Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 224]

EXTRACTED TEXT FROM PAGE:

1949]

UNIVERSITY OF ILLINOIS

221

of the said maturing bonds, and the Depositary, as paying agent, is hereby authorized and directed to apply the same to the payment of the principal of the said bonds upon surrender of the said bonds. If, upon the fortieth (40th) day before any interest payment date, the Depositary has cash in the sinking fund after setting aside an amount sufficient to pay interest becoming due on all outstanding bonds on the next two ensuing interest payment dates and to pay the principal and premium, if any, of any bonds theretofore called for redemption and not yet redeemed and the principal of all bonds becoming due on the next two ensuing principal payment dates, such cash shall be applied by the Depositary to the redemption on the next ensuing interest payment date of outstanding bonds, which by their terms are redeemable, in an amount sufficient to exhaust as nearly as may be such cash, after deducting therefrom and paying all costs and expenses of such redemption. The said bonds are each in the denomination of One Thousand Dollars ($1,000) and are numbered from 1 to 800, inclusive. All bonds redeemed through the operation of the sinking fund, together with the appertaining interest coupons, shall be cancelled by the Depositary and delivered to the Treasurer of the University. The Depositary shall keep a record of the numbers of all bonds so redeemed. Notice of redemption through the operation of the sinking fund shall be published by the Depositary, either in the name of the University or in the name of the Depositary, as the Depositary may determine, once not less than thirty (30) days prior to the date of redemption. Such publication to be made in one newspaper published and of general circulation in the City of Chicago, Illinois. Such notice shall with substantial accuracy: ( a ) Designate the date and place of redemption, such place to be the office of the Depositary, in the City of Chicago and State of Illinois; (b) If the bonds to be redeemed are less than all of those outstanding, designate the numbers and the aggregate principal amount of such bonds; and (c) State that on the designated date of redemption said bonds will be redeemed by payment of the principal thereof and the accrued interest thereon, plus the applicable redemption premium, and that from and after the designated redemption date interest in respect of the bonds so called for redemption will cease. Upon publication of notice of redemption of any bonds through the operation of the sinking fund, the Depositary shall set aside from the moneys in the sinking fund an amount sufficient to pay and redeem the said bonds, and such funds be and are hereby appropriated irrevocably for that purpose, and the Depositary, as paying agent, is hereby authorized and directed to apply such funds to the payment and redemption of the said bonds on or after the specified redemption date upon surrender of the said bonds, together with all unmatured interest coupons thereto appertaining. SECTION 3. The University has covenanted with the holders of the bonds, hereinabove referred to, that it will, so long as any of the said bonds shall remain outstanding and unpaid, keep in the office of the Depositary, in the City of Chicago and State of Illinois, books for the registration and transfer as to principal of bonds of the said issue, and the said Depositary is hereby appointed the agent of the University, with the title of Registrar, for the purpose of registering and transferring the said bonds as to principal only. As to each bond registered, as to principal only, the person or entity in whose name the same is for the time being registered shall be deemed and regarded as the absolute owner thereof for all purposes, except for the purpose of receiving payment of the outstanding coupons, if any, appertaining thereto, and so long as the same shall be so registered payment of or on account of the principal thereof shall be made by the Depositary, as paying agent, only to the registered owner thereof. T h e bearer of any of the said bonds which shall not be registered as to principal and the bearer of any coupon appertaining to any such bond, whether or not such bonds shall be registered as to principal, shall for all purposes be deemed and regarded as the absolute owner of such bond or coupon as the case may be for the purpose of receiving payment thereof and for all other purposes, and the Depositary, as paying agent, shall be fully protected in making payment of any such bond or coupon to the bearer thereof.