xt7cvd6p0797 https://exploreuk.uky.edu/dips/xt7cvd6p0797/data/mets.xml Lexington, Kentucky University of Kentucky 1948109 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1948-10-aug9. text Minutes of the University of Kentucky Board of Trustees, 1948-10-aug9. 1948 2011 true xt7cvd6p0797 section xt7cvd6p0797 








     Minutes of Special Called Meeting of the Board of Trustees,
University of Kentucky, August 9, 1948.


     The Board of Trustees of the University of Kentucky met in the
President's Office in the Administration building on the campus of
the University, Lexington, Ky., at 10:00 a.m., on Monday, August 9,
1948, in special session pursuant to call of the Chairman.    The
following members were present: Judge Richard C. Stoll, Vice Chair-
man; Mrs. Paul G. Blazer, John C. Everett, T. H. Cutler, Robert Tway,
Judge Edward C. O'Rear, Guy A. Huguelet, E. E. Adams, Harper Gatton,
R. P. Hobson, Judge Harry F. Walters, and Boswell B. Hodgkin.    Ab-
sent were: Governor Earle G. Clements, Chairman of the Board; J. N.
Smith and Grover Creech.   President Donovan and Secretary Peterson
w-iere present.


     A. Notice of Special lveeting.

     The following is a copy of the notice of the special meeting:


                    NOTICE OF A SPECIAL MEETING
                               of the
                          BOARD OF TRUSTEES
                               of the
                        UNIVERSITY OF KENTUCKY

     The undersigned, as Chairman of the Board of Trustees of
     the University of Kentucky hereby gives notice to all of
     the members of the said Board that a special meeting of
     said Board is hereby called, and will be held in the
     usual meeting place of the said Board of Trustees in the
     Administration Building on the campus of the University
     of Kentucky in Lexington, Kentucky, on   9th   day of
     August, 1948, at 10:00 a.m., for the following purposes:

          a. To consider, approve and adopt a formal resolu-
             tion authorizing the issuance and sale of revenue
             bonds for the purpose of providing furds to as-
             sure the completion of the IMiemorial Auditorium
             Fieldhouse now under construction and pledging
             a sufficient portion of the revenue for the
             repayment of the said bonds and interest thereon:

          b. To open, consider and act upon any and all com-
             petitive bids which may be received for said
             revenue bonds at the time and place of the
             meeting:




 




2



          c. To consider rand approve recommendations of the
             faculty on candidates for degrees:

          d. To consider and act upon staff and faculty
             changes:

          e. To consider and act upon current financial
             problems-

          f. To review the Lyman T. Johison case: and

          g, To transact such other miscellaneous and inci-
             dental business as may be brought before the
             meeting at that time.


     Given at Frankfort, Kentucky, this   21st    day of July,
     1948.


                               Earle C. Clements, Governor of Kentucky
                               and Chairman of the Board of Trustees
                               of the University of Kentucky.



     B. Approval of Mainutes as Published.

     The minutes of the Board of Trustees of June 25, 1948, and the
minutes of the Executive Committee of July 16, 1948, were approved as
published.



     C. Insurance on Combined Shop Building.

     President Donovan read a letter from the Comptroller outlining
conditions concerning the carrying of insurance on the combined shop
building and contents:


                                      August 6, 1948

     Dr. H. L. Donovan, President
     University of Kentucky

     Dear President Donovan:

              The Division of Idaintenance and Operations of the
    University formerly occupied a tobacco warehouse building
    located at the intersection of Limestone and Upper Streets.
    This building was converted into what we have long referred
    to as the "Service Building."   It was recognized as a fire




 




3



trap, not being fire resisting.  We had housed in the
building the office of the Division and the following
shops: carpentry, electrical, plumbing, paint, sheet met-
al, garage, and store room.  The insurance rate on this
building fluctuated from time to time but never exceeded
$.83 per hundred on the building or 1.173 on the contents.
The "Service Building" was destroyed by fire and the shops
of the Division of Ilaintenance and Operations were located
in inadequate, undesirable spaces over the campus.

