FT 250
TRUST AGREEMENT
Dated: April 15, 1998
The Trust Agreement among Nike Securities L.P., as Depositor, The Chase
Manhattan Bank, as Trustee and First Trust Advisors L.P., as Evaluator
and Portfolio Supervisor, sets forth certain provisions in full and
incorporates other provisions by reference to the document entitled
"Standard Terms and Conditions of Trust for The First Trust Special
Situations Trust, Series 22 and certain subsequent Series, Effective
November 20, 1991" (herein called the "Standard Terms and Conditions of
Trust"), and such provisions as are incorporated by reference constitute
a single instrument. All references herein to Articles and Sections are
to Articles and Sections of the Standard Terms and Conditions of Trust.
WITNESSETH THAT:
In consideration of the premises and of the mutual agreements herein
contained, the Depositor, the Trustee, the Evaluator and the Portfolio
Supervisor agree as follows:
PART I
STANDARD TERMS AND CONDITIONS OF TRUST
Subject to the provisions of Part II and Part III hereof, all the
provisions contained in the Standard Terms and Conditions of Trust are
herein incorporated by reference in their entirety and shall be deemed
to be a part of this instrument as fully and to the same extent as
though said provisions had been set forth in full in this instrument.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR COMMUNICATIONS GROWTH TRUST, SERIES 2
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR FUNDAMENTAL VALUE TRUST SERIES
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR INSURANCE GROWTH TRUST SERIES
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR INTERNET GROWTH TRUST, SERIES 4
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR MEDIA & ENTERTAINMENT GROWTH TRUST, SERIES 2
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART II
SPECIAL TERMS AND CONDITIONS OF TRUST
FOR MEDICAL GROWTH TRUST SERIES
The following special terms and conditions are hereby agreed to:
A. The Securities initially deposited in the Trust pursuant to
Section 2.01 of the Standard Terms and Conditions of Trust are set forth
in the Schedules hereto.
B. (1) The aggregate number of Units outstanding for the Trust on
the Initial Date of Deposit and the initial fractional undivided
interest in and ownership of the Trust represented by each Unit thereof
are set forth in the Prospectus in the section "Summary of Essential
Information."
Documents representing this number of Units for the Trust are being
delivered by the Trustee to the Depositor pursuant to Section 2.03 of
the Standard Terms and Conditions of Trust.
C. The Percentage Ratio on the Initial Date of Deposit
is as set forth in the Prospectus under "Schedule of Investments."
D. The Record Date shall be as set forth in the prospectus for
the sale of Units dated the date hereof (the "Prospectus") under
"Summary of Essential Information."
E. The Distribution Date shall be as set forth in the Prospectus
under "Summary of Essential Information."
F. The Mandatory Termination Date for the Trust shall be as set
forth in the Prospectus under "Summary of Essential Information."
G. The Evaluator's compensation as referred to in Section 4.03 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during each
period in respect of which a payment is made pursuant to Section 3.05,
payable on a Distribution Date. Such fee may exceed the actual cost of
providing such evaluation services for the Trust, but at no time will
the total amount received for evaluation services rendered to unit
investment trusts of which Nike Securities L.P. is the sponsor in any
calendar year exceed the aggregate cost to the Evaluator of supplying
such services in such year.
H. The Trustee's Compensation Rate pursuant to Section 6.04 of
the Standard Terms and Conditions of Trust shall be an annual fee as set
forth in the Prospectus under "Summary of Essential Information,"
calculated based on the largest number of Units outstanding during the
calendar year except during the initial offering period as determined in
Section 4.01 of this Indenture, in which case the fee is calculated
based on the number of units outstanding during the period for which the
compensation is paid (such annual fee to be pro rated for any calendar
year in which the Trustee provides services during less than the whole
of such year). However, in no event, except as may otherwise be
provided in the Standard Terms and Conditions of Trust, shall the
Trustee receive compensation in any one year from any Trust of less than
$2,000 for such annual compensation.
