EXHIBIT 4.3
[FORM OF FLOATING RATE SECURITY]
REGISTERED PRINCIPAL AMOUNT
NO._________ $___________________
CUSIP NO._____________
BRE PROPERTIES, INC.
Medium-Term Note Due Nine Months or More From Date of Issue
[Unless this Security is presented by an authorized representative of
The Depository Trust Company, a New York corporation, 00 Xxxxx Xxxxxx, Xxx Xxxx,
Xxx Xxxx ("DTC"), to BRE Properties, Inc., a Maryland corporation (herein called
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the "Company," which term includes any successor person under the Indenture
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referred to on the reverse hereof), or its agent for registration of transfer,
exchange or payment, and any Security issued is registered in the name of Cede &
Co., or in such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered owner hereof, Cede & Co., has an interest herein.
Unless and until it is exchanged in whole or in part for securities in
certificated form, this Security may not be transferred except as a whole by DTC
to a nominee of DTC, or by a nominee of DTC to DTC, or to a successor of DTC or
to a nominee of such successor of DTC.]/1/
[If applicable, this Security will contain information required by U.S.
Federal Income Tax "Original Issue Discount" rules, as that term is defined in
the Internal Revenue Code of 1986, as amended.]
Original Issue Date: Spread/Spread Multiplier: (+ basis pts.):
-
Maturity Date:
Initial Interest Rate: Redeemable at Company's Option: Yes __ No__
Base Rate: Initial Redemption Date:
- CD Rate __ Initial Redemption Price:
- CMT Rate __ Initial Redemption Percentage:
Designated CMT Maturity Index: Annual Redemption Percentage Reduction:
Designated CMT Telerate Page: Redemption Limitation Date:
- Commercial Paper Rate __ Indexed Note: Yes __ No __
- Eleventh District Cost of Funds Rate __ Amortizing Note: Yes __ No __
- Federal Funds Rate __ Amortization Schedule:
- LIBOR __ Regular Floating Rate:
Reporting Service: Floating Rate/Fixed Rate Note:
- LIBOR Reuters __ Fixed Rate Commencement Date:
- LIBOR Telerate __ Fixed Interest Rate:
LIBOR Currency: Inverse Floating Rate Note:
LIBOR Page:
- Prime Rate __
- Treasury Rate __
Maximum Interest Rate:
Minimum Interest Rate:
Interest Payment Period:
Interest Payment Dates:
Regular Record Dates:
Interest Reset Period:
Interest Reset Dates:
Interest Determination Dates:
Calculation Date:
Index Maturity:
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/1/ Insert if Global Security
Original Issue Discount Note: Yes __ No __ Book-Entry:
Total Amount of OID (%): Certificated:
Issue Price (percentage of principal): Specified Currency:
Yield to Maturity (%): Minimum Denomination if other than $1,000:
Initial Accrual: Sinking Fund: Yes__ No___
Initial Accrual Period OID (%): Authorized Denomination:
(Constant - Yield Method) (if other than U.S. Dollars)
Option of Holder to Elect Repayment: Yes__ No__
Optional Repayment Dates:
Reopening of Notes Previously Issued: Yes ___ No ____
Other/Additional Provisions:
BRE PROPERTIES, INC., a corporation duly organized and existing under
the laws of the State of Maryland (hereinafter called the "Company," which term
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includes any successor corporation under the Indenture referred to below), for
value received, hereby promises to pay to _______________________, or registered
assigns, the principal sum of ____________________________ Dollars
($____________) on the Maturity Date specified above (except to the extent
redeemed or repaid prior to such date), and to pay interest thereon, if any,
from the Original Issue Date specified above or from the most recent Interest
Payment Date (as defined below) to which interest has been paid or duly provided
for, monthly, quarterly, semi-annually or annually, as specified above for the
Interest Payment Period, in arrears on the Interest Payment Dates specified
above in each year, commencing with the Interest Payment Date next succeeding
the Original Issue Date specified above, and at Maturity, until the principal
hereof is paid or duly provided for. Unless otherwise specified on the face
hereof, the "Regular Record Date" shall be the date that is 15 calendar days
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immediately preceding the related Interest Payment Date or Dates, whether or not
such date shall be a Business Day. Except as otherwise provided herein, the rate
of interest to be so paid shall be the Initial Interest Rate specified above
until the first Interest Reset Date specified above following the Original Issue
Date and thereafter a rate determined, in accordance with the provisions
hereinafter set forth, by reference to the Base Rate specified above plus or
minus the Spread, if any, specified above or multiplied by the Spread
Multiplier, if any, specified above. Unless this Security is a Security which
has been issued upon transfer of, in exchange for, or in replacement of, a
Predecessor Security (as hereinafter defined), interest on this Security shall
accrue from the Original Issue Date indicated above. "Predecessor Security" of
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any particular Security means every previous security evidencing all or a
portion of the same debt as that evidenced by such particular Security and, for
the purposes of this definition, any Security authenticated and delivered under
Section 306 of the Indenture in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same debt as
the mutilated, destroyed, lost or stolen Security. If this Security has been
issued upon transfer of, in exchange for, or in replacement of, a Predecessor
Security, interest on this Security shall accrue from the last Interest Payment
Date to which interest was paid on such Predecessor Security or, if no interest
was paid on such Predecessor Security, from the Original Issue Date indicated
above. The interest so payable, and paid or duly provided for, on any Interest
Payment Date shall, as provided in the Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date specified above (whether or not a
Business Day) next preceding such Interest Payment Date. Notwithstanding the
foregoing, (a) if the Original Issue Date of this Security is after a Regular
Record Date and before the corresponding Interest Payment Date, interest so
payable for the period from and including the Original Issue Date to but
excluding such Interest Payment Date shall be paid on the next succeeding
Interest Payment Date to the Holder hereof on the related Regular Record Date;
and (b) interest payable at Maturity shall be paid to the Person to whom
principal is payable.
Except as otherwise provided in the Indenture, any interest not
punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice of which shall be given to Holders
of Securities of this series not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities
2
of this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in the Indenture.
Notwithstanding the foregoing, if an Addendum is attached hereto or
"Other/Additional Provisions" apply to this Security as specified above, this
Security shall be subject to the terms set forth in such Addendum or such
"Other/Additional Provisions."
The principal of, premium, if any, and interest, if any, on, this
Security is payable by the Company in the Specified Currency specified above. If
this Security is denominated in a Foreign Currency, in the event that the
Foreign Currency is not available for payment at a time at which any payment is
required hereunder due to the imposition of exchange controls or other
circumstances beyond the Company's control or is no longer used by the
government of the country issuing such currency or for the settlement of
transactions by public institutions within the international banking community,
the Company may, in full satisfaction of its obligation to make such payment,
make instead a payment in an equivalent amount of US dollars, determined by the
Exchange Rate Agent, as defined below, on the basis of the Market Exchange Rate
for such Foreign Currency on the second Business Day prior to such payment date
or, if such Market Exchange Rate is not then available, on the basis of the most
recently available Market Exchange Rate; provided, however, that if such
Specified Currency is replaced by the Euro, the payment of principal of (and
premium, if any) or interest, if any, on this Security denominated in such
currency shall be effected in the Euro in conformity with legally applicable
measures taken pursuant to, or by virtue of, the treaty establishing the
European Community, as amended by the treaty on European Unity. The "Exchange
Rate Agent" will initially be X.X. Xxxxxx Trust Company, National Association,
but may be such other person as designated by the Company from time to time. The
"Market Exchange Rate" for the Specified Currency means the noon dollar buying
rate in The City of New York for cable transfers for the Specified Currency as
certified for customs purposes by (or if not so certified, as otherwise
determined by) the Federal Reserve Bank of New York. Any payment made under such
circumstances in U.S. dollars or the Euro where the required payment is in a
Specified Currency other than U.S. dollars or the Euro, respectively, will not
constitute an Event of Default (as defined in the Indenture).
If the Specified Currency is a composite currency and if such composite
currency is unavailable due to the imposition of exchange controls or other
circumstances beyond the Company's control, then the Company will be entitled to
satisfy its obligations to the Holder of this Security by making such payment in
U.S. dollars. The amount of each payment in U.S. dollars shall be computed by
the Exchange Rate Agent on the basis of the equivalent of the composite currency
in U.S. dollars. The component currencies of the composite currency for this
purpose (collectively, the "Component Currencies" and each, a "Component
Currency") shall be the currency amounts that were components of the composite
currency as of the last day on which the composite currency was used. The
equivalent of the composite currency in U.S. dollars shall be calculated by
aggregating the U.S. dollar equivalents of the Component Currencies. The U.S.
dollar equivalent of each of the Component Currencies shall be determined by the
Exchange Rate Agent on the basis of the most recently available Market Exchange
Rate for each such Component Currency, or as otherwise specified on the face
hereof.
