EXHIBIT 4.2
CONNECTICUT RRB SPECIAL PURPOSE TRUST CL&P-1,
as Certificate Issuer
FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION,
as Delaware Trustee
and
FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION,
as Certificate Trustee
____________________________
CERTIFICATE INDENTURE
Dated as of March 30, 2001
____________________________
$1,438,400,000
CONNECTICUT RRB SPECIAL PURPOSE TRUST CL&P-1
RATE REDUCTION CERTIFICATES
ARTICLE I DEFINITIONS
Section 1.01. Definitions
Section 1.02. Compliance Certificates and Opinions
Section 1.03. Form of Documents Delivered to Certificate Trustee
Section 1.04. Acts of Certificateholders
ARTICLE II THE CERTIFICATES
Section 2.01. Terms of the Certificates
Section 2.02. Issuance of Certificates
Section 2.03. Form, Denomination and Execution of Certificates
Section 2.04. Authentication of Certificates
Section 2.05. Temporary Certificates
Section 2.06. Registration of Transfer and Exchange of Certificates
Section 2.07. Certificateholders' Lists and Reports by Certificate
Trustee
Section 2.08. Mutilated, Destroyed, Lost or Stolen Certificates
Section 2.09. Persons Deemed Owners
Section 2.10. Cancellation
Section 2.11. Limitation of Liability for Payments
Section 2.12. Book-Entry and Definitive Certificates
Section 2.13. Tax Treatment
ARTICLE III COVENANTS
Section 3.01. Compliance with Declaration of Trust
Section 3.02. No Additional Certificates
Section 3.03. Swap Agreements
Section 3.04. Listing Agent, Paying Agent, Transfer Agent
Section 3.05. Swap Agreement Covenants
Section 3.06. Merger
ARTICLE IV DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS
Section 4.01. Certificate Accounts
Section 4.02. Distributions from Certificate Accounts
Section 4.03. Statements to Certificateholders
Section 4.04. Investment of Special Payment Moneys
Section 4.05. Reduction in Principal
ARTICLE V DEFAULTS
Section 5.01. Events of Default
Section 5.02. Incidents of Sale of Notes
Section 5.03. Judicial Proceedings Instituted by Certificate
Trustee; Certificate Trustee May Bring Suit
Section 5.04. Control by Certificateholders
Section 5.05. Waiver of Past Defaults
Section 5.06. Right of Certificateholders To Receive Payments Not To
Be Impaired
Section 5.07. Certificateholders May Not Bring Suit Except Under
Certain Conditions
Section 5.08. Remedies Cumulative
ARTICLE VI THE CERTIFICATE TRUSTEE
Section 6.01. Notice of Defaults
Section 6.02. Certain Rights of Certificate Trustee
Section 6.03. Not Responsible for Recitals or Issuance of
Certificates
Section 6.04. May Hold Certificates
Section 6.05. Money Held in Trust
Section 6.06. Compensation and Reimbursement; Indemnification
Section 6.07. Corporate Certificate Trustee Required; Eligibility
Section 6.08. Resignation and Removal; Appointment of Successor
Section 6.09. Acceptance of Appointment by Successor
Section 6.10. Merger, Conversion, Consolidation or Succession to
Business
Section 6.11. Maintenance of Agencies
Section 6.12. Money for Certificate Payments To Be Held in Trust
Section 6.13. Registration of Notes in Certificate Trustee's Name
Section 6.14. Representations and Warranties of Certificate Trustee
Section 6.15. Withholding Taxes; Information Reporting
ARTICLE VII SUPPLEMENTAL CERTIFICATE INDENTURES
Section 7.01. Supplemental Certificate Indentures Without Consent of
Certificateholders
Section 7.02. Supplemental Certificate Indentures With Consent of
Certificateholders
Section 7.03. Documents Affecting Immunity or Indemnity
Section 7.04. Execution of Supplemental Certificate Indentures;
Notification Under Rules of Luxembourg Stock Exchange
Section 7.05. Effect of Supplemental Certificate Indentures
Section 7.06. Conformity with Trust Indenture Act
Section 7.07. Reference in Certificates to Supplemental Certificate
Indentures
Section 7.08. Swap 7.08.Swap Counterparty Consent
Section 7.09. Delaware 7.09.Delaware Trustee
ARTICLE VIII AMENDMENTS AND SUPPLEMENTS TO NOTES, NOTE INDENTURE AND
OTHER BASIC DOCUMENTS
Section 8.01. Amendments and Supplements to Notes, Note Indenture
and Other Basic Documents
ARTICLE IX SATISFACTION AND DISCHARGE
Section 9.01.Satisfaction and Discharge of Certificate Indenture
ARTICLE X MISCELLANEOUS PROVISIONS
Section 10.01. State Pledge; Certificates and Notes Not Obligations
of the State of Connecticut, Finance Authority or Seller
Section 10.02. Limitation on Rights of Certificateholders
Section 10.03. No Recourse to Certificate Issuer
Section 10.04. Certificates Nonassessable and Fully Paid
Section 10.05. Notices
Section 10.06. Governing Law
Section 10.07. Severability of Provisions
Section 10.08. Conflict With Trust Indenture Act
Section 10.09. Effect of Headings and Table of Contents
Section 10.10. Successors and Assigns; Delegation
Section 10.11. Benefits of Certificate Indenture
Section 10.12. Legal Holidays
Section 10.13. Counterparts
Section 10.14. The Delaware Trustee
Section 10.15. Nonpetition Covenants
Exhibit A-1 Form of Class A-1, A-2, A-3 or A-5 Certificate
Exhibit A-2 Form of Class A-4 Certificate
Exhibit B Calculation of LIBOR
CERTIFICATE INDENTURE, dated as of March 30, 2001, between CONNECTICUT
RRB SPECIAL PURPOSE TRUST CL&P-1, a Delaware business trust (the "Certificate
Issuer") formed under the Declaration of Trust, FIRST UNION TRUST COMPANY,
NATIONAL ASSOCIATION, as Delaware trustee (the "Delaware Trustee"), and FIRST
UNION TRUST COMPANY, NATIONAL ASSOCIATION, as certificate trustee (the
"Certificate Trustee").
RECITALS
The Note Issuer intends to issue its CL&P Funding LLC Notes (the
"Notes") with an aggregate principal amount of $1,438,400,000, consisting of
Classes A-1 through A-5, pursuant to the Note Indenture. In order to finance
the purchase of the Notes pursuant to the Note Purchase Agreement relating to
the Notes, the Certificate Issuer shall issue, pursuant to this Certificate
Indenture, its Connecticut RRB Special Purpose Trust CL&P-1 Rate Reduction
Certificates (the "Certificates") with an aggregate principal amount of
$1,438,400,000, consisting of Classes A-1 through A-5, each of which shall
represent a fractional undivided beneficial interest in the corresponding
Class of Notes and the related Swap Agreement, if any, and the proceeds
thereof.
The Certificate Issuer has duly authorized the execution and delivery of
this Certificate Indenture to provide the terms and conditions for the
issuance of the Certificates. The Certificate Issuer is entering into this
Certificate Indenture, and the Certificate Trustee is accepting the trusts
created hereby, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged.
GRANTING CLAUSE
The Certificate Issuer hereby grants to the Certificate Trustee on the
Issuance Date, as Certificate Trustee for the benefit of the Holders of the
Certificates and the Swap Counterparty (as more fully defined herein, the
"Secured Parties"), all of the Certificate Issuer's right, title and interest
in and to the Notes acquired pursuant to the Note Purchase Agreement and,
solely for the benefit of the related floating rate Class of Certificates,
each Swap Agreement, together with all payments thereon and proceeds thereof,
and other property constituting the Trust Property relating to each such
Class of Notes, all as provided in this Certificate Indenture.
The foregoing grant is made in trust to secure the payment of principal
of and interest on, and any other amounts owing in respect of, the
Certificates, and to secure compliance with the provisions of this
Certificate Indenture with respect to the Certificates and the Swap
Agreements, all as provided in this Certificate Indenture. This Certificate
Indenture constitutes a security agreement within the meaning of the UCC to
the extent that, under Connecticut law, the provisions of the UCC are
applicable hereto.
The Certificate Trustee, as trustee on behalf of the Secured Parties,
acknowledges such grant, accepts the trusts hereunder in accordance with the
provisions hereof and agrees to perform its duties herein required.
AND IT IS HEREBY COVENANTED, DECLARED AND AGREED between the parties
hereto that all Certificates are to be issued, countersigned and delivered
and that all of the Trust Property is to be held and applied, subject to the
further covenants, conditions, releases, uses and trusts hereinafter set
forth, and the Certificate Issuer, for itself and any successor, does hereby
covenant and agree to and with the Certificate Trustee and its successors in
said trust, for the benefit of the Secured Parties, as follows:
ARTICLE I
Definitions
Section 1.01. Definitions.
(a) For all purposes of this Certificate Indenture, except as
otherwise expressly provided or unless the context otherwise requires:
(i) a term has the meaning assigned to it;
(ii) an accounting term not otherwise defined has the meaning
assigned to it in accordance with generally accepted accounting
principles as in effect from time to time;
(iii) "or" is not exclusive;
(iv) "including" means including without limitation;
(v) words in the singular include the plural and words in the
plural include the singular;
(vi) the words "herein," "hereof," "hereunder" and other words of
similar import refer to this Certificate Indenture as a whole and not to
any particular Article, Section or other subdivision;
(vii) all references in this Certificate Indenture to
designated "Articles," "Sections" and other subdivisions are to the
designated Articles, Sections and other subdivisions of this Certificate
Indenture; and
(viii) Whenever this Certificate Indenture refers to a provision
of the Trust Indenture Act, the provision is incorporated by reference
in and made a part of this Certificate Indenture. The following Trust
Indenture Act terms used in this Certificate Indenture have the
following meanings:
"Commission" means the Securities and Exchange Commission.
"indenture securities" means the Certificates.
"indenture security holder" means a Certificateholder.
"indenture to be qualified" means this Certificate Indenture.
"indenture trustee" or "institutional trustee" means the
Certificate Trustee.
"obligor" on the indenture securities means the Certificate Issuer
and any other obligor on the indenture securities.
All other Trust Indenture Act terms used in this Certificate Indenture
that are defined by the Trust Indenture Act, defined by Trust Indenture Act
reference to another statute or defined by Commission rule have the meaning
assigned to them by such definitions.
"Act," when used with respect to any Certificateholder, has the meaning
specified in Section 1.04.
"Approved Replacement Counterparty" has the meaning set forth in Section
3.03.
"Authentication Agent" means the authentication agent appointed pursuant
to Section 6.11.
"Authorized Agent" means any Paying Agent, Authentication Agent or
Certificate Registrar.
"Authorized Representative" means, with respect to any entity, any
person who is authorized to act for such entity in matters relating to such
entity and who is identified on the list of Authorized Representatives or
Authorized Officers delivered by such entity to the Certificate Trustee on
the Issuance Date (as such list may be modified or supplemented from time to
time thereafter).
"Avoidable Tax" has the meaning set forth in Section 6.08(f).
"Book-Entry Certificates" means, with respect to any Certificate, a
beneficial interest in such Certificate, ownership and transfers of which
shall be made through book entries by a Clearing Agency as described in
Section 2.12.
"Business Day" means any day other than a Saturday, a Sunday or a day on
which banking institutions or trust companies in New York, New York,
Hartford, Connecticut or Wilmington, Delaware are authorized or obligated by
law, regulation or executive order to remain closed.
"Business Trust Statute" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Del.C., Sec. 3801 et seq., as the same may be amended from
time to time and any successor statute.
"Certificate Account" means, with respect to any Class of Certificates,
the account or accounts created and maintained with respect to such Class of
Certificates pursuant to Section 4.01(a).
"Certificate Indenture" means this instrument as originally executed
and, as from time to time supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions
hereof, as so supplemented or amended or both, and shall include the forms
and terms of the Certificates established hereunder.
"Certificate Owner" means the Person who owns a Book-Entry Certificate.
"Certificate Register" has the meaning set forth in Section 2.06.
"Certificate Registrar" means, initially, the Certificate Trustee,
pursuant to Section 2.06, and any successor registrar that meets the
eligibility standards specified in Section 6.11(b).
"Certificate Trustee" means First Union Trust Company, National
Association, as Certificate Trustee under this Certificate Indenture, and its
successors in interest, and any successor Certificate Trustee appointed as
provided herein.
"Certificate Trustee Expenses" has the meaning set forth in Section
6.06.
"Certificate Trustee Indemnified Persons" has the meaning set forth in
Section 6.06.
"Certificateholder" or "Holder" means the Person in whose name a
Certificate is registered on the Certificate Register.
"Certificates" has the meaning set forth in Section 2.01(a).
"Class" means any one of the classes of Certificates; and, with respect
to the Notes, any one of the classes of Notes.
"Class A-4 Certificates" means the Certificates of Class A-4.
"Class A-4 Gross Fixed Amount" with respect to any Distribution Date
means an amount equal to the product of the Class A-4 Gross Fixed Rate times
the Outstanding Amount of the Class A-4 Certificates as of the close of
business on the preceding Distribution Date after giving effect to all
payments of principal made to the Holders of the Class A-4 Certificates on
such preceding Distribution Date (or, with respect to the initial
Distribution Date, the original principal amount of the Class A-4
Certificates), which product (i) in the case of each Distribution Date other
than the initial Distribution Date shall be divided by 4, and (ii) in the
case of the initial Distribution Date, shall be multiplied by the number of
days from and including the Issuance Date to but excluding the initial
Distribution Date, assuming a 360-day year of twelve 30-day months.
"Class A-4 Gross Fixed Rate" has the meaning set forth in Section 2.01.
"Class A-4 Interest Determination Date" means, with respect to a
Distribution Date, the day two London Banking Days prior to such Distribution
Date, or, in the case of the initial Distribution Date, both the day two
London Banking Days prior to the Issuance Date and June 28, 2001.
"Class A-4 Subaccount" has the meaning set forth in Section 2.01.
"Class A-4 Swap Agreement" means the Original Class A-4 Swap Agreement
and any replacement Swap Agreement relating to the Class A-4 Certificates
entered into pursuant to Section 3.03.
"Class A-4 Swap Counterparty" means the Swap Counterparty under the
Class A-4 Swap Agreement.
"Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.
"Clearing Agency Participant" means a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book entry transfers and pledges of securities deposited with
the Clearing Agency.
"Corporate Trust Office" means the principal office of the Certificate
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of the execution of this Certificate
Indenture is located at the address provided in Section 10.05, or at such
other address as the Certificate Trustee may designate from time to time by
notice to the Certificateholders and the Certificate Issuer, or the principal
corporate trust office of any successor Certificate Trustee (the address of
which the successor Certificate Trustee will notify the Certificateholders
and the Certificate Issuer).
"Declaration of Trust" means the Declaration of Trust, relating to the
creation of the Certificate Issuer, dated as of March 23, 2001 by First Union
Trust Company, National Association, as Delaware Trustee, and the Finance
Authority as settlor thereunder pursuant to the Statute, as the same may be
amended, supplemented or otherwise modified from time to time.
"Definitive Certificates" has the meaning set forth in Section 2.12(a).
"Distribution Date" means, with respect to the Certificates, a Payment
Date with respect to the Notes.
"DTC Agreement" means the agreement between the Certificate Trustee, on
behalf of the Certificate Issuer, and The Depository Trust Company, as the
initial Clearing Agency, dated as of March 29, 2001, relating to the
Certificates, as the same may be amended and supplemented from time to time.
"Eligible Deposit Account" means either (a) a segregated trust account
with an Eligible Institution or (b) a segregated trust account with the
corporate trust department of a depository institution organized under the
laws of the United States of America or any one of the states thereof or the
District of Columbia (or any domestic branch of a foreign bank), having
corporate trust powers and acting as trustee for funds deposited in such
account, so long as any of the securities of such depository institution
shall have a credit rating from Standard & Poor's, Xxxxx'x and Fitch (if
rated by Fitch) in one of its generic rating categories which signifies
investment grade.
"Eligible Institution" means (a) the corporate trust department of the
Certificate Trustee or (b) a depository institution organized under the laws
of the United States of America, any State or the District of Columbia (or
any domestic branch of a foreign bank), (i) which has either a long-term
unsecured debt rating of AAA by Standard & Poor's and Fitch and Aaa by
Xxxxx'x or a certificate of deposit rating of A-1+ by Standard & Poor's, F1+
by Fitch and P-1 by Xxxxx'x, or any other long-term, short-term or
certificate of deposit rating acceptable to Standard & Poor's and Xxxxx'x and
(ii) whose deposits are insured by the FDIC. If so qualified under clause
(b) above, the Certificate Trustee may be considered an Eligible Institution
for the purposes of clause (a) of the definition of Eligible Deposit Account.
"Eligible Investments" mean book-entry securities, negotiable
instruments or securities represented by instruments in bearer or registered
form which evidence:
(a) direct obligations of, or obligations fully and
unconditionally guaranteed as to timely payment by, the United States of
America;
(b) demand deposits, time deposits or certificates of deposit of
any depository institution or trust company (any depositary institution
or trust company being referred to in this definition as a "financial
institution") incorporated under the laws of the United States or any
state thereof (or any domestic branch of a foreign bank) and subject to
supervision and examination by federal or state banking or depositary
institution authorities; provided, however, that at the time of the
investment or contractual commitment to invest therein, the commercial
paper or other short-term unsecured debt obligations (other than such
obligations the rating of which is based on the credit of a Person other
than such depositary institution or trust company) thereof shall have a
credit rating from Standard & Poor's, Xxxxx'x and Fitch (if rated by
Fitch) in the highest investment category granted thereby;
(c) commercial paper or other short term obligations of any
corporation organized under the laws of the United States of America
(other than the Seller or its Affiliates) whose ratings, at the time of
the investment or contractual commitment to invest therein, from
Standard & Poor's, Xxxxx'x and Fitch (if rated by Fitch) are in the
highest investment category granted thereby;
(d) investments in money market funds, which funds have a rating
from Standard & Poor's, Xxxxx'x and Fitch (if rated by Fitch) in the
highest investment category granted thereby (including funds for which
the Certificate Trustee or any of its Affiliates act as investment
manager or advisor);
(e) banker's acceptances issued by any depositary institution or
trust company referred to in clause (b) above;
(f) repurchase obligations with respect to any security that is a
direct obligation of, or fully guaranteed by, the United States of
America or any agency or instrumentality thereof the obligations of
which are backed by the full faith and credit of the United States of
America, in either case entered into with a depository institution or
trust company (acting as principal) described in clause (b) above;
(g) repurchase obligations with respect to any security or whole
loan entered into with
(i) a financial institution (acting as principal) described
in clause (b) above,
(ii) a broker/dealer (acting as principal) registered as a
broker or dealer under Section 15 of the Exchange Act (any
broker/dealer being referred to in this definition as a
"broker/dealer"), the unsecured short-term debt obligations of
which are rated P-1 by Xxxxx'x and A-1+ by Standard & Poor's at the
time of entering into this repurchase obligation, or
(iii) an unrated broker/dealer, acting as principal, that
is a wholly-owned subsidiary of a non-bank or bank holding company,
the unsecured short-term debt obligations of which are rated P-1 by
Xxxxx'x and A-1+ by Standard & Poor's at the time of purchase; or
(h) any other investment permitted by each Rating Agency;
provided, however, that, unless otherwise permitted by each Rating Agency,
upon the failure of any Eligible Institution to maintain any applicable
rating set forth in this definition or the definition of Eligible
Institution, the related investments at such institution shall be reinvested
in Eligible Investments at a successor Eligible Institution within 10 days;
and, provided, further, that, with respect to Xxxxx'x only, the obligor
related to clauses (b), (c), (e), (f) and (g) above must have both a long
term rating of at least Aa3 and a short term rating of at least P-1.
"Event of Default" means, with respect to the Certificates, (i) a Note
Event of Default, or (ii) a breach by State of Connecticut of the State
Pledge described in Section 10.01(a).
"FDIC" means the Federal Deposit Insurance Corporation or any successor.
"Fee and Indemnity Agreement" means the fee and indemnity agreement
dated as of March 30, 2001, among the Note Issuer, the Delaware Trustee, the
Certificate Trustee, the Certificate Issuer and the Finance Authority, as
amended and supplemented from time to time.
"Final Termination Date" means, with respect to any Class of
Certificates, the Final Maturity Date of the related Class of Notes.
"Finance Authority" means the State of Connecticut, acting through the
office of the State Treasurer.
"Interest Rate" has the meaning set forth in Section 2.01(b).
"LIBOR" means a rate per annum equal to the London interbank offered
rate for three-month United States dollar deposits, calculated by the
Certificate Trustee according to the procedure in Exhibit B hereto.
"London Banking Day" means a day on which dealings in United States
dollars are transacted in the London interbank market.
"Minimum Denomination" means $1,000 or any integral multiple of $1.00 in
excess thereof; provided, however, that one Certificate of each Class may be
of a smaller denomination.
"Note Event of Default" means, with respect to the Notes, any Event of
Default (as such term is defined in the Note Indenture).
"Note Indenture" means the Note Indenture dated as of March 30, 2001
between the Note Issuer and the Note Trustee, as amended and supplemented
from time to time.
"Note Issuer" means CL&P Funding LLC, a Delaware limited liability
company, and its successors in interest.
"Note Purchase Agreement" means the Note Purchase Agreement dated as of
March 30, 2001, between the Note Issuer and the Certificate Issuer, as the
same may be amended or supplemented from time to time.
"Note Trustee" means the Person acting as Note Trustee under the Note
Indenture.
"Notes" has the meaning set forth in the recitals to this Certificate
Indenture.
"Officer's Certificate" means a certificate signed by any Authorized
Representative of the Certificate Issuer, under the circumstances described
in, and otherwise complying with, the applicable requirements of
Section 1.02, and delivered to the Certificate Trustee.
"Opinion of Counsel" means one or more written opinions of counsel who
may, except as otherwise expressly provided in this Certificate Indenture, be
an employee of or counsel to the Certificate Issuer and who shall be
reasonably satisfactory to the Certificate Trustee, and which opinion or
opinions shall be addressed to the Certificate Trustee, as trustee, shall
comply with any applicable requirements of Section 1.02, and shall be in form
and substance reasonably satisfactory to the Certificate Trustee.
"Original Class A-4 Swap Agreement" means the Swap Agreement dated as of
March 30, 2001, between the Certificate Issuer and Westdeutsche Landesbank
Girozentrale, New York Branch, as the Swap Counterparty thereunder, relating
to the Class A-4 Certificates.
"Original Principal Amount" means, with respect to any Certificate, the
amount set forth as such on the face of such Certificate on the date of its
issuance.
"Outstanding" means, as of the date of determination, all Certificates
theretofore authenticated and delivered under this Certificate Indenture
except:
(i) Certificates theretofore cancelled by the Certificate
Registrar or delivered to the Certificate Registrar for cancellation;
(ii) Certificates or portions thereof the payment for which money
in the necessary amount has been theretofore deposited with the
Certificate Trustee or any Paying Agent in trust for the Holders of such
Certificates (provided, however, that if such Certificates are to be
redeemed, notice of such redemption has been duly given pursuant to this
Certificate Indenture or provision therefor, reasonably satisfactory to
the Certificate Trustee, has been made); and
(iii) Certificates in exchange for or in lieu of other
Certificates that have been authenticated and delivered pursuant to this
Certificate Indenture unless proof satisfactory to the Certificate
Trustee is presented that any such Certificates are held by a bona fide
purchaser;
provided, however, that in determining whether the Holders of the
requisite Outstanding Amount of the Certificates or any Class thereof have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder or under any Basic Document, Certificates owned by the Note Issuer,
the Certificate Issuer, any other obligor upon the Certificates, the Seller,
or any Affiliate of any of the foregoing Persons shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the
Certificate Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only
Certificates that a Responsible Officer of the Certificate Trustee actually
knows to be so owned shall be so disregarded. Certificates so owned that
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Certificate Trustee the pledgee's
right so to act with respect to such Certificates and that the pledgee is not
the Note Issuer, any other obligor upon the Certificates, the Certificate
Issuer, the Seller, or any Affiliate of any of the foregoing Persons.
