MISCELLAMEOUS, continued July 9, 1938 Report of Secretary on Yet. Clinic 10, The Secretary reported on the difficulties encountered in obtaining WPA approval for the Veterinary Clinic Project* On motion of Mr. Berkey, seconded by Mr..Downing, it was voted to authorize the Secretary to file this project on the basis of the entire state contribution to be used for materials - architect's fees and the cost of supervision of the construction to be paid for out of other college funds. The meeting adjourned at 5:15 F«M. Special Meeting of the State Board of Agriculture Minutes of the -July 9, 1938 ILCf Present: Mr. Halstead (Chairman),. Messrs. Berkey, Brody, downing, Mrs. Masselink, President Shaw, Treasurer Wiikins* Absent: Mr. Jakway, Dr. Elliott and Secretary Hannah. The meeting was called to order at 10:15 A.M. This special meeting was called for the purpose of considering an offer of the Public Works Administration to aid b y w ay of a grant in financing the construction of a dormitory for men at the Michigan State College of Agriculture and Applied Science. The total cost of the dormitory is $500,000.00 and a grant for 45^ of this cost, or 8202,500.00 has been offered by the Public Works Administration, The remaining $300,000•00. is to be financed by the Ann Arbor Trust Company through issuance of bonds, which, issue together with the refinancing of Stevens T* Mason Hall amounts to $800,000.00. Mr. Earl Cress of the Ann Arbor"Trust Company, Mr. Hugh Wilson, Attorney for Ann Arbor Trust Company and Mr. E. C. Shields of the firm of college attorneys, Shields, Ballard, Jennings and Taber, were present and explained the resolutions regarding the financing. Acceptance of dormitory offer 1. Resolution accepting the offer of the United States to the State Board of Agriculture to aid by way of a grant in financing the construction of a dormitory at the Michigan State College of Agriculture and Applied Science, including necessary equipment therefor and improvement of the site. {Resolution j I relative to ; • !borrowing money to pro-! jvide for ! sponsor* s cozH rtribution. I On motion of Mr..Halsteed, seconded by Mr* Downing,, it was voted to accept the offer of the United States to aid by way of a grant in financing the construction of a dormitory at Michigan State College cost of which is $500,000.00 - (Grant $202,500,00 - College share - $300,000.00)• 2. Resolution relative to 'borrowing money to provide funds to retire outstanding Michigan State College of Agriculture and Applied Science men's dormitory revenue bonds and for the con- struction and equipping of a new menfs dormitory, IAIHEREAS, The State Board of Agriculture desires to construct, furnish ana equip a new dormitory for the housing of male students of Michigan State College of Agriculture and Applied Science, to be hereafter named, on property owned by said Board; and WHEREAS, it is anticipated that the costs incidental tc the construction, furnish- ing end equipping of said dormitory shall not be in excess of Five Hundred Thousand ($500,000.00) Dollars; ana WHEREAS, it is anticipated that this Board will be able to obtain a Federal Emer- gency Administration of Public Works grant approximating forty-five (45%) per cent of the costs of constructing, furnishing and equipping said dormitory; and WHEREAS, if said dormitory is to be erected, equipped end furnished, it will be necessary for this Board to borrow a sum of money, not to exceed the sum of Three Hundred Thousand ($300,000.00) Dollars, which, together with said grant, if obtained, will be sufficient to pay all costs incidental thereto; and WHEREAS, The State Board of Agriculture has outstanding at the present time, Michigan State College of Agriculture and Applied Science Men's Dormitory Revenue Bonds of the face value of Five Hundred Thousand ($500,000*00) Dollars, which" bear date of December 1, 1937, and bear interest at the rate of four and one-half (4|%) per cent per annum, pay- able semi-annually, which were issued to provide funds for the building, furnishing.and equipping of the men's dormitory now being constructed on the campus of Michigan State College of Agriculture and Applied Science; and • 2. Resolution relative to borrowing money, etc. .'