Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 684]

EXTRACTED TEXT FROM PAGE:

1976]

UNIVERSITY OF ILLINOIS

673

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least 2¥i% of the estimated total Project cost to commence construction of the Project; the Board of Trustees expects that over 8 5 % of the spendable proceeds of the Series 1976 Bonds, including investment proceeds, will be expended within three years following the date of issue of said Bonds, for the purpose of paying the cost of the Project; work on the Project is expected to proceed with due diligence to completion; the Project has not been and is not expected to be sold or otherwise disposed of in whole or in part prior to the last maturity of the Series 1976 Bonds; all of the principal proceeds of the Series 1976 Bonds are needed for the purpose stated in the form of bond above set out, including expenses incidental to such purpose and to the issuance of the Series 1976 Bonds; and to the best of the knowledge and belief of the Board of Trustees, there are no facts, estimates, or circumstances that would materially change the conclusions and representations set out in this Section.

Said Board of Trustees also certifies and further covenants that so long as any of the Series 1976 Bonds remain outstanding, moneys on deposit in any fund or account in connection with the Series 1976 Bonds, whether or not such moneys were derived from the proceeds of the sale of said bonds or from any other sources, will not be used in a manner which will cause the Series 1976 Bonds to be "arbitrage bonds" within the meaning of Section 103(d) of the Internal Revenue Code of 1954, as amended, and any lawful regulations promulgated or proposed thereunder, including proposed Treas. Reg. §§1.103-13 and 1.103-14, as the same presently exist, or may from time to time hereafter be amended, supplemented, or revised. The Board of Trustees reserves the right, however, to make any investment of such moneys permitted by Illinois law if, when, and to the extent that said Section 103(d) or regulations promulgated thereunder shall be repealed or relaxed or shall be held void by final decision of a court of competent jurisdiction, but only if any investment made by virtue of such repeal, relaxation, or decision would not, in the opinion of counsel of recognized competence in such matters, result in making the interest on the Series 1976 Bonds subject to Federal income taxation. Article Seven — Additional Covenants of the University The Board of Trustees of the University of Illinois hereby covenants and agrees as follows: SECTION 7.01. Authority for Bonds. That it is duly authorized under the laws of the State of Illinois and under all other applicable provisions of law to create and issue the Bonds herein provided for, and to pledge and apply the net income of the facilities as herein provided; that all corporate and other action on its part for the creation and issuance of the initial issue of Bonds has been duly taken; that said Bonds when issued and in the hands of the holders thereof will be valid and enforceable obligations of the University according to the import thereof; that this Resolution is and will remain a valid Resolution to secure the payment of said Bonds and that the University has complete and lawful authority and privilege to acquire, construct, equip, operate, enlarge, improve, maintain, control, and manage the facilities as herein provided. SECTION 7.02. Right to Use and Occupancy of the Facilities and Not to Encumber Same. T h a t it hereby warrants that it has a valid and existing right to the use and occupancy of the facilities and the sites thereof and the right to construct, equip, operate, enlarge, improve, maintain, control, and manage the facilities and, except for parking spaces located on leased land, it, or the State of Illinois, hat