Proceedings of the Board of Regents (1969-1972)

APRIL MEETING, 1971

981

ARTICLE VII
CONCERNING THE TRUSTEE
Section 7.01. ACCEPTANCE OF TRUST AND CONDITIONS THEREOF. The
Trustee, for itself and its successors, hereby accepts the trust and assumes the
duties herein created and imposed, but only upon the following terms and
conditions, to wit:
(a) The recital of facts herein and in the bonds shall be taken as
statements by the Borrower and shall not be construed as made by the
Trustee;
(b) The Trustee, aside from authentication of the bonds, shall have
no responsibility for the validity, execution or acknowledgment hereof, of
any bonds secured hereby, or for the nature, extent or amount of the
security afforded hereby, or for any breach by the Borrower of any
covenants herein contained;
(c) The Trustee, save for negligence or willful misconduct, shall not
be liable for any loss or damage whatsoever arising out of any action or
failure to act in connection with the obligations of this agreement, except
those with respect to specific actions herein provided for; and shall not
be liable for the exercise of any discretion or power hereunder, or mistakes or errors of judgment, or otherwise, except willful misconduct or
negligence, except those with respect to specific actions herein provided for;
(d) The Trustee shall be protected in any action taken upon any
notice, resolution, vote, request, consent, certificate, affidavit, statement
or other paper believed by its officers to be genuine and to have been
passed or signed by the proper party or parties. The Trustee shall not be
bound to recognize any person as a holder of a bond unless and until the
same is submitted to the Trustee for inspection and his title satisfactorily
established, if disputed;
(e) The Trustee may select and employ suitable agents and attorneys. The reasonable compensation of the Trustee and such agents and
attorneys shall be paid by the Borrower. The Trustee shall be under no
obligation or duty to perform any act hereunder or defend any suit unless
indemnified to its satisfaction.
Section 7.02. RIGHT OF TRUSTEE To RESIGN. The Trustee may resign
at any time by executing and filing with the Borrower an instrument specifying the date when such resignation shall take effect, which date shall be not
less than thirty (30) days after such writing has been filed, unless a successor
Trustee shall have been previously appointed, in which event it shall take
effect immediately upon such appointment and the acceptance of the trust
hereunder. Upon proper and legal showing, the Borrower may demand and
obtain the resignation of the Trustee and secure the appointment of a successoi Trustee. Any successor to the Trustee shall be appointed by the Borrower
and shall be a trust company or bank having trust powers, in good standing,
located in the State of Michigan, having a confirmed capital and surplus of
at lease One Million ($1,000,000.00) Dollars and subject to supervision by
Federal or State authority.