Proceedings of the Board of Regents (1936-1939)

722 SECOND OCTOBER MEETING, 1938
in the judgment of the Trustee, which price shall not be more than their face
value and accrued interest.
Section 3. The Obligor and the Trustee reserve the right to redeem said
Dormitory Revenue Bonds or any amount thereof upon any interest payment
date, in their inverse numerical order, upon the following terms, to-wit: by payment of the face value thereof, together with the amount of all matured interest
coupons and a premium of one per cent (1 %) of the face value thereof. The
Trustee shall notify the holders of Dormitory Revenue Bonds to be redeemed of
the intention to redeem, by publication at least twenty (20) days before the date
of redemption in a newspaper of general circulation in the City of Detroit, Michigan; and in addition thereto, when any Dormitory Revenue Bond to be redeemed
has been registered by the Trustee, the Trustee shall give the registered owner
thereof notice of such redemption by mailing written notice of the same to the
registered owner thereof at least two (2) weeks before said date of redemption.
Section 4. All Dormitory Revenue Bonds called for redemption shall cease to
bear interest after the date fixed for redemption, and the interest coupons thereto
attached maturing thereafter shall be null and void. Any Dormitory Revenue
Bond so called for redemption, when presented shall have attached thereto all
unmatured coupons. But the Trustee may, in its discretion, accept in lieu of
such coupons, indemnity satisfactory to the Trustee and the Obligor against
liability or loss on account of any unmatured coupon not presented therewith.
Section 5. If at any time during the period this Trust Agreement shall remain
in force and effect, the Trustee shall have in its possession the sum of Five
Thousand Dollars ($5,000.00), paid to it by the Obligor as herein provided,
which shall not be required for the establishment of a reserve fund for depreciation as herein set forth or which, in its sole judgment, will not be needed to meet
the next payment of principal and interest which shall accrue and become payable
on the next interest payment date, it shall use the same, insofar as is possible,
to retire said bonds; and if said Trustee shall have in its possession such funds
in the sum of One Thousand Dollars ($1,000.00), or any multiple thereof, then
said Trustee shall, at the request of the Obligor, and upon the deposit with it
of necessary expenses incidental to the calling of bonds for redemption, use the
same to retire outstanding Dormitory Revenue Bonds, Series II.
Section 6. All Dormitory Revenue Bonds and interest coupons purchased at
public or private sale or redeemed in the manner hereinbefore outlined shall be
cancelled by the Trustee and delivered to the Obligor.
Article III
Section 1. The Obligor agrees that all funds borrowed through the sale of
Dormitory Revenue Bonds shall be impressed with a trust for the following purposes, to-wit:
a) To be used, together with funds to be obtained by reason of Federal
Emergency Administration of Public Works grants, to pay all costs incidental to:
1. The erecting, furnishing, and equipping of a strictly modern dormitory,
adequate in size to house approximately three hundred fifty (350) female students attending the University of Michigan; and
2. The erecting, furnishing, and equipping of a strictly modern dormitory,
adequate in size to house approximately four hundred (400) male students attending said University; and
3. To pay the purchase price for such land as it shall be necessary to buy,
in the City of Ann Arbor, County of Washtenaw, and State of Michigan, to provide building sites on which to erect said dormitories; and
4. To pay the costs incidental to enlarging and expanding the present heating
and power plant of said University to make the same adequate to meet the needs
of the University.
b) Any balance which shall remain in the possession of the Trustee after
all costs incidental to acquiring necessary land to provide building sites for the
two new dormitories to be erected, the costs incidental to the constructing, furnishing, and equipping of said dormitories, including costs of landscaping, architects'
fees, etc., the costs of enlarging and expanding the present heating and power
plant of the University of Michigan to make the same adequate to meet the
needs of said University, and the interest on outstanding bonds during the period
of construction, and all financing costs have been paid, shall be used to retire
Dormitory Revenue Bonds, Series II, in the manner herein provided.
c) All funds borrowed through the sale of Dormitory Revenue Bonds and to
be used in connection with the purchase of land, the construction, furnishing, and
equipping of said dormitories, and the enlarging and expansion of the University