EXHIBIT 4.6
Dated 28 January 2004
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GRANITE MORTGAGES 03-1 PLC
as Issuer
- and -
THE BANK OF NEW YORK
as Note Trustee
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ISSUER TRUST DEED
AMENDMENT AND RESTATEMENT DEED
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SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇
▇ ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇
TELEPHONE ▇▇▇ ▇▇▇▇ ▇▇▇▇
FACSIMILE 020 7626 7937
THIS ISSUER TRUST DEED AMENDMENT AND RESTATEMENT DEED is made on 28 January,
2004
BETWEEN:-
(1) GRANITE MORTGAGES 03-1 PLC (registered number 4598035), a public
limited company incorporated under the laws of England and Wales, whose
registered office is at ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇
(the "Current Issuer");
(2) THE BANK OF NEW YORK a New York banking corporation whose London branch
address is at ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇ ▇▇▇ in its
capacity (the "Note Trustee").
WHEREAS:-
(A) On 27 January 2003 parties to this Deed entered into the Current Issuer
Trust Deed pursuant to which the Current Issuer Notes were constituted.
(B) Pursuant to Clause 11.1 of the Current Issuer Trust Deed, the Current
Issuer and the Note Trustee have agreed to amend Condition 4(D) of the
Current Issuer Conditions in the manner set out in this Deed.
(C) With effect from the date hereof, the provisions of the Current Issuer
Trust Deed and this Deed shall be read and construed as one document.
NOW THIS DEED WITNESSES AND IT IS HEREBY DECLARED as follows:-
1. Definitions
1.1 The provisions of:
(a) the Master Definitions Schedule as amended and restated by (and
appearing in Appendix 1 to) the Master Definitions Schedule
Seventh Amendment Deed made on 26 January 2004 (the "Master
Definitions Schedule") between, among others, the parties hereto,
and
(b) the Issuer Master Definitions Schedule signed for the purposes of
identification by Sidley ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ and ▇▇▇▇▇ & ▇▇▇▇▇ on
27 January 2003 (the "Issuer Master Definitions Schedule"),
(as the same have been and may be amended, varied or supplemented from
time to time with the consent of the parties hereto) are expressly and
specifically incorporated into and shall apply to this Deed (and the
recitals hereto). The Issuer Master Definitions Schedule specified
above shall prevail to the extent that it conflicts with the Master
Definitions Schedule.
1.2 The Current Issuer Trust Deed as amended and restated pursuant to this
Deed shall be referred to herein as the "Amended and Restated Current
Issuer Trust Deed".
1.3 As used in the Amended and Restated Current Issuer Trust Deed the terms
"Current Issuer Trust Deed", "this Current Issuer Trust Deed", "this
Deed", "herein",
"hereinafter", "hereof", "hereto" and other words of similar import
shall mean or refer to the Amended and Restated Current Issuer Trust
Deed, unless the context otherwise specifically requires.
2. Amendment
Condition 4(D) of the Current Issuer Conditions shall be and is hereby
amended as follows:
2.1 Condition 4(D)(i) shall be deleted in its entirety and replaced with
the following:
"(i) The Agent Bank shall, as soon as practicable after the Quotation
Time (or with respect to the Series 1 Class A3 Notes, 5.00p.m.
New York City time) on each Interest Determination Date,
determine and notify the Current Issuer, the Current Issuer Cash
Manager, the Note Trustee and the Paying Agents of (i) the Rates
of Interest applicable to each Class of Notes for the relevant
Interest Period, (ii) the Interest Amount payable in respect of
each class of Notes for the relevant Interest Period and (iii)
the Note Interest Amount payable in respect of each Note for the
relevant Interest Period."