I. The Initial Date of Deposit for the Trust is April 15, 1998.
J. The minimum amount of Equity Securities to be sold by the
Trustee pursuant to Section 5.02 of the Indenture for the redemption of
Units shall be 100 shares.
PART III
A. Notwithstanding anything to the contrary in the Standard Terms
and Conditions of Trust, references to subsequent Series established
after the date of effectiveness of the First Trust Special Situations
Trust, Series 24 shall include FT 250.
B. The term "Principal Account" as set forth in the Standard
Terms and Conditions of Trust shall be replaced with the term "Capital
Account."
C. Section 1.01(2) shall be amended to read as follows:
"(2) "Trustee" shall mean The Chase Manhattan Bank, or
any successor trustee appointed as hereinafter provided."
All references to United States Trust Company of New York in the
Standard Terms and Conditions of Trust shall be amended to refer to The
Chase Manhattan Bank.
D. Section 1.01(3) shall be amended to read as follows:
"(3) "Evaluator" shall mean First Trust Advisors L.P. and its successors
in interest, or any successor evaluator appointed as hereinafter
provided."
E. Section 1.01(4) shall be amended to read as follows:
"(4) "Portfolio Supervisor" shall mean First Trust Advisors L.P. and its
successors in interest, or any successor portfolio supervisor appointed
as hereinafter provided."
F. Section 1.01(29) shall be added to read as follows:
"(29) The term "Distribution Agent" shall refer to the Trustee acting
in its capacity as distribution agent pursuant to Section 5.02 herein."
G. Paragraph (b) of Section 2.01 shall be restated in its
entirety as follows:
(b)(1)From time to time following the Initial Date of Deposit, the
Depositor is hereby authorized, in its discretion, to assign, convey to
and deposit with the Trustee (i) additional Securities, duly endorsed in
blank or accompanied by all necessary instruments of assignment and
transfer in proper form, (ii) Contract Obligations relating to such
additional Securities, accompanied by cash and/or Letter(s) of Credit as
specified in paragraph (c) of this Section 2.01, and/or (iii) cash (or a
Letter of Credit in lieu of cash) with instructions to purchase
additional Securities, in an amount equal to the portion of the Unit
Value of the Units created by such deposit attributable to the
Securities to be purchased pursuant to such instructions. Except as
provided in the following subparagraphs (2), (3) and (4) the Depositor,
in each case, shall ensure that each deposit of additional Securities
pursuant to this Section shall maintain, as nearly as practicable, the
Percentage Ratio. Each such deposit of additional Securities shall be
made pursuant to a Notice of Deposit of Additional Securities delivered
by the Depositor to the Trustee. Instructions to purchase additional
Securities shall be in writing, and shall specify the name of the
Security, CUSIP number, if any, aggregate amount, price or price range
and date to be purchased. When requested by the Trustee, the Depositor
shall act as broker to execute purchases in accordance with such
instructions; the Depositor shall be entitled to compensation therefor
in accordance with applicable law and regulations. The Trustee shall
have no liability for any loss or depreciation resulting from any
purchase made pursuant to the Depositor's instructions or made by the
Depositor as broker.
(2) Additional Securities (or Contract Obligations therefor) may,
at the Depositor's discretion, be deposited or purchased in round lots.
If the amount of the deposit is insufficient to acquire round lots of
each Security to be acquired, the additional Securities shall be
deposited or purchased in the order of the Security in the Trust most
under-represented immediately before the deposit with respect to the
Percentage Ratio.
(3) If at the time of a deposit of additional Securities,
Securities of an issue deposited on the Initial Date of Deposit (or of
an issue of Replacement Securities acquired to replace an issue
deposited on the Initial Date of Deposit) are unavailable, cannot be
purchased at reasonable prices or their purchase is prohibited or
restricted by applicable law, regulation or policies, the Depositor may
(i) deposit, or instruct the Trustee to purchase, in lieu thereof,
another issue of Securities or Replacement Securities or (ii) deposit
cash or a letter of credit in an amount equal to the valuation of the
issue of Securities whose acquisition is not feasible with instructions
to acquire such Securities of such issue when they become available.
(4) Any contrary authorization in the preceding subparagraphs (1)
through (3) notwithstanding, deposits of additional Securities made
after the 90-day period immediately following the Initial Date of
Deposit (except for deposits made to replace Failed Contract Obligations
if such deposits occur within 20 days from the date of a failure
occurring within such initial 90-day period) shall maintain exactly the
Percentage Ratio existing immediately prior to such deposit.
(5) In connection with and at the time of any deposit of
additional Securities pursuant to this Section 2.01(b), the Depositor
shall exactly replicate Cash (as defined below) received or receivable
by the Trust as of the date of such deposit. For purposes of this
paragraph, "Cash" means, as to the Capital Account, cash or other
property (other than Securities) on hand in the Capital Account or
receivable and to be credited to the Capital Account as of the date of
the deposit (other than amounts to be distributed solely to persons
other than holders of Units created by the deposit) and, as to the
Income Account, cash or other property (other than Securities) received
by the Trust as of the date of the deposit or receivable by the Trust in
respect of a record date for a payment on a Security which has occurred
or will occur before the Trust will be the holder of record of a
Security, reduced by the amount of any cash or other property received
or receivable on any Security allocable (in accordance with the
Trustee's calculations of distributions from the Income Account pursuant
to Section 3.05) to a distribution made or to be made in respect of a
Record Date occurring prior to the deposit. Such replication will be
made on the basis of a fraction, the numerator of which is the number of
Units created by the deposit and the denominator of which is the number
of Units which are outstanding immediately prior to the deposit.
H. The following shall be added immediately following the first
sentence of paragraph (c) of Section 2.01:
"The Trustee may allow the Depositor to substitute for any Letter(s) of
Credit deposited with the Trustee in connection with the deposits
described in Section 2.01(a) and (b) cash in an amount sufficient to
satisfy the obligations to which the Letter(s) of Credit relates. Any
substituted Letter(s) of Credit shall be released by the Trustee."
I. Section 2.03(a) of the Standard Terms and Conditions of Trust
shall be amended by adding the following sentence after the first
sentence of such section:
"The number of Units may be increased through a split of the Units or
decreased through a reverse split thereof, as directed in writing by the
Depositor, at any time when the Depositor is the only beneficial holder
of Units, which revised number of Units shall be recorded by the Trustee
on its books. The Trustee shall be entitled to rely on the Depositor's
direction as certification that no person other than the Depositor has a
beneficial interest in the Units and the Trustee shall have no liability
to any person for action taken pursuant to such direction."
