Proceedings of the Board of Regents (1936-1939)

SECOND OCTOBER MlEETING, 1938 741
All interest shall be payable semiannually on the fifteenth day of April and
the fifteenth day of October in each year.
Section 2. The said Health Service Bonds shall be substantially in the following form:
State of Michigan
UNIVERSITY OF MIICHIGAN HEALTH SERVICE BOND
No.............. $1,000.00
Know all men by these presents that The Regents of the University of
Michigan, a body corporate, created by and existing under the Constitution of
the State of Michigan, hereinafter sometimes called "Obligor," for value received,
promises to pay to bearer, or if this Health Service Bond be registered, to the
registered owner thereof, solely from fees to be charged students of the University of Michigan, as part of their tuition fee, for the services, treatments, and
benefits to which said students are entitled from the Health Service of the University of Michigan (the Obligor agreeing to charge, so long as this Health
Service Bond shall remain outstanding, each student of the University of Michigan, as part of his tuition fee, a special fee for the services, treatments, and
benefits to which said student is entitled from the Health Service of the University of Michigan, which in the aggregate shall be sufficient to provide funds to
meet all payments of principal and interest on all outstanding Health Service
Bonds as the same shall become due), One Thousand Dollars, on the fifteenth day
of............................... 19..., unless sooner redeemed at Ann
Arbor Trust Company, of Ann Arbor. Michigan, hereinafter sometimes called
"Trustee," with interest thereon from the date hereof at the rate of three and
one-half per cent (3%2%) per annum, payable semiannually on the fifteenth day
of April and the fifteenth day of October in each year, in accordance with and
on presentation and surrender of the interest coupons attached hereto. Both
principal and interest are payable in lawful money of the United States of
America.
This Health Service Bond is one of an issue of an aggregate principal amount
of Two Hundred Twenty-five Thousand Dollars ($225,000.00), designated as
"University of Michigan Health Service Bonds" all issued under and pursuant to a
Trust Agreement executed by the Obligor and the Trustee as of October 15, 1938,
to which Trust Agreement reference is hereby made for a description of the
nature and extent of the obligations and security, and the rights of the holders
of the Health Service Bonds, and the Trustee in respect to such security.
The Obligor and Trustee reserve the right to redeem this Health Service Bond
on any interest payment date, providing the Trustee shall give notice to the
holder of their intent to redeem this bond, 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, should this bond be registered with the Trustee, by giving notice of such redemption by mailing written
notice of the same to the registered owner hereof at least two (2) weeks before
said date of redemption.
Each and all bonds redeemed prior to maturity shall be redeemable on 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.
If called for redemption and if sufficient funds shall have been deposited
for the payment hereof, this Health Service Bond shall cease to bear interest from
and after the date fixed for redemption, and the coupons maturing thereafter
shall be null and void.
This Health Service Bond may be registered by the holder hereof at the
office of the Trustee, and if so registered, the principal hereof shall be payable
only to the registered holder; and when so registered, this Health Service Bond
shall pass only by transfer upon the books of the Trustee, unless the last transfer
on such books shall have been made to bearer, in which case, it shall pass by
delivery as before registration. Registration of this Health Service Bond shall
not affect the payment of interest hereon or the negotiability of the coupons
hereto attached, which shall at all times pass by delivery and be payable to
bearer.
No recourse shall be had for the payment of principal or interest on this
Health Service Bond or any claim based thereon against the State of Michigan,
the Obligor, or any member of the Obligor or any officer or agent thereof, or as
individuals, either directly or indirectly; and the liability of the Obligor, as a
body corporate, shall be limited to the fees to be charged students of the University of Michigan, as part of their tuition fee, for the services, treatments, and
benefits to which said students are entitled from the Health Service of the Uni