(110 ILCS 415/1) (from Ch. 144, par. 68)
Sec. 1.
For the purpose of obtaining a grant or inducing the making of a
grant by the United States or any agency thereof (herein called the
"Government") or a grant, gift or loan by or from any person or
corporation, to aid in financing the acquiring, constructing or equipping
of any one or more, or all university, college, or educational building or
buildings (herein called the "project") on which the Board of Trustees of
the University of Illinois (herein called the "Board") shall enter into a
year to year or other lease, or be given the privilege to enter into any
such lease, the Board shall have the following powers in addition to those
conferred by other laws:
1. To create a trust or trusts (the trustee or trustees thereunder being
herein called the "active trustee') for the purpose of acquiring,
constructing, equipping any one or more, or all, such projects and
providing for the use thereof during such period as the Board may determine
and for other purposes, which trust may be for exclusively university or
other public educational purposes; to convey, upon such terms as it may
determine, any of its property to an active trustee to be held in trust
under the terms and provisions of the trust agreement relating thereto;
2. To enter into trust agreements creating trusts which shall be and
constitute charitable trusts and shall not be subject to the rule against
perpetuities, providing the powers and duties of the active trustee, which
may consist of such powers and duties as the Board may deem necessary or
convenient to accomplish the purposes of the trust, including, without
limiting the generality of the foregoing, the power of such active trustee:
(a) to construct, reconstruct, improve, alter and repair any such
project; to hold, manage, operate, use, insure, lease or rent any project;
(b) to issue negotiable bonds, notes or interim receipts (herein called
the "bonds") maturing over a period not exceeding 30 years for the purpose
of aiding in financing any project and to make covenants securing the
bonds or relating to the bonds and the disposition and use of the proceeds
thereof;
(c) to secure such bonds by an indenture to a trustee or trustees for
the holders of such bonds (herein called the "bondholders' trustee")
providing the rights and powers of such trustee and of the bondholders,
their respective rights to enforce the payment of the bonds or any
covenants securing or relating to same, which shall not, however, include
the right to forfeit or obtain title to the project through foreclosure
proceedings or otherwise; to covenant as to events of default, the
consequences thereof and the conditions upon which bonds may become or be
declared due before maturity;
(d) to confer upon the bondholders' trustee the power, in case of a
default under the bonds or indenture securing same, to enforce the payments
of all sums due under leases of any project, to compel the performance of
any covenants or conditions therein, to take possession, use, operate,
manage and control any project and collect and dispose of the rents
therefrom; in the event that such powers are conferred upon the
bondholders' trustee, same may be exercised by it without its forfeiting or
obtaining title to the project through foreclosure proceedings or
otherwise;
(e) to confer upon the bondholders' trustee the power, in case of a
default under the bonds or indenture securing same, to lease, use or
operate a project for purposes other than those for which the active
trustee itself may lease, use or operate same; the conferring of such power
upon the bondholders' trustee shall not, however, affect the validity or
exclusively public educational character of a trust or the property held by
the active trustee thereunder;
(f) to execute all instruments and contracts and to do all things
necessary or convenient to carry out the powers conferred by such trust
agreement.
3. To enter into agreements creating or authorizing the creation of
special funds for moneys held for the construction of any project and to
covenant as to the use and disposition of the moneys held in such funds;
4. To enter into a year to year or other lease on any such projects,
with the privilege in the Board of terminating or not renewing such lease
for any year or years, upon giving such notice as may be prescribed in such
lease; such lease shall be in such form, with such rental, terms, parties
and conditions as the Board may determine; to obtain options to lease any
such projects from year to year, and to exercise such options; to vest in
its lessor and in a trustee for the holders of bonds issued by its lessor,
the right by mandamus, injunction, civil action or proceedings, to
enforce the payment by the Board of any sums due under any such lease or to
compel its performance of any covenants or conditions contained therein;
5. To agree with the Government that if the Board leases any such
project or projects from an active trustee, a bondholders' trustee or
otherwise, the Board shall pledge for the payment of its rentals or the
performance of its obligations under any such lease its own receipts,
collections or trust funds thereunto available (herein called "funds")
which it is authorized by law to retain in its own treasury for the
performance of any contract or undertaking with the Government or any
person in connection with any grant, advance, loan, trust agreement or
contract for the erection of a building or buildings; to pledge and use
said funds for the payment of its rents or for the performance of its
obligations under any such lease; provided, however, that the aggregate
amount pledged by the Board for the payment in any year of rentals or
obligations under such lease or leases of any project for the construction
of which the Government makes both a loan and a grant together with all
sums pledged for the payment in any such year of other obligations incurred
by the Board under "An Act to authorize the Board of Trustees of the
University of Illinois to enter into contracts with the United States for
the erection of buildings and improvements, pursuant to Public Resolution
11, 74th Congress, First Session, House Joint Resolution 117, approved by
the President of the United States April 8, 1935, at 4:00 p.m., and to
authorize the financing of such improvements in conformity with such
resolution, the National Industrial Recovery Act, and such other Acts of
Congress enacted for the purpose of aiding the processes of national
recovery," approved July 11, 1935, or this Act or under both such acts,
for the construction of which the Government makes both a loan and a grant,
and including the Congressional Resolution approved June 29, 1937, as
amended June 21, 1938, known as Federal Public Buildings Appropriation Act
of 1938, and other acts of the United States Congress heretofore or
hereafter enacted for the purpose of providing public buildings for the
States and governmental agencies thereof, shall not exceed the sum of
$100,000; to covenant against pledging all or any part of said receipts or
collections or permitting or suffering any lien thereon;
6. To create a trust or trusts, in which the Board itself may serve as
trustee, for the acquisition, through lease, purchase or construction, and
for maintenance and operation of self‑liquidating buildings, such as a
student center building or student residence halls, or both, through the
collection of service charges or rentals from students, and for whose use
such funds shall be held by the Board in its own treasury, which service
charges or rentals shall be so held in trust by the Board and expended
solely for the purpose described in the instruments creating the trust or
trusts;
7. To exercise all or any part or combination of the powers herein
granted and to execute all instruments and contracts and to do all things
necessary or convenient to carry out the powers herein granted; provided,
however, that the obligations under leases, trust agreements or otherwise
incurred by the Board pursuant to this Act shall not be a debt of the State
of Illinois and the State shall not be liable thereon, and provided further
that the bonds and other obligations of an active trustee appointed
hereunder by the Board shall not be a debt of the Board or the State and
neither the Board nor the State shall be liable thereon, and the bonds
shall in substance so recite. The obligations under leases, trust
agreements or otherwise incurred hereunder by the Board and the bonds or
other obligations of an active trustee appointed hereunder shall not
constitute an indebtedness within the meaning of any constitutional or
other debt limitation or restriction.
(Source: P.A. 83‑345.)
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