"Outstanding Amount" means the aggregate principal amount of all
Certificates, or, if the context requires, all Certificates of a Class,
Outstanding at the date of determination.
"Paying Agent" means the Certificate Trustee or any other Person that
meets the eligibility standards specified in Section 6.11(b) and is
authorized by the Certificate Issuer (with the prior written approval of the
Note Issuer) to make distributions of principal of or interest with respect
to the Certificates.
"Payment" means, with respect to the Notes, any payment (other than a
Special Payment but including any Redemption Payment) of principal of or
interest thereon.
"Payment Date" means, with respect to the Notes, the date or dates
specified as Payment Dates therefor in the Note Indenture.
"Person" means any individual, corporation, limited liability company,
estate, partnership, joint venture, association, joint stock company, trust
(including any beneficiary thereof), unincorporated organization or
government or any agency or political subdivision thereof.
"Qualified Replacement Counterparty" means a Replacement Counterparty
that (i) has the Swap Counterparty Minimum Ratings or (ii) enters into such
other arrangements as will result in the Class A-4 Certificates receiving
ratings not less than the ratings that would be received if such Replacement
Counterparty satisfied the Swap Counterparty Minimum Ratings.
"Record Date" means, with respect to any Distribution Date, the close of
business on the Business Day immediately preceding such Distribution Date or,
if Definitive Certificates are issued, the close of business on the last day
of the calendar month preceding the calendar month in which such Distribution
Date occurs.
"Redemption Payment" means, with respect to the Notes, any payment of
principal of and interest on the Notes due from the Note Issuer upon the
early redemption of the Notes, other than any such payment due by reason of
the occurrence of a Note Event of Default.
"Replacement Counterparty" has the meaning set forth in Section 3.03.
"Request" means a written request by the Certificate Issuer setting
forth the subject matter of the request accompanied by an Officer's
Certificate and an Opinion of Counsel as provided in Section 1.02.
"Responsible Officer" means any officer within the Corporate Trust
Office, including any Managing Director, Vice President, Assistant Vice
President, Secretary, Assistant Secretary or Assistant Treasurer or any other
officer of the Certificate Trustee customarily performing functions similar
to those performed by any of the above designated officers and also, with
respect to a particular matter, any other officer to whom such matter is
referred because of such officer's knowledge and familiarity with the
particular subject.
"Sale Agreement" means the Transition Property Purchase and Sale
Agreement dated as of March 30, 2001, between the Seller and the Note Issuer,
as amended and supplemented from time to time.
"Scheduled Final Distribution Date" means, with respect to any Class of
Certificates, the Scheduled Maturity Date of the related Class of Notes.
"Secured Parties" means the Holders of the Certificates of each Class,
and the Swap Counterparty with respect to the Class A-4 Notes, as their
interests appear hereunder.
"Securities Act" means the Securities Act of 1933, as amended.
"Seller" means The Connecticut Light and Power Company, a Connecticut
corporation, and its permitted successors and assigns under the Sale
Agreement.
"Servicer" means The Connecticut Light and Power Company, a Connecticut
corporation, in its capacity as servicer under the Servicing Agreement,
including its successors in interest, until a successor Person shall have
become the servicer pursuant to the Servicing Agreement, and thereafter
"Servicer" shall mean such successor Person.
"Servicing Agreement" means the Transition Property Servicing Agreement
dated as of March 30, 2001, between the Servicer and the Note Issuer, as
amended and supplemented from time to time.
"Special Distribution Date" means, with respect to the distribution of
any Special Payment with respect to any Class of Notes, the later of (i) the
date receipt of such Special Payment is confirmed by the Certificate Trustee
and (ii) the date that is the earlier of (A) if the Certificate Trustee shall
have received such Special Payment without prior notice thereof, 20 days
after such receipt is confirmed or (B) unless such Special Payment represents
the proceeds of a sale of such Notes by the Certificate Trustee (in which
event the Special Distribution Date for such proceeds shall be the earliest
date for which it is practicable for the Certificate Trustee to give the 20-
day notice required by Section 4.02(d)), the date that is 20 days after the
Certificate Trustee receives notice from the Note Issuer of the anticipated
payment of such Special Payment; provided, however, that in the event of the
repurchase of the Transition Property by the Seller, the Special Distribution
Date shall mean a date not later than five Business Days after receipt of
such proceeds.
"Special Payment" means, with respect to any Class of Notes, (i) any
payment of principal of or interest on (including any interest accruing upon
default), or any other amount in respect of, the Notes of such Class that is
paid more than five days after the Payment Date applicable thereto or
(ii) any proceeds from the sale of such Notes by the Certificate Trustee
pursuant to Article V hereof or the repurchase of the Transition Property by
the Seller pursuant to Article V of the Sale Agreement.
"Special Record Date" means, with respect to any Special Distribution
Date, the close of business on the 15th day (whether or not a Business Day)
preceding such Special Distribution Date.
"State Pledge" has the meaning set forth in Section 10.01(a).
"State Treasurer" means the Treasurer of the State of Connecticut.
"Swap Agent" has the meaning set forth in Section 3.03.
"Swap Agreement" means any interest rate swap agreement entered into by
the Certificate Issuer with respect to any Class of Certificates, including,
without limitation, the ISDA Master Agreement and the related Schedule and
Confirmation between the Certificate Issuer and a Swap Counterparty, as same
may be amended or supplemented from time to time.
"Swap Counterparty" means, with respect to any Swap Agreement, the swap
counterparty under that Swap Agreement.
"Swap Counterparty Minimum Ratings" means at least "Aa3" by Xxxxx'x, at
least "A+" or "A-1" by Standard & Poor's and, if rated by Fitch, at least
"A+" or "F1".
"Trust Indenture Act" means the Trust Indenture Act of 1939 as in force
on the date hereof, unless otherwise specifically provided.
"Trust Property" means, with respect to any Class of Certificates, the
Class of Notes and Swap Agreement, if any, corresponding to such Class of
Certificates held as the property of the Certificate Issuer and all monies at
any time paid thereon and all monies due and to become due thereunder, all
rights of the Certificate Trustee or the Certificate Issuer, as holder of
such Class of Notes, in and to the Collateral and any proceeds thereof, funds
from time to time deposited in the Certificate Account for such Class of
Certificates and any proceeds from the sale by the Certificate Trustee
pursuant to Article V hereof of Notes of such Class.
"Underwriters" means the underwriters who purchase the Certificates from
the Certificate Issuer and sell the Certificates in a public offering.
(b) Except as otherwise specified herein or as the context may
otherwise require, the following terms have the respective meanings set forth
in the Note Indenture as in effect on the Issuance Date for all purposes of
this Certificate Indenture.
Term Section of
Note Indenture
Administrator 1.01(a)
Affiliate 1.01(a)
Basic Documents 1.01(a)
Capital Subaccount 1.01(a)
Code 1.01(a)
Collateral 1.01(a)
DPUC 1.01(a)
Exchange Act 1.01(a)
Expected Amortization Schedule 1.01(b)
Final Maturity Date 1.01(a)
Financing Order 1.01(b)
Fitch 1.01(a)
Issuance Date 1.01(a)
Xxxxx'x 1.01(a)
Overcollateralization Subaccount 1.01(a)
Rating Agency 1.01(a)
Rating Agency Condition 1.01(a)
Reserve Subaccount 1.01(a)
Scheduled Maturity Date 1.01(a)
Standard & Poor's 1.01(a)
State 1.01(a)
Statute 1.01(a)
Transition Property 1.01(b)
UCC 1.01(a)
(c) When reference is made herein to the Certificates of any
Class, such reference shall mean the Certificates of such Class.
Section 1.02. Compliance Certificates and Opinions. Upon any
application or request by the Certificate Issuer to the Certificate Trustee
to take any action under any provision of this Certificate Indenture, the
Certificate Issuer shall furnish to the Certificate Trustee an Officer's
Certificate stating that, in the opinion of the signer thereof, all
conditions precedent, if any, provided for in this Certificate Indenture
relating to the proposed action have been complied with and, if requested by
the Certificate Trustee, an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent, if any, have been complied with,
except that in the case of any such application or request as to which the
furnishing of such documents is specifically required by any provision of
this Certificate Indenture relating to such particular application or
request, no additional certificate or opinion need be furnished. Any such
application or request by the Certificate Issuer to the Certificate Trustee
shall also be accompanied by evidence reasonably satisfactory to the
Certificate Trustee that the Note Issuer has given its prior written approval
of such application or request.
Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Certificate Indenture shall include:
(a) a statement that each signatory of such certificate or opinion
has read or caused to be read such covenant or condition and the definitions
herein relating thereto;
(b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;
(c) a statement that, in the opinion of each such signatory, such
signatory has made such examination or investigation as is necessary to
enable such signatory to express an informed opinion as to whether or not
such covenant or condition has been complied with; and
(d) a statement as to whether, in the opinion of each such
signatory, such condition or covenant has been complied with.
Section 1.03. Form of Documents Delivered to Certificate Trustee. In
any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the opinion of, only one such Person,
or that they be so certified or covered by only one document, but one such
Person may certify or give an opinion with respect to some matters and one or
more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an Authorized Representative of the
Certificate Issuer may be based, insofar as it relates to legal matters, upon
a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon
which his certificate or opinion is based are erroneous. Any such
certificate of an Authorized Representative or Opinion of Counsel may be
based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Servicer,
the Seller, the Note Issuer or the Administrator, stating that the
information with respect to such factual matters is in the possession of the
Servicer, the Seller, the Note Issuer or the Administrator, as the case may
be, unless such officer or counsel knows, or in the exercise of reasonable
care should know, that the certificate or opinion or representations with
respect to such matters are erroneous.
Whenever in this Certificate Indenture, in connection with any
application or certificate or report to the Certificate Trustee, it is
provided that the Certificate Issuer shall deliver any document as a
condition of the granting of such application, or as evidence of the
Certificate Issuer's compliance with any term hereof, it is intended that the
truth and accuracy, at the time of the granting of such application or at the
effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Certificate Issuer to have such application
granted or to the sufficiency of such certificate or report. The foregoing
shall not, however, be construed to affect the Certificate Trustee's right to
rely upon the truth and accuracy of any statement or opinion contained in any
such document as provided in Article VI.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Certificate Indenture, they may, but need not, be
consolidated and form one instrument.
Section 1.04. Acts of Certificateholders.
(a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Certificate Indenture to be
given or taken by Certificateholders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such
Certificateholders in person or by their agents duly appointed in writing;
and except as herein otherwise expressly provided such request, demand,
authorization, direction, notice, consent, waiver or other action shall
become effective when such instrument or instruments are delivered to the
Certificate Trustee, and, where it is hereby expressly required, to the
Certificate Issuer and the Note Trustee. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes
referred to as the "Act" of the Certificateholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this
Certificate Indenture and (subject to Article VI) conclusive in favor of the
Certificate Trustee, the Certificate Issuer and the Note Trustee, if made in
the manner provided in this Section.
(b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner that the Certificate
Trustee deems sufficient.
(c) The ownership of Certificates shall be proved by the
Certificate Register.
(d) Any request, demand, authorization, direction, notice,
consent, waiver or other action by the Holder of any Certificates shall bind
the Holder of every Certificate issued upon the registration thereof or in
exchange therefor or in lieu thereof, in respect of anything done, omitted or
suffered to be done by the Certificate Trustee, the Certificate Issuer or the
Note Trustee in reliance thereon, whether or not notation of such action is
made upon such Certificate.
(e) The Certificate Issuer may at its option by delivery of an
Officer's Certificate to the Certificate Trustee set a record date to
determine the Holders of any Class of Certificates entitled to give any
consent, request, demand, authorization, direction, notice, waiver or other
Act. Notwithstanding 316(c) of the Trust Indenture Act, such record date
shall be the record date specified in such Officer's Certificate, which shall
be the date not more than 30 days prior to the first solicitation of
Certificateholders in connection therewith. If such a record date is fixed,
such consent, request, demand, authorization, direction, notice, waiver or
other Act may be given before or after such record date, but only the Holders
of Certificates of the applicable Class at the close of business on such
record date shall be deemed to be Certificateholders of such Class for the
purposes of determining whether Holders of the requisite aggregate
Outstanding Amount of Certificates of such Class have authorized or agreed or
consented to such consent, request, demand, authorization, direction, notice,
waiver or other Act, and for that purpose the aggregate Outstanding Amount of
Certificates of such Class shall be computed as of such record date;
provided, however, that no such consent, request, demand, authorization,
direction, notice, waiver or other Act by the Holders of Certificates of such
Class on such record date shall be deemed effective unless it shall become
effective pursuant to the provisions of this Certificate Indenture not later
than one year after the record date.
(f) Except as otherwise provided in the definition of Outstanding,
Certificates of any Class owned by or pledged to any Person shall have an
equal and proportional benefit under the provisions of this Certificate
Indenture, without preference, priority or distinction as among all of the
Certificates of that Class.
ARTICLE II
The Certificates
Section 2.01. Terms of the Certificates.
(a) Authorization; Designation. The issuance of the Certificates
is hereby authorized and the Certificates shall be designated generally as
the Connecticut RRB Special Purpose Trust CL&P-1 Rate Reduction Certificates
(the "Certificates"), and further designated as Classes A-1 through A-5.
Each such Class shall be in an aggregate principal amount equal to the
corresponding Class of Notes as set forth in the Note Purchase Agreement.
(b) Initial Principal Amount; Certificate Interest Rate; Scheduled
Final Distribution Date; Final Termination Date. The Certificates of each
Class shall have the initial principal amount, bear interest at the rates per
annum (each an "Interest Rate") and shall have Scheduled Final Distribution
Dates and Final Termination Dates as set forth below:
Class Initial Principal Interest Rate Scheduled Final Final Termination
Amount Distribution Date Date
A-1 $224,858,822 4.87% 3/30/2003 3/30/2005
A-2 $255,056,333 5.36% 3/30/2005 3/30/2007
A-3 $292,381,624 5.73% 3/30/2007 3/30/2009
A-4 $287,907,878 LIBOR + 0.31% 12/30/2008 12/30/2010
A-5 $378,195,343 6.21% 12/30/2010 12/30/2011
(c) Computation and Distribution of Interest. The interest
payable on the Certificates, Class A-1, Class A-2, Class A-3 and Class A-5,
for any Distribution Date shall be computed on the basis of a 360-day year of
twelve 30-day months. The interest payable on the Class A-4 Certificates for
any Distribution Date shall be computed as set forth below.
Notwithstanding the foregoing, upon the termination of the Class A-4
Swap Agreement (or any replacement Class A-4 Swap Agreement) for any reason
and for so long as there is no replacement Class A-4 Swap Agreement in
effect, the Class A-4 Certificates shall bear interest at the fixed rate of
6.06 percent per annum (the "Class A-4 Gross Fixed Rate"), effective from and
including the Distribution Date preceding such termination. The Class A-4
Gross Fixed Rate shall be computed on the basis of a 360-day year of twelve
30-day months. At such time as the Certificate Issuer enters into a
replacement Class A-4 Swap Agreement pursuant to Section 3.03, the Class A-4
Certificates shall revert to the interest rate of LIBOR plus 0.31 percent,
commencing to accrue as of the next Distribution Date following the date such
replacement Class A-4 Swap Agreement becomes effective and computed on the
basis of the actual number of days elapsed and a 360-day year.
On each Distribution Date after the initial Distribution Date, interest
will be payable on the Certificates in an amount equal to: (1) with respect
to the Certificates, Class A-1, Class A-2, Class A-3 and Class A-5, one-
quarter and (2) with respect to the Class A-4 Certificates, the actual number
of days since the preceding Distribution Date to and including the day
preceding the actual Distribution Date, divided by 360, times the product of:
(i) the applicable Interest Rate times
(ii) the Outstanding Amount of the related Class of Certificates as
of the close of business on the preceding Distribution Date after giving
effect to all payments of principal made to the Holders of the related
Class of Certificates on such preceding Distribution Date.
With respect to the initial Distribution Date, interest will be payable
in an amount equal to:
(i) with respect to the Certificates, Class A-1, Class A-2, Class
A-3 and Class A-5, the number of days from and including the Issuance
Date to, but excluding, the initial Distribution Date (assuming a 360-
day year of twelve 30-day months), times the product of:
(A) the applicable Interest Rate for such Class times
(B) the original principal amount of such Class of
Certificates as of the Issuance Date; and
(ii) with respect to the Class A-4 Certificates, the sum of
(A) the actual number of days from and including the Issuance
Date up to but excluding July 2, 2001, divided by 360, times
the product of: (1) LIBOR (calculated on March 28, 2001) plus 0.31%
times (2) the original principal amount of the Class A-4
Certificates, plus
(B) the actual number of days from and including July 2, 2001
to but excluding September 30, 2001 Distribution Date, divided by 360,
times the product of: (1) LIBOR (calculated on June 28, 2001) plus 0.31%
times (2) the original principal amount of the Class A-4 Certificates.
(d) Floating Rate Subaccount. Upon the issuance of the Class A-4
Certificates, the Certificate Trustee will establish and maintain a
Certificate Account (the "Class A-4 Subaccount"), which the Certificate
Trustee will hold in trust for the benefit of the Holders of the Class A-4
Certificates and the Swap Counterparty, on a pari passu basis. Subject to any
proration among Classes in the case of a Note shortfall of funds available to
pay interest on the Certificates pursuant to Section 8.02(d) of the Note
Indenture, the Certificate Trustee, in accordance with Section 4.01, shall
allocate to the Class A-4 Subaccount an amount equal to the Class A-4 Gross
Fixed Amount with respect to such Distribution Date (together with any
amounts paid on the Class A-4 Notes with respect to overdue interest,
including any interest paid on such interest and distributed in accordance
with Section 8.02(d)(v) of the Note Indenture). On the Distribution Date,
any net amount payable by the Certificate Issuer to the Class A-4 Swap
Counterparty under the Class A-4 Swap Agreement shall be paid from the Class
A-4 Subaccount, and any net amount payable to the Certificate Issuer by the
Class A-4 Swap Counterparty under the Class A-4 Swap Agreement shall be
deposited into the Class A-4 Subaccount on the Business Day preceding the
Distribution Date. On the Distribution Date, amounts in the Class A-4
Subaccount after such netting and payment shall be paid as interest to the
Holders of the Class A-4 Certificates.
If, on any Distribution Date for any Calculation Period during which the
Class A-4 Swap Agreement is in effect, there are insufficient funds in the
Class A-4 Subaccount to pay the interest due to the Holders of the Class A-4
Certificates because of a failure of the Class A-4 Swap Counterparty to pay
any net amount payable by the Class A-4 Swap Counterparty under the Class A-4
Swap Agreement, the Class A-4 Holders shall have no recourse to amounts in
any other Certificate Account to recover such shortfall other than from
amounts subsequently paid by the Class A-4 Swap Counterparty.
If for any Distribution Date there are insufficient funds in the Class
A-4 Subaccount to pay the interest due to the Holders of the Class A-4
Certificates and to pay any net amount payable to the Class A-4 Swap
Counterparty by the Certificate Issuer under the Class A-4 Swap Agreement
because of a shortfall of funds available for the Certificate Trustee to
allocate to the Class A-4 Subaccount the full amount of the Class A-4 Fixed
Gross Amount with respect to such Distribution Date, amounts in the Class A-4
Subaccount shall be distributed to the Holders of the Class A-4 Certificates
and the Class A-4 Swap Counterparty on a pari passu and pro rata basis based
on the respective amounts payable to the Swap Counterparty and the Holders of
the Class A-4 Certificates with respect to such Distribution Date.
(e) The Class A-4 Swap Counterparty shall have no interest in or
claim to any amounts representing the Redemption Price of the Class A-4 Notes
payable to Class A-4 Certificateholders from the Repurchase Price of the
Transition Property purchased by the Seller pursuant to Section 5.01 of the
Sale Agreement, or to any indemnity payments made by the Servicer to Class A-
4 Certificateholders under Section 6.02 of the Servicing Agreement and none
of the Class A-4 Certificateholders, any other Certificateholders or the
Certificate Trustee or any other person acting for the Certificateholders
will have any interest in or claim to any loss or indemnity payment paid by
the Seller to the Class A-4 Swap Counterparty pursuant to Section 5.01 of the
Sale Agreement nor to any indemnity payment payable to the Class A-4 Swap
Counterparty pursuant to Section 6.02 of the Servicing Agreement.
(f) Notification of LIBOR. On each Class A-4 Interest
Determination Date, the Certificate Trustee will notify the Servicer, the
Certificate Issuer and the Swap Counterparty of LIBOR for the applicable
period as determined by the Certificate Trustee, and the Certificate Issuer
will notify the Luxembourg Stock Exchange of that rate to the extent any
floating rate certificates are listed on that exchange and the rules of that
exchange so require.
Section 2.02. Issuance of Certificates. On the Issuance Date, the
Certificate Issuer, subject to the provisions of this Certificate Indenture
and the Note Purchase Agreement, shall issue, and the Delaware Trustee shall
execute on behalf of the Certificate Issuer and the Certificate Trustee shall
authenticate and deliver, in fully registered form only, the Certificates of
the Class corresponding to the Class of Notes issued on such Issuance Date,
all in accordance with the Note Purchase Agreement. Each Certificate
represents a fractional undivided beneficial interest in a corresponding
Class of Notes and the proceeds thereof. Prior to the execution and
authentication of the Certificates of any Class, the Certificate Trustee
shall have received the following:
(a) The Class of Notes, duly executed by the Note Issuer and
authenticated by the Note Trustee, corresponding to the Class of Certificates
to be issued;
(b) A certificate of an Authorized Representative of the Note
Issuer to the effect that all conditions required to be satisfied under
Section 2.10 of the Note Indenture for the issuance of such Class of Notes
and all conditions required to be satisfied under the Note Purchase Agreement
for the purchase of the Notes by the Certificate Issuer have been satisfied,
together with executed copies of all documents, certificates, opinions,
orders or approvals establishing satisfaction of such conditions;
(c) An order of an Authorized Representative of the Certificate
Issuer (i) directing the Delaware Trustee on behalf of the Certificate Issuer
to execute and deliver this Certificate Indenture to be executed in
connection with the Certificates to be issued hereunder, (ii) directing the
Delaware Trustee on behalf of the Certificate Issuer to execute and deliver
the Note Purchase Agreement and (iii) directing the Delaware Trustee to
execute and deliver on behalf of the Certificate Issuer, and the Certificate
Trustee to authenticate, as Authentication Agent, global Certificates, each
to be registered in the name of Cede & Co., as nominee of The Depository
Trust Company ("DTC"), and to confirm its custody of the Certificates to DTC
in New York, New York so that the Certificate may be credited to or upon the
order of the Underwriters named in said order for the purchase price
specified therein and directing the application of the proceeds thereof;
(d) An Opinion of Counsel, portions of which may be delivered by
counsel to the Certificate Issuer and portions of which may be delivered by
counsel to the Certificate Trustee or other counsel satisfactory to the
Certificate Trustee, dated the Issuance Date in each case subject to the
customary exceptions, qualifications and assumptions contained therein (which
may include, for the purpose of the Issuance Date, the assumption that the
Financing Order has been duly authorized by the DPUC and is in full force and
effect), to the effect that:
(i) this Certificate Indenture has been duly authorized, executed
and delivered by the Certificate Issuer and Delaware Trustee;
(ii) this Certificate Indenture constitutes a valid and binding
agreement of the Certificate Issuer and Delaware Trustee, enforceable in
accordance with its terms except as enforcement thereof may be subject
to or limited by bankruptcy, insolvency, moratorium, reorganization,
fraudulent conveyance or other similar laws relating to or affecting the
enforcement of creditors' rights generally and by general equitable
principles (regardless of whether such enforceability is considered in a
proceeding in equity or at law), including that the availability of
specific enforcement or injunctive relief is subject to the discretion
of the court before which any such proceeding is brought;
(iii) all instruments furnished to the Certificate Trustee as
conditions precedent to the delivery of the Certificates conform to the
requirements of this Certificate Indenture and constitute all documents
required to be delivered thereunder to authorize the Certificate Trustee
to execute, authenticate and deliver the Certificates;
(iv) the Certificates to be issued have been duly authorized and
executed and, when authenticated in accordance with the provisions of
this Certificate Indenture and delivered to and paid for by the
Underwriters pursuant to the Underwriting Agreement dated March 27,
2001, among the Seller, the Note Issuer and Xxxxxx Brothers Inc. and
Xxxxxxx Xxxxx Xxxxxx Inc., as the representatives of the several
underwriters named therein, will represent valid, fully paid and
nonassessable undivided beneficial interests in the assets of the
Certificate Issuer, entitled to the benefits of this Certificate
Indenture;
(v) the Note Purchase Agreement has been duly executed and
delivered by the Delaware Trustee on behalf of the Certificate Issuer
and, assuming due authorization, execution and delivery thereof by the
Note Issuer, constitutes a legal, valid and binding agreement of the
Certificate Issuer, enforceable against the Certificate Issuer in
accordance with its terms except as enforcement thereof may be subject
to or limited by bankruptcy, insolvency, moratorium, reorganization,
fraudulent conveyance or other similar laws relating to or affecting the
enforcement of creditors' rights generally and by general equitable
principles (regardless of whether such enforceability is considered in a
proceeding in equity or at law), including that the availability of
specific enforcement or injunctive relief is subject to the discretion
of the court before which any such proceeding is brought;
(vi) the Certificate Issuer is a duly organized and validly
existing business trust under the Business Trust Statute and is in good
standing;
(vii) this Certificate Indenture has been duly qualified under
the Trust Indenture Act or no such qualification is necessary;
(viii) the Certificate Issuer constitutes a "financing entity"
under Section 16-245e(a) of the Statute, and the Certificates constitute
"rate reduction bonds" under Section 16-245e(a) of the Statute and the
Holders of the Certificates are entitled to the rights and benefits
thereunder;
(ix) for Federal income tax purposes, the Certificate Issuer is not
a business entity classified as a corporation or a publicly traded
partnership treated as a corporation, but is a "grantor trust" not
taxable as a corporation;
(x) the Statute creates, upon the effective date of the Financing
Order, a first priority lien in the Transition Property securing all
obligations, then existing or subsequently arising, to the Holders of
the Certificates in respect of such Certificates or to the Certificate
Trustee in its capacity as such; and
(xi) such other matters as the Certificate Trustee may reasonably
require.
