Proceedings of the Board of Regents (1939-1942)

SECOND MARCH MEETING, 1940 243
referred to as "Regents," and Ann Arbor Savings and Commercial Bank, a Michigan Banking Corporation, of Ann Arbor, Michigan, hereinafter sometimes referred
to as "Bank,"
WITNESSETH:
WHEREAS, The Regents, under the terms and conditions of a certain Trust
Agreement between The Regents of the University of Michigan and the Ann Arbor
Trust Company, of Ann Arbor, Michigan, dated as of October 15, 1938, issued
and sold University of Michigan Health Service Bonds of the face value of Two
Hundred Twenty-five Thousand Dollars ($225,000.00), which bonds bear date of
October 15, 1938, mature serially, and bear interest at the rate of three and
one-half per cent (3/2%) per annum; and
WHEREAS, The Regents desire to refinance such of its existing indebtedness
as is evidenced by the bonds above,described which will be outstanding on April
15, 1940, in the amount of Two Hundred Twenty-three Thousand Dollars ($223,000.00), and desires to borrow said sum of Two Hundred Twenty-three Thousand
Dollars ($223,000.00) in order to have funds to call and redeem such bonds as
shall remain outstanding on April 15, 1940, and said Bank desires to loan said
sum to said Regents under the terms and conditions hereinafter set forth:
Now, therefore, in consideration of the premises and the mutual covenants
herein contained, the parties hereto agree as follows:
1. The Regents covenants and agrees to execute and issue to said Bank,
simultaneously with the execution of this Agreement, a series of promissory notes,
in like form to the note attached hereto, in the aggregate principal amount of
Two Hundred Twenty-three Thousand Dollars ($223,000.00), which notes shall
be payable as follows:
October 15, 1940......$ 4,000.00 October 15, 1950......$ 5,000.00
April 15, 1941...... 4,000.00 April. 15, 1951...... 6,000.00
October 15, 1941...... 4,000.00 October 15, 1951..... 5,000.00
April 15, 1942...... 5,000.00 April 15, 1952...... 6,000.00
October 15, 1942...... 4,000.00 October 15, 1952...... 6,000.00
April 15, 1943...... 5,000.00 April 15, 1953...... 6,000.00
October 15, 1943...... 4,000.00 October 15, 1953...... 6,000.00
April 15, 1944...... 5,000.00 April 15, 1954...... 6,000.00
October 15, 1944...... 5,000.00 October 15, 1954...... 6,000.00
April 15, 1945...... 4,000.00 April 15, 1955...... 6,000.00
October 15, 1945...... 5,000.00 October 15, 1955...... '7,000.00
April 15, 1946...... 5,000.00 April 15, 1956...... 6,000.00
October 15, 1946...... 5,000.00 October 15, 1956...... 7,000.00
April 15, 1947...... 4,000.00 April 15, 1957...... 6,000.00
October 15, 1947...... 5,000.00 October 15, 1957...... 7,000.00
April 15, 1948...... 6,000.00 April 15, 1958...... 7,000.00
October 15, 1948...... 5,000.00 October 15, 1958...... 7,000.00
April 15, 1949...... 5,000.00 April 15, 1959...... 7,000.00
October 15, 1949...... 5,000.00 October 15, 1959...... 7,000.00
April 15, 1950...... 6,000.00 April 15, 1960...... 9,000.00
Notes maturing on October 15, 1940, through April 15, 1945, shall bear
interest at the rate of two per cent (2%) per annum, payable semi-annually on
the fifteenth day of April and the fifteenth day of October in each year.
Notes maturing on October 15, 1945, and later, shall bear interest at the
rate of three per cent (3%) per annum, payable semi-annually on the fifteenth
day of April and the fifteenth day of October in each year.
2. The Regents agrees, starting with the second semester of the 1939-1940
scholastic year of the University of Michigan, to charge and collect from each
student attending the University of Michigan, until all notes issued pursuant to
the terms hereof are paid in full, a sufficient sum, 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, so that there will be available at
all times funds so collected to meet all payments of principal and interest on the
notes herein authorized, as said interest shall accrue and said notes shall become
payable.
3. The Regents agrees that the 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.