206

Special Meeting
December 20, 1958

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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Special Meeting
December 20, 1958

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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