If the official unit of any Component Currency is altered by way of
combination or subdivision, the number of units of the currency as a Component
Currency shall be divided or multiplied in the same proportion. If two or more
Component Currencies are consolidated into a single currency, the amounts of
those currencies as Component Currencies shall be replaced by an amount in such
single currency equal to the sum of the amounts of the consolidated Component
Currencies expressed in such single currency. If any Component Currency is
divided into two or more currencies, the amount of the original Component
Currency shall be replaced by the amounts of such two or more currencies, the
sum of which shall be equal to the amount of the original Component Currency.
All determinations referred to above made by the Exchange Rate Agent
shall be at its sole discretion and shall, in the absence of manifest error, be
conclusive for all purposes and binding on the Holder of this Security.
[Until this Security is paid in full or payment therefor in full is
duly provided for, the Company will at all times maintain a Paying Agent (which
Paying Agent may be the Trustee) in The Borough of Manhattan in The City of New
York. The Company has initially appointed X.X. Xxxxxx Trust Company, National
Association as the Paying Agent at its corporate trust offices at the X.X.
Xxxxxx Trust Company, National Association, in care of JPMorgan Chase Bank,
Institutional Corporate Trust Securities Window, 00 Xxxxx Xxxxxx, Xxxx 000,
Xxxxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000].
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If this Security is a Global Security: Unless stated to the contrary on
the face hereof, this Security is issuable only in registered form without
coupons in Book-Entry form represented by one or more global notes (each a
"Global Security") registered in the name of Cede & Co., or in the name of
another nominee of The Depository Trust Company (the "DTC"). The single global
security will represent all notes issued on the same day and having the same
terms, including, without limitation, the same interest payment dates, rate of
interest, maturity and redemption or repayment provisions, if any. Payments of
principal, premium, if any, and interest, if any, on this Security will be made
to DTC or its nominee, as Holder of this Security, by wire transfer of
immediately available funds.
If this Security is not a Global Security: Payment of interest, if any,
on this Security will be made on any Interest Payment Date (other than at
Maturity) by check mailed to the Person entitled thereto at such Person's last
address as it appears in the Security Register or, in the case of a Holder of
$10,000,000 (or, if the specified currency is other than U.S. dollars, the
equivalent thereof in the specified currency) or more in aggregate principal
amount of Securities of this series whether having identical or different terms
and provisions, by wire transfer of immediately available funds if the
applicable Holder has delivered appropriate wire transfer instructions in
writing to the Paying Agent not later than 15 calendar days prior to the
applicable Interest Payment Date and, unless revoked by written notice to the
Paying Agent received by the Paying Agent on or prior to the Regular Record Date
immediately preceding the applicable Interest Payment Date, shall remain in
effect with respect to any further payments with respect to this Security
payable to such Holder. Payment of principal of, premium, if any, and interest,
if any, on this Security at Maturity will be made in immediately available
funds, upon presentation and surrender of this Security and in the case of any
repayment on an optional repayment date, upon submission of a duly completed
election form, if and as required by the provisions relating to repayment of the
securities at the option of the Holder, at the office or agency maintained by
the Company for that purpose in The Borough of Manhattan, The City of New York,
which at the date hereof is the corporate trust office of the Trustee located at
the X.X. Xxxxxx Trust Company, National Association, in care of JPMorgan Chase
Bank, Institutional Trust Securities Window, 00 Xxxxx Xxxxxx, Xxxx 000, Xxxxx
Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000.
No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.
Any payment on this Security due on any day which is not a Business Day
need not be made on such day, but may be made on the next succeeding Business
Day with the same force and effect as if made on the due date and no additional
interest shall accrue on the amount so payable for the period from and after
such date. For purposes of this Security, "Business Day" has the meaning set
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forth below.
Interest payments on this Security shall be the amount of interest
accrued from and including the immediately preceding Interest Payment Date in
respect of which interest has been paid or duly provided for, or, if no interest
has been paid or duly provided for, from and including the Original Issue Date,
to but excluding the next succeeding Interest Payment Date; provided, however,
that if the interest rate on this Security is reset daily or weekly as specified
on the face hereof for the Interest Reset Period, interest payments shall be the
amount of interest accrued from and including the most recent date to which
interest has been paid or duly provided for, or, if no interest has been paid,
from the Original Issue Date, to, but excluding, the Regular Record Date next
preceding such Interest Payment Date, except that at Maturity the interest
payable shall include interest accrued to but excluding the date of Maturity.
Accrued interest on this Security shall be calculated by multiplying
the principal amount of this Security by an accrued interest factor. Such
accrued interest factor shall be computed by adding the interest factor
calculated for each day in the Interest Payment Period for which accrued
interest is being calculated. The interest factor (expressed as a decimal
calculated to seven decimal places without rounding) for each such day shall be
computed by dividing the interest rate applicable to such day by 360 if the Base
Rate is the CD Rate, the Commercial Paper Rate, the Eleventh District Cost of
Funds Rate, the Federal Funds Rate, LIBOR or the Prime Rate, as indicated above,
or by the actual number of days in the year if the Base Rate is the CMT Rate or
the Treasury Rate, as indicated above. For purposes of making the foregoing
calculation, the interest rate in effect on any Interest Reset Date shall be the
applicable rate as reset on such date. Unless otherwise specified above, all
percentages resulting from any calculation of the rate of interest hereon shall
be rounded, if necessary, to the nearest 1/100,000 of 1%
4
(.0000001), with five one-millionths of a percentage point rounded upward, and
all U.S. dollar amounts used in or resulting from such calculation shall be
rounded to the nearest cent or, in the case of a foreign currency, to the
nearest unit (with one-half of a cent or unit being rounded upwards).
Except as otherwise provided herein, commencing with the first Interest
Reset Date specified above following the Original Issue Date and thereafter upon
each succeeding Interest Reset Date specified above, the rate at which interest
on this Security is payable shall be reset daily, weekly, monthly, quarterly,
semi-annually or annually as specified above for the Interest Reset Period, and
such rate, as so reset, shall be effective as of and for the related Interest
Reset Date and for the balance of the related Interest Reset Period to but
excluding the next succeeding Interest Reset Date. Unless otherwise specified
above, the Interest Reset Dates shall be, if the interest rate on this Security
resets daily, each Business Day; if the interest rate on this Security (unless
the Base Rate is the Treasury Rate) resets weekly, Wednesday of each week; if
the Base Rate specified above is the Treasury Rate and resets weekly, Tuesday of
each week (except as provided below under "Determination of Treasury Rate"); if
the interest rate on this Security resets monthly (unless the Base Rate is the
Eleventh District Cost of Funds Rate), the third Wednesday of each month; if the
Base Rate specified above is the Eleventh District Cost of Funds Rate and resets
monthly, the first calendar day of the month; if the interest rate on this
Security resets quarterly, the third Wednesday of March, June, September and
December of each year; if the interest rate on this Security resets
semi-annually, the third Wednesday of the two months of each year specified
above; and if the interest rate on this Security resets annually, the third
Wednesday of the month of each year specified above; provided, however, that the
interest rate in effect for the ten days immediately prior to Maturity will be
that in effect on the tenth day preceding Maturity. If an Interest Reset Date
for this Security would otherwise be a day that is not a Business Day (as
hereinafter defined), such Interest Reset Date shall be postponed to the next
succeeding Business Day, except that, if the Base Rate specified on the face
hereof is LIBOR and such Business Day is in the next succeeding calendar month,
such Interest Reset Date shall be the immediately preceding Business Day. If the
Base Rate is the Treasury Rate and the Treasury Interest Determination Date (as
defined below) would otherwise fall on an Interest Reset Date, the particular
Interest Reset Date will be postponed to the next succeeding Business Day.
Anything herein to the contrary notwithstanding, the interest rate
hereon shall not be greater than the Maximum Interest Rate, if any, or less than
the Minimum Interest Rate, if any, specified above. In addition, the interest
rate hereon shall in no event be higher than the maximum rate permitted by New
York law as the same may be modified by United States law of general
application.
