Common use of Authorization of the Bonds Clause in Contracts

Authorization of the Bonds. (A) For the purposes provided herein, Bonds of the Trust are hereby authorized to be issued from time to time in one or more Series without limitation as to amount except as provided in this Trust Agreement or as may be limited by law. All such Bonds shall be entitled “State Revolving Fund Bonds” and may be further designated either as “Senior” or as “Subordinate” and may also be further designated as set forth in the applicable Supplemental Resolution. The Bonds may, if and when authorized by the Trust pursuant to one or more Supplemental Trust Agreements, be issued in one or more Series, and the designation thereof may include such further or alternate appropriate designations added to or incorporated in such title for the Bonds of any particular Series as the Trust may determine. The Bonds shall not be general obligations of the Trust or a pledge of its full faith and credit, but shall be special obligations of the Trust secured solely as provided herein and payable solely from the funds, amounts and other rights and property available and pledged to such payments pursuant to Section 5.1 of this Trust Agreement and the applicable Supplemental Trust Agreement. The Bonds may be issued as Fixed Rate Bonds, Variable Rate Bonds, Tender Bonds, Capital Appreciation Bonds, Deferred Income Bonds or Discount Bonds or any combination thereof in accordance with applicable provisions set forth below and the applicable Supplemental Trust Agreement. (B) The Trust may issue Bonds (“Fixed Rate Bonds”) hereunder which bear a fixed rate or rates of interest during the term thereof. The applicable Supplemental Trust Agreement shall specify the rate or rates of interest borne by such Fixed Rate Bonds and the Debt Service Payment Dates thereof. (C) The Trust may issue Bonds (“Variable Rate Bonds”) hereunder which provide for a variable, adjustable, convertible or other similar rates of interest, not fixed as to percentage at the date of issue for the term thereof. The applicable Supplemental Trust Agreement shall specify: (1) the method or methods for determining the interest rate borne by such Variable Rate Bonds and the frequency of change thereof; (2) the maximum interest rate (the “Variable Rate Ceiling”) payable on such Variable Rate Bonds during the term thereof; and (3) if deemed desirable by the Trust, provisions with respect to the conversion of such Variable Rate Bonds to Fixed Rate Bonds. The method or methods for determining the interest rate on Variable Rate Bonds pursuant to (1) above may include the selection of such rate by an indexing agent as provided in an agreement between the Trust and such agent, the utilization of an index or indices as described in the applicable Supplemental Trust Agreement, or such other standard or standards set forth by the Trust in the applicable Supplemental Trust Agreement or any combination of the foregoing. Any Variable Rate Bonds which contain an option to convert such Variable Rate Bonds to Fixed Rate Bonds shall be deemed Variable Rate Bonds hereunder until the date of such conversion and on and after such date, such Variable Rate Bonds shall be deemed Fixed Rate Bonds. (D) The Trust may provide that any Series of Bonds may include an option exercisable by the Owners thereof to have such Bonds (“Tender Bonds”) either repurchased or redeemed prior to the maturity thereof. The Trust shall provide the Master Trustee and each Rating Agency prior written notice of the Trust’s intention to issue any Tender Bonds hereunder. The applicable Supplemental Trust Agreement shall specify: (1) the period or periods during which and the circumstances under which such option may be exercised, including provisions for the variation of such periods; (2) provisions, as the Trust shall deem desirable, with respect to the repurchase of such Bonds and the remarketing thereof, including provisions with respect to the appointment of the remarketing agent therefor; and (3) provisions, as the Trust shall deem desirable, for the adjustment of the interest rate or maturity of such Tender Bonds upon the exercise of any such option. Any Tender Bonds which shall have been repurchased pursuant to any remarketing agreement and not otherwise redeemed by the Trust shall continue to be Outstanding Bonds hereunder. To the extent provided in the applicable Supplemental Trust Agreement, Tender Bonds issued hereunder may be secured by a Liquidity Facility providing for the repurchase or payment of any tender price of Tender Bonds which have not been remarketed upon tender of such Tender Bonds and any accrued and unpaid interest due on such Tender Bonds upon the tender date thereof. (E) The Trust may issue Bonds (“Capital Appreciation Bonds”) which provide for the addition of accrued and unpaid interest to the principal due thereon upon such terms with respect thereto determined by an applicable Supplemental Trust Agreement. The applicable Supplemental Trust Agreement shall specify interest rate or rates for such Capital Appreciation Bonds, the accreted values of any such Capital Appreciation Bonds and the date of payments and accretion. (F) The Trust may issue Bonds (“Discount Bonds”) which either bear a zero stated rate of interest or bear a stated rate of interest such that such Discount Bonds are sold at a price less than the aggregate principal amount thereof in order to provide such yield thereon as deemed appropriate and desirable thereon by the Trust. In the applicable Supplemental Trust Agreement for any Discount Bonds, the Trust may provide for the determination of the “principal amount” and “interest” payable on such Discount Bonds and, if so provided in the applicable Supplemental Trust Agreement, for the purposes hereof such terms with respect to such Discount Bonds shall have the meaning given in such applicable Supplemental Trust Agreement.

