FORM OF AGREEMENT TO ACT AS "QUALIFIED INDEPENDENT UNDERWRITER"
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
Investment Debentures, Series III
This agreement made as of the ____ day of ________, by and between
Metropolitan Mortgage & Securities Co., Inc., a Washington corporation
("Metropolitan"), Metropolitan Investment Securities, Inc., a Washington
corporation ("MIS"), and South Coast Financial Securities, Inc., a California
corporation ("South Coast").
WITNESSETH:
WHEREAS, Metropolitan intends to offer $100,000,000 in Investment
Debentures Series III (hereinafter referred to as "Debentures"), which will be
offered in reliance on a registration statement filed on Form S-2, bearing SEC
file number ___________________; and,
WHEREAS, MIS, a wholly owned broker/dealer and a member of the National
Association of Securities Dealers ("NASD"), will be engaged as the sole
selling agent for Metropolitan; and,
WHEREAS, pursuant to subparagraph (c) of Rule 2720 of the NASD, MIS, as
a NASD member, may participate in such underwriting only if the yield at which
the Debentures offered to the public is not lower than the yield recommended
by a "Qualified Independent Underwriter" as that term is defined in Rule 2720
subparagraph (b)(15) of the NASD, and who participates in the preparation of
the registration statement and prospectus relating to the offering and
exercises customary standards of due diligence, with respect thereto; and,
WHEREAS, this agreement ("Agreement") describes the terms on which
Metropolitan is retaining South Coast to serve as such a "Qualified
Independent Underwriter" in connection with this offering of Debentures;
NOW, THEREFORE, in consideration of the recitations set forth above, and
the terms, promises, conditions, and covenants herein contained, the parties
hereby contract and agree as follows:
DEFINITIONS
47
As hereinafter used, except as the context may otherwise require, the
term "Registration Statement" means the registration statement on Form S-2
(including the related preliminary prospectus, financial statements, exhibits
and all other documents to be filed as a part thereof or incorporated therein)
for the registration of the offer and sale of the debentures under the
Securities Act of 1933, as amended, and the rules and regulations thereunder
(the "Act") filed with the Securities and Exchange Commission (the
"Commission"), and any amendment thereto, and the term "Prospectus" means the
prospectus including any preliminary or final prospectus (including the form
of prospectus to be filed with the Commission pursuant to Rule 424(b) under
the Act) and any amendment or supplement thereto, to be used in connection
with the offering.
1. SCHEDULE E REQUIREMENT.
South Coast hereby confirms its agreement as set forth in
subparagraph 15(g) of Rule 2720 of the Bylaws of the NASD and
represents that, as appropriate, South Coast satisfies or at the
times designated in such paragraph (l5) satisfies the other
requirements set forth therein or will receive an exemption from
such requirements from the NASD.
2. CONSENT.
South Coast hereby consents to be named in the Registration
Statement and Prospectus as having acted as a "Qualified
Independent Underwriter" solely for the purposes of Rule 2720
referenced herein. Except as permitted by the immediately
preceding sentence or to the extent required by law, all
references to South Coast in the Registration Statement or
Prospectus or in any other filing, report, document, release or
other communication prepared, issued or transmitted in connection
with the offering by Metropolitan or any corporation controlling,
controlled by or under common control with Metropolitan, or by any
director, officer, employee, representative or agent of any
thereof, shall be subject to South Coast's prior written consent
with respect to form and substance.
3. PRICING FORMULA AND OPINION.
South Coast agrees to render a written opinion as to the yields
below which Metropolitan's Debentures may not be offered based on
the pricing formula that is set forth in Schedules "A" and "B,"
copies of which are attached hereto, and incorporated herein by
reference. It is understood and agreed by South Coast that the
securities to which this Agreement relates will be
48
offered on a continuous, best efforts basis by MIS, as the sole
selling agent of Metropolitan pursuant to the selling agreement in
effect between MIS and Metropolitan which are filed as exhibits to
the Registration Statement referred to above. Metropolitan,
through MIS, will continue to offer the debt securities according
to the terms and conditions of said agreement, including, without
limitation, Schedules "A" and B" in accordance with this
Agreement. South Coast reserves the right to review and amend its
opinion upon the filing of any post-effective amendment to this
Registration Statement or upon occurrence of any material event
which may or may not require such an amendment to be filed, or at
such time as the offering under this registration shall terminate
or otherwise lapse under operation of law.