(e) Sufficient funds to pay the purchase price for the related
Class of Notes, as specified in Section 1(b) of the Note Purchase Agreement;
(f) The Rating Agency Condition shall have been satisfied with
respect to the issuance of the Class of Certificates; and
(g) With respect to the Class A-4 Certificates, an executed copy
of the Class A-4 Swap Agreement.
Section 2.03. Form, Denomination and Execution of Certificates. The
Certificates shall be issued in registered form without coupons and shall be
substantially in the form attached hereto as Exhibit A-1 (in the case of
Class A-1, A-2, A-3 or A-5 Certificates) or Exhibit A-2 (in the case of Class
A-4 Certificates), with the following filled in: (a) the designation of the
Classes thereof, which shall be the same designation as the related Class or
Classes of Notes, (b) the Certificate number or numbers thereof, (c) the date
of authentication thereof, which shall be the same as the Issuance Date of
the related Class or Classes of Notes, and (d) the Original Principal Amount
thereof, which shall equal, in the aggregate, the principal amount of the
Notes; and with such omissions, variations and insertions as are permitted by
this Certificate Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements printed, lithographed or
engraved thereon as may be required to comply with the rules of any
securities exchange on which any Class or Classes of the Certificates may be
listed or to conform to any usage in respect thereof, or as may, consistently
herewith, be prescribed by the Certificate Trustee or by the Certificate
Issuer (with the prior written approval of the Note Issuer), and as evidenced
by the execution and authentication of such Certificates.
Except as provided in Section 2.12, the definitive Certificates of each
Class shall be printed, lithographed or engraved or produced by any
combination of these methods or may be produced in any other manner permitted
by the rules of any securities exchange on which the Certificates of such
Class may be listed, as evidenced by an order by an Authorized Representative
of the Certificate Issuer, relating to the authentication of such
Certificates by the Certificate Trustee.
The Certificates of each Class shall be issued in not less than Minimum
Denominations.
The Certificates shall be executed on behalf of the Certificate Issuer
by the Delaware Trustee by manual or facsimile signature of a Responsible
Officer of the Delaware Trustee. Certificates bearing the manual or
facsimile signature of an individual who was, at the time when such signature
was affixed, authorized to sign on behalf of the Certificate Issuer shall be
validly issued by the Certificate Issuer, notwithstanding that such
individual has ceased to be so authorized prior to the authentication and
delivery of such Certificates or did not hold such office at the date of such
Certificates. No Certificate shall be entitled to any benefit under this
Certificate Indenture, or be valid for any purpose, unless there appears on
such Certificate a certificate of authentication substantially in the form
set forth in Exhibit A-1 or A-2 hereto (as applicable) executed by the
Certificate Trustee (or any Authentication Agent) by manual signature, and
such certificate of authentication upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the
date of their authentication.
Section 2.04. Authentication of Certificates. The Certificate Trustee
shall duly authenticate and deliver Certificates of each Class in authorized
denominations equaling, in the aggregate for each Class of Certificates, the
aggregate initial principal amount of the Notes of such Class.
Section 2.05. Temporary Certificates. Pending the preparation of
definitive Certificates of any Class, the Delaware Trustee on behalf of the
Certificate Issuer may execute, and the Certificate Trustee or any
Authentication Agent upon written order of the Certificate Issuer shall
authenticate and deliver, temporary Certificates of such Class that are
printed, lithographed, typewritten or otherwise produced, in any
denomination, containing substantially the same terms and provisions as set
forth in Exhibit A, except for such appropriate insertions, omissions,
substitutions and other variations relating to their temporary nature as the
Certificate Issuer may determine, as evidenced by the execution of such
temporary Certificates by the Delaware Trustee on behalf of the Certificate
Issuer.
If temporary Certificates of any Class are issued, the Certificate
Issuer will cause definitive Certificates of such Class to be prepared
without unreasonable delay. After the preparation of definitive Certificates
of such Class, the temporary Certificates shall be exchangeable for
definitive Certificates of such Class upon surrender of the temporary
Certificates at the Corporate Trust Office of the Certificate Trustee, or at
the office or agency of the Certificate Trustee maintained in accordance with
Section 6.11, without charge to the Holder. Upon surrender for cancellation
of any one or more temporary Certificates, the Delaware Trustee on behalf of
the Certificate Issuer shall execute and the Certificate Trustee shall
authenticate and deliver in exchange therefor definitive Certificates (of the
same Class as the temporary Certificates surrendered) of authorized
denominations of a like aggregate Original Principal Amount. Until so
exchanged, such temporary Certificates shall in all respects be entitled to
the same benefits under this Certificate Indenture as definitive Certificates
of the same Class.
Section 2.06. Registration of Transfer and Exchange of Certificates.
The Certificate Trustee shall cause to be kept at the office of agency to be
maintained by it in accordance with the provisions of Section 6.11 a register
(the "Certificate Register") in which, subject to such reasonable regulations
as it may prescribe, the Certificate Trustee shall provide for the
registration of Certificates and of transfers and exchanges of Certificates
as herein provided. The Certificate Trustee shall initially be the registrar
(the "Certificate Registrar") for the purpose of registering Certificates and
transfers and exchanges of Certificates as herein provided.
Subject to this Section 2.06, upon surrender for registration of
transfer of any Certificate at the Corporate Trust Office or such other
office or agency maintained by the Certificate Trustee in accordance with
Section 6.11, the Delaware Trustee on behalf of the Certificate Issuer shall
execute, and the Certificate Trustee shall authenticate and deliver, in the
name of the designated transferee, one or more new Certificates (of the same
Class as the Certificates surrendered for registration of transfer) in
authorized denominations of a like aggregate Original Principal Amount;
provided, however, that if any such surrendered Certificate shall have become
or within 15 days shall be due and payable or shall have been called for
redemption, instead of issuing a replacement Certificate, the Certificate
Trustee may pay such surrendered Certificate when so due and payable or upon
the Special Distribution Date without surrender thereof.
At the option of a Certificateholder, Certificates may be exchanged for
other Certificates (of the same Class as the Certificates surrendered for
registration of exchange) of authorized denominations of a like aggregate
Original Principal Amount, upon surrender of the Certificates to be exchanged
at any such office or agency. Whenever any Certificates are so surrendered
for exchange, the Delaware Trustee on behalf of the Certificate Issuer shall
execute, and the Certificate Trustee shall authenticate and deliver the
Certificates that the Certificateholder making the exchange is entitled to
receive.
Every Certificate presented or surrendered for registration of transfer
or exchange shall be duly endorsed or accompanied by a written instrument of
transfer in form satisfactory to the Certificate Trustee and the Certificate
Registrar duly executed by the Certificateholder thereof or its attorney duly
authorized in writing.
No service charge shall be made to a Certificateholder for any
registration of transfer or exchange of Certificates, but the Certificate
Trustee shall require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.
All Certificates surrendered for registration of transfer or exchange
shall be cancelled and subsequently destroyed by the Certificate Trustee in
accordance with its customary practices.
Section 2.07. Certificateholders' Lists and Reports by Certificate
Trustee.
(a) The Certificate Issuer To Furnish Certificate Trustee with
Names and Addresses of Certificateholders. The Certificate Registrar on
behalf of the Certificate Issuer will furnish or cause to be furnished to the
Certificate Trustee within 15 days after each Record Date, and at such other
times as the Certificate Trustee may request in writing, within 30 days after
receipt by the Certificate Issuer of any such request, a list, in such form
as the Certificate Trustee may reasonably require, of all information in the
possession or control of the Certificate Issuer as to the names and addresses
of the Certificateholders, in each case as of a date not more than 15 days
prior to the time such list is furnished; provided, however, that so long as
the Certificate Trustee is the sole Certificate Registrar, no such list need
be furnished; and provided further, however, that no such list need be
furnished for so long as a copy of the Certificate Register is being
furnished to the Certificate Trustee pursuant to Section 6.11.
Upon the written request of any Certificateholder or Certificateholders
of record holding Certificates evidencing not less than ten percent of the
aggregate Outstanding Amount of Certificates, the Certificate Trustee shall
afford such Certificateholder or Certificateholders access during business
hours to the current list of Certificateholders for purposes of communicating
with other Certificateholders with respect to their rights under this
Certificate Indenture.
(b) Preservation of Information. The Certificate Trustee shall
preserve, in as current a form as is reasonably practicable, the names and
addresses of Certificateholders contained in the most recent list furnished
to the Certificate Trustee as provided in Section 6.11 or Section 2.07(a), as
the case may be, and the names and addresses of Certificateholders received
by the Certificate Trustee in its capacity as Certificate Registrar, if so
acting. The Certificate Trustee may destroy any list furnished to it as
provided in Section 6.11 or Section 2.07(a), as the case may be, upon receipt
of a new list so furnished.
(c) Communications Among Certificateholders. Certificateholders
may communicate pursuant to Section 312(b) of the Trust Indenture Act with
other Certificateholders with respect to their rights under this Certificate
Indenture or under the Certificates.
(d) Reports by Certificate Trustee. To the extent that any of the
events described in Section 313(a) of the Trust Indenture Act shall have
occurred, within 60 days after December 31 of each year, commencing with the
year 2001, the Certificate Trustee shall transmit to the Certificateholders,
as provided in Section 313(c) of the Trust Indenture Act, a brief report
dated as of such December 31, if required by Section 313(a) of the Trust
Indenture Act. The Certificate Trustee also shall comply with Section 313(b)
of the Trust Indenture Act.
A copy of each report at the time of its mailing to Certificateholders
shall be filed by the Certificate Trustee with the Commission and with each
stock exchange, if any, on which the Certificates are listed and of which
listing the Certificate Trustee has been informed. The Certificate Issuer
shall notify the Certificate Trustee if and when the Certificates are listed
on any stock exchange.
(e) Reports by the Certificate Issuer. Pursuant to Section
314(a)(4) of the Trust Indenture Act, the Certificate Issuer shall furnish to
the Certificate Trustee, not less often than annually and prior to January 31
of each year, commencing January 31, 2002, a certificate prepared by the
Delaware Trustee on behalf of the Certificate Issuer as to the Certificate
Issuer's compliance with all conditions and covenants under this Certificate
Indenture. For purposes of this Section 2.07(e), such compliance shall be
determined without regard to any period of grace or requirement of notice
provided under this Certificate Indenture. In addition, the Certificate
Trustee shall forward such Certificate to the Certificateholders.
(f) Protections. The Certificate Issuer, the Certificate Trustee
and the Certificate Registrar shall have the protection of Section 312(c) of
the Trust Indenture Act.
Section 2.08. Mutilated, Destroyed, Lost or Stolen Certificates. If
(a) any mutilated Certificate is surrendered to the Certificate Registrar, or
the Certificate Registrar receives evidence to its satisfaction of the
destruction, loss or theft of any Certificate, and (b) there is delivered to
the Certificate Registrar and the Certificate Trustee such security,
indemnity or bond as may be required by them to save each of them harmless,
then, in the absence of notice to the Certificate Registrar or the
Certificate Trustee that such Certificate has been acquired by a bona fide
purchaser, the Delaware Trustee, on behalf of the Certificate Issuer shall
execute, and the Certificate Trustee shall authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Certificate, a new Certificate (of the same Class as the Certificate so
mutilated, destroyed, lost or stolen) of like Original Principal Amount. In
connection with the issuance of any new Certificate under this Section 2.08,
the Certificate Trustee shall require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the
Certificate Trustee and the Certificate Registrar) connected therewith. Any
duplicate Certificate issued pursuant to this Section 2.08 shall constitute
conclusive evidence of the same interest in the Certificate Issuer, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.
Every replacement Certificate issued pursuant to this Section in
replacement of any mutilated, destroyed, lost or stolen Certificate shall
constitute an original additional contractual obligation of the Certificate
Issuer, whether or not the mutilated, destroyed, lost or stolen Certificate
shall be at any time enforceable by anyone, and shall be entitled to all the
benefits of this Certificate Indenture equally and proportionately with any
and all other Certificates duly issued hereunder.
Section 2.09. Persons Deemed Owners. Prior to due presentation of a
Certificate for registration of transfer, the Certificate Trustee, the
Delaware Trustee, the Certificate Registrar and any Paying Agent of the
Certificate Trustee may treat the Person in whose name any Certificate is
registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.02 and for all other purposes whatsoever,
and none of the Certificate Trustee, the Delaware Trustee, the Certificate
Registrar or any Paying Agent of the Certificate Trustee shall be affected by
any notice to the contrary.
Section 2.10. Cancellation. All Certificates surrendered for payment
or transfer or exchange shall, if surrendered to any party hereto other than
the Certificate Registrar, be delivered to the Certificate Registrar for
cancellation. No Certificates shall be authenticated in lieu of or in
exchange for any Certificates cancelled as provided in this Section, except
as expressly permitted by this Certificate Indenture. All cancelled
Certificates held by the Certificate Registrar shall be delivered to the
Certificate Trustee and, in accordance with Section 2.06, destroyed.
Section 2.11. Limitation of Liability for Payments. All payments or
distributions made to Holders of Certificates under this Certificate
Indenture shall be made only from the Trust Property with respect to that
Class of Certificates and only to the extent that the Certificate Trustee
shall have sufficient income or proceeds from such Trust Property to make
such payments in accordance with the terms of Article IV of this Certificate
Indenture. Each Holder of a Certificate of any Class, by its acceptance of a
Certificate of that Class, agrees that it will look solely to the income and
proceeds from the Trust Property with respect to that Class to the extent
available for distribution to the Holder thereof as provided in this
Certificate Indenture. It is expressly understood and agreed by the parties
hereto that (a) the Certificates are executed, authenticated and delivered by
the Delaware Trustee and the Certificate Trustee, respectively, not
individually or personally but solely in their respective capacity as
Delaware Trustee and Certificate Trustee in the exercise of the powers and
authority conferred and vested in them, and (b) under no circumstances shall
the Delaware Trustee or Certificate Trustee be personally liable for the
payment of any of the Certificates or any indebtedness or expenses of the
Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Certificate
Issuer under this Certificate Indenture.
Section 2.12. Book-Entry and Definitive Certificates.
(a) The Certificates of any Class may be issued in the form of one
or more typewritten certificates representing the Book-Entry Certificates of
that Class, to be delivered to The Depository Trust Company, the initial
Clearing Agency, by, or on behalf of, the Certificate Issuer. In such case,
the Certificates of such Class delivered to The Depository Trust Company
shall initially be registered on the Certificate Register in the name of
Cede & Co., the nominee of the initial Clearing Agency, and no Certificate
Owner will receive a definitive Certificate representing such Certificate
Owner's interest in the Certificate of such Class, except as provided in
Section 2.12(c) below. Unless and until definitive, fully registered
Certificates ("Definitive Certificates") of such Class have been issued
pursuant to Section 2.12(c) below:
(i) the provisions of this Section 2.12 shall be in full force and
effect with respect to the Certificates of such Class;
(ii) the Certificate Issuer, the Paying Agent, the Certificate
Registrar, the Delaware Trustee and the Certificate Trustee may deal
with the Clearing Agency for all purposes (including the making of
distributions on the Certificates of such Class) as the authorized
representative of the Certificate Owners of Certificates of such Class;
(iii) to the extent that the provisions of this Section 2.12
conflict with any other provisions of this Certificate Indenture, the
provisions of this Section 2.12 shall control;
(iv) the rights of Certificate Owners of Certificates of such Class
shall be exercised only through the Clearing Agency and shall be limited
to those established by law and agreements between such Certificate
Owners and the Clearing Agency Participants; and until Definitive
Certificates of such Class are issued pursuant to Section 2.12(c) below,
the Clearing Agency will make book-entry transfers among the Clearing
Agency Participants and receive and transmit distributions of principal
of and interest on the Certificates of such Class to such Clearing
Agency Participants; and
(v) whenever this Certificate Indenture requires or permits
actions to be taken based upon instructions or directions of
Certificateholders holding Certificates of such Class representing a
specified percentage of the aggregate Outstanding Amount of Certificates
of such Class, the Clearing Agency shall be deemed to represent such
percentage only to the extent that it has received instructions to such
effect from Certificate Owners or Clearing Agency Participants owning or
representing, respectively, Certificates representing such percentage of
the aggregate Outstanding Amount of Certificates of such Class, and has
delivered such instructions to the Certificate Trustee; the Certificate
Trustee shall have no obligation to determine whether the Clearing
Agency has in fact received any such instructions.
(b)Whenever notice or other communication to the Holders of
Certificates of any Class issued in the form of Certificates representing
Book-Entry Certificates is required under this Certificate Indenture, unless
and until Definitive Certificates of such Class shall have been issued
pursuant to Section 2.12(c), the Certificate Trustee shall give all such
notices and communications specified herein to be given to Holders of
Certificates of such Class to the Clearing Agency.
(c) If (i) the Clearing Agency advises the Certificate Trustee in
writing that the Clearing Agency is no longer willing or able to properly
discharge its responsibilities with respect to the Certificates of a Class,
and the Certificate Trustee or the Certificate Issuer is unable to locate a
qualified successor, (ii) the Certificate Issuer (with the prior written
approval of the Note Issuer) at its option advises the Certificate Trustee in
writing that it elects to terminate the book-entry system through the
Clearing Agency with respect to the Certificates of such Class or (iii) after
the occurrence of a Note Event of Default with respect to any Class of
Certificates, Certificate Owners representing beneficial interests
aggregating at least a majority of the Outstanding Amount of the Certificates
advise the Clearing Agency and the Certificate Trustee in writing that the
continuation of a book-entry system through the Clearing Agency is no longer
in the best interests of the Certificate Owners, then the Clearing Agency
shall notify all Certificate Owners and the Certificate Trustee of the
occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners requesting the same. Upon surrender to
the Certificate Trustee of the typewritten certificate or certificates
representing the Book-Entry Certificates by the Clearing Agency, accompanied
by registration instructions, and upon written direction by the Certificate
Issuer, the Delaware Trustee shall execute on behalf of the Certificate
Issuer and the Certificate Trustee shall authenticate the Definitive
Certificates in accordance with the instructions of the Clearing Agency.
None of the Certificate Issuer, the Certificate Registrar, the Delaware
Trustee or the Certificate Trustee shall be liable for any delay in delivery
of such instructions and may conclusively rely on, and shall be fully
protected in relying on, such instructions. Upon the issuance of Definitive
Certificates, the Certificate Trustee and the Delaware Trustee shall
recognize the Holders of the Definitive Certificates as Certificateholders.
Section 2.13. Tax Treatment.
(a) It is the intention of the parties hereto that the Certificate
Issuer shall be treated as a "grantor trust" for federal income tax purposes
and all transactions contemplated by this Certificate Indenture will be
reported consistent with such treatment.
(b) The provisions of this Certificate Indenture shall be
construed, and the affairs of the Certificate Indenture shall be conducted,
so as to achieve treatment of the Certificate Indenture as a "grantor trust"
for federal income tax purposes.
ARTICLE III
Covenants
Section 3.01. Compliance with Declaration of Trust. The Certificate
Issuer covenants and agrees to operate in strict conformity with the
Declaration of Trust, the terms of which are incorporated herein by
reference, and shall not amend the Declaration of Trust except as expressly
permitted thereunder or in any manner that would adversely affect the
interests of the Certificateholders.
This Certificate Indenture and the Declaration of Trust shall, together,
constitute the governing instrument of the Trust. To the extent that the
provisions of this Certificate Indenture and the Declaration of Trust
conflict with respect to the issuance of the Certificates and the rights of
the holders thereof, this Certificate Indenture shall control.
Section 3.02. No Additional Certificates. The Certificate Issuer shall
not issue any additional Certificates hereunder, except pursuant to Section
2.06 and Section 2.08.
Section 3.03. Swap Agreements.
(a) Replacement of Swap Counterparty.
(i) Upon a termination event or event of default under any Class
A-4 Swap Agreement caused by the Class A-4 Swap Counterparty, the
Certificate Issuer shall appoint a recognized swap dealer that is a
member of the International Swaps and Derivatives Association, Inc.,
with capital and surplus of at least $50 million (the "Swap Agent"), to
independently solicit, for a period not exceeding 30 days, a replacement
Class A-4 Swap Counterparty (a "Replacement Counterparty"), who shall
not be the Swap Agent or an Affiliate thereof. During such 30-day
period, the Swap Agent shall be required to identify a Qualified
Replacement Counterparty, or if a Qualified Replacement Counterparty
cannot be found, the Swap Agent shall be required to identify the
highest rated Replacement Counterparty available that is approved by the
Holders of at least 66 2/3% of the Outstanding Amount of the Class A-4
Certificates (an "Approved Replacement Counterparty"). In any case, if
there is more than one available Qualified Replacement Counterparty or
Approved Replacement Counterparty, as applicable, with the same credit
rating, the Swap Agent shall select that prospective Qualified
Replacement Counterparty or Approved Replacement Counterparty, as
applicable, offering the terms with the lowest all-in cost to the
Certificate Issuer.
(ii) If the Swap Agent is successful in identifying a Qualified
Replacement Counterparty or Approved Replacement Counterparty, upon the
termination of the Class A-4 Swap Agreement, the Certificate Issuer
shall execute a replacement Class A-4 Swap Agreement with such
Replacement Counterparty having substantially the same terms as the
Class A-4 Swap Agreement being replaced, effective as of the
Distribution Date immediately succeeding such execution. Any up-front
amounts paid by such Replacement Counterparty (net of any expenses of
the Certificate Issuer or the Certificate Trustee which may be
reimbursable under the Class A-4 Swap Agreement) in connection with its
entering into such replacement Class A-4 Swap Agreement shall be paid to
the terminated Class A-4 Swap Counterparty.
