EXHIBIT 4
BOND-BACKED INVESTMENT CERTIFICATES
SERIES SUPPLEMENT
Series 1997-AT&T
SERIES SUPPLEMENT, Series 1997-AT&T, dated as of March 14, 1997 (the
"SERIES SUPPLEMENT"), by and between ELMWOOD FUNDING LIMITED, a Cayman Islands
company as Depositor (the "DEPOSITOR"), and UNITED STATES TRUST COMPANY OF NEW
YORK, as Trustee (the "TRUSTEE").
W I T N E S S E T H:
WHEREAS, the Depositor desires to create the Trust designated herein
(the "TRUST") by executing and delivering this Series Supplement, which shall
incorporate the terms of the Standard Terms for Trust Agreements, dated as of
March 14, 1997 (the "STANDARD TERMS"; together with this Series Supplement, the
"TRUST AGREEMENT"), by and between the Depositor and the Trustee, as modified by
this Series Supplement;
WHEREAS, the Depositor desires to deposit the Underlying Securities
set forth on Schedule I attached hereto (the "UNDERLYING SECURITIES SCHEDULE")
into the Trust;
WHEREAS, in connection with the creation of the Trust and the deposit
therein of the Underlying Securities, it is desired to provide for the issuance
of trust certificates (the "CERTIFICATES"), the Retained Interest (the "RETAINED
INTEREST"), the Call Right (the "CALL RIGHT") and the Optional Exchange Right
(the "OPTIONAL EXCHANGE RIGHT") evidencing undivided interests in the Trust; and
WHEREAS, the Trustee has joined in the execution of the Standard Terms
and this Series Supplement to evidence the acceptance by the Trustee of the
Trust;
NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants expressed herein, it is hereby agreed by and between the
Depositor and the Trustee as follows:
Section 1. Incorporation of Standard Terms. All of the provisions of
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the Standard Terms, a copy of which is attached hereto as Exhibit A, are hereby
incorporated herein by reference in their entirety, and this Series Supplement
and the Standard Terms shall form a single agreement between the parties. In
the event of any inconsistency between the provisions of this Series Supplement
and the provisions of the Standard Terms, the provisions of this Series
Supplement will control with respect to the transactions described herein.
Section 2. Definitions. Except as otherwise specified herein or as
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the context may otherwise require, the following terms shall have the respective
meanings set forth below for all purposes under this Series Supplement.
Capitalized terms used but not defined herein shall have the meanings assigned
to them in the Standard Terms (provided that not all capitalized terms defined
in the Standard Terms are applicable to this Series Supplement).
"CALL DATE" shall mean any Distribution Date occurring on or after
the Distribution Date in March 1999.
"CALL PRICE" shall mean the aggregate outstanding Certificate
Principal Balance, together with unpaid interest thereon accrued at the
Certificate Rate to but excluding the Distribution Date as of which the Call
Right is exercised.
"CALL RIGHT" shall mean the right (but not the obligation) of the
holder thereof to purchase all, but not less than all, of the outstanding
Certificates on any Call Date at a price equal to the Call Price, all in
accordance with Section 7 hereof.
"CERTIFICATE INTEREST" for the Certificates for any Distribution Date
means interest on the outstanding principal balance of the Certificates accrued
for the related Interest Accrual Period, computed (on the basis of a year of 360
days and twelve 30-day months) at a rate per annum equal to the Certificate
Rate.
"CERTIFICATE RATE" shall mean: [__]%.
"COLLECTION PERIOD" shall mean the period from but excluding any
Distribution Date to and including the next succeeding Distribution Date, except
that (a) the first Collection Period shall commence on but exclude the Original
Issue Date and (b) the final Collection Period shall end on and include the
Final Scheduled Distribution Date.
"CORPORATE TRUST OFFICE" shall mean the corporate trust office of
United States Trust Company of New York, located on the date hereof at 000 Xxxx
00xx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000.
"CSI" shall mean Citicorp Securities, Inc.
"CURRENCY" shall mean United States dollars.
"CUT-OFF DATE" shall mean March 1, 1997.