J. Section 3.01 of the Standard Terms and Conditions of Trust
shall be replaced in its entirety with the following:
"Section 3.01. Initial Cost. The expenses incurred in establishing a
Trust, including the cost of the preparation and typesetting of the
registration statement, prospectuses (including preliminary
prospectuses), the indenture and other documents relating to the Trust,
printing of Certificates, Securities and Exchange Commission and state
blue sky registration fees, the costs of the initial valuation of the
portfolio and audit of the Trust, the initial fees and expenses of the
Trustee, and legal and other out-of-pocket expenses related thereto, but
not including the expenses incurred in the printing of preliminary
prospectuses and prospectuses, expenses incurred in the preparation and
printing of brochures and other advertising materials and any other
selling expenses, to the extent not borne by the Depositor, shall be
borne by the Trust. To the extent the funds in the Income and Capital
Accounts of the Trust shall be insufficient to pay the expenses borne by
the Trust specified in this Section 3.01, the Trustee shall advance out
of its own funds and cause to be deposited and credited to the Income
Account such amount as may be required to permit payment of such
expenses. The Trustee shall be reimbursed for such advance on each
Record Date from funds on hand in the Income Account or, to the extent
funds are not available in such Account, from the Capital Account, in
the amount deemed to have accrued as of such Record Date as provided in
the following sentence (less prior payments on account of such advances,
if any), and the provisions of Section 6.04 with respect to the
reimbursement of disbursements for Trust expenses, including, without
limitation, the lien in favor of the Trustee therefor and the authority
to sell Securities as needed to fund such reimbursement, shall apply to
the payment of expenses and the amounts advanced pursuant to this
Section. For the purposes of the preceding sentence and the addition
provided in clause (4) of the first sentence of Section 5.01, the
expenses borne by the Trust pursuant to this Section shall be deemed to
have been paid on the date of the Trust Agreement and to accrue at a
daily rate over the time period specified for their amortization
provided in the Prospectus; provided, however, that nothing herein shall
be deemed to prevent, and the Trustee shall be entitled to, full
reimbursement for any advances made pursuant to this Section no later
than the termination of the Trust. For purposes of calculating the
accrual of organizational expenses under this Section 3.01, the Trustee
shall rely on the written estimates of such expenses provided by the
Depositor pursuant to Section 5.01."
K. The second paragraph of Section 3.02 of the Standard
Terms and Conditions is hereby deleted and replaced with the following
sentence:
"Any non-cash distributions (other than a non-taxable distribution of
the shares of the distributing corporation which shall be retained by a
Trust) received by a Trust shall be dealt with in the manner described
at Section 3.11, herein, and shall be retained or disposed of by such
Trust according to those provisions. The proceeds of any disposition
shall be credited to the Income Account of a Trust. Neither the Trustee
nor the Depositor shall be liable or responsible in any way for
depreciation or loss incurred by reason of any such sale."
L. Section 3.05.II(a) of the Standard Terms and
Conditions of Trust is hereby amended to read in its entirety as follows:
"II. (a) On each Distribution Date, the Trustee shall distribute to
each Unit holder of record at the close of business on the Record Date
immediately preceding such Distribution Date an amount per Unit equal to
such Unit holder's Income Distribution (as defined below), plus such
Unit holder's pro rata share of the balance of the Capital Account
(except for monies on deposit therein required to purchase Contract
Obligations) computed as of the close of business on such Record Date
after deduction of any amounts provided in Subsection I, provided,
however, that the Trustee shall not be required to make a distribution
from the Capital Account unless the amount available for distribution
shall equal $1.00 per 100 Units.
Each Trust shall provide the following distribution elections: (1)
distributions to be made by check mailed to the post office address of
the Unit holder as it appears on the registration books of the Trustee,
or (2) if provided for in the Prospectus, the following reinvestment
option:
The Trustee will, for any Unit holder who provides the Trustee written
instruction, properly executed and in form satisfactory to the Trustee,
received by the Trustee no later than its close of business 10 business
days prior to a Record Date (the "Reinvestment Notice Date"), reinvest
such Unit holder's distribution from the Income and Capital Accounts in
Units of the Trust, purchased from the Depositor, to the extent the
Depositor shall make Units available for such purchase, at the
Depositor's offering price as of the third business day prior to the
following Distribution Date, and at such reduced sales charge as may be
described in the prospectus for the Trusts. If, for any reason, the
Depositor does not have Units of the Trust available for purchase, the
Trustee shall distribute such Unit holder's distribution from the Income
and Capital Accounts in the manner provided in clause (1) of the
preceding paragraph. The Trustee shall be entitled to rely on a written
instruction received as of the Reinvestment Notice Date and shall not be
affected by any subsequent notice to the contrary. The Trustee shall
have no responsibility for any loss or depreciation resulting from any
reinvestment made in accordance with this paragraph, or for any failure
to make such reinvestment in the event the Depositor does not make Units
available for purchase.