-WHEREAS,•• the Ann Arbor Trust Company, of Ann Arbor\ Michigan, as fiscal agent of this Board, has submitted for Its consideration a Trust Agreement* copy of which is on file in the Secretary's Office, whereby the Board, through the issuance and sale of Dormitory Revenue Bonds, may borrow funds which will be sufficient: Resolution relative to borrov/ing money• (a) To provide funds which, when added to the sum to be obtained as a Federal Emergency July 9, 1938 Administration of Public Works grant will be adequate to construct, furnish and equip a second new men's dormitory on the campus of Michigan State College of Agriculture end Applied Science, a n d. . . • . . . ; .. :. • . . .. : . : (b) To provide all funds necessary to call and redeem said Michigan State College of Agriculture and Applied Science Men's Dormitory Revenue Bonds now outstanding, and to pay all expenses incidental thereto. : NOW, THEREFORE, BE IT RESOLVED BY THE ST^TE BOARD OF AGRICULTURE that it borrow the sum of Eight Hundred Thousand ($800,000*00) Dollars through the issuance of Dormitoiy Revenue Bonds in the aggregate principal sum of Eight Hundred Thousand ($800,000,00) Dollars, all to be paid from and equally secured by a pledge of the gross rents collected from students of Michigan State College of -Agriculture and Applied Science who shall reside and occupy rooms in the men1 s dormitory now being erected on the campus of said College and rooms in the second new men*s dormitory as herein contemplated, and the net income derived from the operation of said dormi- tories when completed and placed in operation. ./Said .Dormitory Revenue Bonds shall be issued in one series and shall be designated as "Michigan State College of Agriculture and Applied Science Men1s Dormitory Revenue Bonds, Series IT". Said Dormitory Revenue Bonds shall be dated August 1, 1938, or such later date as shall be approved by Robert S. Shaw and John A. Hannah, respectively the President and Secretary of Michigan State College of Agriculture and A.pplied Science; and shall consist of eight hundred (800) bonds of the denomination of One Thousand ($1,000*00)Dollars each, numbered one (I) to eight hundred (800), both inclusive. Said Dormitory Revenue bonds shall bear interest at the rate of three and one-half.( per cent per annum, payable semi-annually on the first day of February and the first day of August in each year, and shall mature serially as follows: August February August February August Feb ruary August February August February August February August 1, I, • 1, 1, 1, 1, 1, 1, 1", 1, 1, 1939 1940 1940 1941 1941 1942 1942 1943 1943 1944 1944 1945 ,1945 1 §12,000.00 10,000.00 42,000.00 11,000.00 44,000.00 12,000.00 44,000.00 13,000,00 45,000.00 14,000.00 47,000.00 15,000.00 47,000.00 -February August February August February -August February August February August February August lebruary 1, 1, 1, -) -*- > 1, 1, 1, 1, 1, 1, 1946 1946 1947 1947 1948 1948 1949 1949 1950 1950 1951 1951 1952 ! •» 1, 1, $16,000.00 49,000.'00 17,000.00 50,000.00 19,000.00 50,000.00 20,000.00 52,000.00 21,000.00 54,000.00 •22,000.00 55,000.00 .19,000.00 Any and all Dormitory Revenue Bonds shall be subject to redemption on any interest pay- ment date; and all bonds redeemed prior to the date of maturity shall be redeemable on payment of the face value thereof, together with the amount of all matured interest coupons and a premium of one (lfc) per cent of the face value thereof, BE IT FURTHER RESOLVED that Robert S. Shaw, President of Michigan State College of Agri- culture and Applied Science, and John A* Hannah, its Secretary, be and they are hereby authorized empowered and directed, in the name of The State Board of Agriculture and as its corporate act and deed, to execute and enter into the aforementioned Trust Agreement between said Board and the Ann Arbor Trust Company. BE.IT FURTHER RESOLVED that said officers be and they are hereby authorized, empowered snd directed, in the name of The State Board of Agriculture and as its cop/orate act: and deed, to execute, sign and countersign the Dormitory Revenue Bonds hereinbefore provided for, in such manner as is prescribed in the aforementioned Trust Agreement/ end to pledge the gross rents to be collected from students of Michigan State College of Agriculture and Applied Science who shall reside and occupy rooms in said dormitories, one of which is now being erected on the campus of Michigan State College of Agriculture and Applied Science and the other to be erected thereon, and the net income from said dormitories when placed in operation, including rental from rooms, income from the dining rooms and other service charges, for the purpose of securing I and paying all payments of principal, interest and reserves for depreciation provided for in ; said Trust Agreement, and to perform all acts and deeds, and execute all instruments and doen- } j ments necessary, expedient and proper in connection with the borrowing of said Eight Hundred j Thousand ($800,000.00) Dollars, the