Common use of Deposit of Bonds Clause in Contracts

Deposit of Bonds. (a) The Depositor, concurrently with the execution and delivery hereof, hereby grants and conveys all of its right, title and interest in and to and hereby conveys to and deposits with the Trustee in an irrevocable Trust the Bonds (together with accrued and unpaid interest thereon) and confirmations of contracts to purchase Bonds, including Contract Obligations, listed in the Schedules to the Trust Agreement duly endorsed in blank or accompanied by all necessary instruments of assignment and transfer in proper form, to be held, managed and applied by the Trustee as herein provided for the benefit of each Unitholder to the extent of such Unitholder's interest in the Trust Fund. The Depositor hereby also delivers to the Trustee a certified check or checks, cash or cash equivalents or an irrevocable letter or letters of credit issued by a commercial bank or banks in an amount necessary to consummate the purchase of any Bonds or Contract Obligations. In the event any Bonds have not been delivered to the Trustee on or before the close of business of the Trustee on the day before the date of expiration of any letter or letters of credit, the Trustee is hereby directed to draw on such letter or letters of credit unless the Depositor has either extended or replaced such letter or letters on or before such close of business. (b) From time to time following the Initial Date of Deposit for a Trust, the Depositor is hereby authorized, in its discretion, to assign, convey to and deposit with the Trustee additional Bonds for such Trust, in bearer form, duly endorsed in blank or accompanied by all necessary instruments of assignment and transfer in proper form (or Contract Obligations relating to such Bonds), to be held, managed and applied by the Trustee as herein provided. Such deposit of additional Bonds shall be made, in each case, pursuant to an executed Supplemental Trust Agreement. The Depositor, in each case, shall ensure that each deposit of additional Bonds pursuant to this Section shall be, as nearly as is practicable, in the identical ratio as the Percentage Ratio for such Bonds as is specified in the Prospectus for the Trust and the Depositor shall ensure that such Bonds are identical to those deposited on the Initial Date of Deposit. The Depositor shall obtain an opinion of counsel satisfactory to the Depositor as to the validity of each deposit of additional Bonds. Any brokerage fees related to the purchase of Bonds deposited in the Trust Fund after the Initial Date of Deposit shall be an expense of such Trust Fund. The Depositor shall deliver the additional Bonds which were not delivered concurrently with the deposit of additional Bonds and which were represented by Contract Obligations within 10 calendar days after such deposit of additional Bonds (the "ADDITIONAL BONDS DELIVERY PERIOD"). If a contract to buy such Bonds between the Depositor and seller is terminated by the seller thereof for any reason beyond the control of the Depositor or if for any other reason such Bonds are not delivered to the Trust Fund by the end of the Additional Bonds Delivery Period for such deposit, the Trustee shall immediately draw on the Letter of Credit, if any, in its entirety, apply the monies in accordance with Section 2.01(d), and the Depositor shall forthwith take the remedial action specified in Section 3.12. If the Depositor does not take the action specified in Section 3.12 within 10 calendar days of the end of the Additional Bonds Delivery Period, the Trustee shall forthwith take the action specified in Section 3.12. Instructions to purchase additional Bonds shall be in writing and shall specify the name, CUSIP number, if any, aggregate amount of the Bond to be purchased and price. The Trustee shall have no responsibility or liability for any loss or depreciation resulting from any purchase made pursuant to the Depositor's instructions and in the absence thereof shall have no duty to purchase any Bonds. The Trustee shall have no responsibility for maintaining the composition of the Trust portfolio. (c) In connection with the deposits described in Section 2.01 (a) and (b), the Depositor has, in the case of Section 2.01(a) deposits, and, prior to the Trustee accepting a Section 2.01(b) deposit will, deposit a certified check, cash, cash equivalents and/or Letter(s) of Credit in an amount sufficient to purchase the Contract Obligations (the "PURCHASE AMOUNT") relating to Bonds which are not actually delivered to the Trustee at the time of such deposit, the terms of which unconditionally allow the Trustee to draw on the full amount of the available Letter of Credit. The Trustee may deposit a certified check or checks, cash or cash equivalents, or cash drawn on the irrevocable letter or letters of credit deposited by the Depositor, to purchase Bonds or Contract Obligations in a non-interest bearing account for the Trust Fund. (d) In the event that the purchase of Bonds or Contract Obligations pursuant to any contract shall not be consummated in accordance with said contract, and the Depositor does not, on or before the third Business Day prior to the next following Distribution Date, direct the Trustee to utilize monies deposited for the purchase of Replacement Bonds or Replacement Contract Obligations, the Trustee shall credit to the Principal Account referred to in Section 3.02 the monies, or, if applicable, the monies drawn on an irrevocable letter of credit, deposited by the Depositor for the purpose of such purchase. Such funds