Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 619]

EXTRACTED TEXT FROM PAGE:

606

BOARD OF TRUSTEES

[May 15

T h e object a n d general character of the special business to be transacted was the approval of proceedings in connection with the issuance of the University of Illinois Auxiliary Facilities System Revenue Bonds, Series A through M , and including the following: (1) approval of the Official Statement, (2) approval and adoption of the Bond Resolution, (3) a p proval of the execution of the Contract of Purchase, (4) approval of the execution of the Escrow Agreement, (5) authorization for the exchange of bonds with the Department of Housing and U r b a n Development, (6) authorization for the execution of the bonds, (7) authorization of the comptroller to name an alternate paying agent, if necessary, (8) authorization for the disposition of funds held for the outstanding bonds to be refunded, a n d (9) ratification and confirmation of actions of officers a n d members of the board in connection with the sale and delivery of the bonds to purchasers. Approval of Proceedings in Connection with the Issuance of University of Illinois Auxiliary Facilities System Revenue Bonds, Series A Through M (1) On March 15, 1978, the Board approved the recommendation that the University proceed with a planned underwriting for an Advance Refunding Bond Issue encompassing all outstanding bonded indebtedness of the University as of April 12, 1978; and encompassing the outstanding existing indebtedness of the University of Illinois Foundation on certain athletic and recreational facilities, namely Memorial Stadium and the Intramural-Physical Education Building, at the Urbana-Champaign campus. On April 12, 1978, the Board adopted a resolution approving the "Preliminary Official Statement" presented to the Board at that meeting for the University of Illinois Auxiliary Facilities System Revenue Bonds, Series M. The Series M Bonds are being issued pursuant to the University of Illinois Revenue Bond Financing Act for Auxiliary Facilities, as amended, Illinois Revised Statutes, Chapter 144, Sections 48.1-48.7a. The proceeds from the sale of the M Bonds will be used (i) to provide a part of the funds to advance refund $56,660,000 principal amount of the Board's outstanding revenue bonds by purchasing United States Government Securities which will be deposited in the Bond Escrow Fund, the maturing principal of and interest on which, together with other escrowed United States Government Securities, will be sufficient to pay maturing principal of, redemption premium, if any, and maturing interest on the outstanding revenue bonds of the Board other than the Board's revenue bonds owned by the United States Department of Housing and Urban Development, (ii) to acquire the Athletic and Recreational Facilities (Memorial Stadium and Intramural-Physical Education Building), (iii) to pay certain expenses of creating the System including expenses relating to issuance of the Bonds, and (iv) to deposit $2,500,000 into the debt service reserve. In addition to the Series M Bonds, and upon delivery of the Series M Bonds, the University will exchange $20,074,000 principal amount of its outstanding revenue bonds owned and held by the United States Department of Housing and Urban Development for $20,074,000 principal amount of Series A through L Bonds to be issued under the Bond Resolution. The Series A through M Bonds are equally aecured under the Bond Resolution. The Series M Bonds will be issued as coupon bonds, registrable as to principal only, in the denomination of $5,000 each, and as fully registered bonds without