issuance and sale of the Dormitoiy Revenue Bonds, and the j pledging of the gross rents and net income from said dormitories. BE IT 5URTHER RESOLVED that said officers be and they are hereby authorized and empowered^ for and in the name of The State Board of Agriculture and as its corporate act and deed, to make,; consent to and agree to any changes in the terms or conditions of said Trust Agreement which they may deem necessary, expedient or proper, prior to or at the time of the execution of said Trust Agreement, but no such amendments shall change the provisions .tiierein for the amount to be . ;. I "•$- I I I I July 9, IS38 2. Resolution relative to borrowing money, etc, (continued) I I ! | ! ! \ I | I ! \ ]• I I ; ! j ;: : : borrowed, the interest to be paid thereon, the payments required to be"made therein, or of the security to be pledged. Provided, however, nothing herein contained shall be construed as limiting the right of said officers to alter or change the date of issue of said bonds or date for payment of interest or the dates fixed for payments to the Trustee as provided in said Trust Agreement* Said officers, either in said Trust Agreement or by the issuance of said Dormitory Revenue Bonds, shall not pledge the credit o± or create any liability on the part of the State of Michigan, The State Board of Agriculture, or of any member or officer of said Board, or any of their successors, other than to pledge the gross room rents and net income from the operation of said dormitories for the payment of said Dormitory Revenue Bonds, as herein set forth. BE IT FURTHER RESOLVED that should it develop that Robert S. Shaw, as President of Michigan State College of Agriculture and Applied Science, through illness, absence or otherwise, should be unable to perform the acts that he is herein authorized, empowered and directed to perform, then, in that case, Charles 0* Wilkins, Comptroller of Michigan State College of Agriculture and Applied Science, is hereby authorized, empowered and directed to perform any and all acts and deeds herein authorized and directed to be performed by said Robert S. Shaw; and any action so taken by said Charles 0* Wilkins shall be as binding on The State Board of Agriculture as if performed by said Robert S» Shaw. BE IT FURTHER RESOLVED THAT SHOULD IT DEVELOP that John A. Hannah, as Secretary of Michigan State College of Agriculture and Applied Science, through illness, absence or other- wise, should be unable to perform the acts that he is herein authorized, empov/ered and directed to perform, then, in that case, said Charles 0. Wilkins, Comptroller of Michigan State .College of Agriculture and Applied Science, is hereby authorized, empowered and directed to perform any and all acts and deeds herein authorized and directed to be performed by said John A. Hannah; and any action so taken by said Charles 0, Wilkins shall be as binding on The State Board of Agriculture as if performed by said John A* Hannah. !On motion of Mr. Halstead, seconded by Mr.' Berkey, it was voted to approve the above resolution relative to borrowing money to provide funds to retire outstanding-Michigan State-College of Agri- culture and Applied Science men's dormitory revenue bonds and for the construction and equipping j of a new men's dormitory. j 3. Resolution to furnish water, light and heat for nev,r dormitory. WHEEffiAS, The State Board of Agriculture desires to construct, furnish and equip a new dormitory for the housing of male students of Michigan State College of Agriculture and Applied Science (to be hereafter named) on the campus of said College, and this Board is now obligated on a loan evidenced by Michigan State College of Agriculture and Applied Science Menfs Dormitory Revenue Bonds of the face value of Jive Hundred Thousand ($500,000.00) Dollars, which bonds bear four and one-half (4i%) per cent interest and were issued and sold to provide for the building of a men's dormitory now being constructed on the campus of said College, which loan this Board desires to refinance, and WHEREAS, under the plan contemplated for the construction of said second new dormitory and the refinancing of said loan, it is necessary to borrow a sum of money, but not to exceed light Hundred Thousand (§300,000.00) Dollars, through the issuance and sale of Dormitory Revenue Bonds, vdiich. will be sufficient; (a) To provide funds which when added to the sum to be obtained as a Federal Administration of Public Works grant, will be sufficient to construct, furnish and equip a second new men's dormitory on the campus of Michigan State College of Agriculture and