Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 678]

EXTRACTED TEXT FROM PAGE:

1976]

UNIVERSITY OF ILLINOIS

667

In the event of the payment of a portion of the principal amount of any fully registered Bond registered in the name of any initial purchaser in whose name Bonds of that series were first registered and named in a written order of an Authorized Officer filed with the depository and stating that the provisions of this paragraph shall be applicable thereto, or registered in the name of any subsequent holder for the benefit of whom the University shall elect that the provisions of this paragraph shall be applicable thereto (which election shall be subject to the condition that such subsequent holder shall first agree not to make any sale or transfer of any Bond or Bonds registered in its name without presentation of such Bond or Bonds for transfer and exchange), then in such event the University shall make payment to such Bond holder without requiring presentation of such Bond and, in lieu of delivering a new Bond or Bonds of an aggregate principal amount equal to the unredeemed portion of the principal amount of such Bond, the University shall, in its letter transmitting payment to such Bond holder, instruct such holder to endorse such payment on such Bond and a written representation from such holder to the University that such payment has been so endorsed shall be conclusive evidence of such endorsement and payment. SECTION 3.02. Pro Rata Redemption among Series. In any case of the redemption at the option of the University of less than all of the outstanding Bonds then subject to redemption, no Bonds of any series may be redeemed unless Bonds of each other series then subject to redemption are redeemed at the same time in proportion to the amount of each such Series originally issued; provided, however, that in any case of the redemption of all of the outstanding Bonds of any one or more series, as a result of or in anticipation of the refunding or refinancing of one or more such series by the application of funds derived from other borrowings or the issuance of additional Bonds hereunder, no Bonds of any other series need be redeemed unless so required in the resolution supplemental hereto, creating or authorizing any additional series of Bonds. Nothing in this section shall be deemed to restrict the redemption by the University of a portion of the Bonds of any Series out of surplus funds remaining in a Construction Fund Account held for the account of Bonds of such series in any case where the University is required or permitted to redeem such Bonds out of such surplus funds. SECTION 3.03. Selection of Bonds for Redemption. In case the University shall have elected to redeem less than all of the outstanding Bonds of a single series and maturity, the Bonds to be redeemed shall be selected by lot except as herein otherwise expressly provided. In each such instance the University shall, at least five days before the date upon which the first publication of the notice of redemption hereinbefore mentioned is required to be made (or the mailing of such notice in case no publication is required as hereinafter specified), draw by lot, from the outstanding Bonds of such series and maturity, in any manner deemed by it proper, the identifying numbers of the Bonds to be redeemed. In any such selection by lot each Bond of a denomination in excess of $5,000 shall be given a separate number for each $5,000 of the principal amount thereof. SECTION 3.04. Deposit of Funds for Redemption. Said notice having been given, as above provided, the Bonds designated for redemption shall, on the date specified in such notice, become due and payable, at the then applicable redemption price, and on or before the day preceding the date fixed for redemption the University shall deposit with The First National Bank of Chicago or its successor in the City of Chicago, Illinois, as depository, the redemption price of the Bonds called for redemption and accrued interest thereon to the date fixed for redemption. Upon such deposit having been made and on presentation, if required, of such Bonds in accordance with such notice at the place at which the same are expressed in such notice to be redeemable, with all appertaining coupons, if any, maturing after said redemption date, such Bonds shall forthwith after the making of such deposit be