Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 1273]

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137°

BOARD OF TRUSTEES

[February 22

of operation and maintenance and repair of said buildings for the next succeeding month, including, without limiting the generality of the foregoing, salaries, wages, cost of materials, supplies, insurance, light, heat and power. (b) There shall be credited to the Bond and Interest Sinking Fund Account on the first day of each month an amount equal to one-sixth of the interest becoming due on all outstanding bonds payable from the revenue of said buildings on the next succeeding interest payment date, and, beginning September I, 1953, an amount equal to one-sixth of the principal of all of said bonds becoming due on the next succeeding principal maturity date. (c) T h e r e shall be credited to the Reserve Account on June 30, 1954, and annually thereafter the sum of $10,000, until said account aggregates the sum of $100,000, and thereafter no sums need be credited to said Reserve Account except that whenever any funds in said account are expended, funds shall be again credited to said account at the rate of $10,000 annually and continued until such time as the account has been restored to the aggregate amount of $100,000. Funds credited to said account shall be used solely for the purpose of paying principal and interest on the revenue bonds of said University issued pursuant to the provisions of this resolution falling due at any time for the payment of which there is insufficient money available in the Bond and Interest Sinking Fund Account. Funds of this account may be invested from time to time in United States Government securities. All accumulations in the Reserve Account in excess of the sum of $100,000 shall be transferred to the Residence Halls Revenue Bond Fund of 1952. ( d ) All funds remaining in the Residence Halls Revenue Bond Fund of 1952, after all amounts required to be credited to the accounts provided for in subsections ( a ) to (c) inclusive, of this section, and all deficiencies have been made up, shall be used for the purpose of calling and redeeming the revenue bonds of this issue, which by their terms are redeemable prior to maturity. Funds of this Account may be temporarily invested from time to time in United States Government securities. SECTION 7. That it is hereby covenanted and agreed that the revenues to be derived from the operation of said buildings are to be paid into the various special accounts hereinabove established and created in the order in which said accounts have been listed. If at any time the revenues are insufficient to place the required amounts in any of said accounts, the deficiency shall be made up in the following period or periods, after credits to all the accounts enjoying a prior claim of revenues have been made in full. SECTION 8. That the Board of Trustees of the University of Illinois hereby covenants as follows: 1. That as long as the bonds herein authorized to be issued shall remain outstanding it will continuously operate and maintain said buildings constructed, equipped, completed and rehabilitated with the proceeds derived from the issue of said bonds; that it will adopt such regulations and fix and maintain such rates, rents, fees and charges for the use of said buildings as will provide revenue sufficient to pay the reasonable cost of operating and maintaining said buildings, to provide and maintain the aforesaid bond and interest sinking fund account in an amount adequate to promptly pay the principal of and interest on said bonds as the same matures, and to provide for the aforesaid Reserve Account, and that it will collect and account for and apply the aforesaid income and revenues in accordance with and as provided by this resolution. 2. That it will not voluntarily create or cause to be created any debt or lien, charge or encumbrance on any of the revenues to be derived from the operation of such buildings having a priority to or parity with the pledge of the bonds issued under this resolution, and that it will not sell, mortgage, lease, or otherwise dispose of or encumber said buildings or any part thereof during the time when the bonds issued hereunder shall remain outstanding and unpaid. 3. That as long as any of the bonds issued hereunder remain outstanding and unpaid, either as to principal or interest or both, it will at all times exercise all of its lawful powers to preserve and protect the security of the bonds and the rights of the bondholders under this resolution. 4. That it shall cause to be kept proper books of records and accounts separate and apart from all other records and accounts in which complete and