Any Unit holder who does not effectively elect reinvestment in Units of
their respective Trust pursuant to the preceding paragraph shall receive
a cash distribution in the manner provided in clause (1) of the second
preceding paragraph."
M. Section 3.05.II(b) of the Standard Terms and
Conditions of Trust is hereby amended to read in its entirety as follows:
"II. (b) For purposes of this Section 3.05, the Unit holder's
Income Distribution shall be equal to such Unit holder's pro rata share
of the cash balance in the Income Account computed as of the close of
business on the Record Date immediately preceding such Income
Distribution after deduction of (i) the fees and expenses then
deductible pursuant to Section 3.05.I. and (ii) the Trustee's estimate
of other expenses properly chargeable to the Income Account pursuant to
the Indenture which have accrued, as of such Record Date, or are
otherwise properly attributable to the period to which such Income
Distribution relates."
N. Paragraph (c) of Subsection II of Section 3.05 of
the Standard Terms and Conditions of Trust is hereby amended to read as
follows:
"On each Distribution Date the Trustee shall distribute to each Unit
holder of record at the close of business on the Record Date immediately
preceding such Distribution Date an amount per Unit equal to such Unit
holder's pro rata share of the balance of the Capital Account (except
for monies on deposit therein required to purchase Contract Obligations)
computed as of the close of business on such Record Date after deduction
of any amounts provided in Subsection I."
O. Section 3.05 of Article III of the Standard Terms and
Conditions of Trust is hereby amended to include the following subsection:
"Section 3.05.I.(e)deduct from the Interest Account or, to the extent
funds are not available in such Account, from the Capital Account and
pay to the Depositor the amount that it is entitled to receive pursuant
to Section 3.14.
P. Section 3.11 of the Standard Terms and Conditions of
Trust is hereby deleted in its entirety and replaced with the following
language:
"Section 3.11. Notice to Depositor.
In the event that the Trustee shall have been notified at any time of
any action to be taken or proposed to be taken by at least a legally
required number of holders of any Securities deposited in a Trust, the
Trustee shall take such action or omit from taking any action, as
appropriate, so as to insure that the Securities are voted as closely as
possible in the same manner and the same general proportion as are the
Securities held by owners other than such Trust.
In the event that an offer by the issuer of any of the Securities or any
other party shall be made to issue new securities, or to exchange
securities, for Trust Securities, the Trustee shall reject such offer.
However, should any issuance, exchange or substitution be effected
notwithstanding such rejection or without an initial offer, any
securities, cash and/or property received shall be deposited hereunder
and shall be promptly sold, if securities or property, by the Trustee
pursuant to the Depositor's direction, unless the Depositor advises the
Trustee to keep such securities or property. The Depositor may rely on
the Portfolio Supervisor in so advising the Trustee. The cash received
in such exchange and cash proceeds of any such sales shall be
distributed to Unit holders on the next distribution date in the manner
set forth in Section 3.05 regarding distributions from the Capital
Account. The Trustee shall not be liable or responsible in any way for
depreciation or loss incurred by reason of any such sale.
Neither the Depositor nor the Trustee shall be liable to any person for
any action or failure to take action pursuant to the terms of this
Section 3.11.
Whenever new securities or property is received and retained by a Trust
pursuant to this Section 3.11, the Trustee shall, within five days
thereafter, mail to all Unit holders of such Trust notices of such
acquisition unless legal counsel for such Trust determines that such
notice is not required by The Investment Company Act of 1940, as amended."
Q. The first sentence of Section 3.13. shall be amended to read
as follows:
"As compensation for providing supervisory portfolio services under this
Indenture, the Portfolio Supervisor shall receive, in arrears, against a
statement or statements therefor submitted to the Trustee monthly or
annually an aggregate annual fee in an amount which shall not exceed
$0.0035 per Unit outstanding as of January 1 of such year except for a
Trust during the year or years in which an initial offering period as
determined in Section 4.01 of this Indenture occurs, in which case the
fee for a month is based on the number of Units outstanding at the end
of such month (such annual fee to be pro rated for any calendar year in
which the Portfolio Supervisor provides services during less than the
whole of such year), but in no event shall such compensation when
combined with all compensation received from other series of the Trust
for providing such supervisory services in any calendar year exceed the
aggregate cost to the Portfolio Supervisor for the cost of providing
such services."