(iii) If a Qualified Replacement Counterparty or an Approved
Replacement Counterparty has not been obtained, the Certificate Issuer
shall terminate the Class A-4 Swap Agreement unless otherwise directed
by 66 2/3% of the Outstanding Amount of the Class A-4 Certificates in
which event the Swap Agent may be required to renew such search every
three months thereafter until a Qualified Replacement Counterparty or
Approved Replacement Counterparty has been identified and approved and a
replacement Class A-4 Swap Agreement has been entered into in the manner
set forth in clauses (i) and (ii) above.
Upon termination or assignment of any Swap Counterparty's rights
and powers, pursuant to any Swap Agreement, the Certificate Trustee
shall promptly inform the Certificate Issuer, the Holders of the related
Class and the Rating Agencies of such termination or assignment. As
soon as a replacement Swap Counterparty is appointed, the Certificate
Issuer shall notify the Certificate Trustee, the Holders of the related
Class and the Rating Agencies of such appointment, specifying in such
notice the name and address of such replacement Swap Counterparty.
(b) Termination Events: Events of Default.
(i) If a termination event or an event of default caused by the
Class A-4 Swap Counterparty occurs and is continuing under the Class A-4
Swap Agreement, the Certificate Trustee, at the direction of the Holders
of at least 66 2/3% of the Outstanding Amount of the Class A-4
Certificates, shall exercise all rights, remedies, powers, privileges
and claims of the Certificate Issuer against the Class A-4 Swap
Counterparty, including the right or power to take any action to compel
or secure performance or observance by any Swap Counterparty of its
obligations to the Certificate Issuer thereunder and to give any
consent, request, notice, direction, approval, extension or waiver under
any Swap Agreement, and any right of the Certificate Issuer to take such
action shall be suspended.
(ii) Upon a swap counterparty downgrade event or payment default by
the Class A-4 Swap Counterparty under any Class A-4 Swap Agreement, the
Certificate Issuer shall not consent to any Approved Replacement
Counterparty that fails to satisfy the Swap Counterparty Minimum
Ratings, determine to continue with a downgraded Class A-4 Swap
Counterparty if a termination event under the Class A-4 Swap Agreement
has occurred, or waive a payment default by the Class A-4 Swap
Counterparty within the time periods prescribed in the Class A-4 Swap
Agreement, except as directed solely by the Holders of at least 66 2/3%
of the Outstanding Amount of the Class A-4 Certificates in their sole
discretion.
(iii) Upon the termination of any Swap Agreement and payment by
the related Swap Counterparty of any termination payment or other
similar amount to the Certificate Issuer in accordance with the terms of
such Swap Agreement, such amount shall be deposited directly into the
Certificate Account for the related Class of floating rate Certificates
and paid to the Holders of such floating rate Class on the next
Distribution Date.
(c) Amendments to Swap Agreement; Waivers.
(i) The Class A-4 Swap Agreement may be amended with the consent
of the Certificate Trustee and the related Class A-4 Swap Counterparty,
upon satisfaction of the Rating Agency Condition; but such amendment may
not adversely affect in any material respect the interests of the
Holders of Class A-4 Certificates unless the Holders of at least 66 2/3%
of the Outstanding Amount of the Class A-4 Certificates direct the
Certificate Trustee to consent to such amendment. Moreover, such
amendment may not adversely affect in any material respect the interests
of the Holders of any other Class of Certificates or any counterparty to
any other Swap Agreement without the consent of the Holders of at least
66 2/3% of the Outstanding Amount of all of such other Classes, and each
counterparty to any other Swap Agreement, materially and adversely
affected thereby. In consenting to any such amendment, the Certificate
Trustee shall be entitled to receive, and shall be fully protected in
relying upon, an Opinion of Counsel stating that such amendment does not
adversely affect in any material respect the interests of the Holders of
Class A-4 Certificates, the interests of the Holders of any other Class
of Certificates or the interests of any counterparty to any other Swap
Agreement, so long as such Opinion of Counsel is rendered by either
Brown & Wood LLP or other counsel mutually satisfactory to the
Certificate Trustee and the related Swap Counterparty. For so long as
any of the Certificates are listed on the Luxembourg Stock Exchange and
the rules of that exchange so require, notice of any such amendment will
be published pursuant to those rules promptly following its
effectiveness.
(ii) Except as provided in any Class A-4 Swap Agreement with
respect to any swap counterparty downgrade event or payment default by a
Class A-4 Swap Counterparty, with respect to any action proposed by the
Certificate Issuer to amend, modify, waive, supplement or surrender the
terms of the Class A-4 Swap Agreement, or waive timely performance or
observance by a Class A-4 Swap Counterparty under any Class A-4 Swap
Agreement, in a way which would materially and adversely affect the
interests of the Holders of the Class A-4 Certificates, the Certificate
Issuer shall satisfy the Rating Agency Condition. Thereafter, the
Certificate Issuer will consent to such proposed action only with the
consent of (i) the Holders of at least 66 2/3% of the Outstanding Amount
of the Class A-4 Certificates and (ii) the Holders of at least 66 2/3%
of the Outstanding Amount of all of such other Classes, and each
counterparty to any other Swap Agreement, materially and adversely
affected thereby. For so long as any of the Certificates are listed on
the Luxembourg Stock Exchange and the rules of that exchange so require,
notice of any such amendment or waiver will be published pursuant to
those rules promptly following its effectiveness.
(d) Allocations of Trust Property. Notwithstanding any other
provision in this Certificate Indenture to the contrary, in the event of an
acceleration of Class A-4 Notes and a subsequent liquidation of the
Collateral in accordance with the Note Indenture or sale or liquidation of
any other Trust Property as provided in this Certificate Indenture, the
proceeds of such sale or liquidation allocable to the Class A-4 Certificates,
pursuant to Sections 5.01(c) and 5.02(c) hereof shall be deposited
immediately by the Certificate Trustee in the Class A-4 Subaccount and
immediately paid to the Holders of such floating rate Class, on the one hand,
and the Class A-4 Swap Counterparty, on the other hand, pro rata based on the
aggregate amount of principal and interest due and payable on the Class A-4
Certificates, on the one hand, and the aggregate amounts (including any
"Settlement Amounts" or "Unpaid Amounts," as defined and determined in the
Class A-4 Swap Agreement) payable to the related Swap Counterparty in
accordance with such Swap Agreement, on the other hand.
Section 3.04. Listing Agent, Paying Agent, Transfer Agent. For so long
as any Certificates are listed on the Luxembourg Stock Exchange and the rules
and regulations of such exchange so require, the Certificate Issuer shall
retain a listing agent, a transfer agent and a paying agent in Luxembourg.
The Certificate Issuer shall give Certificate Trustee and any other agent
appointed under this Section 3.04 prompt written notice of the location and
identity, and of any change in the location or identity, of any such office
or agency.
Section 3.05. Swap Agreement Covenants.
(a) The Certificate Issuer agrees to take all such lawful actions
to enforce its rights under any Swap Agreement and to compel or secure the
performance and observance by any Swap Counterparty, of each of their
obligations to the Certificate Issuer under or in connection with any Swap
Agreement, in accordance with the terms thereof. So long as no Event of
Default occurs and is continuing, but subject to Section 3.05(f), the
Certificate Issuer may exercise any and all rights, remedies, powers and
privileges lawfully available to the Certificate Issuer under or in
connection with any Swap Agreement.
(b) If the Certificate Issuer or a Swap Counterparty proposes to
amend, modify, waive, supplement, terminate or surrender, or agree to any
amendment, waiver, supplement, termination, or surrender of, the terms of any
Swap Agreement, or waive timely performance or observance thereunder by the
Swap Counterparty, in such a way as would materially and adversely affect the
interests of the Holders of any Class, the party proposing the amendment,
modification, termination or surrender shall first notify the Rating Agencies
of the proposed action. If it receives notification that the Rating Agency
Condition has been satisfied, the proposing party shall notify the
Certificate Trustee and the other party, and the Certificate Trustee shall
notify any such Holders and Swap Counterparty, of the proposal and that the
Rating Agency Condition has been satisfied with respect thereto. With
respect to any such proposed action related to any Swap Agreement, the
Certificate Trustee shall consent to such proposed action only (x) with the
consent of the Holders of at least 66 2/3% of the Outstanding Amount of the
Certificates of the related Class, and each counterparty under any other Swap
Agreement, materially and adversely affected thereby and (y) upon
satisfaction of the Rating Agency Condition. If any such amendment,
modification, supplement or waiver shall be so consented to by the
Certificate Trustee or such Holders, the Certificate Issuer agrees to execute
and deliver, in its own name and at its own expense, such agreements,
instruments, consents and other documents as shall be necessary or
appropriate in the circumstances. In consenting to any such amendment,
modification, supplement or waiver, the Certificate Trustee shall be entitled
to receive, and shall be fully protected in relying upon, an Opinion of
Counsel stating that such amendment, modification, supplement or waiver does
not materially and adversely affect any other Swap Agreement.
(c) Promptly following a default by any Swap Counterparty under
any Swap Agreement, and at the Certificate Issuer's expense (to the extent
reimbursable to the Certificate Issuer under the Note Indenture), the
Certificate Issuer agrees to take all such lawful actions as the Certificate
Trustee may request to compel or secure the performance and observance by the
Swap Counterparty of its obligations to the Certificate Issuer under or in
connection with the Swap Agreement in accordance with the terms thereof, and
to exercise any and all rights, remedies, powers and privileges lawfully
available to the Certificate Issuer under or in connection with the Swap
Agreement, to the extent and in the manner directed by the Certificate
Trustee, including the transmission of notices of default on the part of the
Swap Counterparty thereunder and the institution of legal or administrative
actions or proceedings to compel or secure performance by the Swap
Counterparty of its obligations under the Swap Agreement.
(d) Except as provided herein, the Certificate Issuer shall not
take any action to terminate or assign the Swap Counterparty's rights and
powers under any Swap Agreement or replace any Swap Counterparty following an
event of default, termination event or downgrade event under any Swap
Agreement without (i) the prior written consent of the Certificate Trustee,
which consent shall not be given unless the Certificate Trustee shall have
been so directed in writing by the Holders of at least 66 2/3% of the
Outstanding Amount of the Certificates of the related Class, and
(ii) satisfying any other requirements set forth in the related Swap
Agreement.
(e) In the event that any statement, notice, report or other
document is required to be delivered under this Certificate Indenture to the
Holders of any Class of floating rate Certificates, such statement, notice,
report or document shall also be delivered simultaneously to the related Swap
Counterparty.
Section 3.06. Merger. Any trust or entity into which the Certificate
Issuer may be merged or converted or with which it may be consolidated, or
any successor entity resulting from any such merger, conversion or
consolidation, or any successor entity succeeding to all or substantially all
of the business of the Certificate Issuer, shall be the successor of the
Certificate Issuer hereunder, provided that (i) such successor shall not fail
to assume all the obligations of the Certificate Issuer under the Class 4-A
Swap Agreement and (ii) the creditworthiness of such successor shall not be
materially weaker than that of the Certificate Issuer immediately prior to
such claim.
ARTICLE IV
Distributions; Statements to Certificateholders
Section 4.01. Certificate Accounts.
(a) The Certificate Trustee shall establish and maintain, for the
Certificate Issuer, on behalf of the Holders of Certificates of each Class
(and, in the case of a Class of floating rate Certificates, the related Swap
Counterparty) one or more segregated trust accounts with respect to such
Class (each, a "Certificate Account"), which shall be non-interest bearing
except as provided in Section 4.04, in the corporate trust department of an
Eligible Institution, in the name of the Certificate Trustee for the benefit
of such Certificateholders and the related Swap Counterparty. The
Certificate Trustee shall hold each Certificate Account in trust for the
benefit of the Holders of Certificates of the corresponding Class (and, in
the case of a Class of floating rate Certificates, the related Swap
Counterparty), and shall make or permit withdrawals therefrom only as
provided in this Certificate Indenture. On each day when a Payment or
Special Payment (other than a Special Payment that represents the proceeds of
any sale pursuant to Article V hereof by the Certificate Trustee of any Note)
is made to the Certificate Trustee, as holder of Notes of any Class, the
Certificate Trustee upon receipt shall immediately deposit the aggregate
amount of such Payment or Special Payment in the Certificate Account for the
corresponding Class of Certificates (and, in the case of a Class of floating
rate Certificates, the related Swap Counterparty on a pari passu basis with
the related floating rate Certificateholders). The Certificate Trustee shall
immediately deposit in the Class A-4 Subaccount all amounts required to be
deposited therein pursuant to Section 2.01. Upon the sale of any Note by the
Certificate Trustee pursuant to Article V and the realization of any proceeds
thereof, the Certificate Trustee shall deposit the aggregate amount of such
proceeds as a Special Payment in the Certificate Account for the Class of
Certificates (and, in the case of a Class of floating rate Certificates, the
related Swap Counterparty on a pari passu basis with the related floating
rate Certificateholders) corresponding to the Class of the Note so sold.
(b) The Certificate Trustee shall present to the Note Trustee for
payment each Note on its Final Maturity Date, or, in the case of any
redemption or repayment of such Note in full prior to its Final Maturity
Date, on the applicable Payment Date therefor.
(c) The Certificate Trustee (or any Paying Agent other than the
Certificate Trustee) shall have sole dominion and exclusive control over all
monies in the Certificate Accounts and shall apply such amounts therein as
provided in this Article.
Section 4.02. Distributions from Certificate Accounts.
(a) On any Distribution Date, the Certificate Trustee shall
distribute out of the Certificate Account for the corresponding Class of
Certificates (and, in the case of a Class of floating rate Certificates, the
related Swap Counterparty), in the manner described in Section 4.02(e), the
entire amount of such Payment deposited therein pursuant to Section 4.01(a);
provided that all payments to the Class A-4 Certificateholders and
the Class A-4 Swap Counterparty shall be made as described in Section 2.01
hereof; and provided further, however, that in the event receipt of any such
Payment is not confirmed by the Certificate Trustee by 1:00 p.m.
(New York City time) on such Distribution Date, distribution thereof to the
Certificateholders (and in the case of any Class of floating rate of
Certificates, the Swap Counterparty) shall be made on the day receipt thereof
is confirmed by the Certificate Trustee by 1:00 p.m. (New York City time) or,
if receipt thereof is confirmed by the Certificate Trustee after 1:00 p.m.
(New York City time), on the following Business Day. There shall be so
distributed to each Holder of such Class of Certificates to the
Certificateholders (and in the case of any Class of floating rate of
Certificates, the Swap Counterparty on a pari passu basis with the related
floating rate Certificateholders) on the Record Date with respect to such
Distribution Date (other than as provided in Section 9.01 with respect to a
final distribution) such Certificateholder's fractional undivided share
(based on the aggregate Outstanding Amount of Certificates of such Class held
by such Certificateholder) of the aggregate amount in the related Certificate
Account and, in the case of any Class of floating rate Certificates (solely
from the share allocable to such Class), any payments due to the Swap
Counterparty as provided herein and under the related Swap Agreement. The
foregoing notwithstanding, if a Payment is not received by the Certificate
Trustee by the day that is five days after the related Payment Date, but is
subsequently received, it will be treated as a Special Payment pursuant to
Section 4.02(b).
The final distribution with respect to any Certificate, however, will be
made only upon presentation and surrender of such Certificate at the office
or agency of the Certificate Trustee specified in the notice given by the
Certificate Trustee with respect to such final payment. The Certificate
Trustee will provide notice of a final distribution to each Holder as of the
date such notice is given with respect to any Certificate as soon as
practicable following receipt of notice from the Note Trustee of a final
payment on a corresponding Note.
(b) On each Special Distribution Date with respect to the
distribution of any Special Payment with respect to any Class of Notes, the
Certificate Trustee shall distribute out of the Certificate Account for the
corresponding Class of Certificates and in the case of any Class of floating
rate Certificates, any Swap Counterparty on a pari passu basis with the
related floating rate Certificateholders, in the manner described in
Section 4.02(e) and this Section, the entire amount of such Special Payment
deposited therein pursuant to Section 4.01(a) and any income and earnings
received from the investment of such Special Payment pursuant to
Section 4.04; provided, however, that in the event receipt of any such
Special Payment is not confirmed by the Certificate Trustee by 1:00 p.m.
(New York City time) on such Special Distribution Date, distribution thereof
to the Certificateholders and in the case of any Class of floating rate
Certificates, any Swap Counterparty shall be made on the day receipt thereof
is confirmed by the Certificate Trustee by 1:00 p.m. (New York City time) or,
if receipt thereof is confirmed by the Certificate Trustee after 1:00 p.m.
(New York City time), on the following Business Day. There shall be so
distributed to each Holder of such Class of Certificates and in the case of
any Class of floating rate Certificates, any Swap Counterparty on the Special
Record Date with respect to such Special Distribution Date (other than as
provided in Section 9.01 with respect to a final distribution) such
Certificateholder's fractional undivided share (based on the aggregate
Outstanding Amount of Certificates of such Class held by such
Certificateholder) of the aggregate amount of such Special Payment and, in
the case of any Class of floating rate Certificates (solely from the share
allocable to such Class), any payment due to the Swap Counterparty as
provided herein and under the related Swap Agreement and any income and
earnings received from the investment of such Special Payment pursuant to
Section 4.04.
(c) Subject to the allocation of money in any Certificate Account
for any floating rate Class pursuant to Section 2.01 and the allocation of
moneys to the Class A-4 Swap Counterparty pursuant to Section 3.03(d), the
Certificate Trustee shall allocate amounts distributed to Holders of
Certificates of any Class on any Distribution Date or Special Distribution
Date as follows: (i) to the extent such amounts represent payments of
principal of the corresponding Class of Notes (including prepayments or
redemption price), or the proceeds of the sale of any such Note by the
Certificate Trustee pursuant to Article V (to the extent such proceeds exceed
the unpaid interest on the related class of Notes), such amounts shall be
allocated to principal of such Certificates and (ii) all other such amounts
shall be allocated to interest on such Certificates. The Certificate Trustee
may conclusively rely on the payment statement received by it from the
Servicer pursuant to the Servicing Agreement with any payment in respect of
any Class of Notes as to whether the amount so paid in respect of such Notes
is in respect of principal of or interest on such Notes. If no statement is
received, such payments received with respect to any Class of Notes shall
first be allocable to interest to the extent of any interest accrued and
payable on such Class of Notes, and then to principal.
(d) The Certificate Trustee shall cause notice of each Special
Payment with respect to any Class of Notes to be mailed to each Holder of
Certificates of the corresponding Class at its address as it appears in the
Certificate Register. In the event of (i) the optional redemption of the
Notes of any Class, such notice shall be mailed not less than five days nor
more than 25 days prior to the Special Distribution Date on which any such
Redemption Payment is scheduled to be distributed, and (ii) the mandatory
redemption of the Notes of any Class, such notice shall be mailed not less
than five days prior to the Special Distribution Date on which any such
Redemption Payment is scheduled to be distributed. In the case of any other
Special Payment, such notice shall be mailed not less than 20 days prior to
the Special Distribution Date on which any Special Payment is scheduled to be
distributed in respect of Certificates of such Class stating such anticipated
Special Distribution Date. Any such notice mailed by the Certificate Trustee
shall set forth:
(i) the Special Distribution Date or the Distribution Date, as
applicable, and the Special Record Date or Record Date therefor, as
applicable (except as otherwise provided in Section 9.01);
(ii) the amount of the Special Distribution for each $1,000
Original Principal Amount of Certificates of the applicable Class and
the amount thereof constituting principal and interest;
(iii) the reason for the Special Distribution; and
(iv) the total amount to be received on such date for each $1,000
Original Principal Amount of Certificates of the applicable Class but
only, in the case of a Special Payment, if the related Special
Distribution Date is also a Distribution Date.
(e) Distributions to Holders of Certificates shall be by check
sent by first-class mail to the address of such Holder appearing on the
Certificate Register at the relevant Record Date or Special Record Date or,
upon written application of a Holder of Certificates of any Class in the
Original Principal Amount of $1,000,000 or more to the Certificate Trustee
made at any time not later than such Record Date or Special Record Date or
continuing in effect from a prior request, by wire transfer in immediately
available funds to the account of such Holder at such bank located in New
York, New York having wire transfer capability as may be designated by such
Holder; provided, however, that the final distribution in respect of any
Certificate shall be made only as provided in Section 9.01. The foregoing
notwithstanding, any distributions made to Cede & Co., as the nominee of the
initial Clearing Agency, shall be made by wire transfer of immediately
available funds. Payments made to any Swap Counterparty shall be made in the
manner provided in the related Swap Agreement.
Section 4.03. Statements to Certificateholders.
(a) On each Distribution Date, Special Distribution Date or any
other date specified herein for distribution of any payments with respect to
any Class of Certificates, or as soon as practicable following such
Distribution Date, Special Distribution Date or other date (unless the
Certificate Trustee is the Note Trustee and the statement required below is
provided by the Note Trustee no later than two Business Days prior to such
distribution), the Certificate Trustee will send, with respect to each
distribution, to Holders of Certificates of such Class a statement with
respect to such distribution to be made on such Distribution Date, Special
Distribution Date or other date, as the case may be, setting forth the
following information:
(i) the amount of such distribution to Holders of Certificates
allocable to (A) principal and (B) interest, in each case per $1,000
Original Principal Amount of each Class of Certificates;
(ii) the aggregate outstanding principal balance of the
Certificates, after giving effect to payments allocated to principal
reported under (i) above;
(iii) the difference, if any, between the amount specified in
(ii) above and the principal amount scheduled to be outstanding on such
date according to the Expected Amortization Schedule;
(iv) the balance of amounts on deposit in the Reserve Subaccount
after giving affect to payments or allocations made or to be made on the
related Payment Date;
(v) the balance of amounts on deposit in the Overcollateralization
Subaccount after giving affect to payments or allocations made or to be
made on the related Payment Date; and
(vi) the balance of amounts on deposit in the Capital Subaccount
after giving affect to payments or allocations made or to be made on the
related Payment Date.
In providing the foregoing statement, the Certificate Trustee may rely upon
the statements provided by the Note Trustee pursuant to Section 6.06 of the
Note Indenture. On each date on which the Certificate Trustee distributes
any such report to the Holders of the Certificates of any Class, the
Certificate Trustee shall also distribute such report to each Rating Agency.
(b) Within a reasonable period of time after the end of each
calendar year but not later than the latest date permitted by law, the
Certificate Trustee shall furnish to each Person who at any time during such
calendar year was a Holder of any Class of Certificates and received a
distribution thereon, a statement containing the sum of the amounts
determined pursuant to clause (a)(i) above with respect to such Class of
Certificates for such calendar year, or, in the event such Person was a
Holder of such Class of Certificates during a portion of such calendar year,
for the applicable portion of such year, and such other items as are readily
available to the Certificate Trustee and that a Certificateholder shall
reasonably request as necessary for the purpose of such Certificateholder's
preparation of its federal income tax returns. If any Certificates are
listed on the Luxembourg Stock Exchange, and the rules of that exchange so
require, notice that this statement is available with the listing agent in
Luxembourg shall be given to holders of those listed Certificates by
publication in a daily newspaper in Luxembourg.
Section 4.04. Investment of Special Payment Moneys. Any money received
by the Certificate Trustee pursuant to Section 4.01(a) representing a Special
Payment that is not to be promptly distributed, to the extent practicable,
shall be invested in Eligible Investments at the written direction of the
Servicer by the Certificate Trustee pending distribution of such Special
Payment pursuant to Section 4.02. Any investment made pursuant to this
Section 4.04 shall be in such Eligible Investments maturing in not more than
60 days or such lesser time as is required for the distribution of any such
funds on a Special Distribution Date pending the distribution of such funds
to Certificateholders as described herein. The Certificate Trustee shall
hold any such Eligible Investments until maturity. Such Eligible Investments
shall not mature later than the Business Day immediately preceding the
Special Distribution Date relating to such invested funds. The Certificate
Trustee shall have no liability with respect to any investment made pursuant
to this Section 4.04 (including any losses on such investments), other than
by reason of the willful misconduct or negligence of the Certificate Trustee.
