Common use of Refunding Obligations Clause in Contracts

Refunding Obligations. In the event that an offer by the issuer of any of the Bonds shall be made to issue new obligations in exchange or substitution for any issue of Bonds pursuant to a plan for the refunding or refinancing of such Bonds, the Depositor shall instruct the Trustee in writing to reject such offer and either hold or sell such Bonds, except that if (1) the issuer is in default with respect to payment of principal or interest or both on such Bonds or (2) in the opinion of the Depositor given in writing to the Trustee, the issuer will probably default with respect to payment of principal or interest or both on such Bonds in the reasonably foreseeable future, the Depositor shall instruct the Trustee in writing to accept or reject such offer or take any other action with respect thereto as the Depositor may deem proper. Nevertheless, if such an obligation is received by a Trust, it shall either be sold by the Trustee or held in such Trust pursuant to the direction of the Depositor. Any obligation so received in exchange shall be deposited hereunder and shall be subject to the terms and conditions of this Agreement to the same extent as the Bonds originally deposited hereunder. Within five days after such deposit, notice of such exchange and deposit shall be given by the Trustee to each Unitholder of such Trust, including an identification of the Bonds eliminated and the obligations substituted therefor.

Refunding Obligations. In the event that an offer by the issuer of any of the Bonds shall be made to issue new obligations in exchange or substitution for any issue of Bonds pursuant to a plan for the refunding or refinancing of such Bonds, the Depositor shall instruct the Trustee in writing to reject such offer and either hold or sell such Bonds, except that if (1) the issuer is in default with respect to payment of principal or interest or both on such Bonds or (2) in the opinion of the Depositor given in writing to the Trustee, the issuer will probably default with respect to payment of principal or interest or both on such Bonds in the reasonably foreseeable future, the Depositor shall instruct the Trustee in writing to accept or reject such offer or take any other action with respect thereto as the Depositor may deem proper. Nevertheless, if such an obligation is received by a Trust, it shall either be sold by the Trustee or held in such Trust pursuant to the direction of the Depositor. Any obligation so obligations received in exchange shall be deposited hereunder and shall be subject to the terms and conditions of this Agreement to the same extent as the Bonds originally deposited hereunder. Within five days after such exchange and deposit, written notice of such exchange and deposit thereof shall be given by the Trustee Trustee, as agent for the Depositor, to each Unitholder of such Trustthe affected Trust Fund, including an identification of the Bonds eliminated and the obligations substituted therefor.