Proceedings of the Board of Regents (1939-1942)

SECOND AUGUST MEETING, 1939

19

The report shall be certified by an officer of the Obligor, his certificate being
supported by the certificate of an independent Certified Public Accountant selected
by the Obligor and approved by the Trustee.
The Obligor further agrees to permit the Trustee to examine at any convenient time all of its books and records relating to the operation of said dormitories and the dining rooms to be operated in conjunction therewith, and the
income derived therefrom.
The Obligor also agrees that it will pay for and cause to be made any and
all audits as may be reasonably required by the Trustee, and that it will employ
only such Certified Public Accountant or Accountants in making such audits as
shall be approved by the Trustee.
Section 8. Neither Mosher-Jordan Halls, Madelon Louisa Stockwell Hall,
Allen-Rumsey House, 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, nor
Victor C. Vaughan Residence, nor the land upon which they are built, nor any
other property of the University, excepting only the net income and gross room
rents as defined in this Article, shall be security for or be levied upon and sold
to satisfy any Dormitory Revenue Bond. No recourse under or upon any obligation, covenant, stipulation, or agreement contained in this Agreement or in any
Dormitory Revenue Bond or coupon issued hereunder or caused by the creation
of any indebtedness hereby authorized, shall be had against the State of Michigan
or the Obligor or any member of the Obligor, individually; it being expressly
understood and agreed that the Dormitory Revenue Bonds issued hereunder are
secured by and payable only from gross rents and net income as herein defined;
and that no other liability whatsoever shall attach to or be incurred by the State
of Michigan, the Obligor, or any member or officer of the Obligor, or its successors; all other liability, except as herein provided, being expressly waived.
Article VI
Section 1. In event default shall be made in the due and punctual payment
of principal or interest on any Dormitory Revenue Bond secured hereby, or in the
due observance or performance of any other covenant, condition, or provision
herein required to be kept or performed by the Obligor, and such default shall
continue for a period of sixty (60) days after written notice thereof is given to
the Obligor by the Trustee, which notice the Trustee must give upon the written
request of the holders of twenty-five per cent (25%) in amount of Dormitory
Revenue Bonds then outstanding, the Trustee may:
a) Proceed to protect or enforce the rights of the Trustee and the holders
of the Dormitory Revenue Bonds either by mandamus to compel the Obligor to
perform each and every covenant herein contained, or by injunction to prevent
said Obligor from performing any act in violation of said covenants.
b) Designate a general manager or general managers to take charge of and
manage said dormitories; and when said Trustee shall do so, the Obligor agrees
to appoint the person or persons so designated as such manager or managers,
with all the power and authority it can lawfully confer to control and regulate
the operation of said dormitories, the condition of service, the charges to be made
therefor, and to hire and discharge all employees and to fix' their compensation;
and the Obligor agrees to comply with and enforce all orders and requirements
of such general manager or managers, subject only to such reasonable rules and
regulations as it must make for the general welfare of the students of the University of Michigan, and subject to the provisions of subdivision (c) of Section 4
of Article V.
c) Secure the appointment by a Court of competent jurisdiction of a Receiver
to take charge of, maintain, and operate said dormitories under the jurisdiction of
said Court.
Such rights and remedies shall be cumulative, and any two or more thereof
may be exercised by the Trustee successively from time to time.
The Obligor expressly authorizes the Trustee to bring any of the actions at
law or in equity hereinbefore mentioned, and hereby waives any immunity to
being proceeded against as herein authorized which may exist by reason of its
being a subdivision of State Government.
Section 2. The holders of a majority in aggregate principal amount of the
Dormitory Revenue Bonds outstanding hereunder shall have the right to direct