Section 1202 Satisfaction of Sinking Fund Payments with Securities Clause Samples

Section 1202 allows an issuer to fulfill its sinking fund payment obligations by delivering eligible securities instead of cash. In practice, this means that when a company is required to retire a portion of its outstanding debt under a sinking fund provision, it can do so by surrendering bonds or notes that it already holds, or that it has purchased in the open market, to the trustee. This mechanism provides issuers with flexibility in managing their debt obligations and can help reduce the cash outlay required for periodic debt retirement, thereby easing liquidity pressures.
Section 1202 Satisfaction of Sinking Fund Payments with Securities. The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any series to be made pursuant to the terms of such Securities (1) deliver Outstanding Securities of such series (other than any of such Securities previously called for redemption or any of such Securities in respect of which cash shall have been released to the Company), and (2) apply as a credit Securities of such series which have been redeemed either at the election of the Company pursuant to the terms of such series of Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, provided that such Securities have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. If as a result of the delivery or credit of Securities of any series in lieu of cash payments pursuant to this Section 1202, the principal amount of Securities of such series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such series for redemption, except upon Company Request, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall at the written request of the Company from time to time pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that series purchased by the Company having an unpaid principal amount equal to the cash payment requested to be released to the Company.
View SourceView Similar (6)
Section 1202 Satisfaction of Sinking Fund Payments with Securities. The Company (8) may deliver Outstanding Securities of a series (other than any previously called for redemption) and (9) may apply as a credit Securities of a series which have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to any Securities of such series required to be made pursuant to the terms of such Securities as and to the extent provided for by the terms of such Securities; provided that the Securities to be so credited have not been previously so credited. The Securities to be so credited shall be received and credited for such purpose by the Trustee at the Redemption Price, as specified in the Securities so to be redeemed, for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.
View SourceView Similar (3)
Section 1202 Satisfaction of Sinking Fund Payments with Securities. 75 SECTION 1203 Redemption of Securities for Sinking Fund...................... 76 ARTICLE THIRTEEN REPAYMENT AT THE OPTION OF HOLDERS
View Source

Related to Section 1202 Satisfaction of Sinking Fund Payments with Securities

  • Satisfaction of Sinking Fund Payments with Securities The Company (i) may deliver Outstanding Securities of a series and (ii) may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant to the terms of such Securities as provided for by the terms of such series, provided that such Securities have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the redemption price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

  • Redemption of Securities and Sinking Fund Provisions 13 SECTION 3.01 Redemption........................................................................13 SECTION 3.02

  • Sinking Fund Provisions No sinking fund provisions.

  • Redemption of Securities and Sinking Funds 36 SECTION 11.1 Applicability of Article.................................................................................. 36 SECTION 11.2 Notice of Redemption; Partial Redemptions................................................................. 37 SECTION 11.3 Payment of Securities Called for Redemption............................................................... 37 SECTION 11.4 Exclusion of Certain Securities from Eligibility for Selection for Redemption............................. 38 SECTION 11.5 Mandatory and Optional Sinking Funds...................................................................... 38

  • Mandatory Sinking Fund Redemption The Bonds maturing on January 15, 2033, are subject to mandatory sinking fund redemption prior to maturity, at a redemption price equal to the principal amount thereof plus accrued interest, on the dates and in the amounts set forth below: