Determination of Interest Rate on the Bonds. (a) The Bonds shall bear interest as set forth in subsection (b) of this Section, until the first Reset Adjustment Date or Fixed Rate Adjustment Date, if any, and thereafter the Bonds shall bear interest at the applicable rate set forth in this Section. (b) Variable Rate. The Bonds delivered on the Delivery Date shall bear interest at a Variable Rate established for the Bonds, computed on the basis of a 365-day or 366-day year, for the actual number of days elapsed from and including the Delivery Date to and including the following Wednesday; and thereafter shall continue to bear interest at a Variable Rate, until converted to a Reset Rate or Fixed Rate as provided herein. The Variable Rate of interest borne by the Bonds during each Variable Period for each Variable Interest Accrual Period shall be the Variable Rate determined by the Remarketing Agent and reported in writing to the Trustee, the Tender Agent, the Borrower, the Issuer, the Bank (prior to the Conversion Date), the Servicer (from and after the Conversion Date) and the Credit Facility Provider as provided in Section 10.05 hereof, on the Variable Interest Computation Date for each such Variable Interest Accrual Period. Any Bondholder may obtain information on the Variable Rate by request to the Remarketing Agent. The Variable Rate determined by the Remarketing Agent on each Variable Interest Computation Date shall be that rate of interest which, if borne by the Bonds, would, in its reasonable professional judgment, on the basis of prevailing financial market conditions, be the interest rate necessary, but which would not exceed the interest rate necessary, to be borne by the Bonds in order for the market value of the Bonds on such Variable Interest Computation Date to be 100% of the principal amount thereof (disregarding accrued interest) if the Bonds were sold on such Variable Interest Computation Date; provided, however, that in no event shall the Variable Rate at any time exceed the Maximum Rate. If for any reason the Remarketing Agent shall fail to determine the rate of interest or if the rate of interest determined by the Remarketing Agent is held to be invalid or unenforceable for any Variable Interest Accrual Period (other than in connection with an Event of Default pursuant to Section 6.01(b) hereof), then the Variable Rate for such Variable Interest Accrual Period shall be the Index Rate in effect on the applicable Variable Interest Computation Date. Anything herein to the contrary notwithstanding, so long as an Event of Default pursuant to Section 6.01(b) hereof shall have occurred and be continuing, the Variable Rate for each Variable Interest Accrual Period shall be (i) for the first 60 days following the occurrence of such Event of Default, the Index Rate in effect on the applicable Variable Interest Computation Date plus 4% per annum, and (ii) thereafter, the Maximum Rate. The Remarketing Agent shall not be responsible for determining the Variable Rate for any Variable Interest Accrual Period after the occurrence and during the continuance of an Event of Default pursuant to Section 6.01(b) hereof. For each Variable Interest Accrual Period, the Variable Rate determined by the Remarketing Agent shall be communicated in writing (which may be by Electronic Notice) to the Trustee, the Tender Agent, the Issuer, the Borrower, the Servicer and the Credit Facility Provider (which shall be by Electronic Notice) as provided in Section 10.05 hereof, on the Variable Interest Computation Date. The determination of the Variable Rate by the Remarketing Agent shall (in the absence of manifest error) be conclusive and binding on the holders of the Bonds, the Issuer, the Borrower, the Credit Facility Provider, the Remarketing Agent, the Tender Agent, the Trustee, and the Servicer (from and after the Conversion Date), and each shall be protected in relying on it. Following any Reset Adjustment Date, the interest rate on the Bonds may be converted again to a Variable Rate at the election or deemed election of the Borrower in accordance with the procedures in Section 2.02(c) hereof, which date of adjustment to a Variable Rate shall be the Variable Rate Adjustment Date.
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Sources: Trust Indenture, Trust Indenture