Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 335]

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332

BOARD OF TRUSTEES

[March 12

1 of each year, complete operating and income statements of said project, in reasonable detail, for said preceding fiscal year. ( f ) T h a t it will faithfully and punctually perform or cause to be performed all of the duties and obligations with reference to said project as are required by the provisions of this resolution and the statutes under which the said bonds are issued, including the completion and equipping 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. ( g ) T h a t 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 risks included in extended coverage insurance in an amount not less than the full insurable value of said buildings. 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 with other available moneys are insufficient to restore said property to its 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. ( h ) That as long as the funds and investments of the Bond and Interest Sinking Fund Account are less than $680,000 plus the debt service requirements on the outstanding bonds for the then current fiscal year, it shall procure and maintain use and occupancy insurance on said buildings, the revenues of which are pledged to the payment of the bonds, in an amount sufficient to enable it to deposit in the Bond and Interest Sinking Fund Account, out of the proceeds of such insurance, an amount equal to the sum that would normally have been available for deposit in such account from the revenues of the damaged buildings during the time the damaged buildings are non-revenue producing as a result of loss of use caused by hazards covered by fire and extended coverage insurance. 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 or the pledged fees and tuition. SECTION 10. That 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 herebyauthorized 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, Administration Building, Urbana, 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 of Illinois 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 said 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 project. 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.