Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 404]

EXTRACTED TEXT FROM PAGE:

1949]

UNIVERSITY OF ILLINOIS

400a

proposal and the parties have agreed upon certain changes in the method of financing, which changes have been approved by the Board of Trustees of the University of Illinois, the Board of Directors of the University of Illinois Foundation, and by the Lender, and the parties desire to reduce their agreement to •writing; Now, Therefore, in consideration of the mutual covenants and agreements hereinafter contained, the parties do hereby agree as follows: 1. The recitals herein contained are expressly made a part of this agreement. 2. All prior agreements between the parties are merged in this agreement. 3. The University of Illinois agrees forthwith to convey the real estate upon which the project will be located, by Deed in Trust in the form hereto attached and marked "Exhibit 1", pursuant to an Active Trust Agreement in the form hereto attached and marked "Exhibit 2", which Active Trust Agreement the University of Illinois and the Foundation hereby agree they will execute and deliver, all in accordance with the power and authority vested in the University of Illinois under and by virtue of the provisions of the statutes of the State of Illinois contained in Sections 68 to 70, inclusive, of Chapter 144 of Illinois Revised Statutes 19474. The Foundation agrees forthwith to execute and deliver a Trust Indenture in the form attached to said Trust Agreement and marked "Exhibit A", and record the same in the Office of the Recorder of Deeds of Champaign County, Illinois, and concurrently to execute and deliver its 4 % Revenue Bonds in accordance with the provisions of said Trust Indenture, said Trust Indenture and Bonds to be issued in pursuance of said statute of the State of Illinois. 5. The University of Illinois and the Foundation agree concurrently with the execution of said Trust Indenture, but subject thereto, to execute and deliver a Lease in the form attached to said Trust Agreement and marked "Exhibit B". 6. The University of Illinois and the Foundation agree, forthwith, to execute and deliver a Steam Agreement in the form hereto attached and marked "Exhibit 3" and to join in the execution and delivery of any supplemental Trust Indenture which the Lender may reasonably require, in order that the Bondholders' Trustee and bondholders under the Indenture may have the benefit of and enforce such Steam Agreement against the University of Illinois, to the extent that the same may be lawful. 7. The Foundation agrees prior to the disbursement of the loan to procure from Chicago Title & Trust Company and deliver to the Lender a preliminary report on title showing that Chicago Title & Trust Company is prepared to issue its owner's guarantee policy in the usual form for $100,000 guaranteeing that the Foundation, as Trustee, is vested with fee simple title to such real estate, subject only to usual stock objections. Said preliminary report on title may also contain such other objections as counsel for the Lender may approve. 8. The University of Illinois and the Foundation agree that they will cause said improvements to be substantially completed and ready for occupancy, with reasonable dispatch and not later than June 30, io5°9. The Foundation has arranged to borrow, individually and as such trustee, funds from the First National Bank of Chicago, a national banking association (hereinafter called "First National") which funds will be used to defray a portion of the cost of constructing and equipping said buildings. The University of Illinois agrees that said sums of $400,000 and $251,700 appropriated by the General Assembly of Illinois shall be fully disbursed and used toward or reserved and set aside for the cost of construction and furnishings before any of the proceeds of said interim financing or sale of Bonds hereunder shall be so used. 10. Upon compliance by the University of Illinois and the Foundation with the foregoing provisions of this agreement and with the terms and provisions hereinafter set forth, the Lender agrees to purchase from the Foundation, at par, the Bonds of the Foundation individually and as such trustee issued pursuant to and secured by said Trust Indenture in the amount of $900,000 (the purchase of said Bonds being herein sometimes referred to as "disbursement of the loan"). Anything herein contained to the contrary notwithstanding, it is expressly understood and agreed that Modern Woodmen of America and Royal Neighbors of America shall each be severally obligated to purchase bonds in the amount of $450,000, and that neither of said parties shall be answerable or liable for the default of the other. The option to terminate this agreement contained in paragraph