R. Article III of the Standard Terms and Conditions of Trust is
hereby amended by inserting the following paragraphs which shall be
entitled Section 3.14.:
"Section 3.14.Bookkeeping and Administrative Expenses. As compensation
for providing bookkeeping and other administrative services of a
character described in Section 26(a)(2)(C) of the Investment Company Act
of 1940 to the extent such services are in addition to, and do not
duplicate, the services to be provided hereunder by the Trustee or the
Portfolio Supervisor, the Depositor shall receive against a statement or
statements therefor submitted to the Trustee monthly or annually an
aggregate annual fee in an amount as set forth in the Prospectus times
the number of Units outstanding as of January 1 of such year except for
a year or years in which an initial offering period as determined by
Section 4.01 of this Indenture occurs, in which case the fee for a month
is based on the number of Units outstanding at the end of such month
(such annual fee to be pro rated for any calendar year in which the
Depositor provides service during less than the whole of such year), but
in no event shall such compensation when combined with all compensation
received from other unit investment trusts for which the Depositor
hereunder is acting as Depositor for providing such bookkeeping and
administrative services in any calendar year exceed the aggregate cost
to the Depositor providing services to such unit investment trusts.
Such compensation may, from time to time, be adjusted provided that the
total adjustment upward does not, at the time of such adjustment, exceed
the percentage of the total increase, after the date hereof, in consumer
prices for services as measured by the United States Department of Labor
Consumer Price Index entitled "All Services Less Rent of Shelter" or
similar index, if such index should no longer be published. The consent
or concurrence of any Unit holder hereunder shall not be required for
any such adjustment or increase. Such compensation shall be paid by the
Trustee, upon receipt of an invoice therefor from the Depositor, upon
which, as to the cost incurred by the Depositor of providing services
hereunder the Trustee may rely, and shall be charged against the Income
and Capital Accounts on or before the Distribution Date following the
Monthly Record Date on which such period terminates. The Trustee shall
have no liability to any Certificateholder or other person for any
payment made in good faith pursuant to this Section.
If the cash balance in the Income and Capital Accounts shall be
insufficient to provide for amounts payable pursuant to this Section
3.14, the Trustee shall have the power to sell (i) Securities from the
current list of Securities designated to be sold pursuant to Section
5.02 hereof, or (ii) if no such Securities have been so designated, such
Securities as the Trustee may see fit to sell in its own discretion, and
to apply the proceeds of any such sale in payment of the amounts payable
pursuant to this Section 3.14.
Any moneys payable to the Depositor pursuant to this Section 3.14 shall
be secured by a prior lien on the Trust Fund except that no such lien
shall be prior to any lien in favor of the Trustee under the provisions
of Section 6.04 herein.