All income and earnings from such investments shall be distributed, if and as
received, on such Special Distribution Date as part of such Special Payment
and shall be treated as payments of interest on the Certificates.
If the rating of the Eligible Institution, which may be the Note
Trustee's Corporate Trust Office, fall below the rating requirements set
forth in clause (b)(i) of the definition of Eligible Institution, the
Delaware Trustee, on behalf of the Certificate Issuer, shall, within one
month after notice of such rating change, cause the Collection Account to be
transferred to an institution meeting the requirements set forth in clause
(b)(i) of the definition of Eligible Institution.
Section 4.05. Reduction in Principal. Any reduction in the principal
amount of any Certificate effected by any distribution in respect of
principal thereof shall be binding upon all Holders of such Certificate and
of any Certificate issued upon the registration or transfer thereof or in
lieu thereof, whether or not noted thereon.
ARTICLE V
Defaults
Section 5.01. Events of Default.
(a) If any Event of Default, other than a breach of the State
Pledge by the State of Connecticut under the Statute and Section 10.01
hereunder, shall occur and be continuing, then, and in each and every case,
the Certificate Trustee may, and, upon the written direction of Holders
representing not less than a majority of the Outstanding Amount of the
Certificates then Outstanding, shall vote all the Notes in favor of declaring
the unpaid principal amount of all the Notes then outstanding and accrued
interest thereon to be due and payable in accordance with the provisions
thereof. In addition, if a Note Event of Default shall have occurred and be
continuing, the Certificate Trustee may, and, upon the written direction of
Holders representing not less than a majority of the Outstanding Amount of
the Certificates then Outstanding, shall vote all the Notes in favor of
directing the Note Trustee as to the time, method and place of conducting any
proceeding for any remedy available to the Note Trustee, including the sale
of any or all of the Notes, without recourse to or warranty by the
Certificate Trustee or any Certificateholder, to any person or entity, or of
exercising any trust or power conferred on the Note Trustee under the Note
Indenture.
(b) In addition, after a Note Event of Default shall have occurred
and be continuing, subject to Section 5.01(c), the Certificate Trustee may,
and upon the written direction of Holders of Certificates representing not
less than a majority of the Outstanding Amount of Certificates, by such
officer or agent as it may appoint, shall sell, convey, transfer and deliver
any Note or Notes, without recourse to or warranty by the Certificate Trustee
or any Certificateholder, to any Person, all upon such terms and conditions
as the Certificateholders may reasonably deem advisable and at such prices as
the Certificateholders may reasonably deem advisable, for cash. If the
Certificate Trustee so decides or is required to sell or otherwise dispose of
the Notes pursuant to this Section, the Certificate Trustee may, but is not
obligated to, take such of the actions described above as it may reasonably
deem most effectual to complete the sale or other disposition of the Notes,
so as to provide for the payment in full of all amounts due on or in
connection with the Certificates.
(c) The foregoing provisions of Section 5.01(b) notwithstanding,
the Certificate Trustee shall not sell any Notes following the occurrence of
any Event of Default, other than a Note Event of Default described in Section
5.01(a), (b) or (c) of the Note Indenture, unless (i) the Certificate Trustee
determines that the amounts receivable from the Collateral are not sufficient
to pay in full the principal of and accrued interest on the Notes and all
amounts payable pursuant to clauses (i) through (iv) of Section 8.02(d) of
the Note Indenture and the Certificate Trustee obtains the written consent of
Holders of Certificates of each Class representing 66 2/3 percent of the
aggregate Outstanding Amount of the Certificates, or (ii) the Certificate
Trustee obtains the written consent of Holders of Certificates representing
100 percent of the aggregate Outstanding Amount of the Certificates.
Section 5.02. Incidents of Sale of Notes. Upon any sale of the Notes
made either under the power of sale given under this Certificate Indenture or
otherwise for the enforcement of this Certificate Indenture, the following
shall be applicable:
(a) Certificateholders and Certificate Trustee May Purchase Notes.
Any Certificateholder, the Certificate Trustee in its individual or any other
capacity or any other Person (other than the Seller) may bid for and purchase
any of the Notes, and upon compliance with the terms of sale, may hold,
retain, possess and dispose of such Notes in their own absolute right without
further accountability.
(b) Receipt of Certificate Trustee Shall Discharge Purchaser. The
receipt of the Certificate Trustee, on behalf of the Certificate Issuer,
shall be a sufficient discharge to any purchaser for its purchase money, and,
after paying such purchase money and receiving such receipt, such purchaser
or its personal representative or assigns shall not be obliged to see to the
application of such purchase money, or be in any way answerable for any loss,
misapplication or nonapplication thereof.
(c) Application of Moneys Received upon Sale. Any moneys
collected by the Certificate Issuer or the Certificate Trustee upon any sale
made either under the power of sale given by this Certificate Indenture or
otherwise for the enforcement of this Certificate Indenture, shall be applied
as provided in Section 4.02.
Section 5.03. Judicial Proceedings Instituted by Certificate Trustee;
Certificate Trustee May Bring Suit.
(a) If there shall be a failure to make payment of the principal
of or interest on any Note, then the Certificate Trustee in its own name, and
as trustee of an express trust, as holder of such Note, if directed in
writing by the Holders of a majority of the Outstanding Amount of the
Certificates but subject to the provisions of Article VI, shall, to the
extent permitted by and in accordance with the terms of the Notes, be
entitled and empowered to institute any suits, actions or proceedings at law,
in equity or otherwise, including the power to make a demand on the Note
Trustee to take action under the Note Indenture to enforce the Notes, for the
collection of the sums so due and unpaid on the Note and may prosecute any
such claim or proceeding to judgment or final decree with respect to the
whole amount of any such sums so due and unpaid.
(b) If there shall be a breach of the State Pledge by the State of
Connecticut, then the Certificate Trustee, in its own name and as trustee of
an express trust, as holder of the Notes, shall be, to the extent permitted
by state and federal law, entitled and empowered to institute any suits,
actions or proceedings at law, in equity or otherwise, to enforce the State
Pledge and to collect any monetary damages as a result of a breach thereof,
and may prosecute any such suit, action or proceeding to judgment or final
decree.
Section 5.04. Control by Certificateholders. The Holders of a majority
of the Outstanding Amount of the Certificates (or, if less than all Classes
are affected, the affected Class or Classes) shall have the right to direct
the time, method and place of conducting any proceeding for any remedy
available to the Certificate Trustee, or exercising any trust or power
conferred on the Certificate Trustee under this Certificate Indenture,
including any right of the Certificate Trustee as holder of the Notes of the
corresponding Class or Classes, in each case unless a different percentage is
specified herein; provided, however, that:
(a) such direction shall not be in conflict with any rule of law
or with this Certificate Indenture and would not involve the Certificate
Trustee in personal liability or expense;
(b) the Certificate Trustee shall not determine that the action so
directed would be unjustly prejudicial to the Holders of Certificates of such
Class or Classes not taking part in such direction;
(c) the Certificate Trustee may take any other action deemed
proper by the Certificate Trustee that is not inconsistent with such
direction; and
(d) if a Note Event of Default with respect to such Class of Notes
shall have occurred and be continuing, such direction shall not obligate the
Certificate Trustee to vote more than a corresponding majority of the related
Notes held by the Certificate Issuer in favor of declaring the unpaid
principal amount of the Notes and accrued interest thereon to be due and
payable or directing any action by the Note Trustee with respect to such Note
Event of Default.
Section 5.05. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.01, the
Holders of Certificates of not less than a majority of the Outstanding Amount
of the Certificates may in writing direct the Certificate Trustee to waive
any past default or Note Event of Default and its consequences except a
default (a) in payment of principal of or interest on any of the Notes,
(b) in respect of a covenant or provision under the Note Indenture that
cannot be modified or amended without the consent of the Holder of each Note
or all Classes of Notes affected or (c) in the deposit or distribution of any
Payment or Special Payment under Section 4.01 or in the distribution of any
payment under Section 4.02, which defaults may be waived by the Certificate
Trustee only upon the written direction of the Holders of each Certificate,
or each affected Class, as the case may be. Upon any such direction, the
Certificate Trustee shall vote such percentage of the Notes of the
corresponding Class held by the Certificate Trustee as corresponds to the
percentage of the aggregate Outstanding Amount of the Certificates of such
Class held by Holders who directed the Certificate Trustee to waive such
default or Note Event of Default hereunder.
Upon any waiver that is effective under the terms of the Note Indenture
to waive such Note Event of Default, such Note Event of Default shall cease
to exist with respect to this Certificate Indenture, and, in the case of a
default, any Note Event of Default arising therefrom shall be deemed to have
been cured for every purpose of this Certificate Indenture and any written
direction given by the Certificate Trustee on behalf of such
Certificateholders to the Note Trustee or in respect of any Notes shall be
annulled with respect thereto; but no such waiver shall extend to any
subsequent or other default or Note Event of Default or impair any right
consequent thereon.
Section 5.06. Right of Certificateholders To Receive Payments Not To Be
Impaired. Anything in this Certificate Indenture to the contrary
notwithstanding, including Section 5.07 hereof, the right of any
Certificateholder to receive distributions of payments required pursuant to
Section 4.02 hereof on the Certificates when due, or to institute suit for
the enforcement of any such payment on or after the applicable Distribution
Date, Special Distribution Date or other date specified herein for the making
of such payment, shall not be impaired or affected without the consent of
such Certificateholder.
Section 5.07. Certificateholders May Not Bring Suit Except Under
Certain Conditions. A Certificateholder shall not have the right to
institute any suit, action or proceeding at law or in equity or otherwise
with respect to this Certificate Indenture, for the appointment of a receiver
or for the enforcement of any other remedy under this Certificate Indenture,
unless:
(a) such Certificateholder has previously given written notice to
the Certificate Trustee of a continuing Note Event of Default with respect to
the Class of Certificates held by such Holder;
(b) the Holders of not less than 25 percent of the Outstanding
Amount of the Certificates have made written request to the Certificate
Trustee to institute such action, suit or proceeding in respect of such Note
Event of Default in its own name as Certificate Trustee hereunder;
(c) such Certificateholder or Certificateholders have offered to
the Certificate Trustee indemnity satisfactory to it against the costs,
expenses (including legal fees and expenses) and liabilities to be incurred
in complying with such request;
(d) the Certificate Trustee for 60 days after its receipt of such
notice, request and offer of indemnity has failed to institute such action,
suit or proceedings; and
(e) no direction inconsistent with such written request has been
given to the Certificate Trustee during such 60-day period by the Holders of
a majority of the Outstanding Amount of the Certificates;
it being understood and intended that no one or more Holders of Certificates
shall have any right in any manner whatever by virtue of, or by availing of,
any provision of this Certificate Indenture to affect, disturb or prejudice
the rights of any other Holders of Certificates or to obtain or to seek to
obtain priority or preference over any other Certificateholders or to enforce
any right under this Certificate Indenture, except in the manner herein
provided. The provisions of this Section 5.07 shall be deemed to modify, to
the fullest extent permitted by law, the rights of the Certificateholders
under Section 3816 of the Business Trust Statute.
In the event the Certificate Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of
Certificates, each representing less than a majority of the Outstanding
Amount of the Certificates, the Certificate Trustee in its sole discretion
may determine what action, if any, shall be taken, notwithstanding any other
provisions of this Certificate Indenture.
Section 5.08. Remedies Cumulative. No remedy given hereunder to the
Certificate Trustee or to any of the Certificateholders shall be exclusive of
any other remedy or remedies, and every such remedy shall be cumulative and
in addition to every other remedy given hereunder or now or hereafter given
by statute, law, equity or otherwise.
ARTICLE VI
The Certificate Trustee
Section 6.01. Notice of Defaults. As promptly as practicable after,
and in any event within 30 days after, receipt by a Responsible Officer of
the Certificate Trustee of written notice or actual knowledge of the
occurrence of any default (as such term is defined below) hereunder, the
Certificate Trustee shall transmit by mail to the Certificate Issuer, the
Note Trustee and the Holders of Certificates in accordance with
Section 313(c) of the Trust Indenture Act, notice of such default, unless
such default shall have been cured or waived. For the purpose of this
Section, the term "default" means any event that is, or after notice or lapse
of time or both would become, a Note Event of Default with respect to such
Class of Certificates.
Section 6.02. Certain Rights of Certificate Trustee. Subject to the
provisions of Section 315 of the Trust Indenture Act:
(a) the Certificate Trustee may conclusively rely and shall be
fully protected in acting or refraining from acting in reliance upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;
(b) any request or direction of the Certificate Issuer mentioned
herein shall be sufficiently evidenced by a Request, accompanied by evidence
reasonably satisfactory to the Certificate Trustee that the Note Issuer has
given its prior written approval of such request or direction;
(c) whenever in the administration of this Certificate Indenture
the Certificate Trustee shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action hereunder, the
Certificate Trustee (unless other evidence be herein specifically prescribed)
may, in the absence of bad faith on its part, conclusively rely upon an
Officers' Certificate of the Certificate Issuer;
(d) the Certificate Trustee may consult with counsel and the
advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon;
(e) the Certificate Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Certificate
Indenture at the request or direction of any of the Certificateholders
pursuant to this Certificate Indenture, unless such Certificateholders shall
have offered to the Certificate Trustee reasonable security or indemnity
satisfactory to it against the cost, expenses (including reasonable legal
fees and expenses) and liabilities that might be incurred by it in compliance
with such request or direction;
(f) the Certificate Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture or other paper or document;
(g) the Certificate Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either directly or by or
through agents, attorneys, custodians or nominees and the Certificate Trustee
shall not be responsible for any misconduct or negligence on the part of, or
for the supervision of, any agent, attorney, custodian or nominee appointed
with due care by it hereunder;
(h) the Certificate Trustee shall not be liable with respect to
any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders of Certificates relating to the time,
method and place of conducting any proceeding for any remedy available to the
Certificate Trustee, or exercising any trust or power conferred upon the
Certificate Trustee, under this Certificate Indenture;
(i) the Certificate Trustee shall not be required to expend or
risk its own funds in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or indemnity satisfactory
to it against such risk is not reasonably assured to it;
(j) the Certificate Trustee shall not be personally liable for any
action taken or suffered or omitted to be taken by it in good faith and
reasonably believed by it to be authorized or within the discretion or rights
or powers conferred upon it by this Certificate Indenture; provided, however,
that the Certificate Trustee's conduct does not constitute willful
misconduct, negligence or bad faith;
(k) in the event that the Certificate Trustee is also acting as
Paying Agent, Authenticating Agent or Certificate Registrar hereunder, the
rights and protections afforded to the Certificate Trustee pursuant to this
Article VI shall also be afforded to such Paying Agent, Authenticating Agent
or Certificate Registrar;
(l) the Certificate Trustee shall not be charged with knowledge of
an Event of Default unless a Responsible Officer obtains actual knowledge of
such event or the Certificate Trustee receives written notice of such event
from the Certificate Issuer, the Note Trustee, the Servicer or a majority of
the Holders of Certificates of the Class or Classes so affected; and
(m) without limiting its rights under bankruptcy law, when the
Certificate Trustee incurs expenses or renders services in connection with
the insolvency or bankruptcy of any party hereto or with the Basic Documents
to which it is a party, such expenses (including the fees and expenses of its
counsel) and the compensation for such services are intended to constitute
expenses of administration under any bankruptcy or insolvency law.
Section 6.03. Not Responsible for Recitals or Issuance of Certificates.
The recitals contained herein and in the Certificates, except the execution
thereof and the certificates of authentication, shall not be taken as the
statements of the Certificate Trustee, and the Certificate Trustee assumes no
responsibility for their correctness. Except as set forth in Section 6.14,
the Certificate Trustee makes no representations as to the validity or
sufficiency of this Certificate Indenture, the Notes, any Basic Document or
the Certificates.
Section 6.04. May Hold Certificates. The Certificate Trustee, any
Paying Agent, any Certificate Registrar or any of their Affiliates or any
other agent, in their respective individual or any other capacity, may become
the owner or pledgee of Certificates and, subject to Sections 310(b) and 311
of the Trust Indenture Act, may otherwise deal with the Certificate Issuer,
the Note Issuer or the Note Trustee with the same rights it would have if it
were not Certificate Trustee, Paying Agent, Certificate Registrar or such
other agent.
Section 6.05. Money Held in Trust. Money held by the Certificate
Trustee or the Paying Agent in trust hereunder need not be segregated from
other funds except to the extent required herein or by law and neither the
Certificate Trustee nor the Paying Agent shall have any liability for
interest upon any such moneys except as provided for herein.
Section 6.06. Compensation and Reimbursement; Indemnification.
(a) Pursuant to the Fee and Indemnity Agreement, the Note Issuer
has agreed to pay, or cause to be paid, to the Certificate Trustee from time
to time reasonable compensation for its services and to reimburse it for its
reasonable expenses.
(b) Pursuant to the Fee and Indemnity Agreement, the Note Issuer
shall indemnify, defend and hold harmless the Certificate Trustee and any of
the affiliates, officials, officers, directors, employees, consultants,
counsel and agents of the Certificate Trustee (the "Certificate Trustee
Indemnified Persons") from and against any and all losses, claims, actions,
suits, taxes, damages, expenses and liabilities (including liabilities under
state or federal securities laws) of any kind and nature whatsoever
(collectively, "Certificate Trustee Expenses"), to the extent that such
Certificate Trustee Expenses arise out of or are imposed upon or asserted
against such Certificate Trustee Indemnified Persons with respect to the
creation, operation or termination of the Certificate Issuer, the execution,
delivery or performance of the Declaration of Trust or this Certificate
Indenture, as the case may be, or the transactions contemplated hereby, the
failure of the Note Issuer or any other Person (other than the Person being
indemnified) to perform its obligations under the Fee and Indemnity Agreement
or under any of the Basic Documents, or otherwise in connection with the
Basic Documents or the transactions contemplated thereby; provided, however,
that the Note Issuer shall not be required to indemnify any Certificate
Trustee Indemnified Person for any Certificate Trustee Expenses that result
from the willful misconduct or gross negligence of such Certificate Trustee
Indemnified Person and provided, further, that any Certificate Trustee
Expenses payable to any Certificate Trustee Indemnified Person hereunder
shall be paid to the Note Trustee for deposit into and distribution from the
Collection Account in accordance with Article VIII of the Note Indenture
(except to the extent that the Fee and Indemnity Agreement requires payment
to be made directly to such Indemnified Person and payment is or has been so
made). The Note Issuer shall not be required to indemnify any Certificate
Trustee Indemnified Person for any amount paid or payable by such Certificate
Trustee Indemnified Person pursuant to this Section 6.06(b) in the settlement
of any action, proceeding or investigation without the written consent of the
Note Issuer, which consent shall not be unreasonably withheld. Promptly
after receipt by a Certificate Trustee Indemnified Person of notice of its
involvement in any action, proceeding or investigation, such Certificate
Trustee Indemnified Person shall, if a claim for indemnification in respect
thereof is to be made against the Note Issuer under this Section 6.06(b),
notify the Note Issuer in writing of such involvement. Failure by a
Certificate Trustee Indemnified Person to so notify the Note Issuer shall
relieve the Note Issuer from the obligation to indemnify and hold harmless
such Certificate Trustee Indemnified Person under this Section 6.06(b) only
to the extent that the Note Issuer suffers actual prejudice as a result of
such failure. With respect to any action, proceeding or investigation
brought by a third party for which indemnification may be sought under this
Section 6.06(b), the Note Issuer shall be entitled to assume the defense of
any such action, proceeding or investigation. Upon assumption by the Note
Issuer of the defense of any such action, proceeding or investigation, the
Certificate Trustee Indemnified Person shall have the right to participate in
such action or proceeding and to retain its own counsel. The Note Issuer
shall be entitled to appoint counsel of the Note Issuer's choice at the Note
Issuer's expense to represent the Certificate Trustee Indemnified Person in
any action, proceeding or investigation for which a claim of indemnification
is made against the Note Issuer under this Section 6.06(b) (in which case the
Note Issuer shall not thereafter be responsible for the fees and expenses of
any separate counsel retained by the Certificate Trustee Indemnified Person
except as set forth below); provided, however, that such counsel shall be
reasonably satisfactory to the Certificate Trustee Indemnified Person.
Notwithstanding the Note Issuer's election to appoint counsel to represent
the Certificate Trustee Indemnified Person in an action, proceeding or
investigation, the Certificate Trustee Indemnified Person shall have the
right to employ separate counsel (including local counsel), and the Note
Issuer shall bear the reasonable fees, costs and expenses of such separate
counsel if (i) the use of counsel chosen by the Note Issuer to represent the
Certificate Trustee Indemnified Person would present such counsel with a
conflict of interest, (ii) the actual or potential defendants in, or targets
of, any such action include both the Certificate Trustee Indemnified Person
and the Note Issuer and the Certificate Trustee Indemnified Person shall have
reasonably concluded that there may be legal defenses available to it that
are different from or additional to those available to the Note Issuer, (iii)
the Note Issuer shall not have employed counsel reasonably satisfactory to
the Certificate Trustee Indemnified Person to represent the Certificate
Trustee Indemnified Person within a reasonable time after notice of the
institution of such action or (iv) the Note Issuer shall authorize the
Certificate Trustee Indemnified Person to employ separate counsel at the
expense of the Note Issuer. Notwithstanding the foregoing, the Note Issuer
shall not be obligated to pay for the fees, costs and expenses of more than
one separate counsel for the Certificate Trustee Indemnified Persons (in
addition to local counsel). The Note Issuer will not, without the prior
written consent of the Certificate Trustee Indemnified Person, settle or
compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which
indemnification may be sought under this Section 6.06(b) (whether or not the
Certificate Trustee Indemnified Person is an actual or potential party to
such claim or action) unless such settlement, compromise or consent includes
an unconditional release of the Certificate Trustee Indemnified Person from
all liability arising out of such claim, action, suit or proceeding.
Indemnification under this Section 6.06(b) shall include reasonable fees and
out-of-pocket expenses of investigation and litigation (including reasonable
attorney's fees and expenses), except as otherwise provided in this
Certificate Indenture. The obligations of the Note Issuer to indemnify the
Certificate Trustee Indemnified Persons shall survive the termination of the
Fee and Indemnity Agreement, this Certificate Indenture and the resignation
or removal of the Certificate Trustee.
Notwithstanding anything to the contrary in this Certificate Indenture,
the Certificate Trustee shall have no recourse against the Certificate Issuer
or the Notes or payments thereon or proceeds thereof for payment of any
amounts required to be paid to the Certificate Trustee under this
Section 6.06(b).
Section 6.07. Corporate Certificate Trustee Required; Eligibility.
(a) The Certificate Trustee shall at all times be eligible to act
as a trustee under Section 310(a) of the Trust Indenture Act, shall have a
combined capital and surplus of at least $50,000,000 and shall have a long-
term debt rating of at least A by Xxxxx'x and Standard & Poor's. If such
entity publishes reports of conditions at least annually, pursuant to law or
to the requirements of federal, state, territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section 6.07,
the combined capital and surplus of such entity shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.
(b) In determining whether the Certificate Trustee has a
conflicting interest under Section 310(b) of the Trust Indenture Act and this
Section, each other Class of Certificates will be treated as having been
issued under an indenture other than this Certificate Indenture.
(c) If at any time the Certificate Trustee shall cease to be
eligible in accordance with the provisions of this Section 6.07, the
Certificate Trustee shall resign immediately in the manner and with the
effect specified in Section 6.08.
Section 6.08. Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Certificate Trustee and no
appointment of a successor Certificate Trustee pursuant to this Article shall
become effective (i) until the acceptance of appointment by the successor
Certificate Trustee under Section 6.09 and (ii) other than in the case of
paragraph (b) below, unless a successor Certificate Trustee has been
appointed and has accepted such appointment and the Rating Agency Condition
shall have been satisfied.
