Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 1166]

EXTRACTED TEXT FROM PAGE:

19.58]

UNIVERSITY OF ILLINOIS

1163

forth in said Wills; and be it further resolved by this Board of Trustees that the Comptroller, H . O. Farber, and the Secretary, A. J-. Janata, of this corporation be, and they hereby are, authorized and directed, to execute in the name and in behalf of, this corporation such documents and to take such other action in connection therewith as said Comptroller and Secretary may deem to be necessary or desirable to evidence or show the acceptance of said devises and bequests by this corporation and to effectuate the conveyance of title to, and the transfer of possession of, the assets thereof to this public corporation.

On motion of Mr. Herrick, the foregoing resolution was adopted.

BEQUEST OF MRS. ALMA ESCHER FOR T H E GERTRUDE ESCHER LOAN F U N D

(15) Under a trust created on June 7, 1956, by the late Mrs. Alma Escher of Chicago, who died on January 5, 1958, the University of Illinois has been named a residuary beneficiary, after other provisions of the trust have been fulfilled. The Mutual National Bank of Chicago, Trustee of the Escher's estate, is prepared to turn over to the University the residuary assets of the trust consisting of certain parcels of real estate and securities. The estimated value of the residuary trust assets is approximately $100,000, and may be higher depending on what the real estate will bring when sold. Lists of the assets comprising the trust were submitted to the First National Bank of Chicago (the University's investment counsel) for advice. The Bank recommends that the real estate be sold, but that certain of the securities held by the Trustee, if offered to the University, be retained. The Vice-President and Comptroller recommends, and I concur, that the Board of Trustees suggest to the Mutual National Bank of Chicago that the real estate be sold. The disposal or retention of securities will be referred to the Finance Committee of the Board. At the time of her death Mrs. Escher had in the bank in her name approximately $7,000 which, under her will, is bequeathed to the Mutual National Bank of Chicago as Trustee and thus becomes a part of the assets of the trust she created. The trust agreement specifies that at the time of making the transfer of the residuary assets, the Trustee is to inform the Board of Trustees of the University of Illinois "that it is the desire of the Donor that they invest the principal of the Trust Estate so delivered in securities deemed safe for the investment of other funds under their control and iise the income therefrom as loans to worthy students at the University of Illinois. That this gift be identified as the Gertrude Escher Loan Fund and, if it is consolidated with other trust funds under the control of said Trustees, its identity on the books of the University be retained under that title." While the donor obviously intended to create a loan fund, under the specific provisions of the trust the University must invest the funds received and realized from the sales of the assets in an endowment and use only the income for loans, rather than loaning the principal as is usually done with loan funds. The Vice-President and Comptroller recommends, and I concur, that the following resolution be adopted: Resolution WHEREAS Mrs. Alma Escher departed of this life on January 5, 1958, and WHEREAS Mrs. Escher had created a trust with the Mutual National Bank of Chicago and transferred to that bank as Trustee, certain securities and several parcels of real estate, and WHEREAS under the terms of the trust agreement, the Board of Trustees of the University of Illinois is the residual beneficiary, Now therefore, be it resolved by said Board of Trustees that the assets of this trust be accepted by the University to be administered in accordance with the provision of the Trust, the principal to be invested and the income used to create a student loan fund, and Be it further resolved that the Mutual National Bank of Chicago be authoru-6^ t o s e " t ' l e P a r c e ^ s °f r e a l estate, and that A. J. Janata, Secretary, and "• 0 . Farber, Comptroller, be hereby authorized and empowered to execute all