Proceedings of the Board of Regents (1939-1942)

242

SECOND MARCH MEETING, 1940

(b) Said fees, so collected from each student as part of his tuition fee, for
the services, treatments and benefits to which each student is entitled from the
Health Service of the University of Michigan, shall be segregated and set aside
to meet all payments of principal and interest on said notes, in accordance with
the terms thereof.
(c) The Regents of the University of Michigan agrees that the Ann Arbor
Savings and Commercial Bank shall have a first lien on soJ much of the fees so
collected and segregated as shall be necessary to meet the payments of principal
and interest on said notes, in accordance with the terms thereof.
(d) The' Regents of the University of Michigan agrees to maintain and operate said Health Service Building as such so long as any note herein authorized
shall remain outstanding.
4. Said notes shall be payable solely from the fees charged and collected from
students attending 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, and shall not be or become a
charge against the State of Michigan, The Regents of the University of Michigan,
or any member or officer of said Regents, or any of their successors, individually;
nor shall said notes become a lien on or secured by any property, real, personal,
or mixed, of the State of Michigan, or The Regents of the University of Michigan,
other than the funds segregated as!hereinbefore set forth. Provided, however,
nothing herein contained shall be construed as preventing The Regents of the
University of Michigan from using any funds in its possession in payment of said
notes or interest thereon which it may legally use for that purpose.
Be it further Resolved, That Alexander G. Ruthven, President of the University of Michigan, and Shirley W. Smith, its Vice-President and Secretary, be
and they are hereby authorized, empowered, and directed, in the name of The
Regents of the University of Michigan and as its corporate act and deed, to
sign the notes hereinbefore referred to and execute all necessary agreements and
instruments incidental thereto, including but not limited to an agreement pledging
the fees to be collected and segregated as hereinbefore provided.
Be it further Resolved, That said officers be and they are hereby authorized
and empowered, for and in the name of The Regents of the University of Michigan and as its corporate act and deed, to perform all acts, give such notices, and
execute such instruments as are necessary to call and redeem:all University of
Michigan Health Service Bonds, in accordance with the provisions of the Trust
Agreement pursuant to which said lbonds were issued and sold, and to perform
such other acts and deeds as are necessary, expedient, and proper to retire any
existing indebtedness created through the issuance and sale of said Health Service
Bonds.
Be it further Resolved, That should it develop that Alexander G. Ruthven,
President of the University of Michigan, through illness, absence, or otherwise, be
unable to perform the acts that he is herein authorized, empowered, and directed
to perform, then, in that case, Shirley W. Smith, Vice-President and Secretary of
the University of Michigan, is hereby authorized, empowered, and directed to
perform any and all acts and deeds herein authorized and directed to be performed
by said Alexander G. Ruthven; and any acts so performed by said Shirley W.
Smith shall be as binding on The Regents of the University of Michigan as if
performed by said Alexander G. Ruthven.
Be it further Resolved, That should it develop that Shirley W. Smith, VicePresident and Secretary of the University of Michigan, through illness, absence,
or otherwise, be unable to perform the acts that he is herein authorized, empowered, and directed to perform, or should it be necessary for him to act in the
place of Alexander G. Ruthven in performing any of the acts herein authorized
and directed, then, in that case, John IC. Christensen, Controller and Assistant
Secretary of the University of Michigan, is hereby authorized, empowered, and
directed to perform any and all acts and deeds herein authorized and directed to
be performed by said Shirley W. Smith; and any action so taken by said John
C. Christensen shall be as binding on The Regents of the University of Michigan
as if performed by said Shirley W. Smith.
LOAN AGREEMENT BETWEEN THE REGENTS OF THE UNIVERSITY OF MICHIGAN
AND ANN ARBOR SAVINGS AND COMMERCIAL BANK
This Agreement, made this fifteenth day of April, A.D. 1940, by and between
The Regents of the University of Michigan, a body corporate, created by and
existing under the Constitution of the State of Michigan, hereinafter sometimes