Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 401]

EXTRACTED TEXT FROM PAGE:

398

BOARD OF TRUSTEES

[May 21

and that said Officers be and they are hereby authorized and directed to carry out, perform, and consummate all of the terms and provisions of said Loan Agreement; Be It Further Resolved, that the President and the Secretary of the Board of Trustees of the University of Illinois be and they are hereby authorized and directed to take all actions and to execute all documents necessary to create said trust with the University of Illinois Foundation as active Trustee, for the purpose of acquiring, constructing, and equipping said buildings and of obtaining a loan from Salk, W a r d & Salk, Inc., in the sum of $900,000 for such purpose, such actions to include, but not be limited to, the following acts herein specifically set forth: 1. That the said Officers of the Board of Trustees of the University of Illinois be and they are hereby authorized to execute and deliver a deed in trust conveying the aforesaid real estate to the University of Illinois Foundation as active Trustee, and to execute a trust agreement with the University of Illinois Foundation as active Trustee, all in the form attached to and incorporated in the minutes of this meeting. 2. That said University of Illinois Foundation, individually and as such trustee, be and it is hereby authorized, empowered and directed to execute and deliver said Bonds, Trust Indenture, Steam Agreement and such other papers and documents as the directors of said Foundation (or as any officers of the University of Illinois Foundation to whom the Board of Directors may delegate appropriate authority in that regard) may deem necessary or advisable in order to effectuate the creation and execution of said trust and the consummation of said financing program. 3. That said University of Illinois Foundation, individually and as such trustee, be and it is hereby authorized, empowered, and directed to borrow from the First National Bank of Chicago sums of money not to exceed $000,000 principal amount for such times and upon such terms as the board of directors of said 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 determine and, to evidence said loans, to execute and deliver on behalf of and in the name of the Foundation, individually and as such trustee, notes therefor, and to pledge as security for said loans the $900,000 principal amount of 4 per cent Revenue Bonds to be issued under and secured by the Trust Indenture described in said Loan Agreement and to do all acts and things necessary or desirable and to execute such further documents as may be required by said the First National Bank of Chicago in connection with said loans. 4. That the said Officers of the Board of Trustees of the University of Illinois be and they are hereby authorized and directed to execute an operating lease substantially in the form attached to said form of trust agreement from the University of Illinois Foundation as trustee at a fixed quarterly rental sufficient to provide funds necessary for payments of interest, principal, and other charges under said trust indenture, said lease to include consent to the assignment in said T r u s t Indenture by the Foundation to said Bondholders' Trustee of said operating lease and said lease to contain the agreement of the University of Illinois that its rights under said operating lease shall at all times be subordinate and inferior to the lien of said trust indenture and subject to the provisions thereof; 5. That the said Officers of the Board of Trustees of the University of Illinois be and they are hereby authorized and directed to execute a steam agreement with the University of Illinois Foundation for the furnishing by the University of Illinois to said project of live steam at cost so long as facilities for furnishing such steam are maintained by the University of Illinois. Be It Further Resolved: 1. T h a t the President and Secretary of the Board of Trustees of the University of Illinois be and they are hereby authorized, empowered, and directed for and in behalf of the Board of Trustees of the University of Illinois to execute an assignment to the University of Illinois Foundation as such trustee, in respect of the construction contracts with various contractors covering the erection upon said premises of the projects herein referred to, upon securing from said Foundation the assumption and agreement of said Foundation as such trustee, to perform all of the rights, duties, and obligations of said Board of Trustees under said contracts;