2.2 Condition 4(D)(ii) of the Conditions shall be deleted in its entirety
and replaced with the following:
"(ii) The amount of interest in respect of each class of Notes in
respect of an Interest Period (in each case, the "Interest
Amount") shall be determined by applying the relevant Rate of
Interest to the aggregate Principal Amount Outstanding of the
relevant class of Notes, multiplying the sum by the applicable
day count fraction described in Condition 4(A) and rounding the
resultant figure to the nearest cent, amounts equal to or above
half a cent being rounded upwards and amounts below half a cent
being rounded downwards (in the case of Dollar Notes and the
Euro Notes) and the nearest ▇▇▇▇▇, amounts equal to or above
half a ▇▇▇▇▇ being rounded upwards and amounts below half a
▇▇▇▇▇ being rounded downwards (in the case of the Sterling
Notes).
The amount of interest in respect of each Note in respect of an
Interest Period (in each case, the "Note Interest Amount") shall
be the proportion of the relevant Interest Amount in relation to
the relevant class of Notes on such date equal to the proportion
that the Principal Amount Outstanding of the relevant Note bears
to the aggregate Principal Amount Outstanding of the relevant
class of Notes rounding the resulting figure to the nearest
cent, amounts equal to or above half a cent being rounded
upwards and amounts below half a cent being rounded downwards
(in respect of the Dollar Notes and the Euro Notes) and the
nearest ▇▇▇▇▇, amounts equal to or above half a ▇▇▇▇▇ being
rounded upwards and amounts below half a ▇▇▇▇▇ being rounded
downwards (in respect of the Sterling Notes)."
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3. Contracts (Rights of Third Parties) Act 1999
No person shall have any right to enforce any provision of this Deed or
any provision of the Trust Deed (as amended and restated in accordance
with this Deed) under the Contract (Rights of Third Parties) ▇▇▇ ▇▇▇▇.
4. Counterparts
This Deed may be executed in any number of counterparts, and has the
same effect as if the signatures on the counterparts were on a single
copy of this Deed.
5. Governing Law
5.1 This Deed is governed by, and shall be construed in accordance with,
English law.
5.2 Each of the parties hereto irrevocably agrees that the courts of
England shall have jurisdiction to hear and determine any suit, action
or proceeding, and to settle any disputes, which may arise out of or in
connection with this Deed and, for such purposes, irrevocably submits
to the jurisdiction of such courts.
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EXECUTION PAGE
IN WITNESS whereof this Deed has been executed as a deed by each of the
parties hereto the day and year first above written.
The Current Issuer
Executed by
GRANITE MORTGAGES 03-1 PLC
as its deed as follows: By:_____________________________________
Signed for and on its behalf by one of its Director
directors and by another of its directors/its
secretary
Name:___________________________________
By:_____________________________________
Director/Secretary
Name:___________________________________
The Note Trustee
Executed by
THE BANK OF NEW YORK
as its deed as follows: By:_____________________________________
Signed for and on its behalf by one of its duly Duly Authorised Attorney/Signatory
authorised attorneys/signatories
Name:____________________________________
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Appendix 1
Current Issuer Trust Deed
DATED 27 JANUARY 2003
GRANITE MORTGAGES 03-1 PLC
as Current Issuer
and
THE BANK OF NEW YORK
as Note Trustee
_____________________________
ISSUER TRUST DEED
_____________________________
SIDLEY ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇
▇ ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇▇
TELEPHONE ▇▇▇ ▇▇▇▇ ▇▇▇▇
FACSIMILE 020 7626 7937
CROSS-REFERENCE TABLE*
Section of Trust
Indenture Act of
1939, as amended Section of Deed
310(a)..................................................................14.2
310(b)..................................................................14.2
310(c)..........................................................Inapplicable
311(a)..............................................................10.3(kk)
311(b)..............................................................10.3(kk)
311(c)..........................................................Inapplicable
312(a).................................................................5(ee)
312(b)..................................................................19.2
312(c)..................................................................19.2
313.................................................................10.3(jj)
314(a)..................................................................5(u)
314(b).................................................................5(gg)
314(c)............................................................16.1, 17.1
314(d)..................................................................17.1
314(e)..................................................................16.2
315(a)................................................................. 10.1
315(b)..................................................................10.8
315(c)...................................................................2.7
315(d).................................................................10.12
316(a).............................................................7.2, 11.2
316(b)................................................................2.2(d)
316(c)...................................................................7.2
317(a)...................................................................6.1
317(b)..................................................................5(p)
318(a)....................................................................15
318(b)..................................................................17.4
318(c)...................................................................1.4
* This Cross-Reference Table does not constitute part of this Deed and shall
not affect the interpretation of any of its terms or provisions.
