Proceedings of the Board of Regents (1963-1966)

960 JULY MEETING, 1965
SECTION 28. PAYMENTS TO CONTRACTORS. Not later than the fifteenth day of
each calendar month the Borrower shall make a partial payment to each construction
contractor on the basis of a duly certified and approved estimate of the work performed during the preceding calendar month by the particular contractor, but shall
retain until final completion and acceptance of all work covered by the particular
contract a reasonable amount, specified in the contract, sufficient to insure the
proper performance of the contract.
SECTION 29. AUDIT AND INSPECTION. The Borrower shall require of its contractors that the Government's authorized representatives be permitted, and it will
itself permit them, to inspect all work, materials, payrolls, records of personnel,
invoices of materials and other relevant data and records appertaining to the development of the Project; and shall permit the Government's authorized representatives
to audit the books, records, and accounts of the Borrower appertaining to the loan
and the development of the Project.
SECTION 30. GOVERNMENT FIELD EXPENSE. The Government will bill the Borrower for payment of the fee specified in the Loan Agreement to cover audit and
inspection costs and payment will be due from the first funds deposited in the
Construction Account. In the event of termination of the Loan Agreement through
the sale of all of the Bonds to private purchasers, the Borrower shall be enitled to
a refund of all or a proportionate part of the fee. The refund shall be in such an
amount as the Government determines to be equitable under the circumstances.
SECTION 31. SIGNS. The Borrower shall cause to be erected at the site of the
Project, and maintained during construction, signs satisfactory to the Government
identifying the Project and indicating the fact that the Government is participating
in the development of the Project.
SECTION 32. RETENTION OF TITLE. SO long as the Government holds any of
the Bonds, the Borrower shall not dispose of its title to the Project or to any facility
the revenues of which are pledged as security for the Bonds, or to any useful part
thereof, including any facility necessary to the operation and use thereof, and the
lands and interests in lands comprising their sites. except as permitted in the Loan
Agreement and the bond authorizing proceedings.
SECTION 33. INSURANCE ON COMPLETED PROJECT.
(a) Fire and Extended Coverage. Upon acceptance of the Project from the
contractor, the Borrower shall, if such insurance is not already in force, procure
Fire and Extended Coverage Insurance on the Project and, upon receipt of funds
acquired pursuant to the Loan Agreement, the Borrower shall, if such insurance is
not already in force, procure Fire and Extended Coverage Insurance on any
other of its buildings the revenues of which are pledged to the security of the
loan. The foregoing Fire and Extended Coverage Insurance shall be maintained
so long as any of the Bonds are outstanding and shall be in amounts sufficient to
provide for not less than full recovery whenever a loss from perils insured against
does not exceed 80 percent of the full insurable value of the damaged building.
Where a Trustee is to be or has been designated in connection with the Bonds,
each such insurance policy shall be acceptable to the Trustee and shall contain a
clause making all losses payable to the Trustee as its interest may appear.
In the event of any damage to or destruction of any of said building or
buildings, the Borrower shall promptly arrange for the application of the insurance
proceeds for the repair or reconstruction of the damaged or destroyed portion
thereof, or retire the outstanding bonds.
(b) Boiler Insurance. Upon acceptance of the Project from the contractor,
the Borrower shall, if such insurance is not already in force, procure and maintain,
so long as any of the Bonds are outstanding, Boiler Insurance covering any steam
boilers servicing the Project, in a minimum amount of $50,000.00.
(c) Liability Insurance. Upon receipt of any funds acquired pursuant to the
Loan Agreement, the borrower shall, if such insurance is not already in force.
procure and maintain, so long as any of the Bonds are outstanding, Public
Liability Insurance with limits of not less than $100,000 for one person and
$300,000 for more than one person involved in one accident to protect the
borrower from claims for bodily injury and/or death which may arise from the
borrower's operations, including any use or occupancy of its grounds, structures
and vehicles, and including any non-owned vehicles operated for the benefit of the
borrower. The borrower shall also maintain Vehicle Property Damage Insurance
with limits of not less than $10,000.
(d) Use and Occupancy Insurance. Immediately upon occupancy of any portion
of the Project and so long thereafter as the funds and investments of the Bond and