"DEPOSITOR ADMINISTRATIVE EXPENSES" shall mean fees and expenses
payable by the Depositor to its administrator pursuant to the Administration
Agreement dated as of March 14, 1997 between the Depositor and Deutsche Xxxxxx
Xxxxxxxx (Cayman) Limited, which fees and expenses include (a) a one-time
arrangement fee, (b) an annual fee and (c) reasonable out-of-pocket expenses
incurred by the administrator in connection with the administration of the
Depositor in accordance with such administration agreement.
"DEPOSITORY" shall mean The Depository Trust Company.
"DISTRIBUTION DATE" shall mean March 1 and September 1 of each year
(or if such date is not a Business Day, the next succeeding Business Day),
commencing on March 1, 1997 and ending on the earlier of the Final Scheduled
Distribution Date and the Optional Exchange Date.
"DUFF" shall mean Duff & Xxxxxx Credit Rating Co.
"ELIGIBLE INVESTMENTS" shall be as defined in the Standard Terms;
provided that (a) the minimum required rating for long-term instruments will be
equal to the rating of the Underlying Securities (or, in the case of a split
rating, equal to the higher or highest rating of the Underlying Securities) and
(b) the rating of any short-term instruments will be at least A-1 by S&P and P1
by Moody's.
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"EVENT OF DEFAULT" shall mean (a) a default in the payment of any
interest on any Underlying Security after the same becomes due and payable
(subject to any applicable grace period), (b) a default in the payment of any
principal of any Underlying Security when the same becomes due and payable
(whether at stated maturity, by prepayment, repurchase or redemption or
otherwise, but subject to any applicable grace period) or (c) a default, event
of default or other similar condition or event (however described) under the
Underlying Securities Indenture resulting in any Underlying Securities becoming,
or becoming capable at such time of being declared, due and payable before such
Underlying Securities would otherwise have been due and payable.
"FINAL SCHEDULED DISTRIBUTION DATE" shall mean March 1, 2007.
"INTEREST ACCRUAL PERIOD" shall mean, with respect to any specified
Distribution Date, the period from and including the immediately preceding
Distribution Date to but excluding such specified Distribution Date, except that
(a) the first Interest Accrual Period shall commence on and include the Original
Issue Date and (b) the final Interest Accrual Period shall end on but exclude
the Final Scheduled Distribution Date.
"INTEREST STRIP" shall mean, on any Distribution Date, interest on the
outstanding principal balance of the Certificates accrued for the related
Interest Accrual Period, computed (on the basis of a year of 360 days and twelve
30-day months) at rate per annum equal to [__]%; provided that, for the first
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Distribution Date, the Interest Strip will also include all interest accrued on
the Underlying Securities for the period from and including the Cut-Off Date to
but excluding the Original Issue Date.
"MOODY'S" shall mean Xxxxx'x Investors Service, Inc.
"OPTIONAL EXCHANGE DATE" means any Business Day designated for the
exercise of the Optional Exchange Right by the holder thereof.
"OPTIONAL EXCHANGE RIGHT" shall mean the right (but not the
obligation) of the holder thereof to require that the Trustee redeem all or a
specified portion of the outstanding Certificates on any Business Day, all in
accordance with Section 8 hereof.
"OPTIONAL REDEMPTION" shall mean the redemption by the Trust of all or
a specified portion of the outstanding Certificates pursuant to Section 8
hereof.
"ORDINARY EXPENSES" shall mean the compensation due the Trustee for
Ordinary Expenses (as defined in the Standard Terms), payable in accordance with
the fee letter dated as of March 14, 1997 between the Depositor and the Trustee,
which compensation shall be payable by the holder of the Retained Interest. The
Trustee will be permitted to deduct its compensation from periodic distributions
on the Interest Strip.
"ORIGINAL ISSUE DATE" shall mean March [__], 1997.
"PROSPECTUS SUPPLEMENT" shall mean the Prospectus Supplement, dated
March [__], 1997, relating to the Certificates.
"RATING AGENCIES" shall mean Moody's and Xxxx.