Unless otherwise specified above, interest will be payable, if the
interest rate on this Security resets daily, weekly or monthly, on the third
Wednesday of each month or on the third Wednesday of March, June, September and
December of each year, as specified above; if the interest rate on this Security
resets quarterly, on the third Wednesday of March, June, September and December
of each year; if the interest rate on this Security resets semi-annually, on the
third Wednesday of the two months of each year specified above; and if the
interest rate on this Security resets annually, on the third Wednesday of the
month of each year specified above (each such day being an "Interest Payment
----------------
Date").
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If any Interest Payment Date other than a Redemption Date or the
Maturity Date would otherwise be a day that is not a Business Day, such Interest
Payment Date shall be postponed to the next succeeding Business Day, except
that, if the Base Rate specified above is LIBOR and such next succeeding
Business Day is in the next succeeding calendar month, such Interest Payment
Date shall be the next preceding Business Day. If a Redemption Date or the
Maturity Date shall not be a Business Day, payment of the amounts due on this
Security on such date in respect of principal, premium, if any, and/or interest
may be made on the next succeeding Business Day; and if payment is made or duly
provided for on such Business Day, no interest shall accrue on such amounts for
the period from and after such Redemption Date or Maturity Date, as the case may
be, to such Business Day.
Unless otherwise specified on the face hereof, this Security is a
"Regular Floating Rate Note" and will bear interest at the rate determined by
reference to the applicable Base Rate or Base Rates, (i) plus or minus the
applicable Spread, if any; and/or multiplied by the applicable Spread
Multiplier, if any.
Commencing on the first Interest Reset Date, the rate at which interest
on a Regular Floating Rate Note is payable will be reset as of each Interest
Reset Date; provided, however, that the interest rate in effect for the period,
if any, from the Original Issue Date to the first Interest Reset Date will be
the Initial Interest Rate.
5
If designated on the face hereof as a "Floating Rate/ Fixed Rate Note",
this Security will bear interest at the rate determined by reference to the
applicable Base Rate or Rates, (i) plus or minus the applicable Spread, if any;
and/or multiplied by the applicable Spread Multiplier, if any.
Commencing on the first Interest Reset Date, the rate at which interest
on a Floating Rate/ Fixed Rate Note is payable will be reset as of each Interest
Reset Date; provided, however, that the interest rate in effect for the period,
if any, from the Original Issue Date to the first Interest Reset Date will be
the Initial Interest Rate and the interest rate in effect commencing on the
Fixed Rate Commencement Date (as specified above) will be the Fixed Interest
Rate, if specified on the face hereof, or, if not so specified, the interest
rate in effect on the day immediately preceding the Fixed Rate Commencement
Date.
If designated on the face hereof as an "Inverse Floating Rate Note,"
this Security will bear interest at the Fixed Interest Rate minus the rate
determined by reference to the Base Rate or Rates, (i) plus or minus the
applicable Spread, if any; and/or multiplied by the applicable Spread
Multiplier, if any; provided, however, that interest on an Inverse Floating Rate
Note will not be less than zero. Commencing on the first Interest Reset Date,
the rate at which interest on an Inverse Floating Rate Note is payable will be
reset as of each Interest Reset Date; provided, however, that the interest rate
in effect for the period, if any, from the date of issue to the first Interest
Reset Date will be the Initial Interest Rate.
If this Security an "Original Issue Discount Note," it will have an
issue price, as specified on the face hereof, that is less than 100% of the
principal amount, or "par," thereof by more than a percentage equal to the
product of 0.25% and the number of full years to the Maturity Date. Original
Issue Discount Notes may not bear any interest currently or may bear interest at
a rate that is below market rates at the time of issuance. The difference
between the issue price of an Original Issue Discount Note and par is referred
to as the "Original Issue Discount." In the event of redemption, repayment or
acceleration of maturity of an Original Issue Discount Note, the amount payable
to the holder of an Original Issue Discount Note will be equal to the sum of (i)
the issue price, increased by any accruals of Original Issue Discount, and, in
the event of any redemption of the applicable Original Issue Discount Note, if
applicable, multiplied by the Initial Redemption Percentage (as specified
above), as adjusted by the Annual Redemption Percentage Reduction (as specified
on the face hereof), if applicable and (ii) any unpaid interest accrued on the
Original Issue Discount Notes to the date of the redemption, repayment or
acceleration of Maturity, as the case may be.
For purposes of determining the amount of Original Issue Discount that
has accrued as of any date on which a redemption, repayment or acceleration of
Maturity occurs for an Original Issue Discount Note, an Original Issue Discount
will be accrued using a constant yield method. The constant Yield to Maturity
will be calculated using a 30-day month, 360-day year convention, a compounding
period that, except for the Initial Period (as defined below), corresponds to
the shortest period between Interest Payment Dates for the applicable Original
Issue Discount Note, with ratable accruals within a compounding period, an
interest rate equal to the Initial Interest Rate applicable to the Original
Issue Discount Note and an assumption that the maturity of an Original Issue
Discount Note will not be accelerated. If the period from the Original Issue
Date to the first Interest Payment Date for an Original Issue Discount Note,
known as the "Initial Period," is shorter than the compounding period for the
Original Issue Discount Note, a proportionate amount of the Yield to Maturity
for an entire compounding period will be accrued. If the Initial Period is
longer than the compounding period, then the period will be divided into a
regular compounding period and a short period with the short period being
treated as provided in the preceding sentence.
If this Security is a "Remarketed Note," it will bear interest at a
specified Initial Interest Rate, and thereafter will bear interest at rates set
for each Interest Period by a remarketing agent selected by the Company,
pursuant to a contract between the Company and the remarketing agent. The face
of the note for any Remarketed Notes will contain the name of the remarketing
agent and further information regarding the terms of the Remarketed Notes.
If this Security is an "Indexed Note," the amount of principal,
premium, if any, and/or interest, if any, payable in respect thereof will be
determined with reference to the price or prices of specified commodities, to
one or more equity or debt securities or the price or yield of such securities,
to the exchange rate of one or more designated currencies relative to an indexed
currency or to other items, including any statistical measure of economic or
financial activity, changes in prices or values, or performance, or any other
item, index or any
6
combination thereof. In certain cases, Holders of indexed notes may receive a
principal payment on the Maturity Date that is greater than or less than the
principal amount of such Indexed Notes, depending upon the relative value at
Maturity of the specified indexed item. Information as to the method for
determining the amount of principal, premium, if any, and/or interest, if any,
payable in respect of Indexed Notes, certain historical information with respect
to the specified indexed item and any material tax considerations associated
with an investment in Indexed Notes will be specified in the applicable pricing
supplement.
If this Security is an "Amortizing Note," the amount of principal
thereof and interest thereon with respect to such Security will be payable in
installments over its term. Unless otherwise specified on the face hereof,
interest on each Amortizing Note will be computed on the basis of a 360-day year
of twelve 30-day months. Payments with respect to Amortizing Notes will be
applied first to interest due and payable thereon and then to the reduction of
the unpaid principal amount thereof. Further information concerning additional
terms and provisions of Amortizing Notes is specified on the face hereof,
including a table setting forth repayment information.
The Company will appoint, and enter into an agreement with, an agent
(the "Calculation Agent") to calculate the interest rates on floating rate
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Securities (including this Security). Unless otherwise specified above, X.X.
Xxxxxx Trust Company, National Association shall be the Calculation Agent. All
determinations of interest rates by the Calculation Agent shall, in the absence
of manifest error, be conclusive for all purposes and binding on the Holder
hereof.
Subject to applicable provisions of law and except as otherwise
specified herein, on each Interest Reset Date the rate of interest shall be
determined in accordance with the provisions of the applicable heading below.
The Interest Determination Date pertaining to a Security the rate of interest of
which is determined with reference to two or more Base Rates will be the latest
Business Day which is a least two Business Days before the related Interest
Reset Date for the applicable Security on which each interest reset basis is
determinable.
Determination of CD Rate. If the Base Rate specified above is the CD
Rate, this Security shall bear interest for each Interest Reset Period at an
interest rate calculated with reference to the CD Rate, determined as set forth
below, and the Spread or Spread Multiplier, if any, and subject to the Maximum
Interest Rate, if any, and the Minimum Interest Rate, if any, specified above.
The "CD Rate" for each Interest Reset Period shall be determined by the
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Calculation Agent on the Calculation Date (as hereinafter defined) by
reference to the CD Rate as of the second Business Day preceding the
related Interest Reset Date (a "CD Interest Determination Date") and
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shall be:
(1) the rate on the particular Interest Determination Date for negotiable
U.S. dollar certificates of deposit having the index maturity
specified above as published in H.15(519) under the caption "CDs
(secondary market)"; or
(2) if the rate referred to in clause (1) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate
on the particular Interest Determination Date for negotiable U.S.
dollar certificates of deposit of the particular index maturity as
published in H.15 Daily Update, or such other recognized electronic
source used for the purpose of displaying the applicable rate, under
the caption "CDs (secondary market)"; or
(3) if the rate referred to in clause (2) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate
on the particular Interest Determination Date calculated by the
Calculation Agent as the arithmetic mean of the secondary market
offered rates as of 10:00 A.M., New York City time, on that Interest
Determination Date, of three leading nonbank dealers in negotiable
U.S. dollar certificates of deposit in New York City, which may
include the agents or their affiliates, selected by the Calculation
Agent for negotiable U.S. dollar certificates of deposit of major
United States money center banks for negotiable United States
certificates of deposit with a remaining maturity closest to the
particular index maturity in an amount that is representative for a
single transaction in that market at that time; or
(4) if the dealers so selected by the Calculation Agent are not quoting
as mentioned in clause (3), the CD Rate in effect on the particular
Interest Determination Date.
7
"H.15(519)" means the weekly statistical release designated as H.15(519), or
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any successor publication, published by the Board of Governors of the Federal
Reserve System.
"H.15 Daily Update" means the daily update of H.15(519), available through the
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world-wide-web site of the Board of Governors of the Federal Reserve System at
http:/xxx.xxxxxxxxxxxxxx.xxx/xxxxxxxx/x00/xxxxxx, or any successor site or
publication.
Determination of CMT Rate. If the Base Rate specified above is the CMT
Rate, this Security shall bear interest for each Interest Reset Period at a rate
calculated with reference to the CMT Rate, determined as set forth below, and
the Spread or Spread Multiplier, if any, and subject to the Maximum Interest
Rate, if any, and the Minimum Interest Rate, if any, specified above.
The "CMT Rate" for each Interest Reset Period shall be determined by
--------
the Calculation Agent on the Calculation Date by reference to the CMT Rate as of
the second Business Day preceding the related Interest Reset Date (a "CMT
---
Interest Determination Date") and shall be the rate (expressed as a percentage
---------------------------
per annum) determined as follows:
(1) if CMT Telerate Page 7051 is specified as the Designated CMT Telerate Page
above:
(a) the percentage equal to the yield for United States Treasury
securities at "constant maturity" having the index maturity specified
above as published in H.15(519) under the caption "Treasury Constant
Maturities," as the yield is displayed on Bridge Telerate, Inc., or
any successor service, on page 7051 or any other page as may replace
the specified page on that service, for the particular Interest
Determination Date; or
(b) if the rate referred to in clause (a) does not so appear on Telerate
Page 7051, the percentage equal to the yield for United States
Treasury securities at "constant maturity" having the particular index
maturity and for the particular Interest Determination Date as
published in H.15(519) under the caption "Treasury Constant
Maturities;" or
(c) if the rate referred to in clause (b) does not so appear in H.15(519),
the rate on the particular Interest Determination Date for the period
of the particular index maturity as may then be published by either
the Board of Governors of the Federal Reserve System or the United
States Department of the Treasury that the Calculation Agent
determines to be comparable to the rate that would otherwise have been
published in H.15(519); or
(d) if the rate referred to in clause (c) is not so published, the rate on
the particular Interest Determination Date calculated by the
Calculation Agent as a yield to maturity based on the arithmetic mean
of the secondary market bid prices at approximately 3:30 P.M., New
York City time, on that Interest Determination Date of three leading
primary United States government securities dealers in New York City,
which may include the agents or their affiliates, individually known
as a reference dealer, selected by the Calculation Agent from five
reference dealers selected by the Calculation Agent and eliminating
(i) the highest quotation, or, in the event of equality, one of the
highest, and (ii) the lowest quotation or, in the event of equality,
one of the lowest, for United States Treasury securities with an
original maturity equal to the particular index maturity, a remaining
term to maturity no more than one year shorter than that index
maturity and in a principal amount that is representative for a single
transaction in the securities in that market at that time; or
(e) if fewer than five but more than two of the prices referred to in
clause (d) are provided as requested, the rate on the particular
Interest Determination Date calculated by the Calculation Agent based
on the arithmetic mean of the bid prices obtained and neither the
highest nor the lowest of the quotations shall be eliminated; or
(f) if fewer than three prices referred to in clause (d) are provided as
requested, the rate on the particular Interest Determination Date
calculated by the Calculation Agent as a yield to maturity based on
the arithmetic mean of the secondary market bid prices as of
approximately 3:30 P.M., New York City time, on
8
that Interest Determination Date of three reference dealers selected
by the Calculation Agent from five reference dealers selected by the
Calculation Agent and eliminating (i) the highest quotation or, in
the event of equality, one of the highest, and (ii) the lowest
quotation or, in the event of equality, one of the lowest, for United
States Treasury securities with an original maturity greater than the
particular index maturity, a remaining term to maturity closest to
that index maturity and in a principal amount that is representative
for a single transaction in the Securities in that market at that
time; or
(g) if fewer than five but more than two prices referred to in clause (f)
are provided as requested, the rate on the particular Interest
Determination Date calculated by the Calculation Agent based on the
arithmetic mean of the bid prices obtained and neither the highest
nor the lowest of the quotations will be eliminated; or
(h) if fewer than three prices referred to in clause (f) are provided as
requested, the CMT Rate in effect on the particular Interest
Determination Date.
(2) if CMT Telerate Page 7052 is specified as the Designated CMT Telerate Page
above:
(a) the percentage equal to the one-week or one-month, as specified
above, average yield for United States Treasury securities at
"constant maturity" having the index maturity specified on the face
of this Security as published in H.15(519) opposite the caption
"Treasury Constant Maturities," as the yield is displayed on Bridge
Telerate, Inc., or any successor service, on page 7052 or any other
page as may replace the specified page on that service, for the week
or month, as applicable, ended immediately preceding the week or
month, as applicable, in which the particular Interest Determination
Date falls; or
(b) if the rate referred to in clause (a) does not so appear on Telerate
Page 7052, the percentage equal to the one-week or one-month, as
specified above, average yield for United States Treasury securities
at "constant maturity" having the particular index maturity and for
the week or month, as applicable, preceding the particular Interest
Determination Date as published in H.15(519) opposite the caption
"Treasury Constant Maturities"; or
(c) if the rate referred to in clause (b) does not so appear in
H.15(519), the one-week or one-month, as specified above, average
yield for United States Treasury securities at "constant maturity"
having the particular index maturity as otherwise announced by the
Federal Reserve Bank of New York for the week or month, as
applicable, ended immediately preceding the week or month, as
applicable, in which the particular Interest Determination Date
falls; or
(d) if the rate referred to in clause (c) is not so published, the rate
on the particular Interest Determination Date calculated by the
Calculation Agent as a yield to maturity based on the arithmetic mean
of the secondary market bid prices at approximately 3:30 P.M., New
York City time, on that Interest Determination Date of three
reference dealers selected by the Calculation Agent from five
reference dealers selected by the Calculation Agent and eliminating
(i) the highest quotation, or, in the event of equality, one of the
highest, and (ii) the lowest quotation or, in the event of equality,
one of the lowest, for United States Treasury securities with an
original maturity equal to the particular index maturity, a remaining
term to maturity no more than one year shorter than that index
maturity and in a principal amount that is representative for a
single transaction in the securities in that market at that time; or
(e) if fewer than five but more than two of the prices referred to in
clause (d) are provided as requested, the rate on the particular
Interest Determination Date calculated by the Calculation Agent based
on the arithmetic mean of the bid prices obtained and neither the
highest nor the lowest of the quotations shall be eliminated; or
(f) if fewer than three prices referred to in clause (d) are provided as
requested, the rate on the particular Interest Determination Date
calculated by the Calculation Agent as a yield to maturity based on
the arithmetic mean of the secondary market bid prices as of
approximately 3:30 P.M., New York City time, on that Interest
Determination Date of three reference dealers selected by the
Calculation Agent from five reference dealers selected by the
Calculation Agent and eliminating (i) the highest quotation or, in
the event
9
of equality, one of the highest, and (ii) the lowest quotation or, in
the event of equality, one of the lowest, for United States Treasury
securities with an original maturity greater than the particular index
maturity, a remaining term to maturity closest to that index maturity
and in a principal amount that is representative for a single
transaction in the securities in that market at the time; or
(g) if fewer than five but more than two prices referred to in clause (f)
are provided as requested, the rate on the particular Interest
Determination Date calculated by the Calculation Agent based on the
arithmetic mean of the bid prices obtained and neither the highest or
the lowest of the quotations will be eliminated; or
(h) if fewer than three prices referred to in clause (f) are provided as
requested, the CMT Rate in effect on that Interest Determination Date.
