Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 53]

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5°

BOARD OF TRUSTEES

[September 18

Women's Residence Halls Revenue Bond Fund of 1956, to provide for crediting to the respective accounts provided for in Section 6 of this resolution with the required amounts, The Board of Trustees of the University of Illinois shall within sixty days credit to the said Women's Residence Halls Revenue Bond Fund of 1956 out of the pledged student fees and tuitions 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 addition, and provide for all the accounts and covenants provided for by this bond resolution, but such amount shall not, however, exceed $68,750 in any fiscal year. SECTION 8. T h a t The Board of Trustees of the University of Illinois hereby covenants as follows: ( a ) T h a t as long as the bonds herein authorized to be issued shall remain outstanding it will continuously operate and maintain said addition 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 addition, when supplemented with student fees and tuition as hereinafter pledged, as will assure maximum occupancy of the addition that will provide revenue sufficient to pay the reasonable cost of operating and maintaining said addition, 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 addition will be sufficient to meet the annual costs of maintenance and operation of the addition 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 $68,750 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 he derived from the operation of such addition 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 addition 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 ) T h a t 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 addition, the expenditures for maintaining, operating, and repairing said addition, 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 I of each year, complete operating and income statements of said addition, in reasonable detail, for said preceding fiscal year. ( f ) That it will faithfully and punctually perform or cause to be performed all of the duties and obligations with reference to said addition 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 addition and the operation and maintenance of said addition 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 addition, including all equipment thereof, against loss