shall be distributed pursuant to Section 3.04 to Unitholders of record as of the Record Date next following the failure of consummation of such purchase. The Depositor shall cause to be refunded to each Unitholder his pro rata portion of the sales charge levied on the sale of Units to such Unitholder attributable to such Bond or Contract Obligation. The Depositor shall also pay to the Trustee, for distribution to the Unitholders, interest on such Bond or Contract Obligation, computed at the coupon rate, to the date such Bond or Contract Obligation is removed from the Trust Fund. (e) The Trustee is hereby irrevocably authorized to effect registration or transfer of the Bonds in fully registered form to the name of the Trustee or to the name of its nominee. (f) Any contrary authorization in subparagraph (b) notwithstanding, deposits of additional Bonds made after the 90-day period immediately following the Initial Date of Deposit (except for deposits made to replace failed Contract Obligations is such deposits occur within 20 days from the date of a failure occurring within such initial 90-day period) shall maintain exactly the Percentage Ratio existing immediately prior to such deposit. (g) In connection with and at the time of any deposit of additional Bonds pursuant to Section 2.01(b), the Depositor shall exactly replicate Cash (as defined below) received or receivable by the Trust Fund as of the date of such deposit. For purposes of this paragraph, "Cash" means, as to the Principal Account, cash or other property (other than Bonds) on hand in the Principal Account or receivable and to be credited to the Principal Account as of the date of the deposit (other than amounts to be distributed solely to persons other than holders of Units created by the deposit) and, as to the Income Account, cash or other property (other than Bonds) received by the Trust Fund as of the date of the deposit or receivable by the Trust Fund in respect of matured interest payments not received as of the date of the deposit, reduced by the amount of any cash or other property received or receivable on any Bond allocable (in accordance with the Trustee's calculation of the monthly distributions from the Income Account pursuant to Section 3.04) to a distribution made or to be made in respect of a Record Date occurring prior to the deposit. Such replication will be made on the basis of a fraction, the numerator of which is the number of Units created by the deposit and the denominator of which is the number of Units which are outstanding immediately prior to the deposit.

Deposit of Bonds. (a) The Depositor, concurrently with the execution and delivery hereof, hereby grants and conveys all of its right, title and interest in and to and hereby conveys to and deposits with the Trustee in an irrevocable Trust the Bonds (together with accrued and unpaid interest thereon) and confirmations of contracts to purchase Bonds, including Contract Obligations, listed in the Schedules to the Trust Agreement duly endorsed in blank or accompanied by all necessary instruments of assignment and transfer in proper form, to be held, managed and applied by the Trustee as herein provided for the benefit of each Unitholder to the extent of such Unitholder's interest in the Trust Fund. The Depositor hereby also delivers to the Trustee a certified check or checks, cash or cash equivalents or an irrevocable letter or letters of credit issued by a commercial bank or banks in an amount necessary to consummate the purchase of any Bonds or Contract Obligations. In the event any Bonds have not been delivered to the Trustee on or before the close of business of the Trustee on the day before the date of expiration of any letter or letters of credit, the Trustee is hereby directed to draw on such letter or letters of credit unless the Depositor has either extended or replaced such letter or letters on or before such close of business. (b) From time to time following the Initial Date of Deposit for a Trust, the Depositor is hereby authorized, in its discretion, to assign, convey to and deposit with the Trustee additional Bonds for such Trust, in bearer form, duly endorsed in blank or accompanied by all necessary instruments of assignment and transfer in proper form (or Contract Obligations relating to such Bonds)form, to be held, managed and applied by the Trustee as herein provided. Such deposit of additional Bonds shall be made, in each case, pursuant to an executed Supplemental Trust Agreement. Any additional Bonds to be deposited must (1) be issued by the same issuer; (2) have the same original issue date; (3) have the same coupon or interest rate; (4) have the same maturity date; (5) have the same redemption features; and (6) have other legal characteristics as the Bonds originally deposited in the Trust on the Initial Date of Deposit. The Depositor, Depositor in each case, case shall ensure that each deposit of additional Bonds pursuant to this Section shall be, have the same ratio of Bonds (based on principal amount) as nearly as is practicable, in the identical ratio as the Percentage Ratio for such Bonds as is specified in the Prospectus for the Trust and the Depositor shall ensure that such Bonds are identical to those deposited existed on the Initial Date of Deposit. The Depositor shall obtain an opinion of counsel satisfactory to the Depositor as to the validity of Deposit for each deposit of additional BondsTrust Fund. Any brokerage fees related to the purchase of Bonds deposited in the Trust Fund after the Initial Date of Deposit shall be