     The Federal Works Agency in February 1947, at our
request, made an inspection of the facilities of the Uni-
versity and determined that we did need facilities to house
the service shops of the Division of Maintenance and Opera-
tions.   They agreed to locate, transfer and erect a gov-
ernment building suitable to be used as a service building.
The University made an effort to assist the Federal Works
Agency in locating a suitable building for this purpose.
'Je did locate a building at the Kentucky Ordnance 77orks:
Paducah, Kentucky.   This was a steel structure and suited
our needs.   It was allocated. to the University of Kentucky
and taken away from us three times.

     We were then requested to inspect a shop building at
Lawrenceville, Illinois.   Mr. J. B. Rieman, E. B. Farris
and the writer did inspect the building and agreed to ac-
cept the same if the Federal horks Agency would move and
erect it on the campus of the University.   In dismantling
the building it became necessary to alter the structure.
We received the completed wood structure building with the
regular built-up roof.   The floor is concrete with wood
partitions.   It is a better building than we originally
had, yet smaller in floor area and too far from operations.
We have moved into this building the following: general
division offices, carpentry shop, plumbing shop, paint
shop, sheet metal and tin shop, electrical shop, upholstery
shop, and general stores.

     The building and contents (including the stores) were
insured for 4400,000.00.   An inspection was made by the
Kentucky Inspection Bureau, Louisville, Kentucky, and a
rate of V7.56 per thousand established.   This high rate
was established, according to information, because of the
dual operation in the building.   It would cost about
$30,000.00 annually to insure the building and its contents.
Insurance companies cancelled the coverage.   vie do not now
have insurance on the building, but do have a day watchman
and two night watchmen.   First aid chemical protection is
properly located in the building.   The Kentucky Inspection
Bureau recommends one additional fire hydrant be installed
and the paint and upholstery shops be removed from the
building.   If these changes were made the 901 co-insurance
rate would b e reduced to b4.07 on the building and ';4.08
on the contents.




 





4



          I recommend that we remove the store room from
      this building and install same in the storage building
      nearby which carries a 90% co-insurance rate of l1.31l
      on the building and 41.343 on contents.  This will
      reduce the insurance necessary on the building and
      contents about 50%.  These changes will cost 42,000
      or $3,000 but will be more than saved in premium.

          I desire to call to your attention the fact that
     we do have plans and specifications for a new concrete
     fire-resisting service building to be erected on the old
     site located at the intersection of Lime and Upper Streets.
     The University has in the Insurance Account for the re-
     erection of the Service Building the sum of 4218,540.40.
     The base insurance rate on the new building will be 50~
     per hundred.

                                   Yours very truly,


                                   Frank D. Peterson, Comptroller
     FDP/hrb



     The Comptroller stated that Mr. white, in charge of the Division
of State Fire and Tornado Fund, agreed on Friday, August 6, to recom-
mend to the Commissioner of Insurance that this building and contents
be insured in the State Fire and Tornado Insurance Fund in the amount
of 4200,000, but stated that he did not feel that the balance could
be insured in a private company at this time.

     It vwas also stated to the Board that the stores housed in the
shop building might be moved to an adjoining building where the in-
surance rate has been fixed at $1.318 on building and $1.343 on con-
tents.  A general discussion followed, and upon motion duly made,
seconded and carried, the Comptroller was authorized to secure prices
for installation of a sprinkler system in the building, and to re-
quest the Director of the State Fire and Tornado Fund to put as much
insurance on the building and contents as possible.

