Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 405]

EXTRACTED TEXT FROM PAGE:

400b

BOARD OF TRUSTEES

[May 21

16 hereof may be exercised by either or both of Modern Woodmen of America and Royal Neighbors of America, and such exercise by either one of said parties shall terminate this agreement with respect to both of said parties. I I . Upon execution of the Bonds the Foundation shall deliver the same to H a r r i s Trust and Savings Bank, as Trustee under said Indenture, for certification, with instructions: (a) to notify the Lender when said Bonds have been certified; and (b) to deliver said Bonds to First National to be held by First National as collateral security for the interim loans to be made by First National to the Foundation, individually and as such trustee. The Foundation will authorize First National to deliver said Bonds to the Lender upon receipt by First National from the Lender of a certified or cashier's check drawn on a bank or trust company having its principal office in Chicago, Illinois, having a capital and surplus of at least $1,000,000, payable to the order of the First National for such amount, not exceeding the purchase price of the Bonds, as First National shall certify to the Lender as owing to it, on such interim loans, including fees for supervising interim loan payouts, and a similar check for the balance, if any, of the purchase price of the Bonds, in accordance with this agreement, payable to the order of the Foundation as such trustee. The Lender shall not be obligated to disburse the loan and purchase the Bonds, however, until ten (10) days after written notice from First National that the Bonds are ready for delivery and until the conditions in paragraph 12 hereof set forth have been complied with. At the time of disbursement of the loan there shall be added to the unpaid principal of the Bonds and paid as part of the purchase price, all interest which may have accrued upon the Bonds from the date of issuance or the date to which last paid, as the case may be, to the date of disbursement of the loan. At the time of delivery of the bonds by First National to the Lender, First National shall furnish a warranty to the Lender with respect to said bonds as follows: ( a ) That it has not pledged, assigned, hypothecated or otherwise disposed of said bonds or its interest therein. (b) That it has no interest in said bonds except as collateral for the interim loan or loans hereinabove referred to and that such interest will cease upon payment to First National in accordance with this Paragraph 11. It is expressly understood and agreed (and this agreement is made for the benefit of First National) that First National shall not, by delivery of such bonds to the Lender or by the execution of an instrument as hereinabove provided, be deemed to have made any warranties or representations, express or implied, with reference to said bonds except the express warranties set forth in said instrument in writing. The Lender may rely upon any certification by First National as to the amount owing to it, on such interim loans, without inquiry of any kind. 12. The Lender shall not be obligated to make disbursement of the loan unless the following conditions (which are hereby agreed to be conditions precedent) shall have been fully complied with: ( a ) The University of Illinois and the Foundation shall not be in default hereunder; (b) Said project shall be substantially completed and ready for occupancy; (c) A continuation of said Chicago Title & Trust Company preliminary report on title shall have been furnished to the Lender covering a date not more than sixty (60) days prior to the date of disbursement, showing that Chicago Title & Trust Company is prepared to issue its owner's guarantee policy covering said date, but otherwise in accordance with the provisions of Paragraph 7 hereof; (d) An affidavit of a duly authorized officer of the Foundation shall have been furnished to the Lender to the effect that the Foundation has not conveyed, assigned or in any way clouded or encumbered title to the real estate and that no changes have occurred in the title to said real estate since the date of said last mentioned continuation of said Chicago Title & Trust Company preliminary report on title; (e) The lease with the University of Illinois in the form attached to said Trust Agreement as Exhibit " B " shall have been renewed for a term of two (2) years commencing July I, 1949 and expiring June 30, 1951, in case the disbursement of the loan shall occur on or after July 1, 1949;