4. FEES AND EXPENSE.
It is understood that Metropolitan shall reimburse South Coast for
its expenses on an accountable basis in the maximum amount $5,000.
Such expenses shall not include payment for salaries, supplies, or
similar expenses of South Coast incurred in the normal conduct of
business. It is further agreed that South Coast shall be paid an
additional amount of $65,000 at the time the pricing opinion and
pricing formula are rendered, concurrent with the closing. South
Coast agrees to pay all fees and expenses to any legal counsel
whom it may employ to represent it separately in connection with
or on account of its actions contemplated herein.
5. MATERIAL FACTS.
Metropolitan represents and warrants to South Coast that at the
time the Registration Statement and, at the time the Prospectus is
filed with the Commission (including any preliminary prospectus
and the form of prospectus filed with the Commission pursuant to
Rule 424(b)) and at all times subsequent thereto, to and including
the date on which payment for, and delivery of, the Debentures to
be sold in the Offering is made by the underwriter or
underwriters, as the case may be, participating in the Offering
and by Metropolitan (such date being referred to herein as the
"Closing Date"), the Prospectus (as amended or supplemented if it
shall have been so amended or supplemented) will contain all
material statements which are required to be stated therein in
accordance with the Act and will conform to all other requirements
of the federal securities laws, and will not, on such date include
any untrue statement
49
of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not
misleading and that all contracts and documents required by the
Act to be filed or required as exhibits to said registration
statement have been filed. Metropolitan further represents and
warrants that any further filing, report, document, release or
communication which in any way refers to South Coast or to the
services to be performed by South Coast pursuant to this Agreement
will not contain any untrue or misleading statement of a material
fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not
misleading.
Metropolitan further warrants and represents that:
(a) All leases, contracts and agreements referred to in or
filed as exhibits to the Registration Statement to which
Metropolitan or its subsidiaries is a party or by which it
is bound are in full force and effect.
(b) Metropolitan has good and marketable title, except as
otherwise indicated in the Registration Statement and
Prospectus, to all of its assets and properties described
therein as being owned by it, free and clear of all liens,
encumbrances and defects except such encumbrances and
defects which do not, in the aggregate, materially affect
or interfere with the use made and proposed to be made of
such properties as described in the Registration Statement
and Prospectus; and Metropolitan has no material leased
properties except as disclosed in the Prospectus.
(c) Metropolitan is duly organized under the laws of the State
of Washington and, as of the effective date of the
Registration Statement and at Closing Metropolitan will be
validly existing and in good standing under the laws of the
State of Washington with full corporate power and authority
to own its properties and conduct its business to the
extent described in the Registration Statement and
Prospectus; Metropolitan is duly qualified to do business
as a foreign corporation and is in good standing in all
jurisdictions in which the nature of the business
transacted by it or its ownership of properties or assets
makes qualification necessary; the authorized and
outstanding capitalization of Metropolitan is as set forth
in the Prospectus and the description in the
50
Prospectus of the capital stock of Metropolitan conforms with and
accurately describes the rights set forth in the
instruments defining the same;
(d) Metropolitan is not in violation of its Certificate of
Incorporation or Bylaws or in default in the performance or
observance of any material obligation, agreement, covenant
or condition contained in any bond, debenture, note, or
other evidence of indebtedness, contract or lease or in any
indenture or loan agreement to which it is a party or by
which it is bound.
(e) The execution, delivery and performance of this Agreement
has been duly authorized by all necessary corporate action
on the part of Metropolitan and MIS and performance of the
foregoing agreement and the consummation of the
transactions contemplated thereby, will not conflict with
or result in a breach of any of the terms or constitute a
violation of the respective Certificates of Incorporation
or Bylaws of Metropolitan or MIS, or any deed of trust,
lease, sublease, indenture, mortgage, or other agreement or
instrument to which Metropolitan or MIS is a party or by
which either of them or their property is bound, or any
applicable law, rule, regulation, judgment, order or decree
of any government, governmental instrumentality or court,
domestic or foreign, having jurisdiction over Metropolitan
or MIS or their properties or obligations; and no consent,
approval, authorization or order of any court or
governmental agency or body is required for the
consummation of the transactions contemplated herein and in
the other agreements previously referred to in this
paragraph except as may be required under the Act or under
any state securities or laws.
(f) Any certificate signed by an officer of Metropolitan and
delivered to South Coast pursuant to this Agreement shall
be deemed a representation and warranty by Metropolitan to
South Coast, to have the same force and effect as stated
herein, as to the matters covered thereby.
(g) If any event relating to or affecting Metropolitan shall
occur as a result of which it is necessary, in South
Coast's opinion, to amend or supplement the Prospectus in
order to make the Prospectus not misleading in the light of
the circumstances existing at the time it is delivered to a
51
purchaser, Metropolitan undertakes to inform South Coast of such
events within a reasonable time thereafter, and will
forthwith prepare and furnish to South Coast, without
expense to them, a reasonable number of copies of an
amendment or amendments or a supplement or supplements to
the Prospectus (in form and substance satisfactory to South
Coast) which will amend or supplement the Prospectus so
that as amended or supplemented it will not contain any
untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein in
light of the circumstances existing at the time the
Prospectus is delivered to a purchaser, not misleading.
(h) Metropolitan hereby warrants and represents that it will
offer the Debentures in accordance with the pricing formula
that is set forth in Schedules "A" and "B" which are
incorporated by reference herein.
(i) All representations, warranties and agreements contained in
this Agreement, or contained in certificates of officers of
Metropolitan submitted pursuant hereto, shall remain
operative and in full force and effect, surviving the date
of this Agreement.
6. AVAILABILITY OF INFORMATION.
Metropolitan hereby agrees to provide South Coast, at its expense,
with all information and documentation with respect to its
business, financial condition and other matters as South Coast may
deem relevant based on the standards of reasonableness and good
faith and shall request in connection with South Coast's
performance under this Agreement, including, without limitation,
copies of all correspondence with the Commission, certificates of
its officers, opinions of its counsel and comfort letters from its
auditors. The above-mentioned certificates, opinions of counsel
and comfort letters shall be provided to South Coast as South
Coast may request on the effective date of the Registration
Statement and on the Closing Date. Metropolitan will make
reasonably available to South Coast, its auditors, counsel, and
officers and directors to discuss with South Coast any aspect of
Metropolitan which South Coast may deem relevant. In addition,
Metropolitan, at South Coast's request, will cause to be delivered
to South Coast copies of all certificates, opinions, letters and
reports to be
52
delivered to the underwriter or underwriters, as the case may be,
pursuant to any underwriting agreement executed in connection with
the Offering or otherwise, and shall cause the person issuing such
certificate, opinion, letter or report to authorize South Coast to
rely thereon to the same extent as if addressed directly to South
Coast. Metropolitan represents and warrants to South Coast that
all such information and documentation provided pursuant to this
paragraph 6 will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the
statement therein not misleading. In addition, Metropolitan will
promptly advise South Coast of all telephone conversations with
the Commission which relate to or may affect the Offering.
7. INDEMNIFICATION.
(a) Subject to the conditions set forth below, and in addition
to any rights of indemnification and contribution to which
South Coast may be entitled pursuant to any agreement among
underwriters, underwriting agreement or otherwise, and to
the extent allowed by law, Metropolitan hereby agrees that
it will indemnify and hold South Coast and each person
controlling, controlled by or under common control with
South Coast within the meaning of Section 15 of the Act or
Section 20 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), or the rules and regulations
thereunder (individually, an "Indemnified Person") harmless
from and against any and all loss, claim, damage,
liability, cost or expense whatsoever to which such
Indemnified Person may become subject under the Act, the
Exchange Act, or other federal or state statutory law or
regulation, at common law or otherwise, arising out of,
based upon, or in any way related or attributed to (i) this
Agreement, (ii) any untrue statement or alleged untrue
statement of a material fact contained in the Registration
Statement or Prospectus or any other filing, report,
document, release or communication, whether oral or
written, referred to in paragraph 5 hereof or the omission
or alleged omission to state therein a material fact
required to be stated therein or necessary to make the
statements therein not misleading, (iii) any application or
other document executed by Metropolitan or based upon
written information furnished by Metropolitan filed in any
jurisdiction in order to qualify the Debentures under the
securities or Blue Sky laws thereof, or
53
the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the
statements therein not misleading, or (iv) the breach of
any representation or warranty made by Metropolitan in this
Agreement. Metropolitan further agrees that upon demand by
an Indemnified Person at any time or from time to time, it
will promptly reimburse such Indemnified Person for, or
pay, any loss, claim, damage, liability, cost or expense as
to which Metropolitan has indemnified such person pursuant
hereto. Notwithstanding the foregoing provisions of this
paragraph 7, any such payment or reimbursement by
Metropolitan of fees, expenses or disbursement incurred by
an Indemnified Person in any proceeding in which a final
judgment by a court of competent jurisdiction (after all
appeals or the expiration of time to appeal) is entered
against such Indemnified Person as a direct result of such
person's negligence, bad faith or willful misfeasance will
be promptly repaid to Metropolitan. In addition, anything
in this paragraph 7 to the contrary notwithstanding,
Metropolitan shall not be liable for any settlement of any
action or proceeding effected without its written consent.
(b) Promptly after receipt by an Indemnified Person under sub-
paragraph (a) above of notice of the commencement of any
action, such Indemnified Person will, if a claim in respect
thereof is to be made against Metropolitan under paragraph
(a), notify Metropolitan in writing of the commencement
thereof; but the omission to so notify Metropolitan will
not relieve Metropolitan from any liability which it may
have to any Indemnified Person otherwise than under this
paragraph 7 if such omission shall not have materially
prejudiced Metropolitan's ability to investigate or to
defend against such claim. In case any such action is
brought against any Indemnified Person, and such
Indemnified Person notifies Metropolitan of the
commencement thereof, Metropolitan will be entitled to
participate therein and, to the extent that it may elect by
written notice delivered to the Indemnified Person promptly
after receiving the aforesaid notice from such Indemnified
Person, to assume the defense thereof with counsel
reasonably satisfactory to such Indemnified Person;
PROVIDED, HOWEVER, that if the defendants in any such
action include both the Indemnified Person and Metropolitan
or any corporation
54
controlling, controlled by or under common control with
Metropolitan, or any director, officer, employee,
representative or agent of any thereof, or any other
"Qualified Independent Underwriter" retained by
Metropolitan in connection with the Offering and the
Indemnified Person shall have reasonably concluded that
there may be legal defenses available to it which are
different from or additional to those available to such
other defendant, the Indemnified Person shall have the
right to select separate counsel to represent it. Upon
receipt of notice from Metropolitan to such Indemnified
Person of its election so to assume the defense of such
action and approval by the Indemnified Person of counsel,
Metropolitan will not be liable to such Indemnified Person
under this paragraph 7 for any fees of counsel subsequently
incurred by such Indemnified Person in connection with the
defense thereof (other than the reasonable costs of
investigation subsequently incurred by such Indemnified
Person) unless (i) the Indemnified Person shall have
employed separate counsel in accordance with the provision
of the next preceding sentence (it being understood,
however, that Metropolitan shall not be liable for the
expenses of more than one separate counsel in any one
jurisdiction representing the Indemnified Person, which
counsel shall be approved by South Coast), (ii)
Metropolitan, within a reasonable time after notice of
commencement of the action, shall not have employed counsel
reasonably satisfactory to the Indemnified Person to
represent the Indemnified Person, or (iii) Metropolitan
shall have authorized in writing the employment of counsel
for the Indemnified Person at the expense of Metropolitan,
and except that, if clause (i) or (iii) is applicable, such
liability shall be only in respect of the counsel referred
to in such clause (i) or (iii).
(c) In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in
paragraph 7 is due in accordance with its terms but is for
any reason held by a court to be unavailable from
Metropolitan to South Coast on grounds of policy or
otherwise, Metropolitan and South Coast shall contribute to
the aggregate losses, claims, damages and liabilities
(including legal or other expenses reasonably incurred in
connection with investigating or defending same) to which
55
Metropolitan and South Coast may be subject in such proportion so
that South Coast is responsible for that portion
represented by the percentage that its fee under this
Agreement bears to the public offering price appearing on
the cover page of the Prospectus and Metropolitan is
responsible for the balance, except as Metropolitan may
otherwise agree to reallocate a portion of such liability
with respect to such balance with any other person,
including, without limitation, any other "Qualified
Independent Underwriter"; PROVIDED, HOWEVER, that (i) in no
case shall South Coast be responsible for any amount in
excess of the fee set forth in paragraph 4 above and (ii)
no person guilty of fraudulent misrepresentation within the
meaning of Section 11(f) of the Act shall be entitled to
contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this
paragraph (c), any person controlling, controlled by or
under common control with South Coast, or any partner,
director, officer, employee, representative or any agent of
any thereof, shall have the same rights to contribution as
South Coast and each person who controls Metropolitan
within the meaning of Section 15 of the Act or Section 20
of the Exchange Act, each officer of Metropolitan who shall
have signed the Registration Statement and each director of
Metropolitan shall have the same rights to contribution as
Metropolitan, subject in each case to clause (i) of this
paragraph (c). Any party entitled to contribution will,
promptly after receipt of notice of commencement of any
action, suit or proceeding against such party in respect of
which a claim for contribution may be made against the
other party under this paragraph (c), notify such party
from whom contribution may be sought, but the omission to
so notify such party shall not relieve the party from whom
contribution may be sought from any other obligation it or
they may have hereunder or otherwise than under this
paragraph (c). The indemnity and contribution agreements
contained in this paragraph 7 shall remain operative and in
full force and effect regardless of any investigation made
by or on behalf of any Indemnified Person or termination of
this Agreement.
8. AUTHORIZATION BY METROPOLITAN.
56
Metropolitan represents and warrants to South Coast that this
Agreement has been duly authorized, executed and delivered by
Metropolitan and constitutes a valid and binding obligation of
Metropolitan.
9. AUTHORIZATION BY MIS.
MIS represents and warrants to South Coast that this Agreement has
been duly authorized, executed and delivered by MIS and
constitutes a valid and binding obligation of MIS.
10. AUTHORIZATION BY SOUTH COAST.
South Coast represents and warrants to Metropolitan that this
Agreement has been duly authorized, executed and delivered by
South Coast and constitutes a valid and binding obligation of
South Coast.
11. NOTICE.
Whenever notice is required to be given pursuant to this
Agreement, such notice shall be in writing and shall be mailed by
first class mail, postage prepaid, addressed (a) if to South Coast
Financial Securities, Inc., at 0000 Xxxxxxxxx Xxxxx, Xxxxx 000,
Xxxxxx, XX 00000-0000, Attention: Xxxxxx X. Xxxx, and (b) if to
Metropolitan, at 000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxxxxx
00000, Attention: C. Xxxx Xxxxxxxx, Xx.
12. GOVERNING LAW.
This Agreement shall be construed (both as to validity and
performance) and enforced in accordance with and governed by the
laws of the State of Washington applicable to agreements made and
to be performed wholly within such jurisdiction.
IN WITNESS WHEREOF, this Agreement has been executed by the parties
hereto as of the day and year first above mentioned.
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
By: ______________________________________________
C. Xxxx Xxxxxxxx, Xx., President
METROPOLITAN INVESTMENT SECURITIES, INC.
By: ______________________________________________
Xxxxx Xxxxxxx, Secretary
SOUTH COAST FINANCIAL SECURITIES, INC.
57
By: _____________________________________________
Xxxxxx X. Xxxx, Chairman and CEO
58
SCHEDULE A
Metropolitan Mortgage & Securities Co., Inc.
The opinion of South Coast is conditioned upon Metropolitan's
undertaking to maintain the rates on its Debentures at least equal to an
"assumed floor." Based upon the pricing formula described below:
1. The interest rate to be paid on the Debentures shall be fixed by
Metropolitan from time to time. However, the rate shall not be lower
than the computation made per the worksheet on Schedule B, which is
attached and incorporated by reference herein.
2. The "assumed floor" for 6 to 11 month Debentures shall be at least 1.0%
above the lesser of the interest rate on the 6 month U.S. Treasury
Bills, on a discount basis, based upon the auction average (which is
published widely in newspapers throughout the country, normally on the
day following the auction) and a composite average of the offering rates
on 6 month certificates of deposit currently being offered by banks and
savings institutions in the northwestern section of the United States.
