Proceedings of the Board of Regents (1963-1966)

DECEMBER MEETING, 1965

1177

Said bonds shall bear interest at a rate or rates to be determined on
public sale thereof, but in any event not exceeding five per cent (5%)
per annum, payable on October 1, 1966, and semi-annually thereafter on
April 1st and October 1st of each year, both principal and interest to be
payable in lawful money of the United States of America at The Detroit
Bank and Trust Company, of Detroit, Michigan, Trustee under the
Trust Agreement herein referred to, or at the option of the holder at
Chemical Bank New York Trust Company, New York, New York, in
such coin or currency of the United States of America as may be, on the
respective dates of payment thereof, legal tender for the payment of
debts due the United States of America.
Bonds maturing in the years 1967 to 1976, inclusive, are not subject
to redemption prior to maturity.
Bonds maturing in the years 1977 to 1996, inclusive, may be
redeemed prior to maturity, at the option of the Obligor, on any interest
payment date on or after April 1, 1976, at par and accrued interest to
the date fixed for redemption, plus premiums expressed in percentages
of par as follows:
3% of the par value of each bond redeemed prior to April 1, 1982;
2% of the par value of each bond redeemed on or after April 1, 1982,
but prior to April 1, 1987;
1% of the par value of each bond redeemed on or after April 1, 1987,
but prior to April 1, 1992.
No premium shall be paid on bonds redeemed on or after April 1,
1992.
Thirty days notice of the call of bonds for redemption shall be given
by publication in a paper circulated in the State of Michigan, which
carries, as part of its regular service, notices of sale of municipal bonds,
and in case of registered bonds thirty days notice shall be given by mail
to the registered holder at the registered address. Bonds so called for
redemption shall not bear interest after the date fixed for redemption,
provided funds are on hand with the Trustee to redeem said bonds.
6. The bonds shall be payable to bearer and transferable by delivery
unless and until the same shall have been registered by the holder
thereof, or his attorney thereunto duly authorized, in writing, on books
to be kept for such purpose by the Trustee, which registration shall be
endorsed by the Trustee on the bond so registered. The principal of any
bond so registered shall thereafter be payable only to the registered
owner thereof, and any payment so made shall be valid and effectual to
satisfy and discharge the liability upon such bond to the extent of the
sum or sums so paid: Provided, However, that the registration of any
bond shall not in any way affect payment of interest thereon or the
negotiability of the interest coupons thereto attached, which shall be
payable to bearer in accordance with the terms of and on presentation
of said coupons. Any bond so registered may be transferred on the books
of the Trustee by the registered owner thereof, or his attorney thereunto
duly authorized, in writing, which transfer shall be endorsed thereon by
the Trustee, and any bond registered to bearer shall thereupon again
become payable to bearer and transferable by delivery in the same
manner as before the registration thereof.