Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 533]

EXTRACTED TEXT FROM PAGE:

630

BOARD OF TRUSTEES

[March 13

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 and completed 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 wil 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 correct entries shall be made of all transactions relating to the cost of constructing and equipping the aforesaid buildings, the expenditures for maintaining, operating and repairing the said buildings, and all revenues collected therefrom, which said record shall be kept and shall be available for the information of all persons interested; and that there shall be furnished to the original purchaser of said bonds and to any holder of any of said bonds, on the written request therefor, not more than sixty days after the close of each fiscal year, complete operating and income statements of said buildings, in reasonable detail, for said preceding fiscal year. 5. That it will faithfully and punctually perform or cause to be performed all of the duties and obligations with reference to the said buildings as are required by the provisions of this resolution and the statutes under which the said bonds are issued, including the completion of the aforesaid buildings and the operation and maintenance of said buildings, as herein provided, the making and collecting of sufficient rates, fees and charges for the use thereof, the segregation of the income and revenues therefrom to the respective accounts created under the provisions of this resolution, and the proper application of said funds. 6. That as long as any of said bonds authorized to be issued hereunder shall remain outstanding and unpaid, either as to principal or interest, or both, it will maintain insurance on said buildings, including all equipment thereof, against loss or damage by fire and windstorm and all other insurable risks in an amount not less than the full insurable value of said properties or the principal amount of outstanding bonds, plus accrued interest and applicable premium to the next succeeding redemption date, whichever is less. Such insurance policy or policies shall be payable to the Board of Trustees of the University of Illinois, and all moneys collected on account of loss or damage covered by any such policy or policies of insurance shall be held in trust and shall be used only for restoration of the property so damaged. In the event said funds are insufficient to restore said properties to their former condition, then said funds shall be paid into the Bond and Interest Sinking Fund Account and held for the benefit of the Bondholders as their interest may appear.