     Judge Stoll raised the question of complying with recommendation
of the State Fire Mlarshal.  It was recalled that the Fire Marshal's
Office caused an inspection to be made of the buildings on the campus
some time in 1946.   The State Fire Marshal recommended that fire es-
capes be installed on several buildings on the campus.   The Comptrol-
ler stated that all fire escapes recommended had been installed with
the exception of the fire escape recommended for installation on the
Administration building.   It was further explained that the recom-
mendation was made for fire escape on the Administration building
when a part of the space on the third floor was used for classroom
purposes,   The space in the Administration building is no longer




 









scheduled for classes; therefore, it was thought that it ,wrould not be
necessary to install fire escape on, this building, used entirely f or
administrative purposes.

     The Comptroller stated that he had requested the State Fire Iar-
shal's Office to make another inspection of the facilities of the U'ni-
versity and also to report on whether or not the University had com-
plied with the recommendation of the Fire Marshal's Office.



     D. Memorial Auditorium-Fieldhouse Revenue Bonds, Authorization
and Notice of Sale.

     President Donovan stated that it would be necessary to issue
building and revenue bonds under Section 162.340, Kentucky R.evised
Statutes, to provide the necessary funds with which to complete the
Memorial Auditorium-Fieldhouse; whereupon Member Robert P. Hobson in-
troduced and caused to be read the following proposed resolution en-
titled "A Resolution of the Board of Trustees of the University of
Kentucky providing for the issuance, sale and delivery of 11M1emorial Au-
ditorium-Field House Revenue Bonds of the University of Kentucky to
provide funds to assure the completion of the Memorial Auditorium-
Field House now under construction", which Resolution and Notice of
Sale of Bonds are as follows:

         WJHEREAS, the University of Kentucky and its students
     are not now being provided with adequate buildings for edu-
     cational purposes and in order to provide the same, the Board
     of Trustees of the University has heretofore approved plans
     and specifications for a new auditorium and field house and
     the same is now under construction upon property owned by
     the University in Lexington, Kentucky; and

         WHEREAS, certain appropriations have from time to time
    been made by the General Assembly of the Commonwealth of
    Kentucky for the purpose of defraying the cost of constructing
    said new building and final construction contracts have now
    been let on competitive bids and it appears that the total
    cost of construction will exceed the amount of all such
    appropriations; and

         WHEREAS, under the provisions of Section 162.340 and
    succeeding sections of the Kentucky Revised Statutes, the
    Board of Trustees of the University of Kentucky, as the
    governing body of said state educational institution, is
    authorized to issue bonds as hereinafter provided for the
    purpose of financing such additional cost of said new
    building (said auditorium and field house building together
    with appurtenances being hereinafter sometimes referred to
    as the "project"),




 





6



      NOWl, THMEFORE, the Board of Trustees cl' the University
 of Kentucky resolves as follows:

      Section 1. In order to provide for the payment of the
 cost (not otherwise provided) of the project, there shall
 be and there are hereby ordered to be issaed by the Board
 of Trustees of the University of Kentucky, in its corporate
 capacity and by and through its corporate name, and as a
 state educational institution and agency, "TIemorial Audi-
 torium-Field House Revenue Bonds" in the aggregate principal
 amount of $3825,000.00, dated August 1, 1948, and consisting
 of 825 bonds of the denomination of $1,000.00 each, which
 shall be numbered consecutively from 1 to 825, inclusive,
 and which shall bear interest to be evidenced by coupons
 attached to each bond at the rate of 2-3/4% per annum
 payable February 1, 1949 and semi-annually thereafter on
 the first days of August and February in each year. Said
 bonds shall mature serially and in numerical order as
 follows:

   BONDS NtJMDEED     PRINCIPAL AMOUNT     DATE OF MATURITY
   (Inclusive)

