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for all amounts paid or incurred during said construction. In addition thereto the Board of Regents shall carry use and occupancy insurance in an amount not less than the maximum requirements for one year's bond service. The said policies shall be written in companies approved by the Trustee and shall have an endorsement in favor of the Trustee and the policies or a certificate evidencing the same shall be deposited with the Trustee. All moneys collected on said insurance as a result of the loss or damage of the insured property shall be paid to the Trustee and may be used at the discretion of the Board of Regents for the repair or replacement of said damage and any part thereof not so used shall be used to retire Revenue Bonds. In addition thereto, the Board of Regents shall require the contractors erecting said structure to furnish completion bonds which shall likewise carry an endorsement in favor of the Trustee.
TRUST AGREEMENT
VIII
The Board of Regents agrees to keep a complete and full set of books and records showing the cost of constructing, equipping and furnishing The Center and showing all receipts and disbursements growing out of or in any wise connected with the operation of The Center and also the handling of the Maintenance Reserve Fund which books and records shall be open to inspection by the Trustee or its Agent or nominee at any reasonable time. As of June 30th of each year during the course of construction the Board of Regents shall furnish a progress report with a Summary of the contracts awarded, the amount paid thereon, the estimate of additional contracts to be let or costs incurred, and balance of funds available to complete, equip and furnish The Center. As of June 30th of the year following the completion of The Center, and annually thereafter, within 90 days after the close of each fiscal year, the Board of Regents shall furnish an audited statement by an independent certified public accountant of the operations during the preceding fiscal year in reasonable detail and a balance sheet covering The Center, and a statement of the Auditor showing that the funds were handled in accordance with this Agreement. The said Report and audited statements shall be furnished to the Trustee, to Kirkpatrick-Pettis Company, and to any bondholder having 10% or more interest in the outstanding bond or bonds who may request the same in writing.
IX
In event the $1,000 Revenue Bonds are issued and substituted for the original Revenue Bond as provided in Paragraph II of this Agreement,Refunding Bonds may be issued to take up and pay off any or all of the out-standing bonds so issued which are due or by their terms are payable under an option. Such Refunding Bonds may be either exchanged for the outstanding bonds par for par or may be sold for not less than par value and the proceeds used to retire the outstanding bonds. The Refunding Bonds shall continue to enjoy whatever priority of lien over subsequent issues to the same extent as the Bond or Bonds then being refunded.
X
The proceeds from the original Revenue Bond shall be deposited with the Trustee and shall be used only for paying the cost of construction of The Center, furnishing and equipping the same and expenses incidental thereto as herein provided. For purposes of this Agreement interest on the Revenue Bond during the course of construction shall be considered as a construction cost and may be paid by the Trustee without further authority. No part of the proceeds of the Revenue Bond other than interest shall be disbursed until the Trustee has been furnished evidence satisfactory to the Trustee that the amount remaining in the hands of the Trustee, together with other funds then available and allocated by the Board of Regents, will be sufficient to complete the construction of
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The Center and furnishing and equipping the same, the intent being that the funds derived from this bond issue shall be last disbursed so as to insure the completion of The Center, including the necessary furniture and equipment, free and clear of all encumbrances and obligation at the time of the final disbursement of said funds.
The money used to pay on the construction of The Center other than interest on the Revenue Bond shall be disbursed by the Trustee on (a) Certificate of the Architect certifying to the performance of the contract and the amount due thereon plus (b) a written order of the Board of Regents or person named by it authorizing the said payment. Disbursements may be made for furniture and equipment upon the written order of the Board of Regents or persons named by it.
XI
The proceeds of the Revenue Bonds may be invested by the Trustee in United States Government Bonds, Notes, Certificates or Bills maturing not later than February 1, 1962. The income received from the investment of said funds shall be retained by the Trustee in a separate account known as "Interest Reserve Fund" and used to pay interest on the Revenue Bonds after the completion of The Center and accruing within a period of three years therefrom provided there are no other funds available for the payment of said interest. Any funds not used for the payment of said interest shall at the time of the said three year period be transferred to the Bond Reserve Fund or used to retire or apply on the principal of the Revenue Bonds. Any money in the Interest Reserve Fund may be invested in obligations of the United States maturing in not more than one year after time of investment.
TRUST AGREEMENT
XII
The bonds of this issue when paid by the Trustee shall be cancelled by the Trustee and not reissued. The Trustee shall certify to the Auditor of Public Accounts of the State of Nebraska the bonds so paid and cancelled.