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"RECORD DATE" shall mean, with respect to each Distribution Date, the
third Business Day immediately preceding such Distribution Date.
"REQUIRED PRINCIPAL" for the Certificates for any Distribution Date
means the amount received on the Underlying Securities attributable to principal
payments thereon during the related Collection Period.
"REQUIRED RATING" shall mean, in the case of Moody's, the rating
assigned to the Underlying Securities by Moody's as of the Original Issue Date,
and, in the case of Xxxx, the rating assigned to the Underlying Securities by
Xxxx as of the Original Issue Date.
"RETAINED INTEREST" shall mean the right to receive the Interest Strip
on each Distribution Date. Collections in respect of the Retained Interest
shall be deposited in the Certificate Account for the Series 1997-AT&T
Certificates.
"S&P" shall mean Standard & Poor's Ratings Services.
"SERIES" shall mean Series 1997-AT&T.
"TRUST PROPERTY" shall mean the Underlying Securities described on
Schedule I hereto.
"UNDERLYING SECURITIES INDENTURE" shall mean the instrument identified
as such on Schedule I hereto.
"UNDERLYING SECURITIES ISSUER" shall mean AT&T Corp.
Section 3. Designation of Trust, Certificates, etc. (a) The Trust
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created hereby shall be known as the "Bond-backed Investment Certificates Trust,
Series 1997-AT&T". The Certificates evidencing certain undivided ownership
interests in such Trust shall be known as "Bond-backed Investment Certificates,
Series 1997-AT&T". The Retained Interest evidencing certain undivided ownership
interests in the Underlying Securities (as described on Schedule II hereto)
shall be known as the "Series 1997-AT&T Retained Interest". The Call Right
evidencing certain undivided ownership interests in the Certificates (as
described on Schedule III) shall be known as the "Series 1997-AT&T Call Right".
The Optional Exchange Right evidencing certain undivided ownership interests in
the Underlying Securities (as described on Schedule IV hereto) shall be known as
the "Series 1997-AT&T Optional Exchange Right". Together, the Certificates, the
Retained Interest, the Call Right and the Optional Exchange Right represent all
beneficial ownership interests in such Trust.
(b) The Certificates shall be held through the Depository in book-
entry form and shall be substantially in the form attached hereto as Exhibit B.
The Certificates shall be issued in minimum denominations of $1,000 and integral
multiples of $1,000 in excess thereof. Except as provided in the Standard
Terms, the Trust shall not issue additional Certificates or incur any
indebtedness.
(c) The Retained Interest will be uncertificated and shall be as
described in Schedule II attached hereto. The Retained Interest will be issued
to CSI and may, upon notice to the Trustee, be transferred by the holder thereof
(in whole but not in part) to another Person at the sole option of the
transferor without the consent of the Certificateholders or any other Person.
The beneficial ownership interest in the Retained Interest will be recorded on
the records of the Trustee. On each
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Distribution Date, payments will be made on the Retained Interest by wire
transfer to the account of the holder thereof on the related Record Date as
specified in written instructions to the Trustee.
(d) The Call Right will be uncertificated and shall be as described in
Schedule III attached hereto. The Call Right will be issued to CSI and may,
upon notice to the Trustee, be transferred by the holder thereof (in whole but
not in part) to another Person at the sole option of the transferor without the
consent of the Certificateholders or any other Person. The beneficial ownership
interest in the Call Right will be recorded on the records of the Trustee.
(e) The Optional Exchange Right will be uncertificated and shall be as
described in Schedule IV attached hereto. The Optional Exchange Right will be
issued to CSI and may, upon notice to the Trustee, be transferred by the holder
thereof (in whole but not in part) to another Person at the sole option of the
transferor without the consent of the Certificateholders or any other Person.
The beneficial ownership interest in the Optional Exchange Right will be
recorded on the records of the Trustee.
Section 4. Satisfaction of Conditions to Initial Execution and
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Delivery of Trust Certificates. The Trustee hereby acknowledges receipt, on or
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prior to the Original Issue Date, of:
(i) the Underlying Securities set forth on the Underlying Securities
Schedule; and
(ii) all documents required to be delivered to the Trustee pursuant to
Section 2.01 of the Standard Terms.