        1-40            640,000.00            August 1, 1950
        41-80           p40,000.00             August 1, 1951
        81-120           $40,000.00            August 1, 1952
      121-160          $40,000.00             August 1, 1953
      161-200     5     40,000.OO             August 1, 1954
      201-240          $40,000.00            August 1, 1955
      241-285           $45,000.00            August 1, 1956
      286-330           @45,000,00            August 1, 1957
      331-375          $45,000.00             August 1, 1958
      376-420          $45,000.00             August 1, 1959
      421-465           $45,000.00            August 1, 1960
      466-510          $45,000.00             August 1, 1961
      511-555          $45,000.00             August 1, 1962
      556-600          $45,000.00             August 1, 1963
      601-645          $45,000.00             August 1, 1964
      646-690          $45,000.00             August 1, 1965
      691-735          $45, 000.00            August 1, 1966
      736-780           $45,000.00            August 1, 1967
      781-825           $45,000.00            August 1, 1968;

provided, however, that any of said bonds numbered from 161 to
825, inclusive, shall be redeemable prior to maturity as a whole
or from time to time in part in their inverse order of numbering
on any interest payment date on or after August 1, 1953 provid-
ing a notice specifying the bonds to be redeemed shall have b een
on file at the place of payment of principal and interest at
least thirty days prior to the specified redemption date and
provided also that such notice shall have been published at
least once not less than thirty days prior to the specified re-
demption date in The Courier-Journal, a daily newspaper pub-
lished in Louisville, Kentucky, and of general circulation




 




7



throughout the Commonwealth of Kentucky, and in The Bond Buy-
er, a financial newspaper published in New York City, New
York.   Bonds which are called for redemption shall cease to
bear interest as of the redemption date, provided that on
or prior to the redemption date there shall have been depos-
ited at the place of payment of principal and interest the
face amount of each bond together with accrued interest
thereon to the redemption date and together with additional
interest which shall be in the sum of 425.00 per bond if
the redemption date is prior to August 1, 1958; Q20.00 per
bond if the redemption date is on or after August 1, 1958
but prior to August 1, 1961; and $1500 per bond if the
redemption date is on or after August 1, 1961 but prior to
August 1, 1963.   If the redemption date is on or after
August 1, 1963, no additional interest shall be payable.

     Section 2.   Said bonds shall be signed for and on
behalf of the University of Kentucky and its Board of
Trustees by the Chairman of said Board of Trustees, attest-
ed by its Secretary, and sealed with its corporate seal,
and the interest coupons attached to said bonds shall be
executed with the facsimile signatures of said Chairman
and Secretary, and said bonds, together with the interest
thereon, shall be payable in lawful money of the United
States of America, at the office of Union Bank & Trust
Company in the City of Lexington, Fayette County, Kentucky,
but only out of the "Memorial Auditorium-Field House Rev-
enue Bond and Interest Redemption Fund" hereinafter cre-
ated, and shall be a valid claim of the holders thereof
only against said furx, and gross income and revenues of
the project pledged to such fund.

     Section 3. The aforesaid bonds and coupons shall
be in substantially the following form, to wit:

                     (Form of Bond)

               UNITED STATES OF AMERICA

               COMMONWEALTH OF KENTUCKY

               UNIVERSITY OF KENTUCKY

      MEMORIAL AUDITORIUM-FIELD HOUSE REVENUE BOND

No.                                                 $1,000.00

     The University cf Kentucky, by its Board of Trustees
and as a state educational institution and agency, for
value received, hereby promises to pay to the bearer, or
if this bond be registered, to the registered holder hereof,
as hereinafter provided, the sum of One Thousand Dollars
($l,OOo.OO) on the First day of August, 19_, with




 




a



interest thereon from the date hereof until paid at the
rate of two and three-fourths per centum (2-3/4%) per an-
num, payable February 1, 1949, and semi-annually there-
after on August 1 and February 1 of each year, except as
the provisions hereinafter set forth with respect to prior
redemption may be and become applicable hereto, such in-
terest as may accrue on and prior to the maturity date of
this bond to be paid only upon presentation and surrender
of the annexed interest coupons as they severally mature,
both interest and principal being payable in lawful money
of the United States of America, at the office of Union
Bank & Trust Company, in the City of Lexington, Fayette
County, Kentucky.