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TABLE OF CONTENTS
CLAUSE PAGE
1. Definitions........................................................ 1
2. Covenant to Repay etc.............................................. 3
3. Form, Issue and Deposit of Note Certificates....................... 6
4. Covenant of Compliance............................................. 9
5. Covenants by the Current Issuer.................................... 9
6. Enforcement........................................................ 15
7. Proceedings, Actions and Indemnification........................... 16
8. Application of Moneys etc.......................................... 17
9. Remuneration and Indemnification of Note Trustee................... 18
10. Supplement to the Trustee Acts..................................... 21
11. Modification and Waiver............................................ 31
12. Entitlement to Treat holder as owner............................... 33
13. Currency Indemnity................................................. 33
14. Appointment, Removal and Retirement of Note Trustee................ 34
15. Trust Indenture Act Prevails....................................... 36
16. Certificates and Opinions.......................................... 36
17. Release of Collateral.............................................. 36
18. Rights Cumulative.................................................. 37
19. Notices............................................................ 38
20. Third Party Rights................................................. 38
21. Execution in Counterparts; Severability............................ 38
22. Governing Law and Jurisdiction; Appropriate Forum.................. 39
SCHEDULE 1 FORMS OF GLOBAL NOTE CERTIFICATES............................. 40
SCHEDULE 2 FORMS OF INDIVIDUAL NOTE CERTIFICATES......................... 70
SCHEDULE 3 CURRENT ISSUER CONDITIONS OF THE NOTES........................ 93
SCHEDULE 4 PROVISIONS FOR MEETINGS OF NOTEHOLDERS........................131
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THIS ISSUER TRUST DEED is made on 27 January 2003
BETWEEN:
(1) GRANITE MORTGAGES 03-1 PLC (registered number 4598035) a public limited
company incorporated under the laws of England and Wales whose registered
office is at ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇ as Current
Issuer; and
(2) THE BANK OF NEW YORK, a New York banking corporation acting through its
London branch at One Canada Square, ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇ ▇▇▇ in its
capacity as Note Trustee.
WHEREAS:
(A) By a resolution of a duly authorised Board of Directors of the Current
Issuer passed on 22 January 2003 the Current Issuer authorised the
creation and issue of the Current Issuer Notes.
(B) The Note Trustee has agreed to act as trustee of these presents for the
benefit of the Noteholders upon and subject to the Current Issuer
Conditions.
NOW THIS ISSUER TRUST DEED WITNESSES AND IT IS AGREED AND DECLARED:
1. DEFINITIONS
1.1 The provisions of:
(a) the Master Definitions Schedule as amended and restated by (and
appearing as Appendix 1 to) the Master Definitions Schedule Fourth
Amendment Deed made on 27 January 2003 between, among others, the
Seller, Funding and the Mortgages Trustee, and
(b) the Issuer Master Definitions Schedule signed for the purposes of
identification by Sidley ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ and ▇▇▇▇▇ & ▇▇▇▇▇ on
27 January 2003,
(as the same have been and may be amended, varied or supplemented from
time to time with the consent of the parties hereto) are expressly and
specifically incorporated into and shall apply to this Deed.
The Issuer Master Definitions Schedule specified above shall prevail to
the extent that it conflicts with the Master Definitions Schedule.
1.2 All references in these presents:
(a) to principal and/or premium and/or interest in respect of the
Current Issuer Notes or to any monies payable by the Current
Issuer under these presents shall be deemed to include a reference
to any additional amounts which may be payable under Condition
4(B) (Payment Dates and Interest Periods) or, if applicable, under
any undertaking or covenant given pursuant to Clause 2.2 (Covenant
to Repay).