an expense of such Trust Fund. The Depositor shall deliver the additional Bonds which were not delivered concurrently with the deposit of additional Bonds and which were represented by Contract Obligations within 10 calendar days after such deposit of additional Bonds (the "ADDITIONAL BONDS DELIVERY PERIOD"). If a contract to buy such Bonds between the Depositor and seller is terminated by the seller thereof for any reason beyond the control of the Depositor or if for any other reason such Bonds are not delivered to the Trust Fund by the end of the Additional Bonds Delivery Period for such deposit, the Trustee shall immediately draw on the Letter of Credit, if any, in its entirety, apply the monies in accordance with Section 2.01(d), and the Depositor shall forthwith take the remedial action specified in Section 3.12. If the Depositor does not take the action specified in Section 3.12 within 10 calendar days of the end of the Additional Bonds Delivery Period, the Trustee shall forthwith take the action specified in Section 3.12. Instructions to purchase additional Bonds shall be in writing and shall specify the name, CUSIP number, if any, aggregate amount of the Bond to be purchased and price. The Trustee shall have no responsibility or liability for any loss or depreciation resulting from any purchase made pursuant to the Depositor's instructions and in the absence thereof shall have no duty to purchase any Bonds. The Trustee shall have no responsibility for maintaining the composition of the Trust portfolio. (c) In connection with the deposits described in Section 2.01 (a) and (b), the Depositor has, in the case of Section 2.01(a) deposits, and, prior to the Trustee accepting a Section 2.01(b) deposit will, deposit a certified check, cash, cash equivalents and/or Letter(s) of Credit in an amount sufficient to purchase the Contract Obligations (the "PURCHASE AMOUNT") relating to Bonds which are not actually delivered to the Trustee at the time of such deposit, the terms of which unconditionally allow the Trustee to draw on the full amount of the available Letter of Credit. The Trustee may deposit a certified check or checks, cash or cash equivalents, or cash drawn on the irrevocable letter or letters of credit deposited by the Depositor, to purchase Bonds or Contract Obligations in a non-interest bearing account for the Trust Fund. (d) In the event that the purchase of Bonds or Contract Obligations pursuant to any contract shall not be consummated in accordance with said contract, and the Depositor does not, on or before the third Business Day prior to the next following Distribution Date, direct the Trustee to utilize monies deposited for the purchase of Replacement Bonds or Replacement Contract Obligations, the Trustee shall credit to the Principal Account referred to in Section 3.02 the monies, or, if applicable, the monies drawn on an irrevocable letter of credit, deposited by the Depositor for the purpose of such purchase. Such funds shall be distributed pursuant to Section 3.04 to Unitholders of record as of the Record Date next following the failure of consummation of such purchase. The Depositor shall cause to be refunded to each Unitholder his pro rata portion of the sales charge levied on the sale of Units to such Unitholder attributable to such Bond or Contract Obligation. The Depositor shall also pay to the Trustee, for distribution to the Unitholders, interest on such Bond or Contract Obligation, computed at the coupon rate, to the date such Bond or Contract Obligation Obligations is removed from the Trust Fund. (e) The Trustee is hereby irrevocably authorized to effect registration or transfer of the Bonds in fully registered form to the name of the Trustee or to the name of its nominee. (f) Any contrary authorization in subparagraph (b) notwithstanding, deposits of additional Bonds made after the 90-day period immediately following the Initial Date of Deposit (except for deposits made to replace failed Contract Obligations is such deposits occur within 20 days from the date of a failure occurring within such initial 90-day period) shall maintain exactly the Percentage Ratio existing immediately prior to such deposit. (g) In connection with and at the time of any deposit of additional Bonds pursuant to Section 2.01(b), the Depositor shall exactly replicate Cash (as defined below) received or receivable by the Trust Fund as of the date of such deposit. For purposes of this paragraph, "Cash" means, as to the Principal Account, cash or other property (other than Bonds) on hand in the Principal Account or receivable and to be credited to the Principal Account as of the date of the deposit (other than amounts to be distributed solely to persons other than holders of Units created by the deposit) and, as to the Income Account, cash or other property (other than Bonds) received by the Trust Fund as of the date of the deposit or receivable by the Trust Fund in respect of matured interest payments not received as of the date of the deposit, reduced by the amount of any cash or other property received or receivable on any Bond allocable (in accordance with the Trustee's calculation of the monthly distributions from the Income Account pursuant to Section 3.04) to a distribution made or to be made in respect of a Record Date occurring prior to the deposit. Such replication will be made on the basis of a fraction, the numerator of which is the number of Units created by the deposit and the denominator of which is the number of Units which are outstanding immediately prior to the deposit.

