of said building and the application of the income and revenue thereof, as provided by this resolution; and it hereby covenants and agrees not to sell, lease, loan, mortgage or in any manner dispose of said building, including any and all extensions and improvements that may be made thereto, until all of the bonds herein authorized to be issued shall have been paid in full, both principal and interest, or unless and until provision shall have been made for the payment thereof in full, and the said University further covenants and agrees with the holders of said bonds to maintain in good condition and continuously operate said building as a Student Social Center and for other educational purposes and maintain and keep in full force and effect at all times adequate insurance for the protection of said building, including multi-risk insurance, covering loss or damage to said building and use and occupancy insurance covering loss of use of said building. The cost of maintaining all insurance shall be deemed to be an operating charge and shall be paid only from revenues. Any proceeds derived by said University from any multi-risk insurance shall be applied to the payment of the said University's reasonable and necessary costs in reconstruction, repair or rehabilitation of the said building and any proceeds derived from any use and occupancy insurance shall be applied in the same manner and to the same effect as gross operating revenues. SECTION 12. The provisions of this resolution shall constitute a contract between the University of Illinois and the holders of the bonds herein authorized to be issued, and after issuance of the bonds no changes, additions, alterations or amendments of any kind shall be made to this resolution in any manner, until such time as all of said bonds issued hereunder, and interest thereon, shall be paid in