Proceedings of the Board of Regents (1963-1966)

DECEMBER MEETING, 1965

1147

figures of March 31, 1965. The University's Investment Officer, R.
Gordon Griffith, and representatives of the National Bank of Detroit,
Messrs. Weston, Williams, and Reading, were present to discuss general
aspects of the University's investment program. The Regents accepted
the report with thanks and approved the recommendations made on
pages 11 and 12 of the report.
After hearing a report by the Vice-President in charge of business University Events
and finance on the financing of the University Events Building (p. 993), Financing
the Regents took the following actions: they adopted the resolution
authorizing the borrowing of $5,800,000 and authorizing certain officers
to sign the Trust Agreement and the bonds; they approved the proposed
Trust Agreement between the Regents and The Detroit Bank and Trust
Company as to form and substance, and incorporated it in the minutes
with the resolution both of which appear as Appendix A (p. 1157); and
they granted authority to negotiate a construction loan for an interim
period in the event that it becomes inadvisable to sell the bonds in
accordance with the foregoing time schedule.
Regent Murphy abstained from voting on the resolution.
After hearing a report by the Vice-President in charge of business Lawyers Club
Renovation:
and finance on the need for renovation of the Lawyers Club, the Regents Financing
adopted the following resolution:
WHEREAS, It has been determined that a major renovation of the Lawyers Club
building shall be accomplished over a ten-year period at an estimated cost of
$1,000,000; and
WHEREAS, It will be necessary to borrow funds to cover the cost of the
renovation, such borrowing to be secured by a pledge of the net income from the
operation of the Lawyers Club; and
WHEREAS, The Board of Governors of the Lawyers Club of The University of
Michigan at its annual meeting on December 11, 1964, approved the renovation
program in principle and authorized its Executive Committee to take the necessary
steps to arrange for the performance of the work through the University of Michigan Plant Extension Department and to take the necessary steps to arrange for
financing of a sum not exceeding $325,000 to carry out the first phase of the
program;
Now, Therefore, Be It Resolved, That the University make a temporary loan
to The Board of Governors of the Lawyers Club of The University of Michigan in
an amount not to exceed $325,000 to cover the cost of the first phase of its renovation program; said loan to be made by successive advances monthly in arrears to
cover cost of expenditures for the renovation program; said loan to be repaid,
together with interest at 4'4% per annum from the date of each advance, on or
before January 1, 1969, from the proceeds of a loan to be negotiated to finance the
entire program on a long term basis, which loan will be secured and repaid from the
net operating income of the Lawyers Club; and
Be It Further Resolved, That a special account be established to be known as
the Lawyers Club Renovation account through which all payments for the cost of
the renovation program shall be made and into which advances will be made from
the Temporary Investments Fund, which advances will be the only evidence of the
amount and the terms of the temporary loan other than this resolution and a similar
resolution adopted by the Executive Committee of The Board of Governors of the
Lawyers Club of The University of Michigan.
After hearing a report by the Vice-President in charge of business E. D. Allmenand finance concerning settlement of the estate of Edwin D. Allmen- dinger: Estate
dinger, A.B., 1916, in whose will the Regents of the University are a
remainder beneficiary, the Regents approved the recommendation of