XIII
This Agreement shall be deemed to be a contract for the benefit of the Trustee and the holder or holders from time to time of the bonds authorized to be issued hereunder, and either the Trustee or the bondholders may enforce the provisions hereof for the benefit of said parties by appropriate action. Nothing in this Agreement shall be construed as requiring the Trustee to take any action, although it may do so if it desires, unless and until it has been requested to take said action by the holders of not less than 10% of the bonds then outstanding and indemnified by said holders for any cost or liabilities incurred in connection therewith to the satisfaction of the Trustee.
The Revenue Bonds issued under this agreement are issued under the provisions of Sections 85-403 to 85-411, Reissue Revised Statutes of Nebraska, 1943, and are not the obiligation of the State of Nebraska and no tax shall ever be levied to raise funds for the payment thereof or interest thereon. The bonds shall not constitute a debt of the Board of Regents and shall be paid solely out of moneys derived from the revenues and earnings as provided in said Sections 85-403 to 85-411, Reissue Revised Statutes of Nebraska, 1943.
XIV
The Trustee by executing this Agreement accepts said Trust and agrees to perform all duties required of said Trustee under this Agreement. The Trustee makes no representation as to the truth or accuracy of any statement contained in this Agreement and shall have no responsibility for the
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construction, operation or maintenance of the facilities hereinabove mentioned, its sole responsibility being to disburse the funds received by it in accordance with this Agreement. It shall be liable only for its own acts of negligence or willful omission. The Trustee shall not be liable for any loss or depreciation of funds invested as herein provided.
XV
This agreement may be modified by appropriate action by the Board of Regents with the written consent of the holders of 75% in principal amount of the outstanding bonds which written consent shall be filed with the Secretary of the Board of Regents.
XVI
This Agreement shall be submitted to the Attorney General of Nebraska for his approval as to form and legality and shall not be binding on the parties hereto until so approved.
IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed in triplicate by their duly authorized officers as of the day and year first above written.
TRUST AGREEMENT
ATTEST: THE BOARD OF REGENTS OF THE UNIVERSITY OF NEBRASKA
/s/ John K. Selleck By: /s/ C. Y. Thompson Secretary President
(CORPORATE SEAL) PARTY OF THE FIRST PART
ATTEST: THE FIRST NATIONAL BANK OF LINCOLN
/s/ A. C. Glandt By: /s/ Burnham Yates cashier President
PARTY OF THE SECOND PART
APPROVED as to Form and Legality this 1st day of December, 1958
/s/ C. S. Beck ATTORNEY GENERAL
Selmer Solheim and Associates to prepare plans and spec. for Center for Continuing Education
It was moved by Regent Welsh, seconded by Regent Swanson, motion put to vote and carried, directing that the architectural firm of Selmer Solheim and Associates of Lincoln, Nebraska, be employed to prepare detailed plans and specifications for the proposed Nebraska Center for Continuing Education to be erected on the College of Agriculture Campus.
In accordance with the Agreement with the Kellogg Foundation concerning the grant of $1,500,000 for the construction of the proposed Nebraska Center for Continuing Education, it is necessary that the University of Nebraska certifiy to the Kellogg Foundation on or before December 31, 1958, that the matching funds for the construction of the
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Center in the sum of $1,142,000 have been raised or provided for.
In view of the statement from the University of Nebraska Foundation that firm pledges in the sum of $1,011,880 are in hand and in view of the authorization for the issuance of revenue bonds in the sum of not to exceed $350,000 the following action is now taken by the Board of Regents.
Authorize Chancellor to certify that Board has funds available to be used with grant from Kellogg Found. for Center.
It was moved by Regent Greenberg, seconded by Regent Elliott, motion put to vote and carried, authorizing and directing the Chancellor of the University of Nebraska to certify to the W. K. Kellogg Foundation, Battle Creek, Michigan, that the Board of Regents guarantees to the Kellogg Foundation that funds in the amount of $1,142,000 will be available to be used with the grant made by the W. K. Kellogg Foundation in the sum of $1,500,000, thus creating a total figure of $2,642,000 for the construction and equipping of the proposed Nebraska Center for Continuing Education to be constructed on the College of Agriculture campus of the University of Nebraska.
