Proceedings of the Board of Regents (1963-1966)

DECEMBER MEETING, 1965

1167

Dated-November 1, 1960. Due-November 1, 1967
Amount Outstanding (June 30, 1965)-$970,000
3. North Campus Center-Term Loan
Original Amount-$600,000
Dated-April 1, 1965. Due-April 1, 1975
Amount Outstanding (June 30, 1965)-$600,000
SECTION 5.05. DEBT SERVICE RESERVE FUND. The Obligor covenants and agrees that it will deposit with the Trustee from the proceeds
of the sale of the bonds issued hereunder the sum of Three Hundred
Thirty Thousand ($330,000.00) Dollars, to be held by the Trustee in a
separate fund or account for the sole purpose of meeting any payments
of principal and interest on the bonds authorized by this Trust Agreement, which may be necessary by reason of deficiency on the part of
Obligor in meeting its obligations as provided in Section 5.02 of this
Trust Agreement.
Withdrawals from the Debt Service Reserve Fund shall be promptly
replaced from the first Student Fees received thereafter which are not
required to meet the allocations for payment of principal and interest
required by Section 5.02 hereof or for paying the principal and interest
and other requirements for the outstanding obligations described in
Section 5.04 hereof or for meeting the principal and interest requirements for additional obligations of equal standing with the bonds herein
authorized which may be hereafter issued and which are payable out of
Student Fees.
Moneys held in said Debt Service Reserve Fund may be invested by
the Trustee in United States Government obligations and the income
therefrom to be deposited, as received, into the Debt Retirement Fund.
The moneys in said Debt Service Reserve Fund shall finally be
applied in payment of the bonds of this issue at such time as the balance
in said fund shall be sufficient to complete payment in full of the bonds.
including interest thereon or any call premiums.
SECTION 5.06. OBLIGOR MAY USE OTHER FUNDS FOR RETIREMENT
OF BONDS. In making any payments to the Trustee herein provided for,
or for the purpose of retiring, by redemption or otherwise, the bonds
issued hereunder, the Obligor reserves the right to use any funds in its
possession which it may legally use for such purpose.
SECTION 5.07. AUDITS AND ACCOUNTS. Obligor covenants and
agrees that it will keep and maintain accurate books and records relating
to the collection of Student Fees and the allocation thereof, the enrollment of students in the University and the payments to the Trustee as
provided in Sections 5.02 and 5.05 of this Trust Agreement, which said
books and records shall be open for inspection by any bondholder at any
reasonable time. Said books and records shall be audited annually by a
certified public accountant, and a copy of said audit sent to the Trustee
not later than four (4) months after the end of each fiscal year.
SECTION 5.08. LIMITATIONS OF OBLIGATION. No recourse under
any obligation, covenant, stipulation or agreement contained in this
Trust Agreement or in any bond or coupon issued hereunder or caused
by the creation of any indebtedness hereby authorized, shall be had