Section 5. Distributions. (a) On each Distribution Date, the Trustee
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shall apply Available Funds in the Certificate Account as follows:
(i) first, to the Certificateholders and the holder of the Retained
Interest in payment of Certificate Interest and the Interest Strip,
respectively, pro rata according to the respective amounts thereof then due
and payable; and
(ii) second, to the Certificateholders, in payment of Required
Principal (if any).
(b) If the Trustee has not received payment with respect to a
Collection Period on the Underlying Securities on or prior to the related
Distribution Date, such distribution will be made promptly upon receipt of
payment on the Underlying Securities. No additional amounts shall accrue on the
Certificates or be owed to Certificateholders as a result of such delay;
provided that any additional interest owed and paid by the Underlying Securities
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Issuer as a result of such delay shall be paid to the Certificateholders and the
holder of the Retained Interest, pro rata according to the respective amounts of
Certificate Interest and the Interest Strip remaining unpaid on the related
Distribution Date.
(c) Amounts recovered in respect of the Underlying Securities
following a default by the Underlying Securities Issuer under the Underlying
Securities Indenture shall, to the extent allocable to interest, be distributed
in accordance with the provisions of Section 5(a)(i), and, to the extent
allocable to principal, in accordance with the provisions of Section 5(a)(ii).
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(d) On any Distribution Date as of which the Call Right is exercised,
the Trustee shall apply the proceeds received from such exercise of the Call
Right as follows:
(i) first, to the Certificateholders whose Certificates have been
purchased in connection with such exercise in payment of Certificate
Interest then due and payable on the Certificates so purchased; and
(ii) second, to the Certificateholders whose Certificates have been
purchased in connection with such exercise in payment of the outstanding
principal balance of the Certificates so purchased.
Section 6. Fees. (a) As compensation for its services hereunder, the
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Trustee shall be entitled to Ordinary Expenses. Ordinary Expenses will be paid
to the Trustee by the holder of the Retained Interest which, for convenience,
may be retained out of the Interest Strip on each Distribution Date.
(b) As compensation for the duties it performs hereunder, (i) the
Depositor shall be entitled to Depositor Administration Expenses and (ii)
interest earned on amounts invested pursuant to Section 3.05 of the Standard
Terms shall be paid, on each Distribution Date, to the Depositor. The Depositor
Administration Expenses will be paid to the Trustee by the holder of the
Retained Interest which, for convenience, may be retained out of the Interest
Strip on each Distribution Date.
(c) Extraordinary Trust Expenses shall not be paid out of the Trust
Property unless (i) such Extraordinary Trust Expenses relate to a time when the
Underlying Securities Issuer was in default on any payment obligation under the
Underlying Securities Indenture, or (ii) Certificateholders representing 100% of
the aggregate Voting Rights of the Certificates have voted to require the
Trustee to incur such Extraordinary Trust Expenses.
(d) Prepaid Ordinary Expenses shall be zero for this Series.
Section 7. Call Right. (a) On any Call Date, the
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Certificates may be purchased in their entirety by the holder of the Call Right
at the Call Price. Having acquired the Certificates pursuant to its exercise of
the Call Right, the holder of the Call Right will be entitled to receive any
amounts distributable on the Certificates on each Distribution Date occurring
from and after such Call Date.
(b) The holder of the Call Right must provide notice to the Trustee (a
"CALL REQUEST") not less than 10 Business Days prior to the relevant Call Date
that it intends to exercise the Call Right on such Call Date.
Section 8. Optional Exchange. (a) The holder of the Optional
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Exchange Right will be entitled to require the Trustee, on any Business Day, to
effect an Optional Redemption of one or more Certificates; provided that any
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such exercise is subject to the conditions that, on the Business Day on which
the Optional Redemption occurs, (i) the holder of the Optional Exchange Right is
also the holder of the Call Right and the Retained Interest, (ii) the holder of
the Optional Exchange Right is also the holder of Certificates in an outstanding
aggregate principal amount at least equal to the outstanding aggregate principal
amount of Certificates to be redeemed and (iii) the outstanding aggregate
principal amount of Certificates to be redeemed shall be an amount equal to an
authorized
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denomination of the Underlying Securities. No exercise of an Optional Exchange
Right shall prevent the holder from any later exercise thereof on any subsequent
Business Day.
