Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 223]

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220

BOARD OF TRUSTEES

[January 13

the said women's residence halls, 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 women's residence halls; 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 women's residence halls 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 women's residence halls, and that it will furnish to the Depositary, on or before October 1, 1949, for that period from February 15, 1949, to June 30, 1049, and on or before October I 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 women's residence halls 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 women's residence halls 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 women's residence halls, shall be paid over to the Depositary semi-annually not later than July 31, for the previous six months' period ending June 30 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 15, 1049, the net revenues for the period from February 15, 1049, to June 30, 1949, which amount shall not be less than interest requirements due on said bonds October 1, 1949, 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 as the sinking fund and shall be disbursed or applied by the Depositary as hereinafter provided. At least five (5) days before each semi-annual interest payment date the Depositary shall, if the sinking fund moneys then on deposit are sufficient for that purpose, set aside an amount equal to the interest becoming due on the next ensuing interest payment date on all of the said bonds then outstanding, and such funds shall be and they are hereby appropriated irrevocably to the payment of such interest, and the Depositary, as paying agent, is hereby authorized and directed to apply the same to the payment of such interest on the next ensuing interest payment date upon surrender of the interest coupons becoming due on the said interest date "and appertaining to the outstanding bonds. At least five (5) days before the express date of maturity of the bonds, the Depositary shall set aside from the moneys in the sinking fund, if such moneys then on deposit are sufficient for that purpose after making provision for payment of the interest becoming due on the outstanding bonds on such maturity date, an amount equal to the principal of the bonds then maturing, and such funds shall be and they are hereby appropriated irrevocably to the payment of the principal