If two United States Treasury securities with an original
maturity greater than the index maturity specified above have remaining terms to
maturity equally close to the particular index maturity, the quotes for the
United States Treasury security with the shorter original remaining term to
maturity will be used.
Determination of Commercial Paper Rate. If the Base Rate specified
above is the Commercial Paper Rate, this Security shall bear interest for each
Interest Reset Period (a "Commercial Paper Interest Determination Date") at a
--------------------------------------------
rate calculated with reference to the Commercial Paper Rate, determined as set
forth below, and the Spread or Spread Multiplier, if any, and subject to the
Maximum Interest Rate, if any, and the Minimum Interest Rate, if any, specified
above.
The "Commercial Paper Rate" for each Interest Reset Period shall be
---------------------
determined by the Calculation Agent on the Calculation Date by reference to the
Commercial Paper Rate as of the second Business Day preceding the related
Interest Reset Date (a "Commercial Paper Interest Determination Date") and shall
--------------------------------------------
be:
(1) the Money Market Yield on the particular Interest Determination Date of
the rate for commercial paper having the index maturity specified on
the face of this Security as published in H.15(519) under the caption
"Commercial Paper-Nonfinancial"; or
(2) if the rate referred to in clause (1) is not so published by 3:00 P.M.,
New York City time, on the related Calculation Date, the Money Market
Yield of the rate on the particular Interest Determination Date for
commercial paper having the particular index maturity as published in
H.15 Daily Update, or such other recognized electronic source used for
the purpose of displaying the applicable rate, under the caption
"Commercial Paper-Nonfinancial"; or
(3) if the rate referred to in clause (2) is not so published by 3:00 P.M.,
New York City time, on the related Calculation Date, the rate on the
particular Interest Determination Date calculated by the Calculation
Agent as the Money Market Yield of the arithmetic mean of the offered
rates at approximately 11:00 A.M., New York City time, on that Interest
Determination Date of three leading dealers of United States dollar
commercial paper in New York City, which may include the agents or
their affiliates, selected by the Calculation Agent for commercial
paper having the particular index maturity placed for industrial
issuers whose bond rating is "Aa," or the equivalent, from a nationally
recognized statistical rating organization; or
(4) if the dealers so selected by the Calculation Agent are not quoting as
mentioned in clause (3), the Commercial Paper Rate in effect on the
particular Interest Determination Date.
"Money Market Yield" shall be a yield calculated in accordance with the
------------------
following formula:
Money Market Yield = D x 360 x 100
-------------
360 - (D x M)
where "D" refers to the applicable per annum rate for commercial paper quoted on
a bank discount basis and expressed as a decimal, and "M" refers to the actual
number of days in the Interest Reset Period specified above.
10
Determination of Eleventh District Cost of Funds Rate. If the Base
Rate specified above is the Eleventh District Cost of Funds Rate, this Security
shall bear interest for each Interest Reset Period at a rate calculated with
reference to the Eleventh District Cost of Funds Rate, determined as set forth
below, and the Spread or Spread Multiplier, if any, and subject to the Maximum
Interest Rate, if any, and the Minimum Interest Rate, if any, specified above.
The "Eleventh District Cost of Funds Rate" for each Interest Reset
------------------------------------
Period shall be determined by the Calculation Agent on the Calculation Date by
reference to the Eleventh District Cost of Funds Rate as of the last working day
of the month immediately preceding the related Interest Reset Date on which the
Federal Home Loan Bank of San Francisco publishes the index (as hereinafter
defined) (an "Eleventh District Cost of Funds Determination Date") and shall be:
--------------------------------------------------
(1) the rate equal to the monthly weighted average cost of funds for the
calendar month immediately preceding the month in which the particular
Interest Determination Date falls as set forth under the caption "11th
District" on the display on Bridge Telerate, Inc., or any successor
service, on page 7058 or any other page as may replace the specified
page on that service, as of 11:00 A.M., San Francisco, California
time, on that Interest Determination Date; or
(2) if the rate referred to in clause (1) does not so appear on Telerate
Page 7058, the monthly weighted average cost of funds paid by member
institutions of the Eleventh Federal Home Loan Bank District that was
most recently announced by the Federal Home Loan Bank of San Francisco
as the cost of funds for the calendar month immediately preceding that
Interest Determination Date, which is referred to above and below as
the "index"; or
(3) if the Federal Home Loan Bank of San Francisco fails to announce the
index on or prior to the particular Interest Determination Date for
the calendar month immediately preceding that Interest Determination
Date, the Eleventh District Cost of Funds Rate in effect on the
particular Interest Determination Date.
Determination of Federal Funds Rate. If the Base Rate specified above
is the Federal Funds Rate, this Security shall bear interest for each Interest
Reset Period at a rate calculated with reference to the Federal Funds Rate,
determined as set forth below, and the Spread or Spread Multiplier, if any, and
subject to the Maximum Interest Rate, if any, and the Minimum Interest Rate, if
any, specified above.
The "Federal Funds Rate" for each Interest Reset Period shall be
------------------
determined by the Calculation Agent on the Calculation Date by reference to the
Federal Funds Rate as of the Business Day immediately preceding the related
Interest Reset Date (a "Federal Funds Interest Determination Date") and shall
-----------------------------------------
be:
(1) the rate on the particular Interest Determination Date for United
States dollar federal funds as published in H.15(519) under the
caption "Federal Funds (Effective)" and displayed on Bridge Telerate,
Inc., or any successor service, on page 120 or any other page as may
replace the specified page on that service; or
(2) if the rate referred to in clause (1) does not so appear on Telerate
Page 120 or is not so published by 3:00 P.M., New York City time, on
the related Calculation Date, the rate on the particular Interest
Determination Date for United States dollar federal funds as published
in H.15 Daily Update, or such other recognized electronic source used
for the purpose of displaying the applicable rate, under the caption
"Federal Funds (Effective)"; or
(3) if the rate referred to in clause (2) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate on
the particular Interest Determination Date calculated by the
Calculation Agent as the arithmetic mean of the rates for the last
transaction in overnight United States dollar federal funds arranged
by three leading brokers of United States dollar federal funds
transactions in New York City, which may include the agents or their
affiliates, selected by the Calculation Agent prior to 9:00 A.M., New
York City time, on that Interest Determination Date; or
(4) if the brokers so selected by the Calculation Agent are not quoting as
mentioned in clause (3), the Federal Funds Rate in effect on the
particular Interest Determination Date.
11
Determination of LIBOR. If the Base Rate specified above is LIBOR,
this Security shall bear interest for each Interest Reset Period at a rate
calculated with reference to LIBOR, determined as set forth below, and the
Spread or Spread Multiplier, if any, and subject to the Maximum Interest Rate,
if any, and the Minimum Interest Rate, if any, specified above.