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(b) to "THESE PRESENTS" and/or to "THIS DEED" means this Trust Deed,
the schedules hereto, any deed expressed to be supplemental hereto
and the Current Issuer Deed of Charge all as from time to time
supplemented or modified in accordance with the provisions
contained in these presents and/or where applicable, therein
contained.
(c) to guarantees or to an obligation being guaranteed shall be deemed
to include respectively references to indemnities or to an
indemnity being given in respect thereof.
(d) to any action, remedy or method of proceeding for the enforcement
of the rights of creditors shall be deemed to include, in respect
of any jurisdiction other than England, references to such action,
remedy or method of proceeding for the enforcement of the rights
of creditors available or appropriate in such jurisdiction as
shall most nearly approximate to such action, remedy or method of
proceeding described or referred to in these presents.
(e) to taking proceedings against the Current Issuer shall be deemed
to include references to proving in the winding up of the Current
Issuer.
(f) to DTC, Euroclear and Clearstream, Luxembourg shall be deemed to
include references to any other or additional clearing system as
may be approved in writing by the Note Trustee.
1.3 Unless the context otherwise requires words or expressions used in these
presents shall bear the same meanings as in the Companies ▇▇▇ ▇▇▇▇ of
England.
1.4 Whenever these presents refers to a provision of the Trust Indenture Act,
the provision is incorporated by reference in and made part of these
presents. All other Trust Indenture Act terms used in these presents
that are defined by the Trust Indenture Act, defined in the Trust
Indenture Act by reference to another statute or defined by SEC rule have
the meanings assigned to them in the Trust Indenture Act.
1.5 For the purposes of determining whether a direction, request or consent
has been received from the holders of at least 25 per cent. in Principal
Amount Outstanding of any class of Notes, the Principal Amount
Outstanding of any Note denominated in Dollars or Euro shall be converted
into Sterling at the relevant Dollar Currency Swap Rate or Euro Currency
Swap Rate, as the case may be.
1.6 "OUTSTANDING" means, in relation to the Current Issuer Notes, all the
Current Issuer Notes other than:
(a) those which have been redeemed in accordance with these
presents;
(b) those in respect of which the date for redemption in
accordance with the provisions of the Current Issuer
Conditions has occurred and for which the redemption moneys
(including all interest accrued thereon to such date for
redemption) have been duly paid to the Note Trustee or the
Principal Paying Agent in the manner provided for in the
Current Issuer Paying Agent and Agent Bank Agreement (and,
where
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appropriate, notice to that effect has been given to the
relevant class or classes of Noteholders in accordance with
Condition 14 (Notice to Noteholders)) and remain available
for payment in accordance with the Current Issuer
Conditions;
(c) those which have been purchased and surrendered for
cancellation as provided in Condition 5 (Redemption,
Purchase and Cancellation) and notice of the cancellation of
which has been given to the Note Trustee;
(d) those which have become void under Condition 7
(Prescription);
(e) those mutilated or defaced Note Certificates which have been
surrendered or cancelled and in respect of which replacement
Note Certificates have been issued pursuant to Condition 13
(Replacement of Notes);
(f) (for the purpose only of ascertaining the amount of the
Current Issuer Notes outstanding and without prejudice to
the status for any other purpose of the relevant Current
Issuer Notes) those Note Certificates which are alleged to
have been lost, stolen or destroyed and in respect of which
replacements have been issued pursuant to Condition 13
(Replacement of Notes);
(provided that) for each of the following purposes, namely:
(i) the right to attend and vote at any Meeting (as defined in
Schedule 4 (Provisions for Meetings of Noteholders) hereto);
(ii) the determination of how many and which Current Issuer Notes
are for the time being outstanding for the purposes of
Clauses 7 (Proceedings, Actions and Indemnification) and
11.2 (Waiver), Condition 10 (Enforcement of Notes) and
Schedule 4 (Provisions for Meetings of Noteholders); and
(iii) any discretion, power or authority, whether contained in
these presents or provided by law, which the Note Trustee is
required to exercise in or by reference to the interests of
the Noteholders or any of them,
those Current Issuer Notes (if any) which are for the time being
held by any person (including but not limited to the Current
Issuer or any subsidiary or affiliate of either for the benefit of
the Current Issuer or any subsidiary or affiliate shall (unless
and until ceasing to be so held) be deemed not to remain
outstanding.