     The right is hereby reserved to call and redeem bonds
numbered 161 to 825, inclusive, of the series of which this
bond is a part, prior to their respective stated maturi-
ties, as a whole or from time to time in part, in their
inverse order of numbering, on August 1, 1953, or on any
interest payment date thereafter, providing a notice
specifying the bonds to be redeemed shall have been on
file at the place of payment of principal hereof and
interest hereon at least thirty days prior thereto, and
provided such notice shall have been published at least
once not less than thirty days prior to the redemption
date in The Courier-Journal, a daily newspaper published
in Louisville, Kentucky, and of general circulation
throughout the Commonwealth of Kentucky, and in The Bond
Bayer, a financial newspaper published in New York City,
New York.  All bonds called for redemption vill cease
to bear interest as of the redemption date, provided that
on or prior to the redemption date there shall have been
deposited at the place of payment of principal and interest
a sum equal to the face amount of each bond redeemed, to-
gether with accrued interest thereon at the coupon rate
and together with additional interest which shall be equal
to Twenty-Five Dollars ($25.00) per bond if the redemption
date is prior to August 1, 1958; Twenty Dollars (Q20.00)
per bnd if the redemption date is on or after August 1,
1958 but prior to August 1, 1961; and Fifteen Dollars
($15.00) per bond if the redemption date is on or after
August 1, 1961 but prior to August 1, 1963.    If the
redemption date is on or after August 1, 1963, no addi-
tional interest will be due or payable.

     This bond is issued for the purpose of financing a
part of the cost of constructing an auditorium and field
house with appurtenances thereto for educational purposes
in connection with the University of Kentucky, under and
in full compliance with the Constitution and Statutes of
Kentucky, including, among others, Sections 162.350 to
162.380, inclusive, of the Kentucky Revised Statutos and
other sections of said statutes incorporated therein by
reference.




 





9



     This bond is payable only from a fixed amount of the
gross income and revenues to be derived from the opera-
tion of said auditorium and field house and appurtenances
thereto, which will be set aside as a special fund and
pledged for that purpose and identified as the 'Miemorial
Auditorium-Field House Revenue Bond and Interest Redemption
Fund" and this bond dons not constitute an indebtedness
of the University of Kentucky or its Board of Trustees or
of the Commonwealth of Kentucky within the meaning of
any constitutional provisions or limitations.

     A statutory mortgage lien, which is hereby recognized
as valid and binding on said auditorium-field house build-
ing and appurtenances, is created and granted to and in
favor of the holder or holders of this bond and the series
of which it is a part, and in favor of the holder or holders
of the coupons attached thereto, and said building and ap-
purtenances shall remain subject to such statutory mortgage
lien until the payment in full of the principal of and in-
terest on this bord and the series of which it is a part.

     This bond is fully negotiable but may be registered
as to principal only on the books of t he Secretary of the
Board of Trustees of the University of Kentucky, such
registration to be evidenced by notation thereof on the
reverse side hereof by said Secretary, after which no
transfer of this bond shall be valid unless made on said
books at the written request of the registered owner or
his authorized representative and similarly noted on the
reverse hereof; but this bond may be discharged from
registry by being registered to bearer, and thereafter
transferability by delivery shall be restored.   Registra-
tion of this bond as aforesaid shall not affect the nego-
tiability of the coupons appurtenant hereto, which shall
continue to be transferable by delivery merely and shall
remain payable to bearer.

     IT IS HEREBY CERTIFIED, RECITED AND DECLARED, that
all acts, conditions and things required to exist, to
happen and to be performed precedent to and in the
issuance, sale and delivery of this bond do exist, have
happened and have been performed in due time, form and
manner and by the appropriate parties as required by law,
and the amount of this bond, together with all other obli.-
gations of said University of Kentucky and its Board of
Trustees, does not exceed any limit prescribed by the
Constitution or Statutes of Kentucky; that said auditorium-
field house building and appurtenances will be continuously
operated by said University of Kentucky, and that a suf-
flicient portion of the gross income and revenues therefrom
has been pledged to and will be set aside into a special
account for the payment of the principal of and interest
on this bond and the series of which it is a part, as
the same will respectively become due.




