Common use of Floating Rate Clause in Contracts

Floating Rate. (i) All Bonds shall bear interest initially at the Floating Rate, subject to conversion on the Conversion Date to a Fixed Rate in accordance with the terms of Section 5.01. The Floating Rate shall be determined for each Weekly Period as follows: No later than 9:30 a.m. on each Determination Date, the Placement and Remarketing Agent shall determine the Floating Rate for the Weekly Period commencing on such Determination Date (or, if such Determination Date is not a Friday, then on the immediately preceding Friday) as the minimum interest rate necessary, in its sole judgment, to sell the Bonds on the Determination Date at a price equal to the principal amount thereof, exclusive of any accrued interest. The Floating Rate shall be determined by the Placement and Remarketing Agent weekly and shall be effective on each Friday for the Weekly Period beginning on such day. Anything herein to the contrary notwithstanding, the Floating Rate shall in no event exceed the Maximum Rate. (ii) The Placement and Remarketing Agent shall advise the Trustee of the Floating Rate by telecopy to the Trustee no later than 10:30 a.m. on each Determination Date. Upon request of any Bondholder, the Placement and Remarketing Agent shall also notify such Bondholder of the Floating Rate so determined. (iii) If for any reason the interest rate on the Bonds for any Weekly Period is not determined by the Placement and Remarketing Agent in accordance with (C)(i) above, or a court holds that the Floating Rate established in accordance with (C)(i) above is invalid or unenforceable, the Floating Rate for the Bonds shall be (a) for the first Weekly Period in which the Floating Rate is not so determined by the Placement and Remarketing Agent or is so held invalid or unenforceable, a rate per annum equal to the Floating Rate that was applicable to the Bonds for the immediately preceding Weekly Period and (b) for each Weekly Period thereafter, a rate per annum equal to 85% of the interest rate per annum for 30-day commercial paper having a rating of A-2/P-2 as reported in The Wall Street Journal on each Determination Date. (iv) The determination of the Floating Rate shall be conclusive and binding upon the Owners of the Bonds, the Authority, the Trustee, the Placement and Remarketing Agent, the Company and the Bank, and no Owner of Bonds shall be given notice thereof, unless such Owner shall file with the Trustee a written request to receive notice of the Floating Rate so determined from time to time.

Floating Rate. (i) All Bonds shall bear interest initially at the Floating Rate, subject to conversion on the Conversion Date to a Fixed Rate in accordance with the terms of Section 5.01. The Floating Rate shall be determined for each Weekly Period as follows: No later than 9:30 a.m. on each Determination Date, the Placement and Remarketing Agent shall determine the Floating Rate for the Weekly Period commencing on such Determination Date (or, if such Determination Date is not a FridayWednesday, then on the immediately preceding FridayWednesday) as the minimum interest rate necessary, in its sole judgment, to sell the Bonds on the Determination Date at a price equal to the principal amount thereof, exclusive of any accrued interest. The Floating Rate shall be determined by the Placement and Remarketing Agent weekly and shall be effective on each Friday Wednesday for the Weekly Period beginning on such day. Anything herein to the contrary notwithstanding, the Floating Rate shall in no event exceed the Maximum Rate. (ii) The Placement and Remarketing Agent shall advise the Trustee of the Floating Rate by telecopy to the Trustee no later than 10:30 a.m. on each Determination Date. Upon request of any Bondholder, the Placement and Remarketing Agent shall also notify such Bondholder of the Floating Rate so determined. (iii) If for any reason the interest rate on the Bonds for any Weekly Period is not determined by the Placement and Remarketing Agent in accordance with (C)(i) above, or a court holds that the Floating Rate established in accordance with (C)(i) above is invalid or unenforceable, the Floating Rate for the Bonds shall be (a) for the first Weekly Period in which the Floating Rate is not so determined by the Placement and Remarketing Agent or is so held invalid or unenforceable, a rate per annum equal to the Floating Rate that was applicable to the Bonds for the immediately preceding Weekly Period and (b) for each Weekly Period thereafter, a rate per annum equal to 85% of the interest rate per annum for 30-day commercial paper having a rating of A-2/P-2 as reported in The Wall Street Journal on each Determination Date. (iv) The determination of the Floating Rate shall be conclusive and binding upon the Owners of the Bonds, the Authority, the Trustee, the Placement and Remarketing Agent, the Company and the Bank, and no Owner of Bonds shall be given notice thereof, unless such Owner shall file with the Trustee a written request to receive notice of the Floating Rate so determined from time to time.