Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 685]

EXTRACTED TEXT FROM PAGE:

674

BOARD OF T R U S T E E S

[June 16

indefeasible title in fee simple to the sites of the facilities subject only to current taxes not in default; that it will not further encumber said property or the income therefrom and that it will not, while any Bonds are outstanding hereunder, encumber the tide to or pledge or agree to pay to others the income from any of the said facilities; that it will within three months after the same shall accrue pay and discharge or cause to be paid and discharged, all lawful claims and demands of mechanics, laborers, and others which if unpaid might by law become liens upon the facilities or the sites thereof unless contested in good faith and by appropriate legal proceedings. Any assessment or attempt to assess property shall not be considered an encumbrance within the meaning of this Section so long as the University takes proper action to prevent judgment being entered against said property. Nothing contained in this Resolution shall be construed to prevent the University from using any portion of land included in a facility site, other than the specific land on which the facilities are located, for any lawful purposes so long as the use and occupancy of the facilities are not impaired. Any facility site, or portion thereof, used as a parking lot may be used for purposes other than parking so long as (1) the University provides, in addition to the parking spaces provided in the Project, and any other facility for the account of which additional Bonds have been issued, not fewer than 1,396 University owned parking spaces located in the Medical Center District, or the immediate vicinity thereof, and serving the Medical Center Campus and the revenues to be derived therefrom are pledged for the benefit of the Bond holders and held and applied as in Article Five provided, or (2) the Net Income Available for Debt Service for each succeeding fiscal year thereafter (after giving effect to the elimination of parking spaces and the substitution, if any, of other spaces) shall be equal to or greater than 1.3 times the amount to become due in each succeeding fiscal year for the payment of principal of and interest on the Bonds then outstanding hereunder. SECTION 7.03. To Pay Principal and Interest. T h a t it will duly and punctually pay or cause to be paid the principal sum and the interest accruing on said principal, on each and every one of the Bonds issued or to be issued hereunder, at the dates and places, and in the manner provided in said Bonds, and in the coupons thereunto appertaining, according to the terms thereof. SECTION 7.04. Taxes. T h a t it will pay and discharge all taxes, assessments, and Governmental charges which shall be imposed upon the facilities provided, however, that the University shall not be required to pay any such tax, assessment, charge, or claim so long as the University in good faith and by appropriate legal proceedings shall contest the validity thereof or its enforceability as a lien, and provided further that any such delay occasioned thereby shall not subject the facilities or any part thereof to forfeiture or sale. SECTION 7.05. Payment of Bond Holders' Costs and Expenses. T h a t it will pay all and singular the costs, charges, and expenses including reasonable attorney fees incurred or paid at any time by the holder of any of the Bonds because of the failure on the part of the University to perform, comply with, and abide by each and every of the stipulations, agreements, conditions, and -covenants of the Bonds and this Resolution, or either of them. SECTION 7.06. Construction of New Facilities, Maintenance, Repairs, Application of Income, Operation of Additional Facilities. T h a t following the issuance of each series of Bonds under this Resolution it will cause the facilities for the account of which such Bonds were issued to be constructed with all reasonable dispatch; that it will at all times from income made available for such purpose maintain, preserve, and keep all the facilities and all additions and betterments thereto and every part and parcel thereof in good repair, working order, and operating condition'; that it will Continuously operate the facilities on a revenue-producing