(b) The Certificate Trustee may resign at any time in the case of
a conflicting interest as determined in accordance with Section 6.07(b) by
giving written notice thereof to the Certificate Issuer, the Authorized
Agents, the Note Issuer and the Note Trustee. If an instrument of acceptance
by a successor Certificate Trustee shall not have been delivered to the
Certificate Issuer and the Certificate Trustee within 30 days after the
giving of such notice of resignation, the resigning Certificate Trustee may
petition any court of competent jurisdiction for the appointment of a
successor Certificate Trustee.
(c) The Certificate Trustee may be removed at any time in the case
of a conflicting interest as determined in accordance with Section 6.07(b) by
Act of Certificateholders holding Certificates representing not less than 51
percent of the Outstanding Amount of the Certificates delivered to the
Certificate Trustee and to the Certificate Issuer, the Note Issuer and the
Note Trustee.
(d) Upon 30 days' written notice, the Certificate Trustee (i) may
resign with respect to the Certificates as a whole by giving such written
notice to the Certificate Issuer, the Authorized Agents, the Note Issuer and
the Note Trustee or (ii) may be removed with respect to the Certificates as a
whole by Act of Certificateholders holding Certificates representing not less
than a majority of the Outstanding Amount of Certificates delivered to the
Certificate Issuer, the Note Issuer and the Note Trustee. If an instrument
of acceptance by a successor Certificate Trustee with respect to the
Certificates as a whole shall not have been delivered to the Certificate
Issuer, the Note Issuer and the Note Trustee within 90 days after the giving
of such notice of resignation or Act by the Certificateholders as a whole for
removal of the Certificate Trustee, the Certificate Issuer or the Note Issuer
may petition any court of competent jurisdiction for the appointment of a
successor Certificate Trustee with respect to the Certificates as a whole.
(e) If at any time:
(i) the Certificate Trustee shall fail to comply with Section 310
of the Trust Indenture Act after written request therefor by the
Certificate Issuer or by the Note Issuer or by any Holder of
Certificates who has been a bona fide Holder of Certificates for at
least six months; or
(ii) the Certificate Trustee shall cease to be eligible under
Section 6.07 and shall fail to resign after written request therefor by
the Certificate Issuer or by the Note Issuer or by any
Certificateholder; or
(iii) the Certificate Trustee shall become incapable of acting
or shall be adjudged a bankrupt or insolvent or a receiver of the
Certificate Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Certificate Trustee or of
its property or affairs for the purpose of rehabilitation, conservation
or liquidation; or
(iv) the Certificate Trustee shall fail to perform its obligations
hereunder in any material respect and shall not have cured such failure
within 30 days after written notice thereof from the Certificate Issuer,
the Note Trustee or any Certificateholder;
then, in any case, (x) the Certificate Issuer or the Note Issuer may remove
the Certificate Trustee or (y) any Holder of Certificates who has been a bona
fide Holder of Certificates for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Certificate Trustee and the appointment
of a successor Certificate Trustee.
(f) If a Responsible Officer of the Certificate Trustee shall have
received written notice of an Avoidable Tax that has been or is likely to be
asserted, the Certificate Trustee shall promptly notify the Certificate
Issuer and the Note Issuer thereof and shall, within 30 days of such
notification, resign hereunder unless within such 30-day period the
Certificate Trustee shall have received notice that either the Certificate
Issuer or the Note Issuer has agreed to pay such tax. In such event, the
Certificate Issuer (with the prior written approval of the Note Issuer) shall
promptly appoint a successor Certificate Trustee in a jurisdiction where
there are no Avoidable Taxes. As used herein, an "Avoidable Tax" means a
state or local tax: (i) upon (w) the Certificate Issuer, (x) the Trust
Property, (y) the Certificateholders or (z) the Certificate Trustee for which
the Certificate Trustee is entitled to seek reimbursement from the Trust
Property, and (ii) that would be avoided if the Certificate Trustee were
located in another state, or jurisdiction within a state, within the United
States. A tax shall not be an Avoidable Tax if either the Certificate Issuer
or the Note Issuer shall agree to pay, and shall pay, such tax.
(g) If the Certificate Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of the
Certificate Trustee for any reason, the Certificate Issuer (with the prior
written approval of the Note Issuer and the Finance Authority) shall promptly
appoint a successor Certificate Trustee. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Certificate Trustee shall be appointed by Act of the
Certificateholders representing not less than a majority of the Outstanding
Amount of the Certificates delivered to the Certificate Issuer, the Note
Trustee and the retiring Certificate Trustee, the successor Certificate
Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Certificate Trustee and supersede the
successor Certificate Trustee appointed as provided above. If no successor
Certificate Trustee shall have been so appointed as provided above and
accepted appointment in the manner hereinafter provided, any Holder of
Certificates who has been a bona fide Holder of Certificates for at least six
months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the appointment of a successor
Certificate Trustee.
(h) The successor Certificate Trustee shall give notice of the
resignation and removal of the Certificate Trustee and appointment of the
successor Certificate Trustee by mailing written notice of such event by
first-class mail, postage prepaid, to the Holders as their names and
addresses appear in the Certificate Register and to each Rating Agency, the
Note Issuer, the Certificate Issuer and the Finance Authority. Each notice
shall include the name of such successor Certificate Trustee and the address
of the corporate trust office of such successor Certificate Trustee.
(i) The Certificate Issuer shall notify the Rating Agencies and
the Finance Authority of any resignation and removal of the Certificate
Trustee and appointment of a successor Certificate Trustee under this
Section 6.08.
Section 6.09. Acceptance of Appointment by Successor. Every successor
Certificate Trustee appointed hereunder shall execute, acknowledge and
deliver to the Certificate Issuer and to the retiring Certificate Trustee an
instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Certificate Trustee shall become effective and such
successor Certificate Trustee, without any further act, deed or conveyance,
shall become vested with all the rights, powers, trusts and duties of the
retiring Certificate Trustee; but, on request of the Certificate Issuer or
the successor Certificate Trustee, such retiring Certificate Trustee shall
execute and deliver an instrument transferring to such successor Certificate
Trustee all the rights, powers and trusts of the retiring Certificate Trustee
and shall duly assign, transfer and deliver to such successor Certificate
Trustee all property and money held by such retiring Certificate Trustee
hereunder. Upon request of any such successor Certificate Trustee, the
Certificate Issuer, the retiring Certificate Trustee and such successor
Certificate Trustee shall execute and deliver any and all instruments
containing such provisions as shall be necessary or desirable to transfer and
confirm to, and for more fully and certainly vesting in, such successor
Certificate Trustee all such rights, powers and trusts. No Certificate
Trustee hereunder shall be liable for the acts or omissions of any successor
Certificate Trustee.
No successor Certificate Trustee shall accept its appointment unless at
the time of such acceptance such successor Certificate Trustee shall be
qualified and eligible under this Article and any and all amounts due and
payable to the predecessor Certificate Trustee have been paid.
Section 6.10. Merger, Conversion, Consolidation or Succession to
Business. Any corporation into which the Certificate Trustee may be merged
or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the
Certificate Trustee shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of the Certificate Trustee,
shall be the successor of the Certificate Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part
of any of the parties hereto. In case any Certificates shall have been
authenticated, but not delivered, by the Certificate Trustee then in office,
any successor by merger, conversion or consolidation to such authenticating
Certificate Trustee may adopt such authentication and deliver the
Certificates so authenticated with the same effect as if such successor
Certificate Trustee had itself authenticated such Certificates.
Section 6.11. Maintenance of Agencies.
(a) There shall at all times be maintained in the Borough of
Manhattan, The City of New York, an office or agency where Certificates may
be presented or surrendered for registration of transfer or for exchange, and
for payment thereof and where notices and demands to or upon the Certificate
Trustee on behalf of the Certificate Issuer in respect of the Certificates or
of this Certificate Indenture may be served. At no time shall there be any
other such office or agency outside the United States. Such office or agency
shall be initially at First Union Trust Company, National Association, 00
Xxxxx Xx., 0xx Xxxxx, Xxxxx 000, Attention: Corporate Trust Administration.
Written notice of any change of location thereof shall be given by the
Certificate Trustee to the Certificate Issuer, the Note Trustee, the Note
Issuer, the Certificateholders, the Finance Authority and the Rating
Agencies. In the event that no such office or agency shall be maintained or
no such notice of location or of change of location shall be given,
presentations and demands may be made and notices may be served at the
Corporate Trust Office of the Certificate Trustee.
(b) There shall at all times be a Certificate Registrar, an
Authentication Agent and a Paying Agent hereunder. Each such Authorized
Agent shall be a bank or trust company, shall be a entity organized and doing
business under the laws of the United States or any state, with a combined
capital and surplus of at least $50,000,000, shall have a long-term debt
rating of at least A by Xxxxx'x and by Standard & Poor's, shall be authorized
under such laws to exercise corporate trust powers and shall be subject to
supervision by federal or state authorities. The Certificate Trustee shall
initially be the Paying Agent, Authentication Agent, and, as provided in
Section 2.06, Certificate Registrar hereunder. Each Certificate Registrar,
if other than the Certificate Trustee, shall furnish to the Certificate
Trustee, at stated intervals of not more than six months, and at such other
times as the Certificate Trustee may request in writing, a copy of the
Certificate Register.
(c) Any corporation into which any Authorized Agent may be merged
or converted or with which it may be consolidated, or any corporation
resulting from any merger, consolidation or conversion to which any
Authorized Agent shall be a party, or any corporation succeeding to the
corporate trust business of any Authorized Agent, shall be the successor of
such Authorized Agent hereunder, if such successor corporation is otherwise
eligible under this Section, without the execution or filing of any paper or
any further act on the part of the parties hereto or such Authorized Agent or
such successor corporation.
(d) Any Authorized Agent may at any time resign by giving written
notice of resignation to the Certificate Trustee, the Certificate Issuer, the
Note Issuer and the Note Trustee. The Certificate Issuer (with the prior
written approval of the Note Issuer) may, and at the request of the
Certificate Trustee shall, at any time terminate the agency of any Authorized
Agent by giving written notice of termination to such Authorized Agent, the
Note Trustee, the Note Issuer and the Certificate Trustee. Upon the
resignation or termination of an Authorized Agent or in case at any time any
such Authorized Agent shall cease to be eligible under this Section (when, in
either case, no other Authorized Agent performing the functions of such
Authorized Agent shall have been appointed by the Certificate Trustee), the
Certificate Issuer (with the prior written approval of the Note Issuer) shall
promptly appoint one or more qualified successor Authorized Agents,
reasonably satisfactory to the Certificate Trustee, to perform the functions
of the Authorized Agent who has resigned or whose agency has been terminated
or who shall have ceased to be eligible under this Section. The Certificate
Issuer shall give written notice of any such appointment made by it to the
Certificate Trustee, the Note Issuer and the Note Trustee; and in each case
the Certificate Trustee shall mail notice of such appointment to all
Certificateholders as their names and addresses appear on the Certificate
Register.
(e) Pursuant to the Fee and Indemnity Agreement, the Note Issuer
has agreed to pay, or cause to be paid, from time to time to each Authorized
Agent reasonable compensation for its services and to reimburse it for its
reasonable expenses; provided, however, that the Note Issuer shall have given
prior consent to the appointment of such Authorized Agent pursuant to the Fee
and Indemnity Agreement, and no Authorized Agent shall have any recourse
against the Certificate Issuer or the Trust Property for payment of such
amounts.
Section 6.12. Money for Certificate Payments To Be Held in Trust.
(a) All moneys deposited with any Paying Agent for the purpose of
any payment on Certificates of any Class shall be deposited and held in trust
for the benefit of the Certificateholders of such Class entitled to such
payment, subject to the provisions of this Section. Moneys so deposited and
held in trust shall constitute a separate trust fund for the benefit of the
Class of Certificateholders with respect to which such money was deposited.
The Certificate Trustee may at any time, for the purpose of obtaining
the satisfaction and discharge of this Certificate Indenture or for any other
purpose, direct any Paying Agent to pay to the Certificate Trustee all sums
held in trust by such Paying Agent, such sums to be held by the Certificate
Trustee upon the same trusts as those upon which such sums were held by such
Paying Agent; and, upon such payment by any Paying Agent to the Certificate
Trustee, such Paying Agent shall be released from all further liability with
respect to such money.
(b) The Certificate Trustee will cause each Paying Agent other
than the Certificate Trustee to execute and deliver to the Certificate
Trustee an instrument in which such Paying Agent shall agree with the
Certificate Trustee (and, if the Certificate Trustee acts as Paying Agent, it
hereby so agrees), subject to the provisions of this Section, that such
Paying Agent will:
(i) hold all sums held by it for the payment of amounts due with
respect to the Certificates in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and pay such sums to such
Persons as herein provided;
(ii) give the Certificate Trustee notice of any default under this
Certificate Indenture of which it has actual knowledge in the making of
any payment required to be made by the Certificate Issuer (or any other
obligor on the Certificates) with respect to the Certificates;
(iii) at any time during the continuance of such default, upon
the written request of the Certificate Trustee, forthwith pay to the
Certificate Trustee all sums held by it in trust for the payment of the
Certificates if at any time it ceases to meet the standards required to
be met by a Paying Agent at the time of its appointment; and
(iv) comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Certificates of any
applicable withholding taxes imposed thereon and with respect to any
applicable reporting requirements in connection therewith.
Section 6.13. Registration of Notes and Eligible Investments in
Certificate Trustee's Name. The Certificate Trustee agrees that all Notes
and Eligible Investments, if any, shall be issued in the name of the
Certificate Trustee or its nominee, on behalf of the Certificate Issuer, and
held by the Certificate Trustee, or, if not so held, the Certificate Trustee
or its nominee, on behalf of the Certificate Issuer, shall be reflected as
the owner of such Notes or Eligible Investments, as the case may be, in the
register of the issuer of such Notes or Eligible Investments. In no event
shall the Certificate Trustee invest in, or hold, Notes or Eligible
Investments in a manner that would cause the Certificate Trustee not to have
the ownership interest in such Notes or Eligible Investments under the
applicable provisions of the Uniform Commercial Code in effect in the
location where the Certificate Trustee holds such Notes or Eligible
Investments or other applicable law then in effect. The Certificate Trustee
shall at all times maintain possession of the Notes in the State of Delaware.
Section 6.14. Representations and Warranties of Certificate Trustee.
The Certificate Trustee hereby represents and warrants that:
(a) the Certificate Trustee is validly existing as a national
banking association under the federal laws of the United States;
(b) the Certificate Trustee has full power (including trust
powers), authority and legal right to execute, deliver and perform this
Certificate Indenture and the Basic Documents to which the Certificate
Trustee is a party and has taken all necessary action to authorize the
execution, delivery, and performance by it of this Certificate Indenture and
such Basic Documents; and
(c) when delivered by the Certificate Trustee, the Certificates
will have been duly executed by the Delaware Trustee on behalf of the
Certificate Issuer and duly authenticated by the Certificate Trustee.
Section 6.15. Withholding Taxes; Information Reporting. The
Certificate Trustee, as trustee for the assets of a grantor trust, shall
exclude and withhold from each distribution of principal and interest and
other amounts due hereunder or under the Certificates any and all withholding
taxes applicable thereto as required by law. The Certificate Trustee agrees
that it will act as such withholding agent and, in connection therewith,
whenever any present or future taxes or similar charges are required to be
withheld with respect to any amounts payable in respect of the Certificates,
to withhold such amounts and timely pay the same to the appropriate authority
in the name of and on behalf of the Certificateholders, that it will file any
necessary withholding tax returns or statements when due, and that, as
promptly as possible after the payment thereof, it will deliver to each
Certificateholder appropriate documentation showing the payment thereof,
together with such additional documentary evidence as such Certificateholders
may reasonably request from time to time. The Certificate Trustee agrees to
file any other information reports as it may be required to file with respect
to taxes. For purposes of reporting on Internal Revenue Service Form 1041
(and any statement attached thereto) or any successor form thereto, the
Certificate Trustee will separately set forth information reported with
respect to each Class of Certificates.
ARTICLE VII
Supplemental Certificate Indentures
Section 7.01. Supplemental Certificate Indentures Without Consent of
Certificateholders. Without the consent of Certificateholders, the
Certificate Issuer (with the prior written approval of the Note Issuer) may,
and the Certificate Trustee (subject to Section 7.03) shall, at any time and
from time to time enter into one or more indentures supplemental hereto, in
form satisfactory to the Certificate Trustee, for any of the following
purposes:
(a) to add to the covenants of the Certificate Issuer for the
benefit of the Certificateholders, or to surrender any right or power herein
conferred upon the Certificate Issuer;
(b) to correct or supplement any provision herein or in any
supplemental certificate indenture that may be defective or inconsistent with
any other provision herein or in any supplemental certificate indenture or to
make any other provisions with respect to matters or questions arising under
this Certificate Indenture; provided, however, that any such action shall not
adversely affect in any material respect the interests of the
Certificateholders;
(c) to cure any ambiguity or correct any mistake;
(d) to qualify, if necessary, this Certificate Indenture
(including any supplemental certificate indenture) under the Trust Indenture
Act, or under any similar federal statute hereafter enacted, and to add to
this Certificate Indenture such other provisions as may be expressly
permitted by the Trust Indenture Act, excluding, however, the provisions
referred to in Section 316(a)(2) of the Trust Indenture Act as in effect at
the date as of which this instrument was executed or any corresponding
provision in any similar federal statute hereafter enacted;
(e) to provide for any interest rate swap transactions with
respect to any floating rate series or Class of Certificates or any series or
Class with specified credit enhancement; but:
(i) such action shall not, as evidenced by an opinion of counsel,
adversely affect in any material respect the interests of any
Certificateholder or other swap counterparty; and
(ii) the Rating Agency Condition shall have been satisfied; or
(f) to authorize the appointment of any listing agent, transfer
agent or Paying Agent or Certificate Registrar for any Class of Certificates
required or advisable in connection with the listing of any Class of
Certificates on the Luxembourg Stock Exchange or any other stock exchange,
and otherwise to amend the Certificate Indenture to incorporate any changes
requested or required by any governmental authority, stock exchange
authority, listing agent, transfer agent or Paying Agent or Certificate
Registrar for any Class of Certificates in connection with that listing.
Section 7.02. Supplemental Certificate Indentures With Consent of
Certificateholders. With the consent of the Certificateholders holding
Certificates representing not less than a majority of the aggregate
Outstanding Amount of Certificates of each Class affected thereby, by Act of
said Certificateholders delivered to the Certificate Issuer, the Note Trustee
and the Certificate Trustee, the Certificate Issuer (with the prior written
approval of the Note Issuer) may, and the Certificate Trustee (subject to
Section 7.03) shall, enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Certificate Indenture or of
modifying in any manner the rights and obligations of the Holders of
Certificates of each such Class under this Certificate Indenture; provided,
however, that no such supplemental indenture shall, without the consent of
the Certificateholder of each Outstanding Certificate affected thereby:
(a) reduce in any manner the amount of, or delay the timing of,
any receipt by the Certificate Trustee of payments on the Notes or
distributions that are required to be made herein on any Certificate, or
change any date of payment on any Certificate, or change the place of payment
where, or the coin or currency in which, any Certificate is payable, or
change the method of calculation of interest on any floating rate
Certificate, or impair the right to institute suit for the enforcement of any
such payment or distribution on or after the Distribution Date, Special
Distribution Date or other date specified herein applicable thereto;
(b) permit the disposition of any Note in the Trust Property
except as permitted by this Certificate Indenture, or otherwise deprive any
Holder of Certificates of any Class of the benefit of the ownership of the
Notes of the corresponding Class in the Trust;
(c) reduce the percentage of the aggregate Outstanding Amount of
the Certificates of any Class that is required for any such supplemental
indenture, or reduce such percentage required for any waiver or consent (of
compliance with certain provisions of this Certificate Indenture or certain
defaults hereunder and their consequences) provided for in this Certificate
Indenture;
(d) modify any of the provisions of this Section, except to
increase any percentage set forth herein or to provide that certain other
provisions of this Certificate Indenture cannot be modified or waived without
the consent of the Holder of each Certificate affected thereby; or
(e) adversely affect the status of the Trust as a grantor trust
for federal income tax purposes.
It shall not be necessary for any Act of Certificateholders under this
Section to approve the particular form of any proposed supplemental
certificate indenture, but it shall be sufficient if such Act shall approve
the substance thereof. The Certificate Issuer shall give each Rating Agency
five Business Days prior written notice of any such proposed supplemental
certificate indenture. Promptly after the execution by the Certificate
Issuer and the Certificate Trustee of any supplemental certificate indenture
pursuant to this Section, the Certificate Trustee shall mail to the Holders
of the Certificates to which such supplemental certificate indenture relates
a notice setting forth in general terms the substance of such supplemental
certificate indenture. Any failure of the Certificate Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental certificate indenture.
Section 7.03. Documents Affecting Immunity or Indemnity. If in the
opinion of the Certificate Trustee any document required to be executed by it
pursuant to the terms of Section 7.01 or 7.02 adversely affects any interest,
right, duty, immunity or indemnity in favor of the Certificate Trustee under
this Certificate Indenture, the Certificate Trustee may in its discretion
decline to execute such document.
Section 7.04. Execution of Supplemental Certificate Indentures;
Notification Under Rules of Luxembourg Stock Exchange. In executing, or
accepting the additional trusts created by, any supplemental certificate
indenture permitted by this Article or the modifications thereby of the
trusts created by this Certificate Indenture, the Certificate Trustee shall
be entitled to receive, and shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental
certificate indenture is authorized or permitted by this Certificate
Indenture. For so long as any of the Certificates are listed on the
Luxembourg Stock Exchange and the rules of that exchange so require, notice
of such proposed action will be published pursuant to those rules promptly
following its effectiveness.
Section 7.05. Effect of Supplemental Certificate Indentures. Upon the
execution of any supplemental certificate indenture under this Article, this
Certificate Indenture shall be modified in accordance therewith, and such
supplemental certificate indenture shall form a part of this Certificate
Indenture for all purposes; and every Holder of any Certificate theretofore
or thereafter authenticated and delivered hereunder shall be bound thereby.
Section 7.06. Conformity with Trust Indenture Act. Every supplemental
certificate indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.
Section 7.07. Reference in Certificates to Supplemental Certificate
Indentures. Certificates authenticated and delivered after the execution of
any supplemental certificate indenture pursuant to this Article may bear a
notation in form approved by the Certificate Trustee as to any matter
provided for in such supplemental certificate indenture; and, in such case,
suitable notation may be made upon Outstanding Certificates after proper
presentation and demand.
Section 7.08. Swap Counterparty Consent. The Certificate Issuer shall
not execute any supplemental certificate indenture under this Article VII
without the consent of any Swap Counterparty if such indenture supplements
supplement would adversely affect the interests of the Swap Counterparty. In
executing any supplemental certificate indenture, the Certificate Trustee
shall be entitled to receive, and shall be fully protected in relying upon,
an Opinion of Counsel stating that such supplemental certificate indenture
does not adversely affect the interests of the Swap Counterparty, so long as
such Opinion of Counsel is rendered by either Brown & Wood LLP or other
counsel mutually satisfactory to the Certificate Trustee and the Swap
Counterparty.
Section 7.09. Delaware Trustee. To the extent that the Delaware
Trustee is required to enter into any supplemental certificate indenture, the
Delaware Trustee shall have the same rights and privileges afforded the
Certificate Trustee.