"LIBOR" for each Interest Reset Period shall be determined by the
-----
Calculation Agent on the Calculation Date by reference to LIBOR on the second
Business Day preceding the related Interest Reset Date (a "LIBOR Determination
-------------------
Date") and shall be:
----
(1) if "LIBOR Telerate" is specified as the Reporting Service above or if
neither "LIBOR Reuters" nor "LIBOR Telerate" is specified as the
Reporting Service above as the method for calculating LIBOR, the rate
for deposits in the LIBOR Currency having the index maturity specified
on the face of this security, commencing on the related interest reset
date, that appears on the LIBOR Page as of 11:00 A.M., London time, on
the particular Interest Determination Date; or
(2) if "LIBOR Reuters" is specified as the Reporting Service above, the
arithmetic mean of the offered rates, calculated by the Calculation
Agent, or the offered rate, if the LIBOR Page by its terms provides
only for a single rate, for deposits in the LIBOR Currency having the
particular index maturity, commencing on the related interest reset
date, that appear or appears, as the case may be, on the LIBOR Page as
of 11:00 A.M., London time, on the particular Interest Determination
Date; or
(3) if fewer than two offered rates appear, or no rate appears, as the
case may be, on the particular Interest Determination Date on the
LIBOR Page as specified in clause (1) or (2), as applicable, the rate
calculated by the Calculation Agent of at least two offered quotations
obtained by the Calculation Agent after requesting the principal
London offices of each of four major reference banks, which may
include affiliates of the agents, in the London interbank market to
provide the Calculation Agent with its offered quotation for deposits
in the LIBOR Currency for the period of the particular index maturity,
commencing on the related interest reset date, to prime banks in the
London interbank market at approximately 11:00 A.M., London time, on
that Interest Determination Date and in a principal amount that is
representative for a single transaction in the LIBOR Currency in that
market at that time; or
(4) if fewer than two offered quotations referred to in clause (3) are
provided as requested, the rate calculated by the Calculation Agent as
the arithmetic mean of the rates quoted at approximately 11:00 A.M.,
in the applicable principal financial center, on the particular
Interest Determination Date by three major banks, which may include
affiliates of the agents, in that principal financial center selected
by the Calculation Agent for loans in the LIBOR Currency to leading
European banks having the particular index maturity and in a principal
amount that is representative for a single transaction in the LIBOR
Currency in that market at that time; or
(5) if the banks so selected by the Calculation Agent are not quoting as
mentioned in clause (4), LIBOR in effect on the particular Interest
Determination Date.
"LIBOR Currency" means the currency specified above as to which LIBOR
--------------
shall be calculated or, if no currency is specified above, United
States dollars.
"LIBOR Page" means either:
----------
(1) if "LIBOR Reuters" is specified as the Reporting Service above, the
display on the Reuters Monitor Money Rates Service, or any successor
service, on the page above, or any other page as may replace that page
on that service, for the purpose of displaying the London interbank
rates of major banks for the LIBOR Currency; or
(2) or if "LIBOR Telerate" is specified as the Reporting Service above or
neither "LIBOR Reuters" nor "LIBOR Telerate" is specified as the
Reporting Service above as the method for calculating LIBOR, the
display on Bridge Telerate, Inc., or any successor service, on the
page specified above, or any other page as
12
may replace such page on such service, for the purpose of displaying
the London interbank rates of major banks for the LIBOR Currency.
Determination of Prime Rate. If the Base Rate specified above is the
Prime Rate, this Security shall bear interest for each Interest Reset Period at
a rate calculated with reference to the Prime Rate, determined as set forth
below, and the Spread or Spread Multiplier, if any, and subject to the Maximum
Interest Rate, if any, and the Minimum Interest Rate, if any, specified above.
The "Prime Rate" for each Interest Reset Period shall be determined by
----------
the Calculation Agent on the Calculation Date by reference to the Federal Funds
Rate as of the Business Day immediately preceding the related Interest Reset
Date (a "Prime Interest Determination Date") and shall be:
---------------------------------
(1) the rate on the particular Interest Determination Date as published in
H.15(519) under the caption "Bank Prime Loan"; or
(2) if the rate referred to in clause (1) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate on
the particular Interest Determination Date as published in H.15 Daily
Update, or such other recognized electronic source used for the
purpose of displaying the applicable rate, under the caption "Bank
Prime Loan"; or
(3) if the rate referred to in clause (2) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate on
the particular Interest Determination Date calculated by the
Calculation Agent as the arithmetic mean of the rates of interest
publicly announced by each bank that appears on the Reuters Screen US
PRIME 1 Page as the applicable bank's prime rate or base lending rate
as of 11:00 A.M., New York City time, on that Interest Determination
Date; or
(4) if fewer than four rates referred to in clause (3) are so published by
3:00 p.m., New York City time, on the related Calculation Date, the
rate on the particular Interest Determination Date calculated by the
Calculation Agent as the arithmetic mean of the prime rates or base
lending rates quoted on the basis of the actual number of days in the
year divided by a 360-day year as of the close of business on that
Interest Determination Date by three major banks, which may include
affiliates of the agents, in New York City selected by the Calculation
Agent; or
(5) if the banks so selected by the Calculation Agent are not quoting as
mentioned in clause (4), the Prime Rate in effect on the particular
Interest Determination Date.
"Reuters Screen US PRIME 1 Page" means the display on the Reuter
------------------------------
Monitor Money Rates Service (or any successor service) on the "US PRIME 1" page
(or any other page as may replace that page on that service) for the purpose of
displaying prime rates or base lending rates of major United States banks.
Determination of Treasury Rate. If the Base Rate specified above is
the Treasury Rate, this Security shall bear interest for each Interest Reset
Period at a rate calculated with reference to the Treasury Rate, determined as
set forth below, and the Spread or Spread Multiplier, if any, and subject to the
Maximum Interest Rate, if any, and the Minimum Interest Rate, if any, specified
above.
The "Treasury Rate" for each Interest Reset Period shall be determined
-------------
by the Calculation Agent on the Calculation Date by reference to the Treasury
Rate on the day in the week in which the related Interest Reset Date falls on
which Treasury Bills are normally auctioned (a "Treasury Interest Determination
-------------------------------
Date") (provided, however that if an auction is held on the Friday of the week
----
preceding the related interest reset date, the Interest Determination Date will
be the preceding Friday; Treasury Bills are normally sold at auction on Monday
of each week, unless that day is a legal holiday, in which case the auction is
normally held on the following Tuesday, except that the auction may be held on
the preceding Friday) and shall be:
(1) the rate from the auction held on the Treasury Rate Interest
Determination Date , referred to as the "auction," of direct
obligations of the United States having the index maturity specified
above under the caption "INVESTMENT RATE" on the display on Bridge
Telerate, Inc., or any successor service, on
13
Telerate page 56 or any other page as may replace that page on that
service, or Telerate page 57, or any other page as may replace that
page on that service; or
(2) if the rate referred to in clause (1) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the Bond
Equivalent Yield of the rate for the applicable Treasury Bills as
published in H.15 Daily Update, or another recognized electronic
source used for the purpose of displaying the applicable rate, under
the caption "U.S. Government Securities/Treasury Bills/Auction High";
or
(3) if the rate referred to in clause (2) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the Bond
Equivalent Yield of the auction rate of the applicable Treasury Bills
as announced by the United States Department of the Treasury; or
(4) if the rate referred to in clause (3) is not so announced by the
United States Department of the Treasury, or if the auction described
above is not held, the Bond Equivalent Yield of the rate on the
particular Interest Determination Date of the applicable Treasury
Bills as published in H.15(519) under the caption "U.S. Government
Securities/Treasury Bills/Secondary Market"; or
(5) if the rate referred to in clause (4) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate on
the particular Interest Determination Date of the applicable Treasury
Bills as published in H.15 Daily Update, or another recognized
electronic source used for the purpose of displaying the applicable
rate, under the caption "U.S. Government Securities/Treasury
Bills/Secondary Market"; or
(6) if the rate referred to in clause (5) is not so published by 3:00
P.M., New York City time, on the related Calculation Date, the rate on
the particular Interest Determination Date calculated by the
Calculation Agent as the Bond Equivalent Yield of the arithmetic mean
of the secondary market bid rates, as of approximately 3:30 P.M., New
York City time, on that Interest Determination Date, of three primary
United States government securities dealers, which may include the
agents or their affiliates, selected by the Calculation Agent for the
issue of Treasury Bills with a remaining maturity closest to the index
maturity specified above; or
(7) if the dealers so selected by the Calculation Agent are not quoting as
mentioned in clause (6), the Treasury Rate in effect on the particular
Interest Determination Date.
"Bond Equivalent Yield" means a yield, expressed as a
---------------------
percentage, calculated in accordance with the following formula:
Bond Equivalent Yield = DxN x 100
-------------
360 - (D x M)
where "D" refers to the applicable per annum rate for Treasury Bills quoted on a
bank discount basis and expressed as a decimal, "N" refers to 365 or 366, as the
case may be, and "M" refers to the actual number of days in the applicable
Interest Reset Period.
As used herein, "Business Day" means
(1) with respect to the Security, any date that is not a
Saturday or Sunday and that is not a legal holiday or a day
on which banking institutions are generally authorized or
obligated by law, regulation or executive order to close in
the City of New York, New York or any other place where the
principal of , premium, if any, and interest on this
Security is payable;
(2) if the Base Rate specified above is LIBOR, any such date on
which dealings in deposits in U.S. dollars are transacted in
the London interbank market;
(3) if this Security is denominated in euros, including in the
event that the Base Rate specified above is LIBOR, a day on
which the Trans-European Automated Real-Time Gross
Settlement Express Transfer (TARGET) is open; and
14
(4) if this Security is denominated in a specified currency other
than U.S. dollars and euros, including in the event that the Base
Rate specified above is LIBOR:
(a) a day on which banking institutions are not authorized or
required by law, regulation or executive order to close in
the principal financial center of the country issuing the
specified currency; and
(b) a day on which banking institutions in such financial center
are carrying out transactions in such specified currency.