2. COVENANT TO REPAY ETC.
2.1 THE CURRENT ISSUER NOTES: The aggregate principal amount of:
(a) the Series 1 Class A1 Notes is limited to US$925,000,000;
(b) the Series 1 Class A2 Notes is limited to US$1,225,000,000;
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(c) the Series 1 Class A3 Notes is limited to US$300,000,000;
(d) the Series 1 Class B Notes is limited to US$42,000,000;
(e) the Series 1 Class C Notes is limited to US$56,000,000;
(f) the Series 2 Class A Notes is limited to e900,000,000;
(g) the Series 2 Class B Notes is limited to e62,000,000;
(h) the Series 2 Class C Notes is limited to e94,500,000;
(i) the Series 3 Class A Notes is limited to {pound-sterling
665,000,000;
(j) the Series 3 Class B Notes is limited to {pound-sterling}
31,000,000; and
(k) the Series 3 Class C Notes is limited to {pound-sterling}
41,000,000.
2.2 COVENANT TO REPAY: The Current Issuer covenants with the Note Trustee
that it will, in accordance with these presents, on the Final Maturity
Date of the Current Issuer Notes, or on such earlier date as the same or
any part thereof may become due and repayable thereunder in accordance
with the Current Issuer Conditions, pay or procure to be paid
unconditionally to or to the order of the Note Trustee in Sterling, Euro
or US dollars, as applicable, in London or New York City, as applicable,
in immediately available funds or same day funds, as applicable, the
principal amount of the Current Issuer Notes repayable on that date and
shall in the meantime and until all such payments (both before and after
any judgment or other order of a court of competent jurisdiction) are
duly made (subject to the provisions of the Current Issuer Conditions)
pay or procure to be paid unconditionally to or to the order of the Note
Trustee as aforesaid interest (which shall accrue from day to day) on the
Principal Amount Outstanding of the Current Issuer Notes at the rates set
out in or (as the case may be) calculated from time to time in accordance
with Condition 4 (Interest) and on the dates on which such interest
becomes due and payable in accordance with the Current Issuer Conditions
provided that:
(a) every payment of principal or interest in respect of the Current
Issuer Notes or any of them to or to the account of the Paying
Agents in the manner provided in the Current Issuer Paying Agent
and Agent Bank Agreement shall operate in satisfaction pro tanto
of the relative covenant by the Current Issuer in this Clause
except to the extent that there is default in the subsequent
payment thereof to the Noteholders in accordance with the Current
Issuer Conditions;
(b) if any payment of principal or interest in respect of the Current
Issuer Notes or any of them is made after the due date, payment
shall be deemed not to have been made until either the full amount
is paid to the Noteholders or, if earlier, the seventh day after
notice has been given to the Noteholders in accordance with the
Current Issuer Conditions that the full amount has been received
by the Note Trustee or the Paying Agents, to the extent that there
is a failure in the subsequent payment to Noteholders under the
Current Issuer Conditions;
(c) in any case where payment of the whole or any part of the
principal amount of any Current Issuer Note is improperly withheld
or refused upon due
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presentation thereof (if so provided in the Current Issuer Paying
Agent and Agent Bank Agreement) interest shall accrue on the whole
or such part of such principal amount which has been so withheld
or refused (both before and after any judgment or other order of a
court of competent jurisdiction) at the rates aforesaid from and
including the date of such withholding or refusal up to and
including the date on which such principal amount due is paid to
the Noteholders or (if earlier) the seventh day after notice is
given to the Noteholders in accordance with the Current Issuer
Conditions that the full amount (including interest as aforesaid)
payable in respect of the principal amount is available for
payment, provided that, upon further due presentation thereof (if
so provided in the Current Issuer Paying Agent and Agent Bank
Agreement), such payment is in fact made; and
(d) notwithstanding any other provision of these presents, pursuant to
Section 316(b) of the Trust Indenture Act the right of any
Noteholder to receive payment of principal and interest on the
Current Issuer Notes, on or after the respective due dates
expressed in the Current Issuer Notes, or to bring suit for the
enforcement of any such payment on or after such respective dates,
shall not be impaired or affected without the consent of the
Noteholder.
