Proceedings of the Board of Regents (1939-1942)

16

SECOND AUGUST MEETING, 1939

funds) until it shall have received from the Obligor assurance satisfactory to the
Trustee that sufficient funds to complete said dormitory or group of dormitories
and to furnish and equip the same, or to complete the work incidental to the
enlarging and expanding of said heating and power plant, as herein contemplated,
have been provided for.
Section 6. The Obligor covenants and agrees that any funds which shall
remain in any construction account or contingency fund referred to in this Article
which shall not be needed to pay the costs of construction and the costs of furnishings and equipment for which the same has been set aside and segregated, shall
be used for the following purposes:
a) To supplement any other account or fund hereinbefore referred to which
shall not have sufficient funds to pay all costs incidental to the construction and
furnishings and equipment chargeable to it and which it is contemplated will be
paid therefrom;
b) To pay costs incidental to the refinancing of the Certificates of Indebtedness and Dormitory Revenue Bonds as herein contemplated;
c) To call and redeem University of Michigan Dormitory Revenue Bonds,
Series B, issued hereunder.
Section 7. The Obligor covenants and agrees that it will not terminate any
bonds guaranteeing the performance of the construction contracts now in force
and effect between the Obligor and any contractor or subcontractor engaged in
constructing the dormitories hereinbefore enumerated, or in enlarging and expanding the University of Michigan heating and power plant, or consent to the
alteration or modification of the terms and conditions of the same without first
obtaining the written consent of the Trustee to such termination, alteration, or
modification.
Section 8. The Obligor shall carry or cause to be carried such insurance
during the balance of the time that any of the dormitories herein enumerated are
under construction or during the balance of the time construction work is being
carried on upon the University of Michigan heating and power plant as the Trustee
may request. Such insurance shall be payable to the Trustee as its interest shall
appear.
Article V
Definitions
The term "year" as used in the succeeding Article shall have reference to the
fiscal year employed by the University of Michigan in keeping its books of
account.
The term "gross rents" or "gross room rents" shall mean and include all
sums paid by students of the University of Michigan for the right to reside and
occupy rooms in Mosher-Jordan Halls and Allen-Rumsey House, which are now
completed and in operation, and in Robert Mark Wenley House, Michigan House,
Henry Carter Adams House, Chicago House, Alfred Henry Lloyd House, Alexander Winchell House, George Palmer Williams House, Charles Ezra Greene
House, Moses Coit Tyler House, Albert Benjamin Prescott House, Burke Aaron
Hinsdale House, Victor C. Vaughan Residence, and Madelon Louisa Stockwell
Hall, when the same are constructed and placed in operation, before any deductions are made therefrom.
The term "net income" shall mean and include any excess of room rents not
needed to cover the interest and principal payments to the Trustee herein provided for, together with the income from dining rooms to be operated in conjunction with said dormitories, and other service charges, after deducting from
the aggregate thereof the actual expenses, insurance premiums, and ordinary
repairs to buildings and equipment.
Section 1. The Obligor covenants and agrees as follows:
a) Beginning with the first semester of the 1939-1940 scholastic year of the
University of Michigan, to set aside out of the gross room rents to be collected
from students of the University of Michigan who shall reside and occupy rooms in
the dormitories above enumerated and out of the net income to be derived from
the operation thereof, and to pay to the Trustee on the dates hereinafter set forth,
not less than the following sums, to-wit: on the first day of November, 1939, the
sum of Thirty-five Thousand Five Hundred Dollars ($35,500.00); on the first
day of May, 1940, the sum of Fifty-three Thousand Two Hundred Fifty Dollars
($53,250.00); on the first day of November, 1940, the sum of Fifty-three Thou