 




10



     IN TESTIMONY WHEREOF, the University of Kentucky,
by its Board of Trustees, has caused this bnnd to be
signed by the Chairman of said Board of Trustees and
its corporate seal to be hereunto affixed, attested by
the Secretary thereof, and the coupons hereto attached
to be executed with the facsimile signatures of said
Chairman and Secretary, who, by the execution of this
bond do acknowledge said facsimile signatures to be
their authorized official signatures, all as of the
First day of August, 1948.

(SEAL)
                          Chairman, Board of Trustees

ATTEST:


Secretary, Board of Trustees



                     (Form of Coupon)

No.-

     (*) Unless the bond to which this coupon is
         attached shall have been called for prior
         redemption


     On the First day of                   , 19      , the
University of Kentucky, by its Board of Trustees, will
pay to bearer Thirteen and seventy-five one-hundredths
Dollars (@l3.75) out of its "11emorial Auditorium-Field
House Revenue Bond and Interest Redemption Fund" at
the office of Union Bank & Trust Company in the City of
Lexington, Fayette County, Kentucky, as provided in and
being interest then due on its Memorial Auditorium-
Field House Revenue Bond dated August 1, 1948, Number



ATTEST:                       Chairman,  Board of Trustees


Secretary, Board of Trustees

        (*) Redemption clause to be omqitted from
            coupons maturing on or prior to February
            1, 1954.




 




11



         (Form of Registration to be printed on
                 the back of each bond)


Date of                 Name of              Signature of
Registration:      Registered Holder  :Secretary, Board of
                                              Trustees



     Section 4. The project shall be completed as expedi-
tiously as may be (the estimated completion date being June
1, 1950) and continuously thereafter it shall be operated
as a revenue-producing undertaking on a fiscal year basis
ending on July 31 of each year, and on that basis the gross
income and revenues of said project shall be sufficient so
as to set aside the required amounts (hereinafter specified)
into a special and separate fund designated the "Memorial
Auditorium-Field House Revenue Fund" (hereinafter called
the "revenue fund").

     It is hereby represented and declared that in addi-
tion to tuition and other charges fixed and imposed for
attendance at the University, the Board of Trustees of said
University has heretofore and so long as any of the bonds
herein authorized are outstanding, will continue to fix,
impose, charge and collect an "incidental registration fee"
which all students have been and will continue to be re-
quired to pay and a portion of which has been and will
continue to be allocated annually to the athletic program
at the University.   A substantial portion so allocated
wriill represent income and revenues of the Memorial Audi-
torium-Field House.   It is therefore hereby covenanted
and agreed on behalf of said Board of Trustees that annually
when fixing the amount of such incidental registration fee,
due account will be taken of the services and facilities
of said Memorial Auditorium-Field House; that the portion
thereof allocated annually to the athletic program by the
University will continue to take into account the services
and facilities of said LMemorial Auditorium-Field House;
that the amount thus allocated to the athletic program
will be sufficient each year to discharge all expenditures
properly chargeable thereto and in addition an amount
which, with the other annual gross income and revenues
received as direct admission charges in connection with
athletic events and other activities conducted and carried
on in said Memorial Auditorium-Field House, will constitute
said Memorial Auditorium-Field House Revenue Fund" and
will be sufficient at all times to make the required




 








payments into the "Memorial Auditorium-Field House Rev-
enue Bond and Interest Redemption Fund" and pay costs of
operation and maintenance (including insurance) of said
Miemorial Auditorium-Field House.