Authorization of the Bonds. (Aa) For Subject to the purposes provided herein, Bonds approval of the Trust are hereby Governor and Council, the State is authorized to issue one or more series of Bonds hereunder to be designated “Federal Highway Grant Anticipation Bonds” and shall bear such further designation as required by law or as determined by the State Treasurer, which Bonds may be issued as hereinafter provided from time to time in one or more Series time, without limitation as to amount except as provided in this Trust Agreement or as may be limited by law. All such Bonds shall be entitled “State Revolving Fund Bonds” and may be further designated either as “Senior” or as “Subordinate” and may also be further designated as set forth in the applicable Supplemental Resolution. The Bonds may, if and when authorized by the Trust pursuant to one or more Supplemental Trust Agreements, be issued in one or more Series, and the designation thereof thereof, may include such further or alternate appropriate designations added to or incorporated incorporate in such title for the Bonds of any particular Series as the Trust State may determine. The Bonds shall not be general obligations of the Trust or a pledge of its full faith and credit, but shall be special obligations of the Trust secured solely as provided herein and payable solely from the funds, amounts and other rights and property available and pledged to such payments pursuant to Section 5.1 of this Trust Agreement and the applicable Supplemental Trust Agreement. The Bonds may be issued as Fixed Rate Bonds, Variable Rate Bonds, Tender Bonds, Capital Appreciation Bonds, Deferred Income Bonds, Discount Bonds, Build America Bonds or Discount Recovery Zone Economic Development Bonds or any combination thereof in accordance with applicable provisions set forth below and the applicable Applicable Supplemental Trust Agreement. (Bb) The Trust State may issue Bonds (“Fixed Rate Bonds”) hereunder which bear a fixed rate or rates of interest during the term thereof. The applicable Applicable Supplemental Trust Agreement agreement shall specify the rate or rates of interest borne by such Fixed Rate Bonds and the Debt Service Payment Dates thereofBonds. (Cc) The Trust State may issue Bonds (“Variable Rate Bonds”) hereunder which provide for a variable, adjustable, convertible or other similar rates of interest, not fixed as to percentage at the date of issue for the term thereof. The applicable Supplemental Applicable Supplement Trust Agreement shall specify: (1i) the method or methods for determining the interest rate borne by such Variable Rate Bonds and the frequency of change thereof; (2ii) the maximum interest rate (the “Variable Rate Ceiling”) payable on such Variable Rate Bonds during the term thereof; and (3iii) if deemed desirable by the Trust, State provisions with respect to the conversion of such Variable Bonds to Fixed Rate Bonds and the further conversion of such Fixed Rate Bonds to Fixed Variable Rate Bonds. The method or methods for determining the interest rate on Variable Rate Bonds pursuant to (1i) above may include the selection of such rate by an indexing agent as provided in an agreement between the Trust State and such agent, the utilization of an index or indices as described in the applicable Applicable Supplemental Trust Agreement, or such other standard or standards set forth by the Trust State in the applicable Applicable Supplemental Trust Agreement or any combination of the foregoing. Any Variable Rate Bonds which contain an option to convert such Variable Rate Bonds to Fixed Rate Bonds shall be deemed Variable Rate Bonds hereunder until the date of such conversion and on and after such date, such Variable Rate Bonds shall be deemed Fixed Rate Bonds. (Dd) The Trust State may provide that any Series of Bonds may include an option exercisable by the Owners registered owners thereof to have such Bonds (“Tender Bonds”) either repurchased or redeemed prior to the maturity thereof. The Trust State Treasurer shall provide the Master Trustee and each Rating Agency then maintaining a rating on any Bonds Outstanding with at least thirty (30) days’ prior written notice of the TrustState’s intention to issue any Tender Bonds hereunder. The applicable Applicable Supplemental Trust Agreement shall specify: (1i) the period or periods during which and the circumstances under which such option may be exercised, including provisions for the variation of such periods; (2ii) provisions, as the Trust State shall deem desirable, with respect to the repurchase of such Bonds and the remarketing thereof, including provisions with respect to the appointment of the remarketing agent therefor; and (3iii) provisions, as the Trust State shall deem desirable, for the adjustment of the interest rate or maturity of such Tender Bonds upon the exercise of any such option. Any Tender Bonds which shall have been repurchased pursuant to any remarketing agreement and not otherwise redeemed by the Trust State shall continue to be Outstanding Bonds hereunder. To the extent provided in the applicable Supplemental Trust Agreement, Any Tender Bonds issued hereunder may shall be secured by a Liquidity Facility providing for the repurchase or payment of any tender price of Tender Bonds which have not been remarketed upon tender of such Tender Bonds and any accrued and unpaid interest due on such Tender Bonds upon the tender date thereof. The provider of any such Liquidity Facility shall have a rating on its short term obligations within the highest Rating Category from any Rating Agency then maintaining a rating on the Bonds Outstanding. (Ee) Any Variable Rate Bonds which contain an option to convert such Bonds to Fixed Rate Bonds shall be deemed Variable Rate Bonds hereunder until the date of such conversion and on and after such date, such Bonds shall be deemed Fixed Rate Bonds. (f) The Trust State may issue Bonds (“Capital Appreciation Bonds”) which provide for the addition of accrued and unpaid interest to the principal due thereon upon such terms with respect thereto determined by an applicable Applicable Supplemental Trust Agreement. The applicable Applicable Supplemental Trust Agreement shall specify interest rate or rates for such Capital Appreciation Bonds, Bonds and the accreted values Accreted Values of any such Capital Appreciation Bonds and the date of payments and accretionBonds. (Fg) The Trust State may issue Bonds (“Discount Bonds”) which either bear a zero stated rate of interest or bear a stated rate of interest such that such Discount Bonds are sold at a price less than the aggregate principal amount thereof in order to provide such yield thereon as deemed appropriate and desirable thereon by the TrustState. In the applicable Applicable Supplemental Trust Agreement for any Discount Bonds, the Trust State may provide for the determination of the “principal amount” and “interest” payable on such Discount Bonds and, if so provided in the applicable Applicable Supplemental Trust Agreement, for the purposes hereof such terms with respect to such Discount Bonds shall have the meaning given in such applicable Applicable Supplemental Trust Agreement. (h) The State may issue Bonds (“Deferred Income Bonds”) which provide for the deferral of interest on such Bonds until the Interest Commencement Date. The Applicable Supplemental Trust Agreement shall specify the interest rate or rates for such Bonds and Interest Commencement Date for such Bonds. (i) The State may issue Bonds (“Build America Bonds” or “Recovery Zone Economic Development Bonds”), as specified by the State at the time of issuance thereof) which provide for a subsidy payment to be received by the State from the federal government with respect to a portion of the interest payable on such Bonds. The Applicable Supplemental Trust Agreement shall authorize the State Treasurer to make any elections, certifications, representations, agreements, modifications or amendments required with respect to any such Bonds, including, without limitation, to the extent permitted or authorized by law, the allocation to the Debt Service Fund, as determined by the State Treasurer, of any subsidy payment received by the State from the federal government with respect to a portion of the interest payable on such Bonds.