Proceedings of the Board of Regents (1963-1966)

1554

JUNE M3EETING, 1966

shall be admitted to any share or part of this Agreement or to any
benefit arising therefrom.
SECTION 40. BONUS OR COMMISSION. By execution of the Loan
Agreement the Borrower represents that it has not paid and, also, agrees
not to pay, any bonus, commission, or fee for the purpose of obtaining
an approval of its application for the loan hereunder.
CFA-520-1
(6-64)
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
COMMUNITY FACILITIES ADMINISTRATION
COLLEGE HOUSING LOAN PROGRAM
EXHIBIT A
TERMS AND CONDITIONS SUPPLEMENT ONE
The Terms and Conditions, Form CFA-520 (4-63) are hereby
modified as follows:
Section 12 is hereby revised to read as follows:
SECTION 12. CONSTRUCTION ACCOUNT.
The Borrower shall set up in a bank or banks which are members of the
Federal Deposit Insurance Corporation, or with the fiscal agency of the Borrower fixed by law, a separate account or accounts (herein collectively called
the 'Construction Account") into which shall be deposited any temporary loans,
Government advances, and proceeds from the sale of the Bonds (except accrued
interest payments), and the additional funds, if any, required by the provisions
of the Loan Agreement to be furnished by the Borrower in order to assure the
payment of all Project Costs. Moneys in the Construction Account shall be
expended only for such purposes as shall have been previously specified in the
project cost estimates approved by the Government.
Where the moneys on deposit in the Construction Account exceed the estimated disbursements on account of the Project for the next 90 days, the Borrower may deposit such excess funds in time deposits in banks that are members
of the Federal Deposit Insurance Corporation or may invest such excess funds
in direct obligations of, or obligations the principal of and interest on which are
guaranteed by, the United States Government, which shall mature not later than
18 months after the date of such investment and which shall be subject to
redemption at any time by the holder thereof. The earnings from any such
deposits or investments shall be deposited in the Construction Account by the
Borrower.
Any moneys remaining in the Construction Account after all costs of the
Project have been paid shall be promptly used to the extent possible for the
redemption of Bonds, and any residue shall be deposited in the Bond and
Interest Sinking Fund provided for in the Loan Agreement. Provided, however,
the Borrower shall have the right to withdraw any such moneys representing
additional funds deposited into the Construction Account pursuant to Section 13
hereto, to finance the total project cost, which are found to be unnecessary for
such purpose.
Section 20 is hereby revised to read as follows:
SECTION 20. INSURANCE DURING CONSTRUCTION.
The Borrower shall require that each of its contractors and all subcontractors shall maintain during the life of his contract Workmen's Compensation
Insurance, Public Liability, Property Damage, and Vehicle Liability Insurance,
in amounts and on terms satisfactory to the Government. Until the project is
completed and accepted by the Borrower, the Borrower is required to maintain