Proceedings of the Board of Regents (1963-1966)

1024

SEPTEMBER MEETING, 1965

SECTION 2.2. The Note shall become due and payable two (2) years after the
date thereof, but in no event after December 31, 1967, and shall bear interest at
the rate of 2.75% per annum until maturity, but if said Note shall not be paid in
full at or before maturity, it shall bear interest from and after maturity at the rate
of 4% per annum. The interest shall be computed on the unpaid principal balance
from time to time outstanding.
ARTICLE 3
PREPAYMENT OF NOTE
SECTION 3.1. Upon fifteen (15) days' notice, the Board may, from time to
time, prepay the Note, in whole or in part.
SECTION 3.2. The Board may use any funds which it may legally use for such
purposes to prepay the Note.
ARTICLE 4
PAYMENTS ON AND SECURITY FOR THIE NOTE
SECTION 4.1. The Board covenants and agrees:
SECTION 4.2. That the principal indebtedness and the interest accruing on the
Note shall be paid from the Bond Proceeds and such proceeds are hereby impressed
with a lien and allotted to the Bank for the payment of the Note.
SECTION 4.3. That in the event the Bonds shall not be sold or ready for
delivery on the date of the maturity of the Note the Board shall take all action
necessary or required by the Government to secure an advance from it pursuant to
Section 10 of the terms and conditions attached and made a part of the Government
Loan Agreement in an amount to pay the principal amount of and the accrued
interest evidenced by the Note.
SECTION 4.4. That in the event the Note shall mature and for any reason the
funds mentioned in Section 4.3 of this Article shall not then be available to the
Board for the payment of the Note, in such event it shall take appropriate action
and do all things necessary to cause to be issued and sold revenue bonds in an
amount sufficient to pay the Note.
SECTION 4.5. That in the event the principal balance of the Note and accrued
interest remains unpaid for any reason one hundred twenty (120) days after the
maturity of the Note and the funds from sources mentioned in Sections 4.3 and 4.4
of this Article shall not be available to the Board for the payment thereof, the
Board shall cause to be deposited all of the Project Net Income in a special bank
account to be opened in the Bank, which bank account is impressed with a lien in
favor of and is allocated to the Bank to secure the payment of the Note, and all
funds so deposited shall be from time to time, and not less frequently than semiannually, paid by the Board to the Bank to be applied first upon accrued interest
and then upon principal of the Note.
ARTICLE 5
AFFIRMATIVE COVENANTS OF THE BOARD
SECTION 5.1. The Board covenants and agrees:
SECTION 5.2. That it has architect's estimates of the costs of constructing,
furnishing and equipping the Project and has estimated that the Project costs will
be $12,060,000 and that the contracts for the constructing, furnishing and equipping
the Project are or shall be in accordance with the plans, specifications and estimates.
SECTION 5.3. That it has or will allocate $7,060,000 which it may lawfully
use for the purpose to be used, together with the proceeds of the Note to pay the
costs of constructing, furnishing and equipping the Project.
SECTION 5.4. That if at any time it shall appear that the sum of $12,060,000
shall not be sufficient to pay the costs of constructing, furnishing and equipping the
Project, it will not expend further sums or let additional contracts until such time
as it has allocated additional funds which, together with the sums previously allocated and the proceeds of the Note, shall be sufficient to pay all of the costs of
constructing, furnishing and equipping the Project.