Deposit of Bonds. (a) The Depositor, concurrently with on the execution and delivery hereofdate of the Trust Agreement, hereby grants and conveys all of its right, title and interest in and to and hereby conveys to and deposits has deposited with the Trustee in an irrevocable Trust trust the Bonds (together with accrued and unpaid interest thereon) and confirmations of contracts to purchase Bonds, including Contract Obligations, Securities listed in the Schedules schedule(s) attached to the Trust Agreement Agreement, or as set forth in the Prospectus relating to a particular Trust under "Portfolio" (the "Schedules"), in bearer form or duly endorsed in blank or accompanied by all necessary instruments of assignment and transfer in proper form, form to be held, managed and applied by the Trustee as herein provided for the benefit of each Unitholder to the extent of such Unitholder's interest in the Trust Fundprovided. The Depositor hereby also delivers shall deliver the Securities listed on said Schedules to the Trustee a certified check or checks, cash or cash equivalents or an irrevocable letter or letters of credit issued by a commercial bank or banks in an amount necessary to consummate which were not actually delivered concurrently with the purchase of any Bonds or Contract Obligations. In the event any Bonds have not been delivered to the Trustee on or before the close of business execution and delivery of the Trustee on Trust Agreement within ninety days after said execution and delivery, or if the day before contract to buy such Security between the date Depositor and seller is terminated by the seller thereof for any reason beyond the control of expiration of any letter or letters of creditthe Depositor, the Trustee is hereby directed to draw on such letter or letters of credit unless Depositor shall forthwith take the Depositor has either extended or replaced such letter or letters on or before such close of businessremedial action specified in Section 3.14. (b) From time to time following the Initial Date of Deposit for a TrustDeposit, the Depositor is hereby authorized, in its discretion, to assign, convey to and deposit with the Trustee (i) additional Bonds for such Trust, in bearer formSecurities, duly endorsed in blank or accompanied by all necessary instruments of assignment and transfer in proper form (or Contract Obligations purchase contracts relating to such BondsContract Securities), and/or (ii) cash (or a Letter of Credit in lieu of cash) with instructions to purchase additional Securities, in an amount equal to the portion of the Unit Value of the Units created by such deposit attributable to the Securities to be heldpurchased pursuant to such instructions. Instructions to purchase additional Securities shall be in writing, managed and applied shall specify the name of the Security, CUSIP number, if any, aggregate amount, price or price range and date to be purchased. When requested by the Trustee Trustee, the Depositor shall act as herein provided. Such deposit of additional Bonds broker or agent to execute purchases in accordance with such instructions; the Depositor shall be made, entitled to compensation therefor in each case, accordance with applicable law and regulations. The Trustee shall have no liability for any loss or depreciation resulting from any purchase made pursuant to an executed Supplemental Trust Agreementthe Depositor's instructions or made by the Depositor as broker, except by reason of its own negligence, lack of good faith or willful misconduct. The Depositor, in each case, Depositor shall ensure that each deposit of additional Bonds Securities pursuant to this Section shall be, as nearly as is practicable, in the identical ratio as the Percentage Ratio for among such Bonds as Securities. Such additional Securities may be deposited or purchased in round lots; if the amount of the deposit is specified insufficient to acquire round lots of each Security to be acquired, the additional Securities shall be deposited or purchased in the Prospectus for order of the Trust and the Depositor shall ensure that such Bonds are identical to those deposited on the Initial Date of Deposit. The Depositor shall obtain an opinion of counsel satisfactory to the Depositor as to the validity of each deposit of additional Bonds. Any brokerage fees related to the purchase of Bonds deposited Securities in the Trust Fund after most under-represented in the Initial Date of Deposit shall be an expense of such Trust FundTrust's portfolio in comparison to their weighting in the Trust's Percentage Ratio. The Depositor shall deliver the additional Bonds