ARTICLE VIII
Amendments and Supplements to Notes, Note Indenture
and Other Basic Documents
Section 8.01. Amendments and Supplements to Notes, Note Indenture and
Other Basic Documents. In the event that the Certificate Issuer or the
Certificate Trustee, as holder of the Notes of each Class in trust for the
benefit of the Holders of Certificates of the corresponding Class, receives a
request for a consent to any amendment, modification, waiver or supplement
under the Notes, the Note Indenture or any other Basic Document (other than
this Certificate Indenture) to which the Certificate Issuer or the
Certificate Trustee is a party and which in any such case requires the
consent of the Noteholders, the Certificate Issuer shall forward such request
for consent to the Certificate Trustee, and the Certificate Trustee shall
forthwith send a notice of such proposed amendment, modification, waiver or
supplement, to each Holder of Certificates of such Class registered on the
Certificate Register as of such date. The Certificate Trustee shall request
from such Certificateholders directions with respect to each such required
Noteholder consent as to (a) whether or not the Certificate Trustee should
take or refrain from taking any action that a holder of such Note has the
option to direct, (b) whether or not to give or execute or direct the
Certificate Issuer to give or execute any waivers, consents, amendments,
modifications or supplements as a holder of such Note and (c) how to vote
such Note if a vote has been called for with respect thereto; provided,
however, in the case of any change to the terms of, or modification to, the
Notes which requires the consent of the Noteholders, the Certificateholders
may not direct any such action to be taken or direct whether or not to give
or execute any such waiver, consent, amendment, modification or supplement
that is not pursuant to the original terms of the Notes, unless the
Certificate Trustee obtains an Opinion of Counsel at the expense of the
Certificate Issuer of independent tax counsel to the effect that after any
such action, waiver, consent, amendment, modification or supplement the Trust
will continue to be treated as a "grantor trust" for federal income tax
purposes. Provided such a request for Certificateholder direction shall have
been made, in directing any action or casting any vote or giving any consent
as the holder of the Notes, the Certificate Trustee shall vote or consent
with respect to such Notes in the same proportion as the Certificates of the
corresponding Class were actually voted by Acts of the Holders thereof
delivered to the Certificate Trustee prior to two Business Days before the
Certificate Trustee takes such action or casts such vote or gives such
consent.
The Certificate Trustee shall not consent to any amendment,
modification, waiver or supplement to any Basic Document which would in any
manner adversely affect the rights, obligations or interests of any Swap
Counterparty without its prior consent. In executing any amendment,
modification, waiver or supplement to any Basic Document, the Certificate
Trustee shall be entitled to receive, and shall be fully protected in relying
upon, an Opinion of Counsel stating that such amendment, modification, waiver
or supplement does not adversely affect the interests of the Swap
Counterparty, so long as such Opinion of Counsel is rendered by either Brown
& Wood LLP or other counsel mutually satisfactory to the Certificate Trustee
and the Swap Counterparty.
For so long as any of the Certificates are listed on the Luxembourg
Stock Exchange and the rules of that exchange so require, notice of any
amendment to this Certificate Indenture will be published pursuant to those
rules promptly following its effectiveness.
ARTICLE IX
Satisfaction and Discharge
Section 9.01. Satisfaction and Discharge of Certificate Indenture.
This Certificate Indenture shall cease to be of further effect with respect
to the Certificates, and the Certificate Trustee, on reasonable demand of and
at the expense of the Certificate Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Certificate Indenture with
respect to the Certificates, upon the distribution to all Secured Parties and
the Certificate Trustee of all amounts required to be distributed to them
pursuant to this Certificate Indenture and the disposition of all property
held as part of the Trust Property. The Certificate Issuer shall pay or
provide for the payment of all remaining liabilities of the Certificate
Trustee, but solely from amounts payable by the Note Issuer under the Fee and
Indemnity Agreement.
Notice of any distribution pursuant to the paragraph above shall be
mailed promptly by the Certificate Trustee to Holders of Certificates then
outstanding. Such notice shall specify the Distribution Date or Special
Distribution Date, as the case may be, upon which the Holders of Certificates
may surrender their Certificates to the Certificate Trustee for payment of
the final distribution and cancellation. Such notice shall be mailed (a) if
with respect to a final distribution, as soon as practicable following
receipt of notice from the Note Trustee of a final payment on a corresponding
Note, (b) if with respect to a Special Payment other than a Special Payment
constituting a redemption, not earlier than the 60th day and not later than
the 20th day next preceding such final distribution or (c) if with respect to
a Special Payment constituting a redemption of Certificates resulting from a
redemption of Notes, then in accordance with the provisions of the relevant
Section of Article IV hereof. Such notice shall specify (a) the Distribution
Date or Special Distribution Date, as the case may be, upon which the
proposed final payment of the Certificates will be made upon presentation and
surrender of such Certificates at the office or agency of the Certificate
Trustee therein specified, (b) the amount of any such proposed final payment
and (c) that the Record Date otherwise applicable to such Distribution Date
or the Special Record Date otherwise applicable to such Special Distribution
Date, as the case may be, is not applicable, payments being made only upon
presentation and surrender of the Certificates at the office or agency of the
Certificate Trustee therein specified. The Certificate Trustee shall give
such notice to the Certificate Registrar at the time such notice is given to
Holders of Certificates. Upon presentation and surrender of such
Certificates, the Certificate Trustee shall cause to be distributed to the
Holders thereof amounts distributable thereon on such Distribution Date or
Special Distribution Date, as the case may be, pursuant to Section 4.02.
In the event that all of the Holders of Certificates shall not surrender
their Certificates for cancellation within six months after the date
specified in the above mentioned written notice, the Certificate Trustee
shall give a second written notice to the remaining Holders of such
Certificates to surrender their Certificates for cancellation and receive the
final distribution with respect thereto. In the event that any money held by
the Certificate Trustee for the payment of distributions on the Certificates
shall remain unclaimed for two years (or such lesser time as the Certificate
Trustee shall be satisfied, after 60 days' notice from the Certificate Issuer
(with the prior written approval of the Note Issuer), is one month prior to
the escheat period provided under applicable law) after the final
distribution date with respect thereto, the Certificate Trustee shall pay
such money to the Note Trustee for deposit into the collection account
relating to the related Notes or, if such collection account no longer
exists, to the Note Issuer and the Certificate Trustee or Note Issuer shall
give written notice thereof to the Note Trustee, the Note Issuer and the
Certificate Issuer.
ARTICLE X
iscellaneous Provisions
Section 10.01. State Pledge; Certificates and Notes Not Obligations of
the State of Connecticut, Finance Authority or Seller.
(a) The Certificate Issuer hereby finds and determines, and hereby
represents and warrants, that it constitutes a "financing entity" under
Section 16-245e(a) of the Statute, and that the Certificates constitute "rate
reduction bonds" under Section 16-245e(a) of the Statute and that the Holders
of the Certificates are entitled to the rights and benefits thereunder.
Pursuant to Section 16-245j(b) of the Statute, the State of Connecticut
pledges and agrees with the Note Issuer and the Holders of the Certificates
(the "State Pledge") as follows:
Except as otherwise provided in this subsection, the state of
Connecticut does hereby pledge and agree with the owners of
transition property and holders of rate reduction bonds that
the state shall neither limit nor alter the competitive
transition assessment, transition property, financing orders,
and all rights thereunder until the obligations, together with
the interest thereon, are fully met and discharged, provided
nothing contained in this subsection shall preclude the
limitation or alteration if and when adequate provision shall
be made by law for the protection of the owners and holders.
Further, the Certificate Issuer does hereby pledge and agree with the
Note Issuer, the Holders of the Certificates and any Swap Counterparty that
it will not act in a manner inconsistent with the State Pledge and will not
take any action that would impair any rights of the Note Issuer or the
Holders of the Certificates or the Notes or any Swap Counterparty, the
Transition Property or the Certificates. The Certificate Issuer hereby
further agrees to treat the Notes as debt of the Note Issuer, secured by,
among other things, the Transition Property and the equity of the Note Issuer
on deposit in the Capital Subaccount, for all purposes.
(b) Each Certificate represents a fractional undivided beneficial
interest in a corresponding Class of Notes and, in the case of a Class of
floating rate Certificates, a Swap Agreement, and the proceeds thereof. The
Certificates and the Notes shall not be deemed to constitute a debt or
liability of the State of Connecticut, the Finance Authority, any political
subdivision thereof or the Seller or any of its affiliates, except that the
Notes are obligations of CL&P Funding LLC, which is an affiliate of CL&P.
None of the Certificates, the Notes or the underlying Transition Property
will be guaranteed or insured by the State of Connecticut, the Finance
Authority, the Certificate Issuer or any other governmental agency or
instrumentality or by the Seller or its affiliates.
Neither the full faith and credit nor the taxing power of the State of
Connecticut, the Finance Authority or any other governmental agency or
instrumentality is pledged to the payment of the principal of, or interest
on, the Certificates or the Notes, or to the payments in respect or in
repurchase of the Transition Property, nor are the State of Connecticut, the
Finance Authority, the State Treasurer or any other governmental agency or
instrumentality in any manner obligated to make any appropriation for the
payment thereof.
Section 10.02. Limitation on Rights of Certificateholders. The death or
incapacity of any Certificateholder shall not operate to terminate this
Certificate Indenture, the Declaration of Trust or the Certificate Issuer,
nor entitle such Certificateholder's legal representatives or heirs to claim
an accounting or to take any action or commence any proceeding in any court
for a partition or winding up of the Certificate Issuer, nor otherwise affect
the rights, obligations, and liabilities of the parties hereto or any of
them.
Section 10.03. No Recourse to Certificate Issuer. Notwithstanding any
provision of this Certificate Indenture or any supplemental certificate
indenture to the contrary, the Secured Parties shall have no recourse against
the Certificate Issuer, the Certificate Trustee, the Delaware Trustee or the
Finance Authority, but shall look only to the Trust Property with respect to
any amounts due to the Holders hereunder and under the Certificates.
Section 10.04. Certificates Nonassessable and Fully Paid. Pursuant to
Section 3803(a) of the Business Trust Statute, Certificateholders shall be
entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the General
Corporation law of the State of Delaware. Certificateholders shall not be
personally liable for obligations of the Certificate Issuer, the interests in
the Certificate Issuer represented by the Certificates shall be nonassessable
for any losses or expenses of the Certificate Issuer or for any reason
whatsoever, and upon authentication of the Certificates by the Certificate
Trustee pursuant to Section 2.04, the Certificates are and shall be deemed
fully paid and non-assessable. No Certificateholder shall have any right
(except as expressly provided herein) to vote or in any manner otherwise
control the operation and management of the Trust Property, the Certificate
Issuer, or the obligations of the parties hereto, nor shall anything set
forth herein, or contained in the terms of the Certificates, be construed so
as to constitute the Certificateholders from time to time as partners or
members of an association.
Section 10.05. Notices.
(a) Unless otherwise specifically provided herein, all notices,
directions, consents and waivers required under the terms and provisions of
this Certificate Indenture shall be in English and in writing, and any such
notice, direction, consent or waiver may be given by United States mail,
courier service, facsimile transmission or electronic mail (confirmed by
telephone, United States mail or courier service in the case of notice by
facsimile transmission or electronic mail) or any other customary means of
communication, and any such notice, direction, consent or waiver shall be
effective when delivered, or if mailed, three days after deposit in the
United States mail with proper postage for ordinary mail prepaid,
if to the Finance Authority, to:
Office of the State Treasurer
00 Xxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
Attention: Assistant Treasurer - Debt Management
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
if to the Certificate Issuer, to:
Connecticut RRB Special Purpose Trust CL&P-1
c/o First Union Trust Company, National Association
One Xxxxxx Square
000 Xxxx Xxxxxx, 0xx Xxxxx
Xxxxxxxxxx, XX 00000-0000
Attention: Corporate Trust Administration
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
(with copies to the Finance Authority at the addresses listed
herein)
if to the Certificate Trustee, the Delaware Trustee or the Note Trustee,
to:
First Union Trust Company, National Association
One Xxxxxx Square
000 Xxxx Xxxxxx, 0xx Xxxxx
Xxxxxxxxxx, XX 00000-0000
Attention: Corporate Trust Administration
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
if to the Note Issuer, to:
CL&P Funding LLC
c/o The Connecticut Light and Power Company
000 Xxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxx 00000
Attention: Treasurer
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
Email: xxxxxxx@xx.xxx
with a copy to:
The Connecticut Light and Power Company
if by U.S. Mail:
P.O. Box 270
Hartford, CT 06141-0270
if by courier:
000 Xxxxxx Xxxxxx
Xxxxxx, XX 00000
Attention: Treasurer
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
Email: xxxxxxx@xx.xxx
if to the Rating Agencies, to:
Standard & Poor's Ratings Services
00 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Asset Backed Surveillance Department
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
Xxxxx'x Investors Service
00 Xxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: ABS Monitoring Department
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
and
Fitch, Inc.
Xxx Xxxxx Xxxxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: ABS Surveillance
Facsimile: (000) 000-0000
Telephone: (212) 908-0200Email 0500
Email: xxxx@xxxxxxxxxxxx.xxx
if to any Swap Counterparty, to the address and in the manner set forth
in the related Swap Agreement.
(b) The Certificate Issuer, the Certificate Trustee, the Note
Issuer or the Note Trustee, by notice to the others, may designate additional
or different addresses for subsequent notices or communications.
(c) Any notice or communication to Certificateholders shall be
mailed by first-class mail to the addresses for each Certificateholder shown
on the Certificate Register kept by the Certificate Registrar. Failure so to
mail a notice or communication or any defect in such notice or communication
shall not affect its sufficiency with respect to other Certificateholders.
(d) If a notice or communication is mailed in the manner provided
above within the time prescribed, it is conclusively presumed to have been
duly given, whether or not the addressee receives it.
(e) If the Certificate Issuer mails a notice or communication to
the Certificateholders, it shall mail a copy to the Certificate Trustee, to
each Paying Agent and to the Note Issuer at the same time.
(f) Notwithstanding the foregoing, all communications or notices
to the Certificate Trustee or the Delaware Trustee shall be deemed to be
given only when received by a Responsible Officer of the Certificate Trustee
or the Delaware Trustee.
Section 10.06. Governing Law. THIS CERTIFICATE INDENTURE SHALL BE
GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAW OF THE STATE OF
DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAW.
Section 10.07. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Certificate Indenture
shall be for any reason whatsoever held invalid, then such covenants,
agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Certificate Indenture and
shall in no way affect the validity or enforceability of the other provisions
of this Certificate Indenture, or of the Certificates or the rights of the
Secured Parties.
Section 10.08. Conflict With Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Certificate Indenture by any of the
provisions of the Trust Indenture Act, such required provision shall control.
The provisions of Sections 310 through 317 of the Trust Indenture Act
that impose duties on any Person (including the provisions automatically
deemed included herein unless expressly excluded by this Certificate
Indenture) are a part of and govern this Certificate Indenture, whether or
not physically contained herein.
Section 10.09. Effect of Headings and Table of Contents. The Article
and Section headings herein and in the Table of Contents are for convenience
only and shall not affect the construction hereof.
Section 10.10. Successors and Assigns; Delegation.
(a) All covenants, agreements, representations and warranties in
this Certificate Indenture by the Certificate Trustee and the Certificate
Issuer shall bind and, to the extent permitted hereby, shall inure to the
benefit of and be enforceable by their respective successors and assigns,
whether so expressed or not.
(b) No party to this Certificate Indenture shall assign or
delegate this Certificate Indenture or all or any part of its rights or
obligations hereunder to any Person without the prior written consent of the
other parties.
Section 10.11. Benefits of Certificate Indenture. Nothing in this
Certificate Indenture or in the Certificates, express or implied, shall give
to any Person, other than the parties hereto and their successors hereunder,
the Certificateholders and the Swap Counterparty and, to the extent provided
herein, the Note Issuer, any benefit or any legal or equitable right, remedy
or claim under this Certificate Indenture.
Section 10.12. Legal Holidays. In any case where any date for any
distribution in respect of any Certificate shall not be a Business Day, then
payment need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on such first date,
and (unless otherwise specified herein) no interest shall accrue during the
intervening period.
Section 10.13. Counterparts. For the purpose of facilitating the
execution of this Certificate Indenture and for other purposes, this
Certificate Indenture may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original,
and all of which counterparts shall constitute but one and the same
instrument.
Section 10.14. The Delaware Trustee. In performing its obligations
hereunder, the Delaware Trustee shall be entitled to the protections of the
Declaration of Trust.
Section 10.15. Nonpetition Covenants. Notwithstanding any prior
termination of this Certificate Indenture or the Note Indenture, but subject
to the DPUC's right to order the sequestration and payment of revenues
arising with respect to the Transition Property notwithstanding any
bankruptcy, reorganization or other insolvency proceedings with respect to
the debtor, pledgor or transferor of the Transition Property pursuant to
Sections 16-245k(e) and 16-245k(g) of the Statute, the Certificate Trustee
shall not, prior to the date which is one year and one day after the
termination of the Note Indenture with respect to the Note Issuer, petition
or otherwise invoke or cause the Note Issuer or the Certificate Issuer to
invoke the process of any court or governmental authority for the purpose of
commencing or sustaining a case against the Note Issuer or the Certificate
Issuer under any federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator
or other similar official of the Note Issuer or the Certificate Issuer or any
substantial part of the property of the Note Issuer or the Certificate
Issuer, or ordering the winding up or liquidation of the affairs of the Note
Issuer or the Certificate Issuer.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF, the Certificate Issuer and the Certificate Trustee
have caused this Certificate Indenture to be duly executed by duly authorized
officers or representatives, all as of the day and year first above written.
CONNECTICUT RRB SPECIAL PURPOSE TRUST CL&P-1
By: FIRST UNION TRUST COMPANY, NATIONAL
ASSOCIATION, not in its individual capacity but
solely as Delaware Trustee
By:
Name:
Title:
FIRST UNION TRUST COMPANY, NATIONAL
ASSOCIATION, not in its individual capacity but
solely as Delaware Trustee,
By:
Name:
Title:
FIRST UNION TRUST COMPANY, NATIONAL
ASSOCIATION, not in its individual capacity but
solely as Certificate Trustee,
By:
Name:
Title:
EXHIBIT A
FORM OF CLASS A-1, A-2, A-3 OR A-5 CERTIFICATE
REGISTERED
NO. [ ] $ [ ]
CONNECTICUT RRB SPECIAL PURPOSE TRUST CL&P-1
CLASS A-[ ]
RATE REDUCTION CERTIFICATE
INTEREST SCHEDULED FINAL FINAL TERMINATION CUSIP
RATE DISTRIBUTION DATE DATE
REGISTERED OWNER: Cede & Co.
PRINCIPAL AMOUNT:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE 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
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.
This Certificate evidences a fractional undivided beneficial interest in
an Underlying Note (as defined below) of the corresponding class issued by
CL&P Funding LLC, a Delaware limited liability company, and the proceeds
thereof, held by a trust or registered assigns, as more fully described
herein.
This Certificate shall not be deemed to constitute a debt or liability
of the State of Connecticut, acting through the office of the State Treasurer
(as defined in the Certificate Indenture) (the "Finance Authority"), any
other governmental agency or instrumentality or The Connecticut Light and
Power Company, a Connecticut corporation ("CL&P"), or any of its affiliates.
None of the Certificate, the Underlying Note or the underlying Transition
Property (as defined in the Certificate Indenture) will be guaranteed or
insured by the State of Connecticut, the Finance Authority, the Trust (as
defined below) or any other governmental agency or instrumentality or by CL&P
or its affiliates.
Neither the full faith and credit nor the taxing power of the State of
Connecticut, the Finance Authority or any other governmental agency or
instrumentality is pledged to the payment of the principal of, or interest
on, this Certificate or the Underlying Note, or to the payments in respect or
in repurchase of the Transition Property, nor are the State of Connecticut,
the Finance Authority, the State Treasurer or any other governmental agency
or instrumentality in any manner obligated to make any appropriation for the
payment thereof.
To the extent not otherwise defined herein, the capitalized terms used
herein have the meanings assigned to them in the Certificate Indenture.
THIS CERTIFIES THAT CEDE & CO., as nominee for The Depository Trust
Company, for value received, is the registered owner of a Principal Xxxxxx
(stated above) of nonassessable, fully-paid, fractional undivided beneficial
interest in the related Underlying Note and the proceeds thereof held by
Connecticut RRB Special Purpose Trust CL&P-1 (the "Trust") or registered
assigns. The Trust is created pursuant to a Declaration of Trust dated as of
March 23, 2001 by First Union Trust Company, National Association, as
Delaware Trustee (the "Delaware Trustee"), and the Finance Authority, acting
as settlor thereunder pursuant to Connecticut General Statutes Sections 16-
245e through and including 16-245k (the "Statute"). This Certificate is
issued under and is subject to the terms, provisions, and conditions of, a
Certificate Indenture dated as of March 30, 2001 (the "Certificate
Indenture"), by and among the Delaware Trustee, First Union Trust Company,
National Association, as certificate trustee (the "Certificate Trustee"), and
the Trust, a summary of certain of the pertinent provisions of which is set
forth below. This Certificate is one of the duly authorized class of
Certificates designated as "Connecticut RRB Special Purpose Trust CL&P-1 Rate
Reduction Certificates, Class [ ]" (herein called the "Class
[ ] Certificates"). The Class [ ] Certificates are one of
a class of Certificates issued under the Certificate Indenture (such Class
[ ] Certificates, together with other Classes of Certificates issued
on the date hereof under the Certificate Indenture being herein called the
"Certificates"). The holder of this Certificate (the "Holder"), by virtue of
its acceptance hereof, assents and agrees to be bound by the terms of the
Certificate Indenture. This Class [ ] Certificate represents a
fractional undivided beneficial interest in the note of the corresponding
class (the "Underlying Note") issued by CL&P Funding LLC, as Note Issuer,
together with the payments on and proceeds of the Underlying Note. The
Underlying Note is secured by a security interest in the property right
created under the Statute, pursuant to the order of the Connecticut
Department of Public Utility Control, issued on November 8, 2000 and
supplemented on December 12, 2000 and March 12, 2001 in DPUC-00-05-01 (the
"Financing Order"), representing the irrevocable right of CL&P or its
assignee to receive a certain nonbypassable charge (as adjusted from time to
time) from certain retail customers of CL&P's distribution system, together
with certain related collateral, all as more fully described in the Note
Indenture.
The aggregate principal amount of all Certificates of all Classes issued
under the Certificate Indenture equals the aggregate principal amount of the
Underlying Notes of all Classes, and all such Certificates are and will be
equally secured by the pledge and covenants made therein, except as otherwise
expressly provided or permitted in the Certificate Indenture.
Subject to and in accordance with the terms of the Certificate
Indenture, there will be distributed on each quarterly March 30, June 30,
September 30 and December 30 of each year or, if any such day is not a
Business Day, the next succeeding Business Day (each, a "Distribution Date"),
commencing on September 30, 2001 to the Person in whose name this Certificate
is registered at the close of business on the last Business Day immediately
preceding the related Distribution Date or, if Definitive Certificates are
issued, the last day of the immediately preceding calendar month (each, a
"Record Date"), such Xxxxxx's fractional undivided interest in the payments
made on the Underlying Note due on the related Payment Date, the receipt of
which has been confirmed by the Certificate Trustee. Subject to and in
accordance with the terms of the Certificate Indenture, in the event that a
Special Payment on the Underlying Note is received by the Certificate
Trustee, from funds then available to the Certificate Trustee, there will be
distributed on the applicable Special Distribution Date, to the Person in
whose name this Certificate is registered on the Record Date preceding the
Special Distribution Date, as applicable, such Holder's fractional undivided
share of such amount. The Special Distribution Date will be determined as
provided in the Certificate Indenture. The Certificate Trustee will mail
notice of each Special Payment and the related Special Distribution Date to
the Holder as provided in the Certificate Indenture.
Distributions on this Certificate will be made as provided in the
Certificate Indenture by the Certificate Trustee by wire transfer or check
mailed to the Holder of record in the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
hereon, except that with respect to Certificates registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such
nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee.
Except as otherwise provided in the Certificate Indenture and notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Certificate Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office of the
Paying Agent or the office or agency maintained for that purpose by the
Certificate Trustee in The City of New York.
Subject to and in accordance with the terms of the Certificate
Indenture, the Trust has represented and warranted under the Certificate
Indenture that the Trust constitutes a "financing entity" under Section 16-
245e(a) of the Statute, and that the Certificates constitute "rate reduction
bonds" under Section 16-245e(a) of the Statute and that the Holders are
entitled to the rights and benefits thereunder. Pursuant to Section 16-
245j(b) of the Statute, the State of Connecticut, has pledged and agreed with
the Note Issuer and the Holders (the "State Pledge") as follows:
Except as otherwise provided in this subsection, the state of
Connecticut does hereby pledge and agree with the owners of
transition property and holders of rate reduction bonds that
the state shall neither limit nor alter the competitive
transition assessment, transition property, financing orders,
and all rights thereunder until the obligations, together with
the interest thereon, are fully met and discharged, provided
nothing contained in this subsection shall preclude the
limitation or alteration if and when adequate provision shall
be made by law for the protection of the owners and holders.