The term "principal financial center" means, as applicable:
--------------------------
(1) the capital city of the country issuing the specified
currency; provided, however, that with respect to U.S.
dollars, Australian dollars, Canadian dollars, Deutsche
marks, Dutch guilders, Italian lire, Portuguese escudos,
South African rand and Swiss francs, the "principal
financial center" shall be New York City, Sydney and (solely
in the case of the specified currency) Melbourne, Toronto,
Frankfurt, Amsterdam, Milan, Lisbon, London (solely in the
case of the LIBOR Currency), Johannesburg and Zurich,
respectively; or
(2) the capital city of the country to which the LIBOR currency
relates; provided, however, that with respect to U.S.
dollars, Australian dollars, Canadian dollars, Deutsche
marks, Dutch guilders, Italian lire, Portuguese escudos,
South African rand and Swiss francs, the "principal
financial center" shall be New York City, Sydney and (solely
in the case of the specified currency) Melbourne, Toronto,
Frankfurt, Amsterdam, Milan, Lisbon, London (solely in the
case of the LIBOR Currency), Johannesburg and Zurich,
respectively.
(1) "Calculation Date", with respect to a Interest Determination
----------------
Date, means the earlier of (a) the tenth calendar day after such
Interest Determination Date, or, if such day is not a Business
Day, the next succeeding Business Day, and (b) the Business Day
next preceding the related Interest Payment Date or the Maturity
Date, as the case may be;
(2) "Composite Quotations" means the daily statistical release
--------------------
entitled "Composite 3:30 p.m. Quotations for U.S. Government
Securities," or any successor release, published by the Federal
Reserve Bank of New York; and
(3) "Interest Determination Date" means, as applicable, a "CD
---------------------------
Interest Determination Date", a "CMT Interest Determination
Date", an "Eleventh District Cost of Funds Interest Determination
Date", a "Commercial Paper Interest Determination Date", a
"Federal Funds Interest Determination Date", a "LIBOR
Determination Date", a "Prime Interest Determination Date" or a
"Treasury Interest Determination Date."
Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature or its duly
authorized agent referred to on the reverse hereof by manual signature, this
Security shall not be entitled to any benefit under the Indenture (as defined on
the Reverse of Note) or be valid or obligatory for any purpose.
15
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.
Dated: BRE PROPERTIES, INC.
By: ________________________________________
Xxxxx X. XxXxxxxx
President and Chief Executive Officer
ATTEST:
________________________________
Xxxxxx X. Xxxxx, Xx.
Executive Vice President, Chief
Financial Officer and Secretary
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the
series designated therein referred to
in the within-mentioned Indenture.
X.X. XXXXXX TRUST COMPANY, NATIONAL ASSOCIATION,
as Trustee
By:____________________________________
Authorized Signatory
16
[Reverse of Note]
BRE PROPERTIES, INC.
MEDIUM-TERM FLOATING RATE NOTE
DUE NINE MONTHS OR MORE FROM THE DATE OF ISSUE
General
This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), of the series hereinafter specified
----------
and issued under an Indenture dated as of June 23, 1997, as amended by a First
Supplemental Indenture dated as of April 23, 1998 (as further amended or
supplemented from time to time, the "Indenture"), between the Company and J.P.
---------
Xxxxxx Trust Company, National Association (successor to Chase Manhattan Bank
and Trust Company, National Association), as Trustee (herein called the
"Trustee", which term includes any successor trustee under the Indenture), and
-------
reference is hereby made to the Indenture, and the Officers' Certificate filed
with the Trustee on December 6, 2001 pursuant to Section 301 of the Indenture
creating the series designated on the face hereof, for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities, and of the terms
upon which the Securities are, and are to be, authenticated and delivered. The
acceptance of this Security shall be deemed to constitute the consent and
agreement by the Holder hereof to all of the terms and provisions of the
Indenture. This Security is one of the series of the Securities designated
above, of the Company, which series is limited initially to an aggregate
principal amount of $300,000,000 or the equivalent thereof in one or more
foreign or composite currencies, provided, however that the series may be
reopened, without the consent of the Holders, for the issuance of additional
Securities as may be authorized by the Company from time to time. The Securities
of this series may mature at different times, bear interest, if any, at
different rates, be redeemable at different times or not at all, be repayable at
the option of the Holder at different times or not at all, be issued at an
original issue discount and be denominated in different currencies.
The Securities are issuable in registered form without coupons, unless
otherwise specified on the face hereof, and will be either (a) book-entry
securities represented by one or more global securities recorded in the
book-entry system maintained by DTC or any successor to DTC in its capacity as
depository for the Securities (the "Depository") or (b) certificated securities
issued to and registered in the names of, the beneficial owners or their
nominees.
Covenants
The Company shall be subject to the covenants and agreements contained
in the Indenture with respect to the Securities.
Events of Default
If an Event of Default, as defined in the Indenture, with respect to
Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.
Modification and Waivers; Obligation of the Company Absolute
The Indenture permits, with certain exceptions as therein provided,
the Company, when authorized by or pursuant to a board resolution, and the
Trustee to enter into an indenture or indentures supplemental to the Indenture
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of the Securities of a
series or of modifying in any manner the rights of the Holders of the Securities
of a series under the Indenture, with the consent of the Holders of not less
than a majority in principal amount of all outstanding Securities of each series
affected by such supplemental indenture, by act of said Holders delivered to the
Company and the Trustee. The Indenture also contains provisions permitting the
Company to omit in any particular instance to comply with any term, provision or
condition set forth in the covenants contained in the Indenture, if
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before or after the time for such compliance the Holders of at least a majority
in principal amount of all outstanding Securities of such series, by act of such
Holders, either waive such compliance in such instance or generally waive
compliance with such covenant or condition, but no such waiver shall extend to
or affect such covenant or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the Company
and the duties of the Trustee in respect of any such term, provision or
condition shall remain in full force and effect. Certain past defaults under the
Indenture and their consequences may be waived under the Indenture by the
Holders of not less than a majority in principal amount of the outstanding
Securities of a series, on behalf of the Holders of all Securities of such
series.
No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of, premium, if any, and
(subject to Sections 305 and 307 of the Indenture) interest on, and any
Additional Amounts in respect of, this Security on the respective due dates
prescribed.
Defeasance and Covenant Defeasance
The Indenture contains provisions for defeasance at any time of (a)
the entire indebtedness on this Security and (b) certain restrictive covenants
and certain Events of Default, upon compliance by the Company with certain
conditions set forth therein, which provisions apply to this Security.
Redemption
If so provided on the face hereof, the Company may at its option
redeem this Security in whole or from time to time in part in increments of
$1,000, or any other integral multiple of an authorized denomination specified
on the face hereof, (provided that any remaining principal amount of this
Security shall not be less than $1,000 or such other minimum authorized
denomination hereof) on or after the date designated as the Initial Redemption
Date on the face hereof at 100% of the unpaid principal amount hereof or the
portion thereof redeemed multiplied by a percentage (the "Redemption
Percentage"), together with accrued interest, if any, to the Redemption Date.
The Redemption Percentage shall initially be equal to the Initial Redemption
Percentage specified on the face hereof and shall decline at each anniversary of
the Initial Redemption Date by the amount of the Annual Redemption Percentage
Reduction specified on the face hereof, until the Redemption Percentage is equal
to 100%. The Company may exercise such option by causing the Trustee to mail a
notice of such redemption not less than 30 nor more than 60 calendar days prior
to the applicable Redemption Date to each Holder of the Securities of this
series to be redeemed. In the event of redemption of this Security in part only,
the Company shall execute and the Trustee shall authenticate and deliver to the
Holder of such Security, without service charge, a new Security or Securities,
of any authorized denomination as requested by such Holder in aggregate
principal amount equal to and in exchange for the unredeemed portion of the
principal of the Security so surrendered. If less than all of the Securities of
this series issued on the same day with the same terms are to be redeemed, the
Securities to be redeemed shall be selected by the Trustee by such method as the
Trustee shall deem fair and appropriate.