For purposes of this composite average of certificate of deposit rates,
the rates being offered by the following institutions shall be
considered initially:
a. Seattle First National Bank
b. Security State Bank
c. U.S. Bank of Washington
x. Xxxxx Fargo Bank
x. Xxxxxxxxxx Trust Bank
x. Xxxxxxxxxx Mutual Savings Bank
South Coast and Metropolitan agree to review on an ongoing basis the
group which comprises the composite average, and may substitute another
institution in the composite group from time-to-time by mutual
agreement, as the case may be.
3. The "assumed floor" for 60 to 120 month Debentures shall be computed in
like manner as that described in paragraph "2" above, except that the
latest auction average on 5 year U.S. Treasury Notes shall be considered
in place of the 6 month U.S. Treasury Bills, and 5 year certificates of
deposit currently offered in the composite group shall be considered in
lieu of the 6 month rate.
4. Rates on 12 to 23 month, 24 to 35 month, 36 to 47 month and 48 to 59
month Debentures shall be at least equal to the interpolated differences
between the computation of the "assumed floor" of 6 to 11 month
Debentures and 60 to 120 month Debentures, based upon the computation
set forth in Schedule B.
59
5. Rates on Debentures payable in installments of principal and interest
shall be no lower than .25% below the "assumed floor" for 60 to 120
month Debentures.
6. The computation of the "assumed floor" shall be made monthly, as of the
first Tuesday of each month, or at such other times during any month
that Metropolitan causes the offering rates to change from those in
effect on the first Tuesday of each month ("the computation date").
Metropolitan agrees to furnish South Coast with a computation of the
"assumed floor" by completing the worksheet on Schedule B. Should the
offering rates at that time on Metropolitan's Debentures be less than
the "assumed floor" as computed, Metropolitan agrees to raise the rates
on its Debentures to at least the "assumed floor" within 10 calendar
days of the computation date. Should Metropolitan fail to raise its
offering rates within the 10 day period referred to above, South Coast
reserves the right, in its uncontrolled discretion, to withdraw its
opinion regarding the offering rates on the Debentures.
60
SCHEDULE B
Metropolitan Mortgage & Securities Co., Inc.
PRICING FORMULA
C.D. RATE
Average rate between a composite of 8 selected Banks and Savings and Loans as of
the 1st Tuesday of each month.
GOVERNMENT RATE
Most current of 8 selected auction rates available on the 1st Tuesday of each
month.
Column A Column B Column C Column D Column E
Certificate of
Deposit (CD) Government Rate Enter Lesser of Metropolitan's
Calculation Calculation Column A or B Assumed Floor Current Rate
____________________ _______________________ _______________ _____________ ______________
5 yr CD rate = _____ 5 yr Gov't Rate = _____
6 mo CD rate = _____ 6 mo Gov't Rate = _____
DIFFERENCE = _____ DIFFERENCE = _____
x .20 X .20
_____ _____
Differential = _____ Differential = _____
(enter in (a) below) (enter in (a) below)
6 mo (actual) 6 mo (actual)
rate = _____ rate = _____ _______________ + 1%___________ _______________
(a) + (a) + 6-11 months
_____ _____
1 yr rate = _____ 1 yr rate = _____ _______________ + 1%___________ _______________
(a) + (a) + 12-23 months
_____ _____
2 yr rate = _____ 2 yr rate = _____ _______________ + 1%___________ _______________
(a) + (a) + 24-35 months
61
_____ _____
3 yr rate = _____ 3 yr rate = _____ _______________ + 1%___________ _______________
(a) + (a) + 36-47 months
_____ _____
4 yr rate = _____ 4 yr rate = _____ _______________ + 1%___________ _______________
(a) + (a) + 48-59 months
_____ _____
5 yr (actual) 5 yr (actual)
rate = _____ rate = _____ _______________ + 1%___________ _______________
(a) + (a) + 60-120 months
_____ _____
INSTALLMENT PAYMENTS (Floor equal to yearly _______ _______ ____________
rate MINUS .50) (yearly -.50
rate)