2.3 ADDITIONAL INTEREST: The Current Issuer shall pay Additional Interest in
accordance with Condition 4(B) (Payment Dates and Interest Periods).
2.4 ON TRUST: The Note Trustee will hold the benefit of the covenants
contained in this Clause 2 (Covenant to Repay, etc) on trust for the
Noteholders and itself in accordance with these presents.
2.5 NOTE TRUSTEE'S REQUIREMENTS REGARDING AGENTS, ETC.: At any time after a
Note Event of Default shall have occurred (which shall not have been
waived by the Note Trustee or remedied to its satisfaction) or the
Current Issuer Notes shall otherwise have become due and repayable or
Individual Note Certificates have not been issued when so required in
accordance with these presents and the Global Note Certificates, the Note
Trustee may:
(a) by notice in writing to the Current Issuer, the Principal Paying
Agent, the US Paying Agent, the Agent Bank, the Transfer Agent and
the Registrar require such Agents or any of them pursuant to the
Current Issuer Paying Agent and Agent Bank Agreement:
(i) to act thereafter, and until otherwise instructed by the
Note Trustee, as Agents respectively of the Note Trustee on
the terms provided in the Current Issuer Paying Agent and
Agent Bank Agreement (with consequential amendments as
necessary and save that the Note Trustee's liability under
any provisions thereof for the indemnification, remuneration
and payment of out-of-pocket expenses of the Agents shall be
limited to the amounts for the time being held by the Note
Trustee on the trusts of these presents relating to the
Current Issuer Notes and available for such purpose) and
thereafter to hold all Note Certificates and all sums,
documents and records held by them in respect of Current
Issuer Notes on behalf of the Note Trustee; and/or
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(ii) to deliver up all Note Certificates and all sums, documents
and records held by them in respect of the Current Issuer
Notes to the Note Trustee or as the Note Trustee shall
direct in such notice provided that such notice shall be
deemed not to apply to any documents or records which the
relevant Agent or the Registrar, as the case may be, is
obliged not to release by any law or regulation; and/or
(b) by notice in writing to the Current Issuer require it to make all
subsequent payments in respect of the Current Issuer Notes to or
to the order of the Note Trustee with effect from the issue of any
such notice to the Current Issuer and until such notice is
withdrawn, Clause 2.2(a) above relating to the Current Issuer
Notes shall cease to have effect.
2.6 INTEREST FOLLOWING DEFAULT: The rate of interest payable in respect of
the Current Issuer Notes if they become immediately repayable pursuant to
a notice given to the Note Trustee pursuant to the Current Issuer
Conditions shall be calculated at three monthly intervals, the first of
which shall commence on the expiry of the Interest Period (as defined in
the Current Issuer Conditions) during which the Current Issuer Notes
become so repayable, in accordance with the Current Issuer Conditions
(with consequential amendments as necessary) except that the rates of
interest need not be published.
2.7 EXERCISE BY TRUSTEE FOLLOWING DEFAULT: If a Note Event of Default has
occurred and is continuing, the Note Trustee shall exercise any or all of
the rights and powers vested in it by these presents and use the same
degree of care and skill in its exercise as a prudent person would
exercise or use under the circumstances in the conduct of such person's
own affairs in accordance with Section 315(c) of the Trust Indenture Act.
3. FORM, ISSUE AND DEPOSIT OF NOTE CERTIFICATES
3.1 GLOBAL NOTE CERTIFICATES:
(a) The US Notes will be initially offered and sold pursuant to a
Registration Statement filed with the SEC. Each class of the US
Notes will be issued in fully registered global form and be
initially represented by a US Global Note Certificate and which,
in aggregate, will represent the aggregate Principal Amount
Outstanding of the US Notes.
