Proceedings of the Board of Regents (1936-1939)

AUGUST MEETING, 1936 15
A-To remit all the net income monthly to The Regents of the University of Michigan at Ann Arbor, Michigan.
B-To hold all of the principal funds so collected, and to invest and
reinvest the same at the express direction of The Regents of the
University of Michigan or their duly qualified Agent, and the
Detroit Trust Company, as Agent, is relieved from the liability or
responsibility of keeping said principal funds invested and reinvested; nevertheless the Detroit Trust Company, as Agent, shall
make such recommendations and suggestions to The Regents, or
their duly qualified Agent, relative to the sale or retention of investments, and relative to the investment and reinvestment of funds
as may, in the opinion of the Detroit Trust Company, as such
Agent, be advisable and to the best interests of First Party, and
this account.
II-To take such action by legal proceedings, or otherwise, as may be
necessary for the collection of amounts owing to First Party, and
to recover possession of any property covered by this agreement,
or for the general enforcement of any rights accruing to said First
Party, or to Second Party, as its Agent, in connection therewith;
with full power and authority to do all things which, in the opinion
of said Agent, may be necessary to expedite or enforce any rights
of the First Party, or to conserve its interests hereunder.
III —Second Party is hereby authorized to make or contract for any disbursements or expenses in connection with the assets covered by this
agreement, and the operation of this account, and to pay all reasonaule costs, charges and expenses incurred by it in the administration
thereof, which in its discretion and judgment may seem proper; and
those that are properly chargeable to income shall be charged thereto
and deducted therefrom before remittances of income shall be made,
and shall be deducted from gross income in determining the amount
of net income.
IV-To pay all taxes if any there be, and other legal assessments, costs,
and charges; to enter into any reorganization or refunding plans in
connection with any of the securities held hereunder; to extend
maturities, and to do any and all things in connection with the
handling and management of said securities which said Agent believes to be to the best interest of First Party.
V-Second Party, subject to the written approval of The Regents, or
their duly authorized Agent, is authorized to sell or contract to sell,
to suistltute or change, or otherwise dispose of, any and all assets
now or at any time included in this agreement.
VI-Second Party shall render to The Regents monthly statements of all
receipts and disbursements, and annually a statement of property,
setting forth all of the assets held hereunder and constituting the
principal of this account; said monthly statements shall be in the
customary form of duplicate ledger sheets, and such accounts and
statements shall le accounts stated, accepted and approved except
as to any items appearing therein to which written exceptions or
objections are male to the Second Party by the First Party within
thirty days from the mailing of said statements.
VII-Second Party shall receive for its ordinary services hereunder, as
contemplated, compensation on the following basis:
5% of the gross income collected by it from all the property held
hereunder.
Second Party shall also receive, as an investment service fee, 1%
of all principal funds invested by it hereunder.
In the event that extraordinary services not contemplated under the
terms of this agreement, shall be required of Second Party, it shall
be entitled to receive reasonable additional compensation therefor.