Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 333]

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33o

BOARD OF TRUSTEES

[March 12

ings shall be credited as collected in a separate account, which is hereby created and designated as "Men's Residence Halls Revenue Bond Fund of 1957," and The Board of Trustees of the University of Illinois covenants that all revenues, income, receipts, profits, rates, rents, charges, fees, and returns derived from the operation of said buildings shall be deposited within three working days in the University of Illinois Treasurer's Account, and shall be used first in paying the reasonable cost of operating and maintaining said buildings, including, without thereby limiting the generality of the foregoing, salaries, wages, costs of materials, supplies, insurance, and the reasonable repair necessary to maintain said buildings properly, and for the creation and maintenance of a sinking fund, as hereinafter provided for the payment of the principal and interest of the revenue bonds herein provided for, which by their terms are payable only from the revenues derived from the operation of said buildings, and from student fees and tuition, all as hereinafter provided in Section 6 of this Resolution. Any remaining funds which are declared surplus shall be used as provided in Section 6 hereof. SECTION 6. T h a t the funds in the "Men's Residence Halls Revenue Bond Fund of 1957," shall be used in the manner and in the order hereinafter mentioned. ( a ) All reasonable expenses of operation and maintenance and repair of said buildings, including, without limiting the generality of the foregoing, salaries, wages, cost of materials, supplies, insurance, light, heat, and power shall be paid as they occur. Reasonable reserves may be established for repairs, replacement of equipment and other expenditures which do not occur regularly. The word "repair" as used in this subsection shall be construed to refer only to such repairs as art 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. (b) A Bond and Interest Sinking Fund is hereby established and shall be held in trust for the benefit of the bondholders by the American National Bank and T r u s t Company of Chicago, in the City of Chicago, Illinois, as depository. As Soon as the project becomes revenue producing, there shall be deposited in said Bond and Interest Sinking Fund the sum of $195,000 semiannually, within 60 days following June 30 and December 31 of each year, to be paid from the revenues derived from operation of the project and from student fees and tuition as provided in Section? hereof, until such time as such funds and investments, and the income and profit? realized from any investments thereof are at least equal to the debt service requirements on the outstanding bonds for the then current fiscal year plus a debt service reserve in the amount of $680,000, and thereafter such sums semiannually as may be necessary to meet the then current year's debt service and to maintain the debt service reserve of $680,000, provided that the amount provided from student fees and tuition shall not exceed $297,000 a year, and provided further that the amounts so deposited prior to September 1, 1958 shall not exceed, unless necessary, the net revenues of the project. Funds of the Bond and Interest Sinking Fund Account in excess of the principal and interest requirements for the next succeeding twelve months may be invested by the depository from time to time by order of the Comptroller in United States Government securities, maturing not more than five years from date of purchase. (c) All funds remaining in said Men's Residence Halls Revenue Bond Fund of 1957 in any fiscal year after the full debt reserve prescribed in subsection (b) of this section has been provided for and after all provisions in subsections (a) and ( b ) of this section have been met and all deficiencies have been made up, shall b£ deemed surplus moneys and shall be used for any of the following purposes: (1) for calling and redeeming the revenue bonds of this issue, which by their terms are redeemable prior to maturity; (2) for purchasing in the open market bonds ot this issue, with all unmatured interest coupons thereto attached at the lowest prices reasonably attainable, but not exceeding the amount at which such bonds at the time are redeemable; (3) for investment by the Comptroller of T h e Board of