S. Article III of the Standard Terms and Conditions of Trust is
hereby amended by inserting the following paragraph which shall be
entitled Section 3.15:
"Section 3.15. Deferred Sales Charge. If the prospectus related to the
Trust specifies a deferred sales charge, the Trustee shall, on the dates
specified in and as permitted by such Prospectus (the "Deferred Sales
Charge Payment Dates"), withdraw from the Capital Account, an amount per
Unit specified in such Prospectus and credit such amount to a special
non-Trust account designated by the Depositor out of which the deferred
sales charge will be distributed to or on the order of the Depositor on
such Deferred Sales Charge Payment Dates (the "Deferred Sales Charge
Account"). If the balance in the Capital Account is insufficient to
make such withdrawal, the Trustee shall, as directed by the Depositor,
advance funds in an amount required to fund the proposed withdrawal and
be entitled to reimbursement of such advance upon the deposit of
additional monies in the Capital Account, and/or sell Securities and
credit the proceeds thereof to the Deferred Sales Charge Account,
provided, however, that the aggregate amount advanced by the Trustee at
any time for payment of the deferred sales charge shall not exceed
$15,000. Such direction shall, if the Trustee is directed to sell a
Security, identify the Security to be sold and include instructions as
to the execution of such sale. In the absence of such direction by the
Depositor, the Trustee shall sell Securities sufficient to pay the
deferred sales charge (and any unreimbursed advance then outstanding) in
full, and shall select Securities to be sold in such manner as will
maintain (to the extent practicable) the relative proportion of number
of shares of each Security then held. The proceeds of such sales, less
any amounts paid to the Trustee in reimbursement of its advances, shall
be credited to the Deferred Sales Charge Account. If a Unit holder
redeems Units prior to full payment of the deferred sales charge, the
Trustee shall, if so provided in the related Prospectus, on the
Redemption Date, withhold from the Redemption Price payable to such Unit
holder an amount equal to the unpaid portion of the deferred sales
charge and distribute such amount to the Deferred Sales Charge Account.
If the Trust is terminated for reasons other than that set forth in
Section 6.01(g), the Trustee shall, if so provided in the related
Prospectus, on the termination of the Trust, withhold from the proceeds
payable to Unit holders an amount equal to the unpaid portion of the
deferred sales charge and distribute such amount to the Deferred Sales
Charge Account. If the Trust is terminated pursuant to Section 6.01(g),
the Trustee shall not withhold from the proceeds payable to Unit holders
any amounts of unpaid deferred sales charges. If pursuant to Section
5.02 hereof, the Depositor shall purchase a Unit tendered for redemption
prior to the payment in full of the deferred sales charge due on the
tendered Unit, the Depositor shall pay to the Unit holder the amount
specified under Section 5.02 less the unpaid portion of the deferred
sales charge. All advances made by the Trustee pursuant to this Section
shall be secured by a lien on the Trust prior to the interest of the
Unit holders."
T. Notwithstanding anything to the contrary in Sections 3.15 and
4.05 of the Standard Terms and Conditions of Trust, so long as Nike
Securities L.P. is acting as Depositor, the Trustee shall have no power
to remove the Portfolio Supervisor.
U. Section 5.01 of the Standard Terms and Conditions of Trust
shall be amended as follows:
(i) The first sentence of the first paragraph of Section 5.01
shall be amended by deleting the phrase "together with all other assets
of the Trust" at the end of such sentence and adding the following at
the conclusion thereof: ", plus (4) amounts representing organizational
expenses paid from the Trust less amounts representing accrued
organizational expenses of the Trust, plus (5) all other assets of the
Trust."
(ii) The following shall be added at the end of the first paragraph
of Section 5.01:
Until the Depositor has informed the Trustee that there will be no
further deposits of Additional Securities pursuant to section 2.01(b),
the Depositor shall provide the Trustee with written estimates of (i)
the total organizational expenses to be borne by the Trust pursuant to
Section 3.01 and (ii) the total number of Units to be issued in
connection with the initial deposit and all anticipated deposits of
additional Securities. For purposes of calculating the Trust Fund
Evaluation and Unit Value, the Trustee shall treat all such anticipated
expenses as having been paid and all liabilities therefor as having been
incurred, and all Units as having been issued, in each case on the date
of the Trust Agreement, and, in connection with each such calculation,
shall take into account a pro rata portion of such expense and liability
based on the actual number of Units issued as of the date of such
calculation. In the event the Trustee is informed by the Depositor of a
revision in its estimate of total expenses or total Units and upon the
conclusion of the deposit of additional Securities, the Trustee shall
base calculations made thereafter on such revised estimates or actual
expenses, respectively, but such adjustment shall not affect
calculations made prior thereto and no adjustment shall be made in
respect thereof.