Securities which were not delivered concurrently with the deposit of additional Bonds Securities and which were represented by Contract Obligations Securities within 10 ten calendar days after such deposit of additional Bonds Securities (the "ADDITIONAL BONDS DELIVERY PERIODAdditional Securities Delivery Period"). If a contract to buy such Bonds Securities between the Depositor and seller is terminated by the seller thereof for any reason beyond the control of the Depositor or if for any other reason such Bonds the Securities are not delivered to the Trust Fund by the end of the Additional Bonds Securities Delivery Period for such deposit, the Trustee shall immediately draw on the Letter of Credit, if any, in its entirety, apply the monies moneys in accordance with Section 2.01(d), and the Depositor shall forthwith take the remedial action specified in Section 3.123.14. If the Depositor does not take the action specified in Section 3.12 within 10 ten calendar days of the end of the Additional Bonds Securities Delivery Period, the Trustee shall forthwith take the action specified in Section 3.12. Instructions to purchase additional Bonds shall be in writing and shall specify the name, CUSIP number, if any, aggregate amount of the Bond to be purchased and price. The Trustee shall have no responsibility or liability for any loss or depreciation resulting from any purchase made pursuant to the Depositor's instructions and in the absence thereof shall have no duty to purchase any Bonds. The Trustee shall have no responsibility for maintaining the composition of the Trust portfolio3.14. (c) In connection with the deposits described in Section 2.01 (a) and (b2.01(a), the Depositor has, in the case of Section 2.01(a) depositshas deposited, and, prior to the Trustee accepting a Section 2.01(b) deposit willdeposit, deposit a certified check, cashthe Depositor will deposit, cash equivalents and/or Letter(s) of Credit in an amount sufficient to purchase the Contract Obligations (the "PURCHASE AMOUNT") Securities relating to Bonds Securities which are not actually delivered to the Trustee at the time of such deposit, the . The terms of which any Letter of Credit must unconditionally allow the Trustee to draw on the full amount of the such available Letter of Credit. The Trustee may deposit a certified check or checks, such cash or cash equivalents, or cash drawn on the irrevocable letter or letters Letter of credit deposited by the Depositor, to purchase Bonds or Contract Obligations Credit in a non-interest bearing account for a Trust. If any Contract Security requires settlement in a foreign currency, in connection with the Trust Funddeposit of such Contract Security the Depositor will deposit with the Trustee either an amount of such currency sufficient to settle the contract or a foreign exchange contract in such amount which settles concurrently with the settlement of the Contract Security and cash or a Letter of Credit in U.S. dollars sufficient to perform such foreign exchange contract. (d) In the event that the purchase of Bonds or Contract Obligations Securities pursuant to any contract shall not be consummated in accordance with said contract, contract or if the Securities represented by Contract Securities are not delivered to a Trust in accordance with Section 2.01(a) or 2.01(b) and the Depositor does not, on or before the third Business Day prior to the next following Distribution Date, direct the Trustee to utilize monies deposited for the purchase of Replacement Bonds or Replacement Contract Obligations, the Trustee shall credit to the Principal Account referred to in Section 3.02 the moniesmoneys, or, if applicable, the monies moneys drawn on an irrevocable letter the Letter of creditCredit, deposited by the Depositor are not utilized for Section 3.14 purchases of Replacement Securities, such funds, to the purpose extent of such purchase. Such funds the purchase price of Failed Contract Securities for which no Replacement Securities were acquired pursuant to Section 3.14, plus all amounts described in the next succeeding sentence, shall be credited to the Principal Account and distributed pursuant to Section 3.04 3.05 to Unitholders of record as of the Record Date next following the failure of consummation of such purchase. The Depositor shall cause to be refunded to each Unitholder his pro rata portion of the sales charge levied on the sale of Units to such Unitholder attributable to such Bond Failed Contract Security. Any amounts remaining from moneys drawn on the Letter of Credit which are not used to purchase Replacement Securities or Contract Obligation. The