Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 1118]

EXTRACTED TEXT FROM PAGE:

IIIO

BOARD OF TRUSTEES

[April 19

redeemable as a whole, or in part, in the inverse order in which they are numbered, prior to their maturity, on any interest payment date on or after April 1, 1953, and up to and including October I, 1954, at par and accrued interest, and a premium of two per cent (2%) of the principal amount thereof, a premium of one and onehalf per cent (i>£%) of the principal amount thereof if redeemed on April 1, 1955, or on any interest payment date thereafter up to and including October 1, 1958, and a premium of one per cent (1 %) of the principal amount thereof if redeemed on April 1, 1959, or on any interest payment date thereafter before maturity. Notice of redemption to be given by publication at least once not less than thirty days prior to date of redemption, such publication to be made once in one newspaper published and of general circulation in the City of Chicago, 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 Student-Staff Apartments (Second Unit), the term "net revenues" as used herein meaning the gross revenues of the said Student-Staff Apartments (Second Unit), less the reasonable cost of operating, insuring, maintaining and repairing said facilities; 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 StudentStaff Apartments (Second Unit) 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; NOW, 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 Student-Staff Apartments (Second Unit), and that it will furnish to the Depositary, on or before October 1, 1951, for that period from May I, 1950 to June 30, 1951, and on or before October 1 in each year thereafter, 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 the said Student-Staff Apartments (Second Unit) for the twelve months' period ended on the next preceding June 30th. 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 Student-Staff Apartments (Second Unit) 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 Student-Staff Apartments (Second Unit), shall be paid over to the Depositary semi-annually not later than July 31 for the previous six months' period ending June 30th each year, and January 31 for the previous six months' period ending December 31 of each year; provided, however, there shall be deposited on September 1, 1950 the net revenues for the period from May 1, 1950 to September 1, 1950, which amount, together with sufficient funds derived from the proceeds of the sale of said bonds will be such that the sum so deposited will not be less than the interest requirements due on said bonds October 1, 1950, plus Depositary's fees, and the University hereby covenants and agrees so to do. All funds received by the Depositary under the terms of this agreement, after deducting fees and expenses of such Depositary, shall be held by the Depositary in a special trust account to be known