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Section 4. That when said dining hall and two dormitory buildings shall have been completed, they shall thereafter be operated for the purposes of this resolution on a fiscal year basis, beginning on the first day of July of each year and ending on the last day of June of the succeeding ear. From and after the delivery of any bonds issued under the provisions of this resolution, the gross income and revenues of said buildings shall be set aside monthly and pledged to a separate and special fund to be used in the payment of the aforesaid bonds and interest coupons and for the reasonable maintanance and operation of said buildings, which revenues shall be apportioned as follows, to-wit:
Thereshall be and there is hereby created an account to be known as the "Bond and Interest Redemption Fund" (Herein sometimes called the "Bond Fund"), which shall be used solely and only for the purpose of paying the principal of and Interest on said bonds. No part of the gross revenues received in any month for the services and facilities rendered by the said buildings shall be used for any other purpose until there shall first have been set aside therefrom and paid into the Bond Fund the proper proportionate part of the next installment of interest and principal of e bonds as hereinafter more fully provided. Duringthe first five years after the date when the said buildings are first put into operating service, the amount of said revenue so payable into the Bond Fund at the end of each month shall equal one-fifth of the next maturing installment of interest and one-tenth of the next maturing installment of principal. During each of the following years (after the first five years) the amount so payable at the end of each month into the Rond Fund shall equal onesixth of the next maturing installment of interest and one-twelfth of the next maturing installment of principal of bonds. In the event the gross revenue in any month sahll be insufficient to make the aforesaid payments in full, any such deficiency shall be paid into such Bond Fund from the first gross revenues of the said buildings thereafter received, it being the intent of this section that during the first five years of operation the sums so paid into such fund shall be in excess of the actual requirements for the payment of principal and interest during such years, and that all such excess sums paid into the Bond Fund from the operation or from any other source shall be held in said fund as a reserve for contingencies to insure against default in the payment of the principal and interest of said bonds. In the event that the sums paid into said fund in any period shall be insufficient to meet all payments of principal and interest
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be paid into the Bond Fund, including receipts from the dining hall and rentals from the aforesaid dormitories.
Section 9. It is hereby covenanted to and agreed by the said University that so long as any of the bonds herein authorized, remain outstanding unpaid, it will continuously operate and maintain the siad dining hall and two dormitories and will fix and maintain such rates and service charges, and collect and account for all the income and revenues derived therefrom as will be sufficient in each fiscal year (1) to set aside and pay into the Bond Fund the respective amounts hereinabove provided for (2) to pay operation and maintenance costs of said buildings; and (3) to provide a reasonable depreciation fund for said buildings.
Section 10. The said University hereby irrevocably covenants, binds and obligates itself to and with the holder or holders of the bends herein authorized, or any of them, that so long as any of the said bonds are outstanding said University will not pledge, mortgage or otherwise encumber the said buildings or any part thereof, or any revenues therefrom, and wil 1 not sell, lease, or dispose of any of the said buildings; provided, however, that the University may issue additional bonds payable from the venues of said buildings if such additional bonds are junior and subordinate in all respects to the lien of the bonds herein authorized.
Section 11. The said University further covenants to and with the holders of said bonds that it will adopt reasonable rules and regulations governing the operation of said buildings so as to insure maximum occupancy of the said dormitories and use of said dining hall, and that it will maintain for the benefit of the holders of the bonds outstanding adequate insurance on said buildings sufficient to protect and save harmless the holders of said bonds from any and all loss.
Section 12. Interest payable upon said bonds during the period of construction of the said dining hall and dormitory buildings shall be paid from the proceeds of the grant made by the Federal Emergency Administration of Public Works in aid of the project.
Section 13. The proper officers are hereby authorized to execute id bonds, and the State Treasurer is hereby authorized to sell and liver said bonds.
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President Graham then submitted for consideration the following resolution:
A RESOLUTION AUTHORIZING THE UNIVERSITY OF NORTH CAROLINA TO FILE AN APPLICATION TO THE UNITED STATES OP AMERICA THROUGH THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS FOR A GRANT TO AID IN FINANCING THE CONSTRUCTION OP A SOCIAL CENTER RECREATION BUILDING AND A DORMITORY BUILDING AT THE WOMAN'S COLLEGE OF THE UNIVERSITY OF NORTH CAROLINA AT GREENSBORO, AND DESIGNATING FRANK P. GRAHAM, PRESIDENT, OR CHARLES T. WOOLLEN, CONTROLLER, TO FURNISH SUCH INFORMATION AS THE GOVERNMENT MAY REQUEST.
Be it resolved by the Executive Committee ofthe Board of Trustees of the University of North Carolina:
Section 1. That Frank P. Graham President, or Charles T. Woollen, Controller, be and they are hereby authorized to execute and file an application on behalf of the University of North Carolina to the United States of America for a grant to aid in financing the construction of a Social Center Recreation Building and a Dormitory Building at the Woman's College of the University of North Carolina at Greensboro.
Section 2. That Frank P. Graham, President, or Charles T. Woollen, Controller,, be and they are hereby authorized and directed to furnish such information as the United States of America through the Federal Emergency Administration of Public Works may reasonably request in connection with the application which is herein authorized to be filed.
Judge J. J. Parker moved the adoption of this resolution which was seconded by Mrs. Cone and carried.