Sinking Fund
Unless otherwise specified on the face hereof, this Security will not
be subject to, or entitled to the benefit of any sinking fund.
Repayment at Holder's Option
If so provided on the face hereof, this Security will be repayable
prior to the Maturity Date at the option of the Holder, in whole or in part and
in increments of $1,000 (provided that any remaining principal amount of this
Security surrendered for partial repayment shall not be less than the minimum
authorized denomination hereof), on or after the date designated as an Optional
Repayment Date on the face hereof at 100% of the unpaid principal amount to be
repaid, plus accrued unpaid interest, if any, to the Repayment Date. In order
for this Security to be repaid, the Trustee must receive at the applicable
address of the Trustee set forth below or at such other place or places of which
the Company shall from time to time notify the Holder of the within Security,
not less than 30 nor more than 60 calendar days prior to an Optional Repayment
Date, this Security and, in the case of a certificated note,
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with the form below entitled "Option to Elect Repayment" duly completed, or, in
the case of a Global Security, repayment instructions from the applicable
beneficial owner to the Depository and forwarded by the Depository. Any such
election shall be irrevocable. The address to which such deliveries are to be
made is the corporate trust office of the Trustee located on the date hereof at
000 Xxxxxxxxxx Xxxxxx, Xxxxx 0000, Xxx Xxxxxxxxx, XX 00000-0000 (or at such
other place as the Company shall notify the Holders of the Securities of this
series). All questions as to the validity, eligibility (including time of
receipt) and acceptance of any Security for repayment will be determined by the
Company, whose determination will be final and binding. Upon any partial
repayment, this Security shall be cancelled and a new Security or Securities for
the remaining principal amount hereof shall be issued in the name of the Holder
of this Security. Beneficial owners of Global Securities electing to have all or
a portion of their book-entry Securities repaid must instruct the participant
through which they own their interest to direct DTC or its nominee as Holder of
the Security to exercise the repayment option on their behalf.
Authorized Denominations
Unless otherwise provided on the face hereof, this Security is
issuable only in registered form without coupons. Unless a different minimum
authorized denomination is set forth on the face hereof, this Security is
issuable in minimum denominations of (i) if the Specified Currency of this
Security is U.S. dollars, U.S. $1,000 and in any larger amount in integral
multiples of $1,000, and (ii) if the Specified Currency of this Security is a
currency other than U.S. dollars (a "Foreign Currency"), the equivalent in such
Foreign Currency determined in accordance with the Market Exchange Rate (as
defined below) for such Foreign Currency on the Business Day immediately
preceding the date on which we accept an offer to purchase a Security, of U.S.
$1,000 (rounded to an integral multiple of 1,000 units of the Foreign Currency),
and in any larger amount in integral multiples of 1,000 units.
Registration of Transfer
Upon surrender for registration of transfer of this Security at the
corporate trust office of the Trustee in The Borough of Manhattan, The City of
New York, a new Security or Securities of this series in authorized
denominations for an equal aggregate principal amount will be issued to the
transferee in exchange herefor, as provided in the Indenture and subject to the
limitations provided therein and to the limitations described below, without
charge except for any tax or other governmental charge imposed in connection
therewith.
If this Security is a Global Security, this Security is exchangeable
for definitive Securities in registered form only if (x) the Depository notifies
the Company that it is unwilling or unable to continue as Depository for this
Security or if at any time the Depository ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, if so required
by applicable law or regulation, and, in either case, the Company does not
appoint a successor Depository with respect to this Security within 90 days
after receiving such notice or after becoming aware that the Depository has
ceased to be so registered as a clearing agency, (y) the Company in its sole
discretion determines that this Security shall be exchangeable for definitive
Securities in registered form and notifies the Trustee thereof or (z) an Event
of Default with respect to the Securities represented hereby has occurred and is
continuing and beneficial owners representing a majority in aggregate principal
amount of the outstanding Securities represented by the Global Security advise
the Depository to cease acting as depository. If this Security is exchangeable
pursuant to the preceding sentence, it shall be exchangeable for definitive
Securities in registered form, bearing interest at the same rate, having the
same date of issuance, redemption provisions, Maturity Date and other terms and
of authorized denominations aggregating a like amount.
If this Security is a Global Security (as specified above), this
Security may not be transferred except as a whole to a nominee of the
Depository, or by a nominee of the Depository to the Depository, or to a
successor of the Depository or to a nominee of such successor of the Depository.
Except as provided above, owners of beneficial interests in this Global Security
will not be entitled to receive physical delivery of Securities in definitive
form and will not be considered the Holders hereof for any purpose under the
Indenture.
Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
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No Personal Recourse
No recourse shall be had for the payment of the principal of, premium,
if any, or interest, if any, on, this Security, or for any claim based hereon,
or otherwise in respect hereof, or based on or in respect of the Indenture or
any indenture supplemental thereto, against any incorporator, stockholder,
officer or director, as such, past, present or future, of the Company or any of
its respective successor corporations (or other entities), whether by virtue of
any constitution, statute or rule of law, or by any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the
consideration for the issuance hereof, expressly waived and released.
Defined Terms
All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
Governing Law
This Security shall be governed by and construed in accordance with
the law of the State of New York , without regard to principles of conflicts of
laws, except to the extent that the Trust Indenture Act shall be applicable.
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OPTION TO ELECT REPAYMENT
TO BE COMPLETED ONLY IF THIS SECURITY IS REPAYABLE
AT THE OPTION OF THE HOLDER AND THE HOLDER
ELECTS TO EXERCISE SUCH RIGHT
The undersigned hereby irrevocably requests and instructs the Company
to repay the within Security (or the portion thereof specified below), pursuant
to its terms, on the Optional Repayment Date first occurring after the date of
receipt by the Company of the within Security as specified below (the "Repayment
Date"), at a Repayment Price equal to 100% of the principal amount thereof,
together with interest to the Repayment Date, to the undersigned,
______________________________________, at ___________________________________
(please print or typewrite name and address of the undersigned).
For this option to elect repayment to be effective, the Company must
receive, at the applicable address of the Paying Agent set forth in the within
Security or at such other place or places of which the Company shall from time
to time notify the Holder of the within Security, at least 30 but not more than
60 calendar days prior to an Optional Repayment Date, either (i) this Security,
with this "Option to Elect Repayment" form duly completed, or (ii) a telegram,
telex, facsimile transmission, or letter from a member of a national securities
exchange or the National Association of Securities Dealers, Inc. or a commercial
bank or a trust company in the United States of America setting forth (a) the
name, address and telephone number of the Holder of the Security, (b) the
principal amount of the Security and the amount of the Security to be repaid,
(c) a statement that the option to elect repayment is being irrevocably
exercised thereby, and (d) a guarantee stating that the Security to be repaid
with the form entitled "Option to Elect Repayment" on the addendum to the
Security duly completed will be received by the Company not later than five
Business Days after the date of such telegram, telex, facsimile transmission or
letter (and such Security and form duly completed are received by the Company by
such fifth Business Day).
If less than the entire principal amount of the within Security is to
be repaid, specify the portion thereof (which shall be an integral multiple of
$1,000) which the holder elects to have repaid: $_____________.
If less than the entire principal amount of the within Security is to
be repaid, specify the denomination or denominations (which shall be $1,000 or
an integral multiple thereof) of the Security or Securities to be issued to the
holder for the portion of the within Securities not being repaid (in the absence
of any specification, one such Security will be issued for the portion not being
repaid): $______________.
Date: ___________________
Notice: The signature to this Option to Elect
Repayment must correspond with the name as
written on the face of the within Security in
every particular without alteration or
enlargement or any change whatsoever.
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ABBREVIATIONS
The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as
tenants in common
UNIF GIFT MIN ACT - __________________ Custodian ________________
(Custodian) (Minor)
Under Uniform Gifts to Minors Act
_________________________
(State)
Additional abbreviations may also be used though not in the above
list.
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto
Please Insert Social Security or
Other Identifying Number of Assignee
_______________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
(PLEASE PRINT OR TYPE NAME AND ADDRESS INCLUDING POSTAL
ZIP CODE OF ASSIGNEE)
the within Security of BRE PROPERTIES, INC. and all rights thereunder and does
hereby irrevocably constitute and appoint __________________ attorney to
transfer the said Security on the books of the within-named Company, with full
power of substitution in the premises.
Dated:_________________________
____________________
Signature Guaranteed: _____________________
NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within Security in every particular, without
alteration or enlargement or any change whatsoever.
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