(b) The Reg S Notes will be initially offered and sold outside the
United States to non-US persons pursuant to Reg S. Each class of
the Reg S Notes will be issued in fully registered global form and
be initially represented by a Reg S Global Note Certificate and
which, in aggregate, will represent the aggregate Principal Amount
Outstanding of the Reg S Notes.
(c) The Global Note Certificates shall be issued by the Current Issuer
and (1) in the case of the US Notes, the US Global Note
Certificates will be registered in the name of Cede & Co. as
nominee for DTC, and be deposited with, the DTC Custodian and (2)
in the case of the Reg S Notes, the Reg S Global Note Certificates
will be registered in the name of Citivic Nominees Limited as
nominee for, and will be deposited with, the Common Depositary.
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(d) Interests in the US Global Note Certificates and the Reg S Global
Note Certificates shall be exchangeable, in accordance with their
respective terms and as set out in Clause 3.3 (Individual Note
Certificates) hereof, for Individual Note Certificates.
3.2 FORM OF GLOBAL NOTE CERTIFICATES: The Global Note Certificates shall be
printed or typewritten and shall be in the form or substantially in the
respective forms set out in Schedule 1 (Forms of Global Note
Certificates) and may be a facsimile which the Current Issuer shall
deposit with the DTC Custodian or the Common Depositary, as the case may
be. Each Global Note Certificate shall represent such of the outstanding
Current Issuer Notes of the relevant class as shall be specified therein
and shall be endorsed with the relevant Current Issuer Conditions and
each shall provide that it shall represent the aggregate Principal Amount
Outstanding of the relevant class of Current Issuer Notes from time to
time endorsed on the relevant Global Note Certificate and that the
aggregate Principal Amount Outstanding of the Current Issuer Notes
represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges, redemptions, purchases and transfers
of interests therein in accordance with the terms of these presents and
the Current Issuer Paying Agent and Agent Bank Agreement. Any notation
on the Register to reflect the amount of any increase or decrease in the
Principal Amount Outstanding of the Current Issuer Notes represented by a
Global Note Certificate shall be made by or on behalf of the Registrar in
accordance with such Global Note Certificate and the Current Issuer
Paying Agent and Agent Bank Agreement. The Global Note Certificates
shall be issued only in registered form without coupons or talons and
signed manually or in facsimile by a person duly authorised by the
Current Issuer on behalf of the Current Issuer and the Current Issuer
shall procure that the Global Note Certificates shall be authenticated by
or on behalf of the Registrar on the Closing Date. The Global Note
Certificates so executed and authenticated shall be binding and valid
obligations of the Current Issuer, notwithstanding that such duly
authorised person no longer holds that office at the time the Registrar
authenticates the relevant Global Note Certificate. Title to the Current
Issuer Notes shall only pass by and upon the registration in the Register
in respect thereof in accordance with the provisions of the Current
Issuer Paying Agent and Agent Bank Agreement.
3.3 INDIVIDUAL NOTE CERTIFICATES: The Current Issuer shall issue Individual
Note Certificates only if one or more of the following applies while the
Current Issuer Notes are represented by Global Note Certificates. At any
time after the 40th day following the later of the Closing Date and the
date of the issue of such Global Note Certificates:
(a) (i) (in the case of the US Global Note Certificates) DTC has
notified the Current Issuer that it is at any time unwilling or
unable to continue as, or has ceased to be, a clearing agency
registered under the Exchange Act, and a successor to DTC
registered as a clearing agency under the Exchange Act is not able
to be appointed by the Current Issuer within 90 days of such
notification; or (ii) (in the case of the Reg S Global Note
Certificates) both Euroclear and Clearstream, Luxembourg are
closed for business for a continuous period of 14 days (other than
by reason of holiday, statutory or otherwise) or announce an
intention permanently to cease business and do so
7
cease to do business and no alternative clearing system
satisfactory to the Note Trustee is available; or
(b) as a result of any amendment to, or change in, the laws or
regulations of the United Kingdom (or of any political sub-
division thereof) or of any authority therein or thereof having
power to tax or in the interpretation or administration by a
revenue authority or a court or administration of such laws or
regulations which becomes effective on or after the Closing Date,
the Current Issuer or any Paying Agent is or will be required to
make any deduction or withholding from any payment in respect of
the Current Issuer Notes which would not be required were the
Current Issuer Notes represented by Individual Note Certificates.
