Proceedings of the Board of Regents (1969-1972)

DECEMBER MEETING, 1969

275

tion or agreement contained in this Trust Indenture or in any
bond or coupon issued hereunder or caused by the creation of any
indebtedness hereby authorized shall be had against the State of
Michigan, the Borrower, or any member or officer of the Borrower,
individually; it being expressly understood and agreed that the
bonds issued hereunder are secured by a first lien on and a pledge
of and payable only from the Net Income, as herein defined, and
that no other liability whatsoever shall attach to or be incurred by
the State of Michigan, the Borrower, or any member or officer of
the Borrower, or its successors; all other liability, except as herein
provided, being expressly waived.
ARTICLE VI.
REMEDY ON DEFAULT
AND PROCEEDS THEREFROM
Section 6.01. REMEDY ON DEFAULT. In event default shall
be made in the due and punctual payment of principal or interest
on any bond secured hereby, or in the due observance or performance of any covenant, condition or provision herein required to be
kept or performed by the Borrower, and such default, other than
payment of principal and interest, shall continue for a period of
thirty (30) days after written notice thereof is given to the Borrower 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 bonds then outstanding, the Trustee may:
(a) Proceed to protect or enforce the rights of the Trustee and
the holders of bonds, either by mandamus to compel the Borrower
to perform each and every covenant herein contained, or by injunction to prevent the Borrower from performing any action in
violation of said covenants.
(b) Designate a general manager or general managers to take
charge of the Housing Facilities; and when the Trustee shall do
so, the Borrower 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 the Housing Facilities, the condition of service, the charges
to be made therefor, and to hire and discharge all employees and
to fix their compensation. The Borrower agrees to comply with
and enforce all orders and requirements of such general manager
or general managers, subject only to such reasonable rules and
regulations as it feels called upon to make for the general welfare
of the students of the University.
(c) Secure the appointment by a court of competent jurisdiction of a receiver to take charge of, maintain and operate the
Housing Facilities, under the jurisdiction of said court.