Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 560]

EXTRACTED TEXT FROM PAGE:

1978]

1/25 1/26 1/30 1/31 1/31 $1 000 000 1 000 000 3 000 000 2 000 000 25 000

UNIVERSITY OF ILLINOIS

547

First National Bank of Springfield 7.30 percent certificate of deposit due 7/27/78 Champaign National Bank 7-W percent certificate of deposit due 4/26/78 First National Bank of Chicago 7 percent certificate of deposit due 5/18/78 Chicago Tokyo Bank 7W percent certificate of deposit due 4 / 2 8 / 7 8 . . U.S. Treasury bills due 3 / 2 3 / 7 8 . .

7.30 7.25 7.00 7.20 5.62

$1 000 000 00 1 000 000 00 3 000 000 00 2 000 237 53 24 802 50

On motion of Mr. Livingston, this report was approved as presented.

Designation of Member of the Rice Foundation

(29) The University has been made a party to litigation pending in Cook County and DuPage County, Illinois, in which the validity of certain 1974 amendments to the Articles of Incorporation and the Bylaws of an Illinois not-for-profit corporation known as the Rice Foundation is in question. Under the 1974 amendments each of the governing boards of "University of Illinois Medical School, Northwestern University School of Medicine, Loyola University School of Medicine, Rush Medical College at the Rush-Presbyterian-St. Luke's Medical Center, and Medical Research Institute of Michael Reese Medical Center" are to designate and certify, from time to time, one person to act as a member of the corporation. The Board of Directors consists of the five members so designated and four at-large directors selected by the five members. The purpose of the Rice Foundation under the 1974 amendments is to render financial aid and support in the form of scholarships and grants to exceptional individuals pursuing studies in the fields of medicine and medical research at or under the auspices of one of the five designated institutions. Scholarship and grants are to be awarded on the basis of academic achievement, potential contribution to the medical profession, and financial need. They may be awarded by the Board of Directors in an aggregate amount equal to the sums required to be distributed by the Rice Foundation in order not to become subject to the tax on undistributed income imposed by the Internal Revenue Code. To the extent the Board of Directors does not award scholarships or grants in any year in such amount, the balance is to be distributed equally to the five institutions for their general purposes. The university counsel states that it is appropriate at this time for the Board of Trustees to designate a. member of the Rice Foundation. Accordingly, it is recommended (a) that Ronald W. Brady be designated to act on behalf of the University of Illinois as a member of the Rice Foundation until further action of the Board of Trustees, (b) that the secretary of the Board of Trustees be authorized to certify such designation to the Rice Foundation, and (c) that the following resolutions be adopted: Resolved by The Board of Trustees of the University of Illinois that Ronald W. Brady is designated to act on behalf of the University Of Illinois as a member of the Rice Foundation, a not-for-profit corporation of the state of Illinois, until further action by this Board of Trustees; and Resolved, further, that the secretary of this Board of Trustees is authorized and directed to certify to Rice Foundation, and to others as appropriate from time to time, such designation by this Board of Trustees and any revocation thereof.

On motion of Mr. Neal, the recommendations were approved,