Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 400]

EXTRACTED TEXT FROM PAGE:

1949]

UNIVERSITY OF ILLINOIS

397

with the United States or any agency thereof and to take other action for the purpose of obtaining grants from the United States to aid in financing the construction and equipping of university, college or educational buildings on which said board shall be given a year to year or other lease or the privilege thereto. (Filed March 20, 1936, L. 1935-36, First Sp. Sess., p. 179.)" As amended by Act approved July II, 1939, House Bill 784 and other applicable statutes (herein sometimes called "the Enabling Acts") ; and Whereas, there has been submitted to the Board of Trustees a proposed form of Loan Agreement to be dated June IS, 1949, between the University of Illinois Foundation, the Board of Trustees of the University of Illinois, Modern Woodmen of America and Royal Neighbors of America, and a proposed form of deed in trust under which title to said real estate would be conveyed to the Foundation as active Trustee, and a proposed form of trust agreement between the Board of Trustees of the University of Illinois and the University of Illinois Foundation, being the trust agreement above referred to, with a proposed form of trust indenture and a proposed form of operating lease attached to and incorporated in said form of trust agreement, all to be dated June 15, 1949 (a copy of said Loan Agreement and proposed deed in trust and trust agreement with exhibits attached being attached to and incorporated in the minutes of this meeting) ; and Whereas, the Board of Trustees of the University of Illinois are authorized and empowered by virtue of the Enabling Acts to create said trust and convey said property in trust to the University of Illinois Foundation and execute and deliver said trust agreement (and thereby empower the Foundation as active Trustee, to make interim loans and execute its notes evidencing the same and its bonds in the principal sum of $900,000, as provided in said form of trust indenture, and to execute said trust indenture to Harris Trust and Savings Bank as Trustee, securing the payment of said bonds), and to enter into an operating lease with the University of Illinois Foundation in the form attached to and incorporated in the minutes of this meeting; Now, Therefore, Be It Resolved, that the Board of Trustees of the University of Illinois does hereby authorize and empower the President and Secretary of the Board of Trustees to execute and deliver, for and on behalf of the Board of Trustees of the University of Illinois, a Loan Agreement to be dated June 15, 1949, with the University of Illinois Foundation, Modern Woodmen of America and Royal Neighbors of America, providing among other things: (1) For the issuance of bonds of the University of Illinois Foundation individually and as such trustee, in the principal sum of $000,000, with interest at 4 per cent per annum, interest onh' until January 1, 1950, payable on January 1, 1950, and principal and interest from January 1, 1950, payable in equal quarterly installments of $14,285 commencing on April 1, 1950, with a final installment payable on October 1, 1973, with privilege to prepay, not to exceed $90,000 in any mortgage year, and with privilege to redeem in full on or after the 20th installment date at 102 and on or after the 39th installment date at 101 ; (2) For the execution and delivery by the Foundation as active Trustee of a trust indenture substantially in the form attached to said Loan Agreement, to Harris Trust and Savings Bank, an Illinois corporation having its principal office in Chicago, Illinois, as "Bondholders' Trustee," providing the rights and powers of such Bondholders' Trustee and of the bondholders, not including, however, the right to forfeit or obtain title to the project through foreclosure proceedings, or otherwise, but conferring upon the Bondholders' Trustee the powers authorized to be conferred upon such Trustee by the terms of the Enabling Acts; (3) In the event the bonds have not been delivered to Modern Woodmen of America and Royal Neighbors of America and the project completed by October 1, 1949, for the payment by the Foundation of a standby fee in the form of interest on $900,000 at 4 per cent per annum from October I, 1949, until such delivery of the bonds; (4) Such other terms and provisions, including such changes or amendments thereto, as the board of directors of said University of Illinois Foundation (or as any officers of the University of Illinois Foundation to whom the board of directors may delegate appropriate authority in that regard) shall deem necessary or advisable to effectuate and carry out such financing program;