(b) The holder of the Optional Exchange right must provide notice to
the Trustee (an "OPTIONAL EXCHANGE REQUEST") not less than four Business Days
prior to the Business Day on which it intends to exercise the Optional Exchange
Right, which notice shall (i) specify the outstanding aggregate principal amount
of Certificates to be redeemed (the "SUBJECT CERTIFICATES"), (ii) confirm that
the holder of the Optional Exchange Right is also the holder of the Call Right
and the Retained Interest and (iii) confirm the holder of the Optional Exchange
Right is also the holder of Certificates in an outstanding aggregate principal
amount at least equal to the outstanding aggregate principal amount of the
Subject Certificates.
(c) On the Optional Exchange Date, (i) the Trustee will immediately
liquidate all investments (if any) made by the Trustee pursuant to Section 3.05
of the Standard Terms to the extent such proceeds would otherwise be
distributable to the holders of the Subject Certificates and (ii) the Subject
Certificates will be redeemed by the Trustee in exchange for (x) delivery by the
Trustee to the holder of the Optional Exchange Right of Underlying Securities in
an outstanding aggregate principal amount equal to the outstanding aggregate
principal amount of the Subject Certificates and (y) payment by the Trustee to
such holder of Available Funds in the Certificate Account that are attributable
to the Subject Certificates (including investments (if any) made by the Trustee
pursuant to Section 3.05 of the Standard Terms that would otherwise be
distributable to the holders of the Subject Certificates).
(d) Following the receipt of an Optional Exchange Request with respect
to all outstanding Certificates, all interest earned on amounts invested
pursuant to Section 3.05 of the Standard Terms shall be paid to the Depositor on
the related Optional Exchange Date. No Optional Exchange Request with respect
to all outstanding Certificates shall be effective unless the holder of the
Optional Exchange Right satisfies the claims of all creditors of the Bond-backed
Investment Certificates Trust, Series 1997-AT&T.
(e) On the Optional Exchange Date, the aggregate outstanding principal
amount of the Certificates shall be reduced by the aggregate outstanding
principal amount of the Subject Certificates so redeemed.
(f) The Trustee shall not be obligated to determine whether an
Optional Redemption complies with the provisions of the Investment Company Act
of 1940, as amended, or the rules or regulations promulgated thereunder.
Section 9. Events of Default. (a) Within 30 days after a responsible
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officer of the corporate trust department of the Trustee receives written notice
of, or otherwise obtains actual knowledge of, occurrence of an Event of Default,
the Trustee will give notice to the Certificateholders, the holder of the Call
Right, the holder of the Retained Interest and the holder of the Optional
Exchange Right, transmitted by mail.
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(b) Except in the case of an Event of Default relating to the payment
of principal of or interest on any of the Underlying Securities, the Trustee
will be protected in withholding such notice if in good faith it determines that
the withholding of such notice is in the interest of the Certificateholders, the
holder of the Call Right, the holder of the Retained Interest and the holder of
the Optional Exchange Right.
Section 10. Voting. (a) At all times, 100% of all Voting Rights shall
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be allocated among all Certificateholders in proportion to the then outstanding
principal balances of their respective Certificates; provided that any exercise
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of Voting Rights that would adversely affect in any material respect the
Retained Interest, the Call Right or the Optional Exchange Right shall require
the consent of the holder thereof. The Trustee shall provide notice of any
opportunity to exercise Voting Rights to the holders of each of the Retained
Interest, the Call Right and the Optional Exchange Right.
(b) The Required Percentage-Amendment of Voting Rights of those
Certificates that are materially adversely affected by any modification or
amendment of the Trust Agreement necessary to consent to such modification or
amendment shall be 66 2/3%, if each Rating Agency shall have notified the
Depositor and the Trustee in writing that such modification or amendment will
not result in a reduction or withdrawal of the then current rating of the
Certificates, and otherwise 100%.
