1994-06-21 Minutes - Laserfiche WebLink

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At least 10 days prior to the Conversion Date, the Trustee will give written notice of such election by the • Authority to the owners of all Bonds to be converted, .which notice will state (i) the Conversion Date and (ii) that such Bonds will be subject to mandatory purchase on such Conversion Date. If for any reason the conversion of the interest rate on any Bond to a Fixed Rate does not occur, such Bonds shall bear interest from and after the proposed Conversion Date in the Weekly Mode; provided, however, that if the Rate Period preceding the failed Conversion Date was of a duration of more than 366 days, in order for the Bonds to so commence operation in a Weekly Mode the Remarketing Agent shall have obtained (i) certificates from the Authority, the Trustee and the Credit Facility Issuer that there have been no changes in the Credit Facility, the documents executed and delivered in connection with the original delivery of the Bonds, or in any other aspect of the action contemplated hereby. since the original delivery of the Bonds or (ii) an Opinion of Bond Counsel to the effect that the commencement of operation in such Weekly Mode will not have an adverse effect on the validity of the Bonds or on any exemption from federal income taxation to which the interest on the Bonds would otherwise be entitled. If such certificates or opinion are required but cannot be obtained, the immediately succeeding Adjustment Period- shall consist of one Rate Period in an Adjustable Long Mode of a duration of one year plus one day. Notices. The Trustee (which may act through the Tender Agent) shall provide to any Bondholder, upon request, information regarding the Adjustment Periods, Rate Periods, Interest Payment Dates, optional redemption provisions, and interest rate or rates applicable to such Bondholder's Bonds. Failure by the Trustee or the Tender Agent to give any notice, or any defect therein, shall not in any way change the rights of the owners of such Bonds to elect to have their Bonds purchased on any Demand Date or extend the period for making such elections. Any notice mailed as provided in the Indenture shall be conclusively presumed • to have been given, whether or not received. Interest on the Bonds General. The Bonds are subject to a maximum rate of interest of 12% per annum. During any Weekly Mode, interest on the Bonds in such Mode will be payable on the first Business Day of each calendar month. During any Adjustable Long Mode, interest on the Bonds in such Mode will be payable on each Rate Change Date. Also during any Adjustable Mode, if the duration of the Rate Period exceeds 366 days, interest on such Bonds will be payable on each February 1 and August 1. In addition, interest on the Bonds will be payable on any Adjustment Date applicable to such Bonds, and other dates on which such Bonds are subject to m~datory purchase in accordance with the Indenture, and on the Maturity date. During the Fixed Mode, interest on the Bonds in such Mode will be payable on each~February 1 and August i. The Bonds will bear interest, from and including the date of the first authentication and delivery of the Bonds until the principal thereof or redemption price therefor shall have been paid or payment thereof provided for in accordance with the Indenture, whether at Maturity, upon redemption, acceleration, or otherwise. Interest on the Bonds shall accrue during a Weekly Mode from the later of (i) the first day of each calendar month or (ii) the Adjustment Date for such Weekly Mode, to and including the earlier of (iii) the last day of each calendar month or (iv) the day prior to the Adjustment Date for the Mode which succeeds such Weekly Mode. Interest on the Bonds shall accrue during an Adjustable Long Mode (A) with respect to any Bond in an Adjustable Long Mode for any Rate Period which is 366 days or less from the Rate Change Date for such Bonds to the day prior to the next succeeding Rate Change Date and (B) with respect to any Bond in an Adjustable Long Mode for any Rate Period which exceeds 366 days from each February 1 and August 1 to, but not including, the next succeeding February 1 • or August 1 and from each succeeding February 1 or August 1, as the case may be, to the next succeeding February 1 or August 1. Interest on the Bonds shall accrue during a Fixed Rate Period from the Conversion Date -9-