university of illinois - UIHistories Project

332 BOARD OF TRUSTEES [March 12
1 of each year, complete operating and income statements of said project, in
reasonable detail, for said preceding fiscal year.
(f) That it will faithfully and punctually perform or cause to be performed
all of the duties and obligations with reference to said project as are required by
the provisions of this resolution and the statutes under which the said bonds are
issued, including the completion and equipping of the aforesaid buildings and the
operation and maintenance of said buildings as herein provided, the making and
collecting of sufficient rates, fees, and charges for the use thereof, the segregation
of the income and revenues therefrom to the respective accounts created under the
provisions of this resolution, and the proper application of said funds.
(g) That as long as any of said bonds authorized to be issued hereunder shall
remain outstanding and unpaid, either as to principal or interest, or both, it will
maintain insurance on said buildings, including all equipment thereof, against loss
or damage by fire and windstorm and all other risks included in extended coverage
insurance in an amount not less than the full insurable value of said buildings.
Such insurance policy or policies shall be payable to The Board of Trustees of the
University of Illinois, and all moneys collected on account of loss or damage
covered by any such policy or policies of insurance shall be held in trust and shall
be used only for restoration of the property so damaged. In the event said funds
with other available moneys are insufficient to restore said property to its former
condition, then said funds shall be paid into the Bond and Interest Sinking Fund
Account and held for the benefit of the bondholders as their interest may appear.
(h) That as long as the funds and investments of the Bond and Interest Sinking
Fund Account are less than $680,000 plus the debt service requirements on the
outstanding bonds for the then current fiscal year, it shall procure and maintain
use and occupancy insurance on said buildings, the revenues of which are pledged
to the payment of the bonds, in an amount sufficient to enable it to deposit in the
Bond and Interest Sinking Fund Account, out of the proceeds of such insurance, an
amount equal to the sum that would normally have been available for deposit in
such account from the revenues of the damaged buildings during the time the
damaged buildings are non-revenue producing as a result of loss of use caused by
hazards covered by fire and extended coverage insurance.
SECTION 9. That the bonds authorized to be issued hereunder and from time
to time outstanding shall not be entitled to priority one over the other in the
application of the income and revenues derived from the collection of rents, rates,
fees, and charges for the use of the aforesaid buildings, or with respect to the
pledge of the revenue to be derived from the operation of said buildings or the
pledged fees and tuition.
SECTION 10. That it is hereby further covenanted and agreed that after the
issue and delivery of the bonds herein authorized and provided for to the purchaser
thereof, additional bonds to share ratably and equally with the bonds herebyauthorized
shall only be issued in the event that funds are necessary to pay the
cost of completing the project herein provided for in accordance with the plans and
specifications now on file in the office of the Physical Plant Department, Administration
Building, Urbana, Illinois, and in the event additional funds are necessary
to pay the cost of completing the project herein provided for, said bonds shall not
be issued until such time as the architects employed by the University for the construction
of said buildings have submitted a certificate to The Board of Trustees
of the University of Illinois setting forth an itemized statement of the work completed
to date, the cost thereof, and an itemized statement of the work yet to be
completed and the estimated cost of the work to be completed, and such certificate
and estimate shall be presented to and approved by said Board of Trustees preceding
the adoption of any resolution authorizing the issuance of additional bonds
to share ratably and equally in the revenues of said project. Any additional bonds
issued for the purpose of completing the project herein provided for, in accordance
with this section, shall be payable serially with principal and interest amortized
over a period not shorter than the remaining life of any of the then outstanding
bonds, with principal payments beginning not more than three years from date of
the additional bonds, in such manner as to make the total amount of principal of
and interest on the additional bonds due in each year approximately the same in
each year in which there is a maturity of principal.