Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 334]

EXTRACTED TEXT FROM PAGE:

1957]

UNIVERSITY OF ILLINOIS

331

Trustees of the University of Illinois in United States Government securities until such time as funds are needed for other purposes; (4) for unusual or extraordinary repairs, replacements or improvements to the buildings, for which no funds can be properly provided in subsection ( a ) hereinabove; and (5) for any lawful purpose as T h e Board of Trustees of the University of Illinois may direct. SECTION 7. .That it is hereby determined by The Board of Trustees of the University of Illinois, and it is hereby covenanted that it is necessary to supplement revenues derived from the said additional units of the Men's Residence Halls, referred to in this resolution, by the use of funds obtained from student fees and tuition, but not, however, to exceed the sum of $297,000 annually, and it is hereby further covenanted that in accordance with the pledge hereby made if at the close of any fiscal year after the project becomes revenue-producing there is a deficiency in the Men's Residence Halls Revenue Bond Fund of 1957 to provide for crediting to the respective accounts provided for in Section 6 of this resolution with the required amounts, T h e Board of Trustees of the University of Illinois shall within sixty days credit to the said Men's Residence Halls Revenue Bond Fund of 1957 out of the pledged student fees and tuition which said University is authorized to retain in its treasury, a sum sufficient to make up such deficiency in order to meet the annual debt service required on the bonds, the annual cost of maintenance and operation of the buildings, and provide for all the accounts and covenants provided for by this bond resolution, but such amount shall not, however, exceed $297,000 in any fiscal year. SECTION 8. That The Board of Trustees of the University of Illinois hereby covenants as follows: (a) That as long as the bonds herein authorized to be issued shall remain outstanding it will continuously operate and maintain said buildings constructed and equipped with the proceeds derived from the issue of said bonds, that it will adopt such parietal rules and regulations and fix and maintain such rates, rents, fees, and charges for the use of said buildings, when supplemented with student fees and tuition as hereinafter pledged, as will assure maximum occupancy of the buildings that will provide revenue sufficient to pay the reasonable cost of operating and maintaining said buildings, and to provide and maintain the aforesaid Bond and Interest Sinking Fund Account and the required reserves therefor, and that it will collect and account for and apply the aforesaid income and revenues in accordance with and as provided by this resolution. (b) That it will set aside from student fees and tuition authorized by law to be retained in the University treasury an amount which when added to the revenues to be derived from the operation of said buildings will be sufficient to meet the annual costs of maintenance and operation of the buildings and to meet the semiannual Bond and Interest Sinking Fund Account requirements as hereinbefore provided, but in no event shall the amount of student fees and tuition so retained for this bond issue exceed $297,000 a year. (c) That it will 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, except as provided for in Section 10 hereof. (d) 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. (e) 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 said buildings, and all revenues collected therefrom, which said record shall be kept and shall be available for the information of all bondholders; 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, prior to October