Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 532]

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UNIVERSITY OF ILLINOIS

629

collected in a separate account and fund, apart from all other funds of said University, which is hereby created and designated as "The Colleges of Dentistry, Medicine and Pharmacy Revenue Bond F u n d of 1951," and the University covenants that all revenues, income, receipts, profits, rates, rents, charges, fees and returns derived from the operation of said buildings shall be deposited in such fund and shall be used only in paying the reasonable cost of operating and maintaining said buildings, including salaries, wages, costs of materials, supplies, insurance and the reasonable repair necessary to properly maintain said buildings, for the creation and maintenance of a reserve fund, as hereinafter provided, and paying the principal and interest of the revenue bonds herein provided for, which by their terms are payable solely from the revenues derived from the operation of said buildings. T h e word "repair" as used in this section shall be construed to refer only to such repairs as are certified to by competent and recognized architects to be necessary to keep the buildings in proper condition for use and occupancy, or are so certified to be necessary to remedy some physical condition which would otherwise impair or endanger the use and occupancy thereof and the security of the bonds hereby authorized, and all other bonds that may hereafter be authorized, which by their terms are payable from the revenues derived from the operation of said buildings. SECTION 6. T h a t there be and there are hereby created and established separate special accounts to be designated severally "Operation and Maintenance Account," "Bond and Interest Sinking Fund Account," and "Reserve Account," into which there shall be credited on the first business day of each month all moneys held in the said Colleges of Dentistry, Medicine and Pharmacy Revenue Bond Fund of 1951, in accordance with the following provisions: ( a ) There shall be credited to the Operation of Maintenance Account on the first day of each month an amount sufficient to pay the reasonable expense 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 ) T h e r e 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, plus an amount equal to one-twelfth 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 annually the sum of $25,000, until said account aggregates the sum of $200,000, 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 $25,000 annually and continued until such time as the account has been restored to the aggregate amount of $200,000. F u n d s 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. ( d ) All funds remaining in the Colleges of Dentistry, Medicine and Pharmacy Revenue Bond Fund of 1951, 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 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