     There shall be and there is hereby created a fund
to be known as the "Memorial Auditorium-Field House
Revenue Bond and Interest Redemption Fund" (hereinafter
called the "bond fund") into which there shall be set
aside from the moneys held in the revenue fund such
amounts as will be sufficient to pay the interest on and
principal of the bonds hereby authorized, as may be out-
standing from time to time.   It is hereby agreed that
from the proceeds of the sale of the bonds authorized by
this resolution there shall be set aside into the bond
fund a sum equal to the total interest which will accrue
upon the bonds authorized by this resolution up to and
including August 1, 1949, and there may be so set aside
a further sum equal to the interest which will accrue to
and including August 1, 1950; and from that portion of
student fees allocated to the athletic program of the
University for the academic year 1949-1950, there shall
further be set aside the sum of s;62 687.50, or so much
of said amount as may be necessary ttogether with in-
terest set aside from the proceeds of the sale of said
bonds, if any) to made the total payments into the bond
fund for the fiscal year ending July 31, 1950 equal to
;62, 687.50.  It is agreed that the total amounts to be
deposited. in the bond fund during each fiscal year shall
be not less than as set forth in the following schedule
(which for the sako of convenience also sets forth the
amounts to be set forth in the years ending July 31, 1949
and July 31, 1950:

     For the year ending July 31, 1949,, i22,687.50
     For the year ending July 31, 19503   62,687.50
     For the year ending July 31, 1951,  $6l,587.50
     For the year ending July 31, 1952,  $60,4V7,50
     For the year ending July 31, 1953, $59 387,50
     For the year ending July 31, 1954,  $58. 287,,50
     For the year ending July 31, 1955,  @57,187q50
     For the year ending July 31, 1956, $61,087.50
     For the year ending July 31, 1957, $59, 850.00
     For the year ending July 31, 1958,  $58, 612.50
     For the year ending July 31, 1959,   57,375.00
     For the year ending July 31, 1960,  @56,137.50
     For the year endin- July 31, 1961,   54,900.00
     For the year ending July 31, 1962,   53,662.50
     For the year ending July 31, 1963    52,425.00
     For the year ending July 31, 1964, 551187.50
     For the year ending July 31, 1965,  $49,950.00
     For the year ending July 31, 1966,  S48,712.50
     For the year ending July 31, 1967,  447 475.00
     For the year ending July 31, 1968,  $46,237.50




 





13



      All funds received as accrued interest at the time
 of the delivery of said bonds, together with a sufficient
 amount of proceeds of said bonds equal to the interest
 which will accrue thereon until and including August 1,
 1950, shall be paid into said bond fund at the time of
 the delivery of said bonds hereby authorized, and shall
 be used for the payment of the interest on said bonds
 next thereafter becoming due.

      The amount by which the payments in any fiscal year
 exceed the aggregate amount of interest on and principal
 of said bonds then currently becoming due shall be held
 in said bond fund as a reserve for contingencies and used
 solely as herein provided; provided, however, that no
 further payments need be made into said bond fund whenever
 and so long as such amount of the bonds shall have been
 retired that the amount then held in the bond fund, in-
 cluding the reserve for contingencies, is equal to the
 entire amount of the principal and interest that is to be
 paid on all of such bonds then remaining outstanding.

     If, for any reason, there be a failure to make any
payments into such bond fund as aforesaid during any
fiscal year, any sums then held as a reserve for contin-
gencies shall be used for the payment of qny portion of
the interest or principal on which bonds there would
otherwise be default, but such reserve shall be reimbursed
therefor from the first available payments made into the
bond fund in the following year or years in excess of
the required payment for the then current fiscal year.

     AU moneys held in the bond fund or as a reserve for
contingencies shall be deposited in a bank which is a
member of the Federal Reserve System and of the Federal
Deposit Insurance Corporation; the moneys held as reserve
for contingencies may be invested in direct obligations
of the United States of America; provided, however, that
sale of a sufficient amount of such obligations shall be
made in the event that it shall prove necessary to draw
upon said reserve.

     The payments hereinabove provided into said bond
fund from the Memorial Auditorium-Field House Revenue
Fund shall be made in equal monthly installments on the
first day of each month, except when the first day of
any such month shall be on a Sunday or a legal holiday,
in which event such payme