Immobilized Bonds Clause Samples
The 'Immobilized Bonds' clause defines the process by which physical bond certificates are held and managed by a central depository, rather than being transferred between individual holders. In practice, this means that the bonds exist in a non-physical, or 'immobilized,' form, with ownership and transfers recorded electronically by the depository. This arrangement streamlines the settlement process, reduces the risk of loss or theft of physical certificates, and enhances the efficiency and security of bond transactions.
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Immobilized Bonds. Unless otherwise provided by Series Resolution, the Notes and Bonds, upon original issuance, will be issued in the form of typewritten Notes and Bonds, to be delivered to the order of DTC by or on behalf of the Authority. Such Notes and Bonds shall initially be registered in the name of DTC and no beneficial owner will receive a certificate representing an interest in any Note or Bond, except as provided in Section 304(b). Unless and until Notes or Bonds of a Series have been issued to Holders other than DTC:
(1) the Authority and each Fiduciary, except to the extent specifically provided in ancillary contracts, shall be entitled to deal with DTC for all purposes of this Indenture (including the payment of principal of and interest on such Notes and Bonds and the giving of notices, instructions or directions hereunder) as the sole Holder of such Notes and Bonds;
(2) the rights of beneficial owners shall be exercised only through DTC; and
(3) to the extent that the provisions of this Section 304(a) conflict with any other provisions of this Indenture except express terms of a Series Resolution or Section 605, the provisions of this section shall control; to the extent that the provisions of this section conflict with the express terms of a Series Resolution or Section 605, such Series Resolution or Section 605 shall control.
Immobilized Bonds. The Bonds shall initially be issued pursuant to a Book-Entry System administered by the Depository with no physical distribution of bond certificates to be made except as provided in Section 3.05(b) of this Indenture. So long as a Book-Entry System is being used, one or more typewritten certificates for each maturity of Bonds as required by the Depository, in the aggregate principal amount of such maturity and registered in the name of the Depository Nominee, will be issued and required to be deposited with the Depository (or a Fiduciary as custodian for the Depository) and held in its custody. The Book-Entry System will be maintained by the Depository, the Participants and the Indirect Participants and will evidence beneficial ownership of the Bonds in authorized denominations, with transfers of ownership effected on the records of the Depository, the Participants, and the Indirect Participants pursuant to rules and procedures established by the Depository, the Participants and the Indirect Participants. Transfer of principal and interest payments or notices to Participants and Indirect Participants will be the responsibility of the Depository, and transfer of principal and interest payments or notices to Owners will be the responsibility of the Participants and the Indirect Participants. No other party will be responsible or liable for such transfers of payments or notices or for maintaining, supervising or reviewing such records maintained by the Depository, the Participants, or the Indirect Participants. DTC is hereby appointed as the Depository. The Corporation may at any time provide for the replacement of the Depository with another qualified depository. If any depository is replaced as the depository for the Bonds with another qualified Depository, the Registrar will issue to the successor Depository replacement Bonds, registered in the name of the successor Depository Nominee. Each Depository and the Participants, and the Indirect Participants, and the Owners of the Bonds, by their acceptance of the Bonds, agree that neither the Corporation nor any Fiduciary shall have any liability for the failure of any Depository to perform its obligation to any Participant, any Indirect Participant, or any Owner of any Bonds, nor shall the Corporation or any Fiduciary be liable for the failure of any Participant, Indirect Participant, or other nominee of any Owner of any Bonds to perform any obligation that such Participant, Indirect Participant, or other nomi...
Immobilized Bonds. Unless otherwise provided by a Series Supplement, the Bonds, upon original issuance, will be issued in the form of typewritten Bonds, to be delivered to the order of DTC by or on behalf of the Authority. Such Bonds shall initially be registered in the name of DTC (in its nominee name of Cede & Co.) and no beneficial owner will receive a certificate representing an interest in any Bond, except as provided in Section 3.04(b). Unless and until Bonds of a Series have been issued to Holders other than DTC:
(i) the Authority and each Agent shall be entitled to deal with DTC for all purposes of this Trust Indenture (including the payment of Bond Obligations of and interest on such Bonds and the giving of notices, instructions or directions hereunder) as the sole Holder of such Bonds, and neither the Authority nor any Agent shall have any responsibility or obligation to any participant in DTC, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any such participant, or any other person which is not shown on the register as being a registered owner, with respect to any of (i) the Bonds, (ii) the accuracy of any records maintained by DTC or any such participant, (iii) any consent given or other action taken by DTC as registered owner, or