In addition, the Trust has pledged and agreed with the Note Issuer and
the Holders that it will not act in a manner inconsistent with the State
Pledge and will not take any action that would impair any rights of the Note
Issuer or the Holders in the Notes, the Transition Property or the
Certificates.
Reference is hereby made to the further provisions of this Certificate
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 shall have been executed
by an authorized officer of the Certificate Trustee by manual signature, this
Certificate shall not be entitled to any benefit under the Certificate
Indenture or any other Basic Document or be valid for any purpose.
THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE DOMESTIC LAW OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT
OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAW.
Any reduction in the principal amount of any Certificate effected by any
distribution in respect of principal thereof shall be binding upon all
Holders of such Certificate and of any Certificate issued upon the
registration of transfer thereof or in exchange thereof or in lieu thereof,
whether or not noted thereon.
It is expressly agreed and understood by the parties hereto that (a)
this Certificate is executed by First Union Trust Company, National
Association and authenticated and delivered by First Union Trust Company,
National Association, not individually or personally but solely as Delaware
Trustee and Certificate Trustee, respectively, on behalf of the Trust in the
exercise of the powers and authority conferred and vested in them, (b) the
representations, undertakings and agreements herein made by the Delaware
Trustee and Certificate Trustee on behalf of the Trust are made and intended
not as personal representations, undertakings and agreements of either
trustee, but are made and intended for the purpose of binding only the Trust,
(c) nothing herein contained shall be construed as creating any liability on
First Union Trust Company, National Association, individually or personally,
to perform any covenant either expressed or implied herein, except in their
capacity as Delaware Trustee and Certificate Trustee, respectively, all such
liability being expressly waived by all Persons, and (d) under no
circumstances shall First Union Trust Company, National Association be
personally liable for the payment of any indebtedness or expenses of the
Trust, or be personally liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Trust under
the Certificate Indenture.
IN WITNESS WHEREOF, the Delaware Trustee on behalf of the Trust has
caused this Certificate to be duly executed.
CONNECTICUT RRB SPECIAL PURPOSE TRUST CL&P-1
By: FIRST UNION TRUST COMPANY, NATIONAL
ASSOCIATION, not in its individual
capacity but solely as Delaware Trustee
By:
Name:
Title:
CERTIFICATE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
Dated: [ ]
This is one of the Certificates referred to in the within-mentioned
Certificate Indenture.
FIRST UNION TRUST COMPANY, NATIONAL
ASSOCIATION, not in its individual capacity but
solely as Certificate Trustee
By:
Name:
Title:
[FORM OF REVERSE OF CERTIFICATE]
The Certificates are limited in right of payment, all as more
specifically set forth on the face hereof and in the Certificate Indenture.
All payments or distributions made to Holders under the Certificate Indenture
shall be made only from the Trust Property and only to the extent that the
Certificate Trustee shall have sufficient income or proceeds from the Trust
Property to make such payments in accordance with the terms of the
Certificate Indenture. Each Holder, by its acceptance hereof, agrees that it
will look solely to the income and proceeds from the Trust Property to the
extent available for distribution to such Holder as provided in the
Certificate Indenture. This Certificate does not purport to summarize the
Certificate Indenture and reference is made to the Certificate Indenture for
information with respect to the interests, rights, benefits, obligations,
proceeds, and duties evidenced hereby. A copy of the Certificate Indenture
may be examined during normal business hours at the principal office of the
Certificate Trustee, and at such other places, if any, designated by the
Certificate Trustee, by any Holder upon request.
The Certificate Indenture permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights of the
Holders under the Certificate Indenture at any time by the Trust and the
Certificate Trustee with the consent of the Holders holding Certificates
representing not less than a majority of the aggregate Outstanding Amount of
Certificates of each affected Class issued by the Trust and by any Swap
Counterparty adversely affected thereby. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange hereof or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Certificate
Indenture also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.
As provided in the Certificate Indenture and subject to certain
limitations therein set forth, the transfer of this Certificate is
registerable in the Certificate Register upon surrender of this Certificate
for registration of transfer at the offices or agencies maintained by the
Certificate Trustee in its capacity as Certificate Registrar, or by any
successor Certificate Registrar, in the Borough of Manhattan, The City of
New York, duly endorsed or accompanied by a written instrument of transfer in
form satisfactory to the Certificate Trustee and the Certificate Registrar
duly executed by the Holder hereof or such Xxxxxx's attorney duly authorized
in writing, and thereupon one or more new Certificates of authorized
denominations evidencing the same aggregate fractional undivided beneficial
interest in the Underlying Note will be issued to the designated transferee
or transferees.
The Certificates are issuable only as registered Certificates without
coupons in Minimum Denominations of $1,000 Original Principal Amount and
integral multiples of $1.00 in excess thereof; provided, however, that one
Certificate of each Class may be of a smaller denomination. As provided in
the Certificate Indenture and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of authorized
denominations evidencing the same aggregate fractional undivided beneficial
interest in the Underlying Notes, as requested by the Holder surrendering the
same.
The Holder, by purchase of this Certificate, will be deemed to represent
that such purchase will not result in a non-exempt prohibited transaction
under the Internal Revenue Code of 1986, as amended, or the Employee
Retirement Income Security Act of 1974, as amended, and, in each case, the
rules and regulations thereunder.
The Holder, by purchase of this Certificate, will be deemed to agree to
treat the Underlying Note as debt of the Note Issuer, secured by, among other
things, the Transition Property and other related collateral, for all
purposes.
No service charge will be made for any such registration of transfer or
exchange, but the Certificate Trustee shall require payment of a sum
sufficient to cover any tax or governmental charge payable in connection
therewith.
The Certificate Trustee, the Certificate Registrar, and any agent of the
Certificate Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all
purposes, and neither the Certificate Trustee, the Certificate Registrar, nor
any such agent shall be affected by any notice to the contrary.
The obligations and responsibilities created by the Certificate
Indenture shall terminate with respect to the Certificates upon the
distribution to the Holders of all amounts required to be distributed to them
pursuant to the Certificate Indenture and the disposition of all property
held as part of the Trust Property, except certain indemnity obligations of
the Note Issuer to the Certificate Trustee under the Fee and Indemnity
Agreement.
ASSIGNMENT
Social Security or taxpayer I.D. or other identifying number of
assignee: _________________
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
________________________________________________________________________
________________________________________________________________________
(name and address of assignee)
the within Class A-[ ] Certificate and all rights thereunder, and hereby
irrevocably constitutes and appoints __________________, attorney, to
transfer said Class A-[ ] Certificate on the books kept for registration
thereof, with full power of substitution in the premises.
Dated: Signature Guaranteed:
* NOTE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Class A-[ ]
Certificate in every particular, without alteration, enlargement or any
change whatsoever.
EXHIBIT A-2
FORM OF CLASS A-4 CERTIFICATE
REGISTERED
NO. [ ] $ [ ]
CONNECTICUT RRB SPECIAL PURPOSE TRUST CL&P-1
CLASS A-4
RATE REDUCTION CERTIFICATE
SCHEDULED FINAL FINAL TERMINATION
DISTRIBUTION DATE DATE CUSIP
12/30/2008 12/30/2010 207678 AD 5
REGISTERED OWNER: Cede & Co.
PRINCIPAL AMOUNT:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), TO THE TRUST OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE 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
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.
This Certificate evidences a fractional undivided beneficial interest in
an Underlying Note (as defined below) of the corresponding class issued by
CL&P Funding LLC, a Delaware limited liability company, a Swap Agreement, and
the proceeds thereof, held by a trust or registered assigns, as more fully
described herein.
This Certificate shall not be deemed to constitute a debt or liability
of the State of Connecticut, acting through the office of the State Treasurer
(as defined in the Certificate Indenture) (the "Finance Authority"), any
other governmental agency or instrumentality or The Connecticut Light and
Power Company, a Connecticut corporation ("CL&P"), or any of its affiliates.
None of the Certificate, the Underlying Note, a Swap Agreement or the
underlying Transition Property (as defined in the Certificate Indenture) will
be guaranteed or insured by the State of Connecticut, the Finance Authority,
the Trust (as defined below) or any other governmental agency or
instrumentality or by CL&P or its affiliates.
Neither the full faith and credit nor the taxing power of the State of
Connecticut, the Finance Authority or any other governmental agency or
instrumentality is pledged to the payment of the principal of, or interest
on, this Certificate or the Underlying Note or Swap Agreement, or to the
payments in respect or in repurchase of the Transition Property, nor are the
State of Connecticut, the Finance Authority, the State Treasurer or any other
governmental agency or instrumentality in any manner obligated to make any
appropriation for the payment thereof.
To the extent not otherwise defined herein, the capitalized terms used
herein have the meanings assigned to them in the Certificate Indenture.
THIS CERTIFIES THAT CEDE & CO., as nominee for The Depository Trust
Company, for value received, is the registered owner of a Principal Xxxxxx
(stated above) of nonassessable, fully-paid, fractional undivided beneficial
interest in the related Underlying Note and the proceeds thereof held by
Connecticut RRB Special Purpose Trust CL&P-1 (the "Trust") or registered
assigns. The Trust is created pursuant to a Declaration of Trust dated as of
March 23, 2001 by First Union Trust Company, National Association, as
Delaware Trustee (the "Delaware Trustee"), and the Finance Authority, acting
as settlor thereunder pursuant to Connecticut General Statutes Sections 16-
245e through and including 16-245k (the "Statute"). This Certificate is
issued under and is subject to the terms, provisions, and conditions of, a
Certificate Indenture dated as of March 30, 2001 (the "Certificate
Indenture"), by and among the Delaware Trustee, First Union Trust Company,
National Association, as certificate trustee (the "Certificate Trustee"), and
the Trust, a summary of certain of the pertinent provisions of which is set
forth below. This Certificate is one of the duly authorized class of
Certificates designated as "Connecticut RRB Special Purpose Trust CL&P-1 Rate
Reduction Certificates, Class A-4" (herein called the "Class A-4
Certificates"). The Class A-4 Certificates are one of a class of
Certificates issued under the Certificate Indenture (such Class A-4
Certificates, together with other Classes of Certificates issued on the date
hereof under the Certificate Indenture being herein called the
"Certificates"). The holder of this Certificate (the "Holder"), by virtue of
its acceptance hereof, assents and agrees to be bound by the terms of the
Certificate Indenture. This Class A-4 Certificate represents a fractional
undivided beneficial interest in the note of the corresponding class (the
"Underlying Note") issued by CL&P Funding LLC, as Note Issuer, and a Swap
Agreement, together with the payments on and proceeds thereof. The
Underlying Note is secured by a security interest in the property right
created under the Statute, pursuant to the order of the Connecticut
Department of Public Utility Control, issued on November 8, 2000 and
supplemented on December 12, 2000, and March 12, 2001, in DPUC-00-05-01 (the
"Financing Order"), representing the irrevocable right of CL&P or its
assignee to receive a certain nonbypassable charge (as adjusted from time to
time) from certain retail customers of CL&P's distribution system, together
with certain related collateral, all as more fully described in the Note
Indenture.
The aggregate principal amount of all Certificates of all Classes issued
under the Certificate Indenture equals the aggregate principal amount of the
Underlying Notes of all Classes, and all such Certificates are and will be
equally secured by the pledge and covenants made therein, except as otherwise
expressly provided or permitted in the Certificate Indenture.
Subject to and in accordance with the terms of the Certificate
Indenture, there will be distributed on each quarterly March 30, June 30,
September 30 and December 30 of each year or, if any such day is not a
Business Day, the next succeeding Business Day (each, a "Distribution Date"),
commencing on September 30, 2001 to the Person in whose name this Certificate
is registered at the close of business on the last Business Day immediately
preceding the related Distribution Date or, if Definitive Certificates are
issued, the last day of the immediately preceding calendar month (each, a
"Record Date"), such Holder's fractional undivided interest in the net
payments made on the Underlying Note and Swap Agreement due on the related
Payment Date, the receipt of which has been confirmed by the Certificate
Trustee. Subject to and in accordance with the terms of the Certificate
Indenture, in the event that a Special Payment on the Underlying Note is
received by the Certificate Trustee, from funds then available to the
Certificate Trustee, there will be distributed on the applicable Special
Distribution Date, to the Person in whose name this Certificate is registered
on the Record Date preceding the Special Distribution Date, as applicable,
such Holder's fractional undivided share of such amount. The Special
Distribution Date will be determined as provided in the Certificate
Indenture. The Certificate Trustee will mail notice of each Special Payment
and the related Special Distribution Date to the Holder as provided in the
Certificate Indenture.
Interest will accrue on the Certificates at an Interest Rate of LIBOR
plus 0.31%, computed for each Payment Date on the basis of a 360-day year of
twelve 30-day months and the actual number of days elapsed.
Notwithstanding the foregoing, upon termination of the Class A-4 Swap
Agreement for any reason and for so long as there is no replacement Class A-4
Swap Agreement in effect, the Interest Rate for the Class A-4 Bonds shall be
the fixed rate of 6.06 percent per annum (the "Class A-4 The Gross Fixed
Rate"), effective from and including the Payment Date preceding such
termination. Class A-4 Gross Fixed Rate shall be computed on the basis of a
360-day year of twelve 30-day months. At such time as the Certificate Issuer
enters into a replacement Class A-4 Swap Agreement pursuant to Section 3.03
of the Certificate Indenture, the Class A-4 Certificates shall revert to the
Interest Rate of LIBOR plus 0.31%, effective as of the next Payment Date
following the date of such replacement Class A-4 Swap Agreement and computed
on the basis of the actual number of days elapsed and a 360-day year.
Upon the termination of the Class A-4 Swap Agreement and payment by the
Class A-4 Swap Counterparty of any termination payment or other similar
amount to the Certificate Issuer in accordance with the terms of the Class A-
4 Swap Agreement, such amount shall be deposited directly into the Class A-4
Subaccount and paid to the Holders of the Class A-4 Certificates on the next
Payment Date.
Distributions on this Certificate will be made as provided in the
Certificate Indenture by the Certificate Trustee by wire transfer or check
mailed to the Holder of record in the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
hereon, except that with respect to Certificates registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such
nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee.
Except as otherwise provided in the Certificate Indenture and notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Certificate Trustee of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office of the
Paying Agent or the office or agency maintained for that purpose by the
Certificate Trustee in The City of New York.
Subject to and in accordance with the terms of the Certificate
Indenture, the Trust has represented and warranted under the Certificate
Indenture that the Trust constitutes a "financing entity" under Section 16-
245e(a) of the Statute, and that the Certificates constitute "rate reduction
bonds" under Section 16-245e(a) of the Statute and that the Holders are
entitled to the rights and benefits thereunder. Pursuant to Section 16-
245j(b) of the Statute, the State of Connecticut, has pledged and agreed with
the Note Issuer and the Holders (the "State Pledge") as follows:
Except as otherwise provided in this subsection, the state of
Connecticut does hereby pledge and agree with the owners of
transition property and holders of rate reduction bonds that the
state shall neither limit nor alter the competitive transition
assessment, transition property, financing orders, and all rights
thereunder until the obligations, together with the interest
thereon, are fully met and discharged, provided nothing contained
in this subsection shall preclude the limitation or alteration if
and when adequate provision shall be made by law for the protection
of the owners and holders.
In addition, the Trust has pledged and agreed with the Note Issuer and
the Holders that it will not act in a manner inconsistent with the State
Pledge and will not take any action that would impair any rights of the Note
Issuer or the Holders in the Notes, the Transition Property or the
Certificates.
Reference is hereby made to the further provisions of this Certificate
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 shall have been executed
by an authorized officer of the Certificate Trustee by manual signature, this
Certificate shall not be entitled to any benefit under the Certificate
Indenture or any other Basic Document or be valid for any purpose.
THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE DOMESTIC LAW OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT
OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAW.
Any reduction in the principal amount of any Certificate effected by any
distribution in respect of principal thereof shall be binding upon all
Holders of such Certificate and of any Certificate issued upon the
registration of transfer thereof or in exchange thereof or in lieu thereof,
whether or not noted thereon.
It is expressly agreed and understood by the parties hereto that (a)
this Certificate is executed by First Union Trust Company, National
Association, and authenticated and delivered by First Union Trust Company,
National Association, not individually or personally but solely as Delaware
Trustee and Certificate Trustee, respectively, on behalf of the Trust in the
exercise of the powers and authority conferred and vested in them, (b) the
representations, undertakings and agreements herein made by the Delaware
Trustee and Certificate Trustee on behalf of the Trust are made and intended
not as personal representations, undertakings and agreements of either
trustee, but are made and intended for the purpose of binding only the Trust,
(c) nothing herein contained shall be construed as creating any liability on
First Union Trust Company, National Association, individually or personally,
to perform any covenant either expressed or implied herein, except in their
capacity as Delaware Trustee and Certificate Trustee, respectively, all such
liability being expressly waived by all Persons, and (d) under no
circumstances shall First Union Trust Company, National Association, be
personally liable for the payment of any indebtedness or expenses of the
Trust, or be personally liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Trust under
the Certificate Indenture.
IN WITNESS WHEREOF, the Delaware Trustee on behalf of the Trust has
caused this Certificate to be duly executed.
CONNECTICUT RRB SPECIAL PURPOSE TRUST CL&P-1
By: FIRST UNION TRUST COMPANY, NATIONAL
ASSOCIATION, not in its individual
capacity but solely as Delaware Trustee
By:
Name:
Title:
CERTIFICATE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
Dated: [ ]
This is one of the Certificates referred to in the within-mentioned
Certificate Indenture.
FIRST UNION TRUST COMPANY, NATIONAL
ASSOCIATION, not in its individual capacity but
solely as Certificate Trustee
By:
Name:
Title:
[FORM OF REVERSE OF CERTIFICATE]
The Certificates are limited in right of payment, all as more
specifically set forth on the face hereof and in the Certificate Indenture.
All payments or distributions made to Holders under the Certificate Indenture
shall be made only from the Trust Property and only to the extent that the
Certificate Trustee shall have sufficient income or proceeds from the Trust
Property to make such payments in accordance with the terms of the
Certificate Indenture. Each Holder, by its acceptance hereof, agrees that it
will look solely to the income and proceeds from the Trust Property to the
extent available for distribution to such Holder as provided in the
Certificate Indenture. This Certificate does not purport to summarize the
Certificate Indenture and reference is made to the Certificate Indenture for
information with respect to the interests, rights, benefits, obligations,
proceeds, and duties evidenced hereby. A copy of the Certificate Indenture
may be examined during normal business hours at the principal office of the
Certificate Trustee, and at such other places, if any, designated by the
Certificate Trustee, by any Holder upon request.
The Certificate Indenture permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights of the
Holders under the Certificate Indenture at any time by the Trust and the
Certificate Trustee with the consent of the Holders holding Certificates
representing not less than a majority of the aggregate Outstanding Amount of
Certificates of each affected Class issued by the Trust and by any Swap
Counterparty adversely affected thereby. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange hereof or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Certificate
Indenture also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.
As provided in the Certificate Indenture and subject to certain
limitations therein set forth, the transfer of this Certificate is
registerable in the Certificate Register upon surrender of this Certificate
for registration of transfer at the offices or agencies maintained by the
Certificate Trustee in its capacity as Certificate Registrar, or by any
successor Certificate Registrar, in the Borough of Manhattan, The City of
New York, duly endorsed or accompanied by a written instrument of transfer in
form satisfactory to the Certificate Trustee and the Certificate Registrar
duly executed by the Holder hereof or such Xxxxxx's attorney duly authorized
in writing, and thereupon one or more new Certificates of authorized
denominations evidencing the same aggregate fractional undivided beneficial
interest in the Underlying Note will be issued to the designated transferee
or transferees.
The Certificates are issuable only as registered Certificates without
coupons in Minimum Denominations of $1,000 Original Principal Amount and
integral multiples of $1.00 in excess thereof; provided, however, that one
Certificate of each Class may be of a smaller denomination. As provided in
the Certificate Indenture and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of authorized
denominations evidencing the same aggregate fractional undivided beneficial
interest in the Underlying Notes, as requested by the Holder surrendering the
same.
The Holder, by purchase of this Certificate, will be deemed to represent
that such purchase will not result in a non-exempt prohibited transaction
under the Internal Revenue Code of 1986, as amended, or the Employee
Retirement Income Security Act of 1974, as amended, and, in each case, the
rules and regulations thereunder.
The Holder, by purchase of this Certificate, will be deemed to agree to
treat the Underlying Note as debt of the Note Issuer, secured by, among other
things, the Transition Property and other related collateral, for all
purposes.
No service charge will be made for any such registration of transfer or
exchange, but the Certificate Trustee shall require payment of a sum
sufficient to cover any tax or governmental charge payable in connection
therewith.
The Certificate Trustee, the Certificate Registrar, and any agent of the
Certificate Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all
purposes, and neither the Certificate Trustee, the Certificate Registrar, nor
any such agent shall be affected by any notice to the contrary.
The obligations and responsibilities created by the Certificate
Indenture shall terminate with respect to the Certificates upon the
distribution to the Holders of all amounts required to be distributed to them
pursuant to the Certificate Indenture and the disposition of all property
held as part of the Trust Property, except certain indemnity obligations of
the Note Issuer to the Certificate Trustee under the Fee and Indemnity
Agreement.
ASSIGNMENT
Social Security or taxpayer I.D. or other identifying number of
assignee: _________________
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
________________________________________________________________________
________________________________________________________________________
(name and address of assignee)
the within Class A-4 Certificate and all rights thereunder, and hereby
irrevocably constitutes and appoints __________________, attorney, to
transfer said Class A-4 Certificate on the books kept for registration
thereof, with full power of substitution in the premises.
Dated: Signature Guaranteed:
* NOTE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Class A-4
Certificate in every particular, without alteration, enlargement or any
change whatsoever.
EXHIBIT B
CALCULATION OF LIBOR
(a) On the interest determination date immediately preceding the first
day of each applicable Calculation Period, the Certificate Trustee will
determine LIBOR based on the offered rate for deposits in United States
dollars for the three-month period commencing on the first day of that
Calculation Period that appears on the page, USD-LIBOR-BBA, of the Dow Xxxxx
Telerate Services as of 11:00 a.m., London time, on such interest
determination date (the "Telerate Page"). If no offered rate appears on the
Telerate page, LIBOR for such Calculation Period will be determined as
described in clause (b) below.
(b) With respect to an interest determination date on which no offered
rate appears on the Telerate Page, the Certificate Trustee will request the
principal London office of each of four major banks in the London interbank
market, selected by the Certificate Trustee, to provide the Certificate
Trustee with its offered quotation for three-month deposits in United States
dollars for the applicable Calculation Period, commencing on the second
London Banking Day immediately following that interest determination date, to
prime banks in the London interbank market at approximately 11:00 a.m.,
London time, on such interest determination date and in a principal amount
that is representative for a single transaction in United States dollars in
that market at that time. If at least two such quotations are provided,
LIBOR for such Calculation Period will be the arithmetic mean of all
quotations provided. If fewer than two quotations are provided, LIBOR for
that Calculation Period will be the arithmetic mean of the rates quoted at
approximately 11:00 a.m. in The City of New York, on that interest
determination date by major banks in The City of New York selected by the
Certificate Trustee for loans in United States dollars to leading European
banks, for the Calculation Period commencing on the second London Banking Day
immediately following that Class A-4 interest determination date and in a
principal amount that is representative for a single transaction in United
States dollars in that market at that time.
(c) If LIBOR cannot be determined in accordance with clauses (a) or (b)
above, then LIBOR will be determined to be the same as the rate which applied
during the previous Calculation Period.