(c) In addition to the other restrictions on modification and
amendment contained in the Standard Terms, the Trustee shall not agree to or
enter into any amendment or modification of the Trust Agreement which would
adversely affect in any material respect (i) the Retained Interest without the
consent of the holder thereof, (ii) the Call Right without the consent of the
holder thereof or (iii) the Optional Exchange Right without the consent of all
the Certificateholders and of the holders of the Retained Interest and the Call
Right; provided that no such amendment or modification will be permitted which
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would alter the status of the Trust as a grantor trust for Federal Income tax
purposes.
(d) In addition to the other restrictions on modification and
amendment contained in the Standard Terms, the Trustee shall not agree to or
enter into any amendment or modification of the Retained Interest, the Call
Right or the Optional Exchange Right without the consent of the holder thereof
or which would adversely affect in any material respect the interests of the
Certificateholders without the consent of Certificateholders representing
66 2/3% of the aggregate Voting Rights of those Certificates that are materially
adversely affected by such modification or amendment and without confirmation by
each Rating Agency that such amendment will not result in a downgrading or
withdrawal of its rating of the Certificates; provided that (i) no such
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amendment or modification will be permitted which would alter the status of the
Trust as a grantor trust for Federal Income tax purposes and (ii) any amendment
or modification of the Trust Agreement or the Call Right which would alter the
timing or amount of any payment of the Call Price shall require the consent of
Certificateholders representing 100% of the aggregate Voting Rights of the
Certificates.
(e) Any determination that an exercise of Voting Rights, or a
modification or amendment of the Trust Agreement, would adversely in effect in
any material respect the Retained Interest, the Call Right or the Optional
Exchange Right made by the holder thereof shall be conclusive and binding for
all purposes so long as such determination is made in good faith and on any
commercially reasonable basis.
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Section 11. Miscellaneous.
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(a) The Trustee shall forward reports to Certificateholders pursuant
to Section 4.03 of the Standard Terms to the New York Stock Exchange, Inc.
(b) Except as expressly provided herein, the Certificateholders shall
not be entitled to terminate the Trust or cause the sale or other disposition of
the Underlying Securities, if and for so long as the Retained Interest remains
outstanding, without the consent of the holder of the Retained Interest.
(c) Except as expressly provided herein, the Certificateholders shall
not be entitled to terminate the Trust or cause the sale or other disposition of
the Underlying Securities, if and for so long as the Call Right remains
outstanding, without the consent of the holder thereof.
(d) In any conflict between the provisions of the Prospectus
Supplement and this Agreement (including the Standard Terms), the provisions of
the Prospectus Supplement shall prevail. Any affirmative statement of rights or
obligations of Certificateholders or the parties hereto included in the
Prospectus Supplement shall be deemed to be included herein.
(e) The following provisions of the Standard Terms shall not apply to
the Series 1997-AT&T Certificates: Section 3.06 (Maintenance of Credit
Support); and Section 4.04 (Advances).
(f) The outstanding principal balance of the Certificates shall not be
reduced by the amount of any Realized Loss (as defined in the Standard Terms).
(g) Notwithstanding anything in Section 9.01(a) of the Standard Terms
to the contrary, the Trust and the obligations of the Depositor and the Trustee
created by the Trust Agreement with respect to the Certificates shall not
terminate until (i) the distribution in full of all amounts due to
Certificateholders at maturity and (ii) the settlement in full by the Trust of
all payments and deliveries required in connection with any exercise of the
Optional Exchange Right.
Section 12. Notices. All directions, demands and notices hereunder
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or under the Standard Terms shall be in writing and shall be delivered as set
forth below (unless written notice is otherwise provided to the Trustee).