Depositor are not used to provide refunds to Unitholders shall also pay be paid to the Trustee, for distribution to the Unitholders, interest on such Bond or Contract Obligation, computed at the coupon rate, to the date such Bond or Contract Obligation is removed from the Trust FundDepositor. (e) The Trustee is hereby irrevocably authorized to effect registration or transfer of the Bonds Securities in fully registered form to the name of the Trustee or to the name of its nomineenominee or to hold the Securities in a clearing agency registered with the SEC, in a book entry system operated by the Federal Reserve Board, with an Eligible Foreign Custodian or in an Eligible Securities Depository. (f) Any Notwithstanding anything to the contrary authorization herein, subject to the requirements set forth in subparagraph this Section 2.01(f) and unless the Prospectus otherwise requires, the Depositor may, on any Business Day (b) notwithstandingthe "Trade Date"), deposits of subscribe for additional Bonds made after the 90-day period immediately following the Initial Date of Deposit (except for deposits made to replace failed Contract Obligations is such deposits occur within 20 days from the date of a failure occurring within such initial 90-day period) shall maintain exactly the Percentage Ratio existing immediately prior to such deposit.Units as follows: (gi) In connection with and at Prior to the time of any deposit of additional Bonds pursuant to Section 2.01(b)Evaluation Time on such Trade Date, the Depositor shall exactly replicate Cash provide notice (as defined belowthe "Subscription Notice") received to the Trustee, by telephone or receivable by written communication, of the Depositor's intention to subscribe for additional Units. The Subscription Notice shall identify the additional Securities to be acquired (unless such additional Securities are a precise replication of the then existing portfolio) and shall either (a) specify the quantity of additional Securities to be deposited by the Trust Fund Depositor on the settlement date for such subscription or (b) instruct the Trustee to purchase additional Securities with an aggregate value as specified in the Subscription Notice. (ii) Promptly following the Evaluation Time on such Trade Date, the Depositor shall verify with the Trustee the number of additional Units to be created. (iii) Not later than the time on the settlement date for such subscription when the Trustee is to deliver or assign the additional Units created hereby, the Depositor shall deposit with the Trustee (a) any additional Securities specified in the Subscription Notice (or contracts to purchase such additional Securities together with cash or a Letter of Credit in the amount necessary to settle such contracts) or (b) cash or a Letter of Credit in an amount equal to the aggregate value of the additional Securities specified in the Subscription Notice, and adding and subtracting the amounts specified in the first and second sentences of Section 6.01, computed as of the date of such deposit. For purposes of this paragraph, "Cash" means, as to the Principal Account, cash or other property (other than Bonds) on hand in the Principal Account or receivable and to be credited to the Principal Account as of the date of the deposit (other than amounts to be distributed solely to persons other than holders of Units created by the deposit) and, as to the Income Account, cash or other property (other than Bonds) received by the Trust Fund as of the date of the deposit or receivable by the Trust Fund in respect of matured interest payments not received as of the date of the deposit, reduced by the amount of any cash or other property received or receivable on any Bond allocable (in accordance with the Trustee's calculation of the monthly distributions from the Income Account pursuant to Section 3.04) to a distribution made or to be made in respect of a Record Date occurring prior to the deposit. Such replication will be made Evaluation Time on the basis of a fraction, Business Day preceding the numerator of which is Trade Date divided by the number of Units created by outstanding as of the deposit Evaluation Time on the Business Day preceding the Trade Date, times the number of additional Units to be created. (iv) On the settlement date for such subscription, the Trustee shall, in exchange for the Securities and cash or Letter(s) of Credit described above, deliver to, or assign in the denominator of which is name of, or on the order of, the Depositor the number of Units which are outstanding immediately prior to verified by the depositDepositor with the Trustee."