Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 257]

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246

BOARD OF TRUSTEES

[March 19

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Act of 1972," effective July 1, 1972, as amended, is less than five and seventy-five one-hundredths per cent ( 5 . 7 5 % ) . In such event, the amount of the reduction in each payment shall be one twenty-fifth (1/25) of the interest cost, computed on the basis of level debt service payments, for amortizing $59,000,000 over a twenty-five year period at an interest rate which represents the difference between 5.75 per cent and the effective interest rate on said next public sale of bonds. (c) Each of said annual payments shall be further reduced if the total project cost of said 500-bed replacement Hospital is less than $59,000,000. In such event, the amount of reduction in each payment shall be one twenty-fifth (1/25) of the sum of (i) one-half the difference between $59,000,000 and said total project cost, plus (ii) the interest cost, computed on the basis of level debt service payments, for amortizing over a twenty-five year period the difference between $59,000,000 and said total project cost at an interest rate of whichever is the lesser as between 5.75 per cent and the effective interest rate on the next public sale of bonds referred to above in subparagraph (b) of this paragraph 2. (d) Each of said annual payments shall be further reduced if the University of Illinois is successful in obtaining federal or other funds which are applied toward the project cost of said 500-bed replacement Hospital. In such event, the amount of the reduction in each payment shall be one twentyfifth (1/25) of the interest cost, computed on the basis of level debt service payments, for amortizing over a twenty-five year period the amount of the federal or other funds so applied toward the project cost at an interest rate of whichever is the lesser as between 5.75 per cent and the effective interest rate on the next public sale of bonds referred to above in subparagraph (b) of this paragraph 2; provided, however, that to the extent permitted by the terms of the grants relating to said federal or other funds the University of Illinois may retain and apply up to $1,000,000 to make said 500-bed replacement Hospital operational and any amount so retained and applied by the University of Illinois shall not be considered in computing any reduction pursuant to this subparagraph ( d ) . T h e first annual payment by the University of Illinois hereunder shall be made at the expiration of the first full fiscal year (July 1 through the next June 30) during all of which said new 500-bed replacement Hospital is in full operation by the University of Illinois. The University of Illinois may, at its option, prepay the first or any other annual payment hereunder from any funds available to it which may be properly applied for such purpose. The necessary and proper costs and expenses of operating and maintaining the University of Illinois Hospital, determined in accordance with sound accounting principles, shall have priority over any amounts payable pursuant to this Resolution. In the event the income of said University of Illinois Hospital is insufficient in any fiscal year to make the annual payment specified in this Resolution, then any deficiency for such fiscal year may be deferred and paid in a subsequent fiscal year or years. Nothing contained in this Resolution shall be construed as creating any liability or indebtedness of the University of Illinois in excess of the funds in the hands of the Treasurer of the University which may be properly applied to the payments hereunder when due in accordance with the terms hereof, nor as requiring the University of Illinois to take any action or make any payment which would constitute an ultra vires act or a violation of the laws of the State of Illinois. If at any time the State of Illinois, by law, directs the University of Illinois to reduce or discontinue the payments provided hereunder, the Resolution may be amended accordingly.