Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 52]

EXTRACTED TEXT FROM PAGE:

1956]

UNIVERSITY OF ILLINOIS

49

"Operation and Maintenance Account" and "Bond and Interest Sinking Fund Account," to be maintained with a bank or banks which are members of the Federal Deposit Insurance Corporation, into which there shall be credited, in the manner and in the order hereinafter mentioned, all moneys held in the Women's Residence Halls Revenue Bond Fund of 1956, in accordance with the following provisions: ( a ) There shall be credited to the Operation and Maintenance Account on the first business day of each month an amount sufficient to pay the reasonable expenses of operation and maintenance and repair of said addition to the Lincoln Avenue Residences for the next succeeding month, including, without limiting the generality of the foregoing, salaries, wages, cost of materials, supplies, insurance, light, heat, and power. ( b ) After the project becomes revenue-producing, there shall be credited to the Bond and Interest Sinking Fund Account the sum of $83,000 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 7 hereof, until such time as such funds and investments, and the income and profits 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 $270,000, 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 $270,000, provided that the amount provided from student tuition and fees shall not exceed $68,750 a year. Funds of this account in excess of the principal and interest requirements for the next succeeding twelve months may be invested from time to time by the Comptroller in United States Government securities, maturing not more than five years from date of purchase. (c) All funds remaining in said Women's Residence Halls Revenue Bond Fund of 1956 in any fiscal year after the full debt reserve prescribed in subsection (b) of this section has been provided for and after all amounts required to be credited to the accounts provided for in subsections ( a ) and (b) of this section, and all deficiencies have been made up, shall be used for the purpose of calling and redeeming the revenue bonds of this issue, which by their terms are redeemable prior to maturity; provided, whenever the said full debt reserve has been provided for there is sufficient money in said Women's Residence Halls Revenue Bond Fund of 1956, at any time after crediting all amounts required to be credited to accounts (a) and (b) of this section, and after setting aside an amount sufficient to pay interest due, principal of and premium on any bonds theretofore called for redemption and not yet redeemed, and the purchase price of any bonds theretofore purchased and not paid for, sufficient to purchase one or more bonds, the Comptroller shall as soon as reasonably practicable apply such available moneys to the purchase in the open market of bonds of this issue, with all unmatured interest coupons thereto attached (to the extent such bonds are available for purchase) at the lowest prices reasonably attainable, but not exceeding the amount at which such bonds at the time are redeemable; provided, however, that if on the sixtieth (60th) day before any interest payment date on which any of said bonds are redeemable there be moneys available in said Women's Residence Halls Revenue Bond Fund of 1956, after the said full debt reserve has been provided for and after crediting all amounts required to be credited to accounts ( a ) and ( b ) available to purchase ten or more bonds and not so expended, such moneys shall be applied to the redemption of bonds then redeemable. The funds in said Women's Residence Halls Revenue Bond Fund of 1956, until applied as herein provided, may be invested from time to time in United States Government securities. Any interest earned or profits realized from the moneys so invested shall be credited to the Bond and Interest Sinking Fund Account. 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 addition to the Lincoln Avenue Residences, referred to in this resolution, by the use of funds obtained from student fees and tuition, but not, however, to exceed the sum of $68,750 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