V. Section 5.02 of the Standard Terms and Conditions of
Trust is amended by adding the following after the second paragraph of
such section:
"Notwithstanding anything herein to the contrary, in the event that any
tender of Units pursuant to this Section 5.02 would result in the
disposition by the Trustee of less than a whole Security, the Trustee
shall distribute cash in lieu thereof and sell such Securities as
directed by the Sponsors as required to make such cash available.
Subject to the restrictions set forth in the Prospectus, Unit holders
may redeem 2,500 Units or more of a Trust and request a distribution in
kind of (i) such Unit holder's pro rata portion of each of the
Securities in such Trust, in whole shares, and (ii) cash equal to such
Unit holder's pro rata portion of the Income and Capital Accounts as
follows: (x) a pro rata portion of the net proceeds of sale of the
Securities representing any fractional shares included in such Unit
holder's pro rata share of the Securities and (y) such other cash as may
properly be included in such Unit holder's pro rata share of the sum of
the cash balances of the Income and Capital Accounts in an amount equal
to the Unit Value determined on the basis of a Trust Fund Evaluation
made in accordance with Section 5.01 determined by the Trustee on the
date of tender less amounts determined in clauses (i) and (ii)(x) of
this Section. Subject to Section 5.05 with respect to Rollover Unit
holders, if applicable, to the extent possible, distributions of
Securities pursuant to an in kind redemption of Units shall be made by
the Trustee through the distribution of each of the Securities in book-
entry form to the account of the Unit holder's bank or broker-dealer at
the Depository Trust Company. Any distribution in kind will be reduced
by customary transfer and registration charges."
W. Paragraph (g) of Section 6.01 of the Standard Terms
and Conditions of Trust is hereby amended by inserting the following
after the first word thereof:
"(i) the value of any Trust as shown by an evaluation by the Trustee
pursuant to Section 5.01 hereof shall be less than the lower of
$2,000,000 or 20% of the total value of Securities deposited in such
Trust during the initial offering period, or (ii)"
X. Section 8.02 of the Standard Terms and Conditions of Trust
shall be amended as follows:
(i) The fourth sentence of the second paragraph shall be deleted and
replaced with the following:
"The Trustee will honor duly executed requests for in-kind distributions
received (accompanied by the electing Unit holder's Certificate, if
issued) by the close of business ten business days prior to the
Mandatory Termination Date."
(ii) The first sentence of the fourth paragraph shall be deleted and
replaced with the following:
"Commencing no earlier than the business day following that date on
which Unit holders must submit to the Trustee notice of their request to
receive an in-kind distribution of Securities at termination, the
Trustee will liquidate the Securities not segregated for in-kind
distributions during such period and in such daily amounts as the
Depositor shall direct."
IN WITNESS WHEREOF, Nike Securities L.P., The Chase Manhattan Bank and
First Trust Advisors L.P. have each caused this Trust Agreement to be
executed and the respective corporate seal to be hereto affixed and
attested (if applicable) by authorized officers; all as of the day,
month and year first above written.
NIKE SECURITIES L.P., Depositor
By Xxxxxx X. Xxxxxxxxxx
Vice President
THE CHASE MANHATTAN BANK, Trustee
By Xxxxxxx X. Xxxxxxx
Vice President
[SEAL]
ATTEST:
Xxxx Xxxxxx
Assistant Treasurer
FIRST TRUST ADVISORS L.P., Evaluator
By Xxxxxx X. Xxxxxxxxxx
Vice President
FIRST TRUST ADVISORS L.P.,
Portfolio Supervisor
By Xxxxxx X. Xxxxxxxxxx
Vice President
SCHEDULE A TO TRUST AGREEMENT
Securities Initially Deposited
FT 250
(Note: Incorporated herein and made a part hereof for the Trust is the
"Schedule of Investments" for the Trust as set forth in the Prospectus.)
