Professional Services Agreement - Fifth Third Securities - Zoo Capital Project Underwriter Services

Home Browse Search

FIFTH THIRD' SECURITIES Fixed Rate Bonds The following is a general description of the financial characteristics and security structures of fixed rate municipal bonds ("Fixed Rate, Bonds"), as well as a general description of certain financial risks that you should consider before deciding whether to issue Fixed Rate Bonds. Financial Characteristics Maturifil maid Interest. Fixed Rate Bonds are interest -bearing debt securities issued by state and local governments, political subdivisions and agencies and authorities. Maturity dates for Fixed Rate Bonds are fixed at the time of issuance and may include, serial maturities (specified principal amounts are payable on the same date in each year until final Maturity) or one or more term maturities (specified principal amounts are payable on each term maturity date) or a combination of serial and term maturities. The final maturity date typically will range between 1.0 and 30 years from the date of issuance. Interest on the Fixed Rate Bonds typically is paid semiannually at a stated fixed rate or rates for each maturity date. ReMuption, Fixed Rate Bonds may be subject to optional redemption, which allows you, at your option, to redeem some or all of the bonds on a date prior to scheduled maturity, such as in connection with the issuance of refunding bonds to take advantage of lower interest rates, Fixed Rate Bonds will be subject to optional redemption only after the passage of a specified period of time, often approximately ten years from the date of issuance, and upon payment of the redemption price set forth in the bonds, which may include redemption premium. You will be required to send out a notice of optional redemption to the holders of the bonds, usually not less than 30 days prior to the redemption date. Fixed Rate Bonds with term maturity dates also may be subject to mandatory sinking fund redemption, which requires you to redeem specified principal amounts of the bonds annually in advance of the term maturity date, The mandatory sinking fund redemption price is 100% of the principal amount of the bonds to be redeemed. Securi Payment of principal of and interest on a municipal security, including Fixed Rate Bonds, may be backed by various types of pledges and forms of security, some of which are described below. General Obligation Bonds "General obligation bonds" are debt securities to which your full faith and credit is pledged to pay principal and interest. If you have taxing power, generally you will pledge to use your ad valorem (Property) taxing power to pay principal and interest. Ad valorem taxes necessary to pay debt service on general obligation bonds may not be subject to state constitutional property tax millage limits (an unlimited tax general obligation bond). The term "limited" tax is used when such limits exist. General obligation bonds constitute a debt and, depending on applicable state law, may require that you obtain approval by voters prior to issuance. In the event of default in required payments of interest or principal, the holders of general obligation bonds have certain rights under state law to compel you to impose a tax levy. Fifth Third Securities is the trade iiaiiiet.ised by Fiffli Thitd Securities, Ira(.., twiiiberR a whAy owned stA)srdiaiy of Fifth Third Bai*, a reglsteied broker-deak,,r, and a tegisteied irivestriient advisor iegislered with tire, U.S. Securities mid Fxchaiige Cotiai)lissrori lSEQ'r. Registratioti does iiut ititply a certain level of sktli or training'. Securities and investments offered thorio! i Fifth ThWl Semities, 111C. and insurance products: Are Not I'DIC Insured Offer No Bai)k GLI81'allt0o May Lose Value Are Not Insured By Any Federal Govpminent Agericy Are Not A Do pos it liisrrrarco products rriade available lhioiqih t - ifth Third li)surance, Agency. Inc,