Proceedings of the Board of Regents (1963-1966)

JUNE MEETING, 1966

1537

APPENDIX B
UNIVERSITY OF MICHIGAN DORMITORY
PROJECT II OF CEDAR BEND HOUSES
APPROVAL OF LOAN AGREEMENT
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
PROJECT NO. CH-MICH-101(D)
CONTRACT NO. H(402)-2687
Pursuant to Regents' authorization (R.P., October, 1964, pages 573
and 574), an application was made to the Housing and Home Finance
Agency for a loan in the amount of $2,500,000 to cover a part of the cost
of construction of Project II of Cedar Bend Houses.
The Government made a reservation of funds for Project II of
Cedar Bend Houses and designated that as Project CH-Mich-101(D).
The Government has now tendered a Loan Agreement entitled Project
CH-Mich-101(D), Contract No. H(402)-2687. The proposed agreement, a copy of which is attached hereto, provides that The Regents of
the University of Michigan, therein referred to as the Borrower, will
sell, and the Government, acting by and through the Secretary of
Housing and Urban Development, will purchase $2,500,000 aggregate
principal amount of bonds to be designated "University of Michigan
Dormitory Bonds of 1966" at their par value plus accrued interest at the
rate of 3% per annum.
The said agreement recites that the proceeds from the sale of the
bonds, together with other funds provided by the Borrower from other
sources, will be used to pay the development costs of the project estimated to be $3,760,000. The Loan Agreement contains the following
description of the project:
"The Project shall consist of five new dormitories to provide
housing and appurtenant facilities for approximately 604 men and
women graduate students."
The Loan Agreement contains the standard clauses pledging only the
income of the project to the repayment of the loan. The project was
started in August, 1965, and is scheduled for completion in 1967.
RESOLUTION APPROVING AND PROVIDING FOR THE
EXECUTION OF A LOAN AGREEMENT AND
NUMBERED CONTRACT NO. H(402)-2687 BY AND BETWEEN
THE REGENTS OF THE UNIVERSITY OF MICHIGAN
AND THE
UNITED STATES OF AMERICA
WHEREAS, Under date of October 23, 1964, The Regents of the
University of Michigan (hereinafter sometimes referred to as the
Borrower) authorized application to the Housing and Home Finance
Agency-College Housing Program for a loan under Title IV of the
Housing Act of 1950, as amended, in the amount of $2,500.000 to cover