Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 406]

EXTRACTED TEXT FROM PAGE:

1949]

UNIVERSITY OF ILLINOIS

400C

(f) The Foundation shall have paid to the Lender all installments of the standby fee theretofore becoming due and payable. Within thirty (30) days after disbursement of the loan the Foundation agrees to furnish to the Lender a Chicago Title & Trust Company owner's guarantee policy issued pursuant to said preliminary report on title referred to in subparagraph ( c ) hereof. 13. The proceeds of the sale of Bonds hereunder, remaining after the deductions herein authorized to be made from said proceeds by the Lender and after the payment to First National as aforesaid shall be paid to the Foundation, and shall be used by it for the following purposes exclusively: (1) To defray the cost of constructing the project, and furnishing the same to the extent provided in said Indenture, which may then remain unpaid; (2) To set aside a reserve to insure final completion of construction, in case at the time of disbursement of the proceeds of the loan said improvements shall have been substantially completed, ready for occupancy, but shall not have been finally completed, and to insure that furnishings and equipment will be installed to the extent provided in said Indenture; (3) The balance of proceeds of the sale of Bonds, if any, shall be segregated in a special fund to be held by the Foundation in trust for the proper equipment, maintenance, and repair of the project, for the payment of principal and interest on the Bonds and for performance by the Foundation of its other covenants and agreements to be contained in said Indenture. 14. If the University of Illinois and the Foundation shall not have complied with the conditions set forth in subparagraphs ( a ) to ( e ) , inclusive, of P a r a graph 12 hereof, and the loan shall not have been disbursed prior to October I, 1949, the Foundation agrees to pay to the Lender, as a standby fee, interest on $900,000 at 4 % per annum from October I, 1949, to the date when either: ( a ) said buildings and improvements shall have been substantially completed and ready for occupancy and the University of Illinois and the Foundation shall have complied with the conditions set forth in said subparagraphs ( a ) to ( e ) , inclusive, of Paragraph 12 hereof and the loan disbursed; or (b) the Lender shall have elected, pursuant to Paragraph 16 hereof, to terminate its obligation to purchase said Bonds. Said standby fee shall be payable quarterly on the first day of January, 1950, and on the first day of each April, July, October and January thereafter, so long as it shall accrue in accordance with the provisions of this paragraph, provided, however, that upon the happening of either of the events above set forth upon which said standby fee shall cease to accrue, the Foundation shall forthwith pay to the Lender all of said fee then accrued and unpaid, notwithstanding that such event may occur on a date other than the first day of January, April, July or October. 15. From the proceeds of said loan the Lender shall be and is hereby authorized to deduct the following: (1) All printing, mimeographing and recording expense, and title guarantee and abstract charges, if any, incurred by the Lender and Salk, Ward & Salk, Inc.; also the cost of procuring and approving legal opinion of special counsel for the Lender in connection with its purchase of the bonds, such cost not to exceed the sum of $5,000; (2) A commission for Salk, W a r d & Salk, Inc., for its services to the borrowers in negotiating the loan, equal to }4% of the amount of the loan; (3) Any portion of the standby fee then accrued and unpaid; (4) The fees and expenses of H a r r i s Trust and Savings Bank for accepting and acting as Trustee, Depositary and Registrar under the Indenture, including fees and expenses for certification of the Bonds; ( 5 ) The principal portion of any installment or installments on said Bonds which may have matured prior to the disbursement of the loan. 16. If said buildings and improvements have not been substantially completed and ready for occupancy and the Lender notified by First National, pursuant to Paragraph n hereof, that the Bonds are ready for delivery to the Lender prior to June 30, 1950, or if the Foundation and University of Illinois shall make default in the performance of any other of their covenants or agreements herein contained and such default shall continue for a period of thirty (30) days after written