If to the Depositor, to:
Elmwood Funding Limited
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xx. Xxxx Xxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
With a copy to the Directors:
c/o Deutsche Xxxxxx
Xxxxxxxx (Cayman) Limited
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P.O. Box 1984
Xxxxxx Town
Grand Cayman
Cayman Islands
British West Indies
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
If to the Trustee, to:
United States Trust Company of New York
000 Xxxx 00xx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Bond-backed Investment Certificates, Series 1997--AT&T,
Elmwood Funding Limited
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
If to the Rating Agencies, to:
Xxxxx'x Investors Service, Inc.
00 Xxxxxx Xxxxxx 00X
Xxx Xxxx, Xxx Xxxx 00000
Attention: CBO/CLO Monitoring Department
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
and to:
Duff & Xxxxxx Credit Rating Co.
00 Xxxxx Xxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Attention:
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
If to the New York Stock Exchange, to:
New York Stock Exchange, Inc.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxx Xxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Section 13. Governing Law. THIS SERIES SUPPLEMENT AND THE
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TRANSACTIONS DESCRIBED HEREIN SHALL BE GOVERNED BY, AND CONSTRUED IN
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ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CHOICE
OF LAWS PROVISIONS THEREOF.
Section 14. Counterparts. This Series Supplement may be executed in
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any number of counterparts, each of which shall be deemed to be an original, and
all such counterparts shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Series
Supplement to be duly executed by their respective authorized officers as of the
date first written above.
ELMWOOD FUNDING LIMITED,
as Depositor
By:
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Name:
Title:
UNITED STATES TRUST COMPANY
OF NEW YORK,
as Trustee
By:
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Name:
Title:
SCHEDULE I
SERIES 1997-AT&T
UNDERLYING SECURITIES SCHEDULE
Underlying Securities: 7.75% Notes due March 1, 2007
Underlying Securities Issuer: AT&T Corp., a New York corporation
Underlying
Securities Indenture: The Indenture dated as of September 7, 1990
between the Underlying Securities Issuer and The
Bank of New York, as trustee, as amended by the
First Supplemental Indenture dated as of October
30, 1992
CUSIP Number: 001957ARO
Principal Amount Deposited: $35,000,000
Original Issue Date: March 7, 1995
Principal Amount of
Underlying Securities
Originally Issued: $500,000,000
Maturity Date: March 1, 2007
Principal Payment Date: March 1, 2007
Interest Rate: 7.75% per annum
Interest Payment Dates: March 1 and September 1, commencing
September 1, 1995
Redemption Dates: None
Redemption Prices: None
Priority: According to the Prospectus relating to the
Underlying Securities, the Underlying
Securities are general unsecured
obligations of the Underlying Securities
Issuer, which rank on a parity with all
other unsecured and unsubordinated
indebtedness of the Underlying Securities
Issuer.
Security: None
Rating as of
Original Issue Date: "Aa3" by Moody's and "AA+" by Xxxx
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Form of
Underlying Securities: Book-entry debt security with DTC
Retained Interest: As described on Schedule II to the Series
Supplement
Call Right: As described on Schedule III to the Series
Supplement
Optional Exchange Right: As described on Schedule IV to the Series
Supplement
SCHEDULE II
SERIES 1997-AT&T
DESCRIPTION OF THE RETAINED INTEREST
The holder of the Retained Interest will have the right to receive,
solely from collections on the Underlying Securities, the Interest Strip on each
Distribution Date. The rights of the holder of the Retained Interest to the
Interest Strip from payments received on the Underlying Securities is of equal
priority with the rights of Certificateholders to receive distributions of
interest.
The Retained Interest will be issued to CSI and may, upon notice to
the Trustee, be transferred by the holder thereof (in whole but not in part) to
another Person at the sole option of the transferor without the consent of the
Certificateholders or any other Person. The beneficial ownership interest in
the Retained Interest will be recorded on the records of the Trustee. On each
Distribution Date, payments will be made on the Retained Interest by wire
transfer to the account of holder thereof on the related Record Date as
specified in written instructions to the Trustee.