Resolution for sale of farm in Orinda Johnson Estate
RESOLUTION
WHEREAS, under the provisions of the Last Will and Testament of Orinda M. Johnson, deceased, duly admitted to probate, said deceased, in said Will, under ITEM XXXV thereof, gave, devised and bequeathed to the Board of Regents of the University of Nebraska, in trust, all of the rest and residue of her estate, and
WHEREAS, the following described real estate was a part of the residue of the estate of said deceased, to-wit:
West Half (W1/2) of Section Twenty (20), Township Eighteen (18) North, Range Four (4), West of the 6th P.M., Nance County, Nebraska;
All of Section Twenty-Seven (27), Township Six (6), Range Twelve (12), Nemaha County, Nebraska;
Southwest Quarter (SW1/4) of the Northwest Quarter (NW1/4), and West Half (W1/2) of the Southeast Quarter (SE1/4) of the Northwest Quarter (NW1/4), and the North Half (1/2) of the Northwest Quarter (NW1/4) of Section Thirty-Four (34), Township Six (6), Range Twelve (12), Nemaha County, Nebraska;
and
WHEREAS, said decedent provided further in her Last Will and Testament that The Board of Regents of the University of Nebraska, as trustee, should have full power, without the order of any court, to dispose of any and all of the property devised and bequeathed to it, and
WHEREAS, no buildings of the University of Nebraska are located upon said real estate, and
WHEREAS, it is the judgment of The Board of Regents of the University of Nebraska that the best interests of the Franklin E. & Orinda M. Johnson Loan Fund and Franklin E. & Orinda M. Johnson Scholarship and Research Fund, provided in said Last Will and Testament to be established by The Board of Regents of the University of Nebraska, will be served by the sale of said real estate at public auction;
NOW, THEREFORE, BE IT RESOLVED, that the above described real estate be offered for sale at public auction and be sold to the highest bidder therefor; and that Joseph Soshnik, Comptroller of the University of Nebraska, and C. A. Donaldson, Business Manager of the University of Nebraska, be and are hereby authorized to make all necessary arrangements for the sale of said real estate at public auction.
Continued
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BE IT FURTHER RESOLVED, that the President or the Vice President of The Board of Regents of the University of Nebraska, be and hereby is authorized to execute and deliver to the purchaser at said auction of said real estate, upon payment of the sale price thereof, a special warranty deed, conveying the above described real estate.
BE IT FURTHER RESOLVED that the Corporation Secretary or the Assistant Corporation Secretary of The Board of Regents of the University of Nebraska, be and hereby is authorized to attest to the execution of said deed, and to attach thereto the corporate seal of The Board of Regents of the University of Nebraska, and to affix to said deed such revenue stamps as may be required by law.
BE IT FURTHER RESOLVED, that upon the making of the sale of said real estate, the proceeds received therefrom be invested, and the income therefrom be used in accordance with the provisions of the Last Will and Testament of Orinda M. Johnson.
It was moved by Regent Elliott, and seconded by Regent Welsh, that the foregoing resolution be adopted, and after being put to vote, the adoption of said resolution was unanimously carried.
Resolution for sale of farm in Montgomery estate
RESOLUTION
WHEREAS, under the provisions of the Last Will and Testament of Ora Clair Montgomery, of Tomkins Cove, in the Town of Stony Point, New York, which was duly admitted to probate as a foreign Will in Dodge County, Nebraska, said decedent gave and devised to the State University of Nebraska, Lincoln, Nebraska, all real estate owned by him situated in the State of Nebraska, absolutely and forever, in memory of James Henry Montgomery and his family of Dodge County, Nebraska, and
WHEREAS, the Southeast Quarter (SE1/4) and the West Half (W1/2) of the Northeast Quarter (NE1/4) of Section Thirty-Three (33), Township Twenty (20) North, Range Five (5), East of the 6th P.M., in Dodge County, Nebraska, was owned by said decedent at the time of his death, and
WHEREAS, the County Court of Dodge County, Nebraska, in the Final Decree, entered therein, found and determined that said real estate so devised, was devised to The Board of Regents of the University of Nebrska, as the Board of Regents of the University of Nebraska is the corporate entity owning property of the State University of Nebraska, and said real estate was accordingly assigned to The Board of Regents of the University of Nebraska, and
WHEREAS, in said Last Will and Testament, said decedent made no restriction against the sale or alienation of said real estate, and the Board of Regents has determined that the same should be sold at public auction, and
WHEREAS, no buildings of the University of Nebraska are located upon said real estate;
NOW, THEREFORE, BE IT RESOLVED that the above described real estate be offered for sale at public auction and be sold to the highest bidder therefor; and that Joseph Soshnik, Comptroller of the University of Nebraska, and C. A. Donaldson, Business Manager of the University of Nebraska, be and are hereby authorized to make all necessary arrangements for the sale of said real estate at public auction.
BE IT FURTHER RESOLVED, that the President or the Vice President of The Board of Regents of the University of Nebraska, be and hereby is authorized to execute and deliver to the purchaser at said auction of said real estate, upon payment of the sale price thereof, a special warranty deed,
Continued
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