Proceedings of the Board of Regents (1936-1939)

600

JULY MEETING, 1938

Shirley W. Smith, J. C. Christensen, and H. G. Watkins to furnish such information as the Government may request.
Be it Resolved, By the Regents of the University of Michigan, a constitutional corporation:
That either Alexander G. Ruthven, President, or Shirley W. Smith, VicePresident and Secretary, be and he is hereby authorized to execute and file
an application on behalf of the Regents of the University of Michigan, a constitutional corporation, to the United States of America for a grant to aid in
financing the construction of dormitories for men students.
That Shirley W. Smith, Vice-President and Secretary, or J. C. Christensen,
Controller, or H. G. Watkins, Assistant Secretary, any or all of them, be and
they are hereby authorized and directed to furnish such information as the
United States of America through the Federal Emergency Administration of
Public Works may reasonably request in connection with the application which
is herein authorized to be filed.
Regent Lynch reported orally upon his trip to Chicago of July 21
to headquarters in that city of the Public Works Administration, and
of his confidence that the grant would be made at an early date.
The Secretary placed on file commitment under date of July 25
from the Ann Arbor Trust Company as follows. A schedule of principal maturities was attached to the commitment but is not reprinted in
the Regents' Proceedings. Eight signed copies of this commitment
have been filed with the Public Works Administration in Chicago in a
letter written by Regent Lynch under date of July 23 and mailed from
Ann Arbor July 25:
Mr. Shirley W. Smith
Vice-President and Secretary
University of Michigan
Ann Arbor, Michigan
Dear Mr. Smith:
You are hereby advised that this Trust Company is prepared to purchase
from the Regents of the University of Michigan $1,300,000 of dormitory revenue
bonds, the proceeds from the sale of these bonds together with a grant from the
Federal Emergency Administration of Public Works of $945,000 to be used for
the purpose of constructing dormitories providing housing and dining facilities
for 1,000 men students, 150 in a so-called "medical" unit and 850 in additions
to the present "Union" dormitory group. All necessary equipment and furnishings included.
The dormitory revenue bonds in the amount of $1,300,000 are to be issued
on the basis of the following terms and conditions:
Terms and Conditions of Loan
1. Amount of loan to be $1,300,000
2. Principal maturities to be 1X2 years to 30 years
3. Rate of interest 3 2% on $900,000, being maturities 1 2 to 23'2 years,
and 4% on $400,000, being maturities 23'2 to 30 years, all in accordance with
schedule attached
4. Loan callable not to exceed 101 and accrued interest on any principal
payment date
5. Bonds to be payable solely from the revenues of the dormitories
6. Payments to Trustee for payment of interest and principal to be $47,500
for the first year and not less than $74,000 for each year thereafter
7. Proper resolution of the Regents of the University of Michigan providing,
while any part of the loan remains unpaid, that light, heat, power, and water will
be furnished to the dormitories without charge
8. The required loan of $1,300,000 to be borrowed in the name of the Regents
of the University of Michigan. No recourse shall be had for the payment of
interest or principal against the state of Michigan or the Board of Regents for
the University of Michigan, or any of the members of the Board of Regents.
or any officers or agents thereof, either direct or indirect, except as to the revenues
of the dormitories
9. Loan is to be dated September 1, 1938 and to be due serially to and
including September 1, 1968