Proceedings of the Board of Regents (1969-1972)

NOVEMBER MEETING, 1970

739

APPENDIX B
RESOLUTION OF REGENTS OF THE UNIVERSITY OF MICHIGAN AUTHORIZING AND APPROVING THE ISSUANCE AND
SALE OF UNIVERSITY OF MICHIGAN HOUSING REVENUE
BONDS OF 1970 IN THE PRINCIPAL AMOUNT OF $8,400,000.00.
WHEREAS, the Regents of the University of Michigan, a body corporate,
created by and existing under the Michigan Constitution of 1963 (hereinafter sometimes referred to as the "Regents"), in the exercise of its constitutional and statutory duties, has determined that it is necessary and expedient to construct and equip additional housing facilities on lands owned by
the University of Michigan, located at Ann Arbor, Michigan, consisting of
four hundred (400) townhouse apartment units for married students, faculty
and staff members, known and identified as "Northwood Apartments,
Group V," all hereinafter sometimes called "project"; and
WHEREAS, the Regents will:
1. Let the required contracts for the construction of said project.
2. Establish a Construction Account with The Detroit Bank and Trust
Company, a member of the Federal Reserve System, into which account
shall be deposited the proceeds of sale of the bonds authorized by this resolution, except accrued interest to date of delivery, interest during construction, and moneys for a Debt Service Reserve of $435,000.00, together with
any additional funds of the University necessary to provide the total
project cost, which moneys shall be used to pay costs incidental to the
construction and completion of the project; and
WHEREAS, the Regents deem it necessary and expedient to borrow,
through the issuance and sale of University of Michigan Housing Revenue
Bonds of 1970, the sum of Eight Million Four Hundred Thousand
($8,400,000.00) Dollars, to be used for the purpose of paying costs incidental
to the construction and equipment of the project, including costs of construction work at the project site, costs of fixed equipment, furnishings for a
portion of the apartments to be rented as furnished apartments, costs of
necessary architectural and engineering services, legal, administrative and
clerical costs, interest during construction, a debt service reserve fund and
other necessary miscellaneous expenses; and
WHEREAS, the finance officers of the University and legal counsel have
prepared and submitted to the Regents a complete and detailed Trust Indenture which sets forth the terms, conditions, security and covenants
deemed necessary in connection with said loan, including the maturities,
redemption provisions, security and other details relating to the issuance
of University of Michigan Housing Revenue Bonds of 1970, which said
proposed Trust Indenture has been carefully considered and reviewed by
the Regents; and
WHEREAS, the Regents have full power under their constitutional authority and supervision of the University, and the control of expenditures from
the University funds, to issue said bonds, for the purposes hereinbefore re