SCHEDULE III
SERIES 1997-AT&T
DESCRIPTION OF THE CALL RIGHT
The Call Right represents the right by the holder thereof to purchase
all, but not less than all, of the outstanding Certificates on any Distribution
Date occurring on or after the Distribution Date in September 1997, (the "CALL
DATE") at a price equal to the aggregate Certificate Principal Balance, together
with unpaid interest thereon accrued to but excluding the Distribution Date as
of which the Call Right is exercised (the "CALL PRICE").
The holder of the Call Right must provide notice to the Trustee (a
"CALL REQUEST") not less than 10 Business Days prior to the relevant Call Date
that it intends to exercise the Call Right on such Call Date.
Upon its acquisition of the Certificates pursuant to its exercise of
the Call Right, the holder of the Call Right will be entitled to receive any
amounts distributable on the Certificates on each Distribution Date occurring
from and after such Call Date.
The Call Right will be issued to Citicorp Securities, Inc. ("CSI") or
an affiliate of CSI and may, upon notice to the Trustee, be transferred by the
holder thereof (in whole but not in part) to another Person at the sole option
of the transferor without the consent of the Certificateholders or any other
Person. The beneficial ownership interest in the Call Right will be recorded on
the records of the Trustee.
SCHEDULE IV
SERIES 1997-AT&T
DESCRIPTION OF THE OPTIONAL EXCHANGE RIGHT
The holder of the Optional Exchange Right will be entitled to require
the Trustee, on any Business Day, to effect an Optional Redemption of one or
more Certificates; provided that any such exercise is subject to the conditions
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that, on the Business Day on which the Optional Redemption occurs, (i) the
holder of the Optional Exchange Right is also the holder of the Call Right and
the Retained Interest, (ii) the holder of the Optional Exchange Right is also
the holder of Certificates in an outstanding aggregate principal amount at least
equal to the outstanding aggregate principal amount of Certificates to be
redeemed and (iii) the outstanding aggregate principal amount of Certificates to
be redeemed shall be an amount equal to an authorized denomination of the
Underlying Securities. No exercise of an Optional Exchange Right shall prevent
the holder from any later exercise thereof on any subsequent Business Day.
The holder of the Optional Exchange right must provide notice to the
Trustee (an "OPTIONAL EXCHANGE REQUEST") not less than four Business Days prior
to the Business Day on which it intends to exercise the Optional Exchange Right,
which notice shall (i) specify the outstanding aggregate principal amount of
Certificates to be redeemed (the "SUBJECT CERTIFICATES"), (ii) confirm that the
holder of the Optional Exchange Right is also the holder of the Call Right and
the Retained Interest and (iii) confirm the holder of the Optional Exchange
Right is also the holder of Certificates in an outstanding aggregate principal
amount at least equal to the outstanding aggregate principal amount of the
Subject Certificates.
On the Optional Exchange Date, the Subject Certificates will be
redeemed by the Trustee in exchange for (x) delivery by the Trustee to the
holder of the Optional Exchange Right of Underlying Securities in an outstanding
aggregate principal amount equal to the outstanding aggregate principal amount
of the Subject Certificates and (y) payment by the Trustee to such holder of
Available Funds in the Certificate Account that are attributable to the Subject
Certificates (including investments (if any) made by the Trustee pursuant to
Section 3.05 of the Standard Terms that would otherwise be distributable to the
holders of the Subject Certificates).
No Optional Exchange Request with respect to all outstanding
Certificates shall be effective unless the holder of the Optional Exchange Right
satisfies the claims of all creditors of the Bond-backed Investment Certificates
Trust, Series 1997-AT&T.
The Optional Exchange Right will be issued to Citicorp Securities,
Inc. ("CSI") or an affiliate of CSI and may, upon notice to the Trustee, be
transferred by the holder thereof (in whole but not in part) to another Person
at the sole option of the transferor without the consent of the
Certificateholders or any other Person. The beneficial ownership interest in
the Optional Exchange Right will be recorded on the records of the Trustee.
EXHIBIT A
Standard Terms for Trust Agreements
(incorporated herein by reference from Exhibit 4.1 to
the Registrant's Registration Statement on
Form S-3 (File No. 333-5698), as amended,
filed with the Commission on October 2, 1996)