Applied Science, and (b) To provide all funds necessary to call and redeem said Michigan State College of Agriculture and Applied Science Men's Dormitory Revenue Bonds now outstanding and to pay all expenses incidental thereto; end to pledge as security therefor the gross rents re- ceived from students of Michigan State College of Agriculture and Applied Science who reside and occupy rooms in said dormitory now being constructed and the dormitory to be constructed and the net income derived from the operation of said dormitories when they are placed in operation, and TiVHEREAS, it is desire of said Board that the Purchasers of said Dormitory Revenue Bonds be given the maximum security and assurance that all payments of principal and interest which shall become payable in accordance with the terms of said bonds will be paid when due. Resolution relative to furnishing water, heat and light. : i ; I \ NOW, THEREFORE, BE IT RESOLVED BY THE STATE BOARD 0E AGRICULTURE that so long as any of the dormitory Revenue Bonds to be issued as above contemplated remain outstanding, in making up the annual budget of said College, the procedure shall be to pay the water, heating and lighting costs of said dormitory now being constructed and known as Stevens T. Mason Hall and a second dormitory constructed on the campus of Michigan State College of Agriculture and Applied Science from such funds ether than the gross rents and net income from said dormitory as may be legally used for that purpose. ;0n motion of ^r, Berkey, seconded hy Mr.. Downing, it was voted to approve the above resolution. Resolution j4« relative to; sale of bonds. ..I : Resolution relative to sale of bonds, WHEREAS, The State Board of Agriculture has authorized the issuance of Dormitory Revenue Bonds of the face value not to exceed Eight Hundred Thousand (#800,000.00) Dollars, July 9, 1938 1 Resolution relative uo sale of O G J J L GS «. Resolution relative to employment of Ann Arbor Trust Com- pany as Trustee/ 4* Resolution relative to sale of bonds, continued: which when sold will provide a sum which will be sufficient: (a) to provide funds which when added to the sum to be obtained as a Federal Emergency' Administration of Public Works grant will be sufficient to construct, furnish and equip a second men's dormitory on the campus of Michigan State College of Agriculture and Applied Science, and (b) to provide all funds necessary to call and redeem said Michigan State College of Men's Dormitory Revenue Bonds now outstanding and to pay Agriculture and Applied Science all expenses incidental thereto: NOW, THEREFORE, EE IT RESOLVED that the President, Secretary and Comptroller of Michigan State College of Agriculture and Applied Science, or any two of them, be and they are hereby authorized to enter into a contract, for the sale of, and to execute, sell and deliver such Dormitory Revenue Bonds as shall be issued at a price of not less than Ninety Sight and One-Half (98^) per cent of their face value plus accrued interest• On motion of Mr. Berfcey, seconded by Mr* Halstead, it was voted to approve the above resolution. 5. Resolution relative to the employment of Ann Arbor Trust Company as Trustee. :VJHEE3EAS,- The State Board of Agriculture has authorized the execution of a Trust Agree- ment with the Ann Arbor Trust Company, as Trustee, incidental to the issuance and sale of Dormitory Revenue Bonds to obtain funds which will be sufficient: (a) To provide funds which when added to the sum to be obtained as a Federal Emergency Administration of Public Works grant vail be sufficient to construct, furnish end eauip a second new men's dormitory on the campus of Michigan State College of Agriculture and Applied Science, and (b) To provide all funds necessary to call and redeem said Michigan State College of Agriculture and Applied Science Men*s Dormitory Revenue Bonds now outstanding and to pay all expenses incidental thereto; NOW, THEREFORE, BE IT RESOLVED that the President and Secretary of Michigan State•College! of Agriculture and Applied Science be and they are hereby authorized to execute on behalf of this Board an agreement covering the compensation to be paid by The State 3oard of Agriculture to the Ann Arbor Trust Company, as Trustee, under the Trust Indenture this day authorized, and employing said Ann Arbor Trust Company as Trustee, copy of which is placed on file in the Secretary* s Office, On motion of Mr. Brody, seconded by Mr* Berkey, it was voted to approve the above resolution relative to the employment of the Ann Arbor Trust Company as Trustee* The meeting adjourned at 12 o* clock noon. I I I I I