Repository: UIHistories Project: Board of Trustees Minutes - 1952 [PAGE 534]

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UNIVERSITY OF ILLINOIS

63I

SECTION 9. T h a t the bonds authorized to be issued hereunder and from time to time outstanding shall not be entitled to priority one over the other in the application of the income and revenues derived from the collection of rents, rates, fees and charges for the use of the aforesaid buildings, or with respect to the pledge of the revenue to be derived from the operation of said buildings. SECTION 10. T h a t it is hereby further covenanted and agreed that after the issue and delivery of the bonds herein authorized and provided for to the purchaser thereof, additional bonds to share ratably and equally with the bonds hereby authorized shall only be issued in the event that funds are necessary to pay the cost of completing the project herein provided for in accordance with the plans and specifications now on file in the office of the physical plant department at 1716 West Taylor Street, Chicago, Illinois, and in the event additional funds are necessary to pay the cost of completing the project herein provided for, said bonds shall not be issued until such time as the architects employed by the University for the construction of said buildings have submitted a certificate to the Board of Trustees of the University setting forth an itemized statement of the work completed to date, the cost thereof, and an itemized statement of the work yet to be completed, and the estimated cost of the work to be completed, and such certificate and estimate shall be presented to and approved by the Board of Trustees preceding the adoption of any resolution authorizing the issuance of additional bonds to share ratably and equally in the revenues of said buildings. Any additional bonds issued for the purpose of completing the project herein provided for, in accordance with this section, shall be payable serially with principal and interest amortized over a period not shorter than the remaining life of any of the then outstanding bonds, with principal payments beginning not more than three years from date of the additional bonds, in such manner as to make the total amount of principal of and interest on the additional bonds due in each year approximately the same in each year in which there is a maturity of principal. In addition to the foregoing, if prior to the payment of the bonds hereby authorized it shall be found desirable to refund all or a part of the bonds hereby authorized, said bonds may be refunded notwithstanding the restrictions as to the issuance of additional bonds set forth in this section (with the consent of the holders thereof if any bonds are to be refunded prior to maturity or prior to date of call and redemption) and any refunding bonds so issued shall share ratably and equally with the portion of the bonds hereby authorized which are not refunded in the revenues of said buildings and the pledge thereof under this resolution; provided, however, that if only a portion of said outstanding bonds are to be refunded at any time, such refunding obligations shall not mature at a date earlier than the final maturity of such bonds not refunded. SECTION I I . T h a t the proceeds from the sale of said bonds shall be set aside in a separate fund which is hereby created and designated as the "Construction Fund Account" and all of the funds of said Construction F u n d Account shall be deposited in T h e First National Bank of Chicago, which said bank be and is hereby designated as the Depositary therefor. T h a t the Comptroller and T r e a s u r e r of said University shall withdraw from said Construction Fund Account and deposit with said T h e First National Bank of Chicago, as paying agent of the bonds hereby authorized, the sum of $249,750 for payment of interest from date of bonds up to and including the 1st day of April, 1953, being the estimated period of time necessary to complete said project. T h e balance of the proceeds of said Construction Fund Account shall be withdrawn from said account by the Comptroller and Treasurer of said University from time to time only upon submission to them of a certificate executed by the architects employed by the University for the construction of said project, stating the nature of the work completed and the amount due and payable thereon. Duplicate executed copies of such certificates shall be filed with said T h e First National Bank of Chicago before the said Comptroller and T r e a s u r e r of said University shall be authorized to withdraw funds from such account and said certificates shall be held by said bank and made available for inspection by any Bondholder or any duly authorized agent of said bondholders. F o r the purpose