If required by this Clause 3.3 (Individual Note Certificates), then the
Current Issuer shall, at its sole cost and expense within 30 days of the
occurrence of the relevant event, issue Individual Note Certificates of
the same class as the class of Current Issuer Notes represented by the
relevant Global Note Certificate.
If Individual Note Certificates are issued, the beneficial interests
represented by the Reg S Global Note Certificate representing each class
shall be exchanged by the Current Issuer for Reg S Individual Note
Certificates of that class and the beneficial interests represented by
the US Global Note Certificate representing each class shall be exchanged
by the Current Issuer for US Individual Note Certificates of that class.
3.4 FORM OF INDIVIDUAL NOTE CERTIFICATES: The Individual Note Certificates
shall be printed or typewritten in accordance with all applicable legal
and stock exchange requirements and be in the form or substantially in
the relevant form set out in Schedule 2 (Forms of Individual Note
Certificates). Individual Note Certificates will be in the
denominations, and transferable in units, of (i) US$1,000 and US$10,000
(in the case of the Dollar Notes) (ii) {pound-sterling}1,000 or
{pound-sterling}10,000 (in the case of the Sterling Notes) (iii) e1,000
or e10,000 (in the case of the Euro Notes) each, shall be serially
numbered and shall be endorsed with the relevant Current Issuer
Conditions and a form of transfer in the form or substantially in the
relevant form also set out in Schedule 2 (Forms of Individual Note
Certificates). Title to the Individual Note Certificates shall only pass
by and upon the registration in the Register in respect thereof in
accordance with the provisions of the Current Issuer Paying Agent and
Agent Bank Agreement. The Individual Note Certificates shall be issued
only in registered form and signed manually or in facsimile by a person
duly authorised by or on behalf of the Current Issuer and the Current
Issuer shall procure that the Individual Note Certificates shall be
authenticated by or on behalf of the Registrar. Each Individual Note
Certificate so executed and authenticated shall be a binding and valid
obligation of the Current Issuer notwithstanding that such duly
authorised person no longer holds that office at the time the Registrar
authenticates the relevant Individual Note Certificate.
3.5 INDEMNITY: If the Current Issuer is obliged to issue or procure the issue
of any Individual Note Certificate pursuant to Clause 3.3 (Individual
Note Certificates) but fails to do so within 30 days of the occurrence of
the relevant event described in Clause 3.3 (Individual Note
Certificates), then the Current Issuer shall indemnify the Note Trustee
and the relevant Noteholders and keep them indemnified against any loss
or damage incurred by any of them if the amount received by the Note
Trustee or
8
the relevant Noteholders in respect of the Current Issuer Notes is less
than the amount that would have been received had Individual Note
Certificates been issued in accordance with Clause 3.4 (Form of
Individual Note Certificates). If and for so long as the Current Issuer
discharges its obligations under this indemnity, the breach by the
Current Issuer of the provisions of Clause 3.4 (Form of Individual Note
Certificates) shall be deemed to be cured ab initio.
4. COVENANT OF COMPLIANCE
4.1 COVENANT: The Current Issuer covenants with the Note Trustee that it will
comply with and perform and observe all the provisions of these presents,
the Current Issuer Notes (including the Current Issuer Conditions), the
Current Issuer Deed of Charge, the Current Issuer Paying Agent and Agent
Bank Agreement, and the documents executed pursuant thereto and the other
Current Issuer Transaction Documents. The Current Issuer Conditions shall
be binding on the Current Issuer, the Noteholders, the Note Trustee and
all persons claiming through or under any of them. The Current Issuer
Notes are subject to the provisions of these presents, all of which shall
be binding on the Current Issuer, the Noteholders, the Note Trustee and
all persons claiming through or under any of them.
4.2 ON TRUST: The Note Trustee shall hold the benefit of the covenants
contained in this Clause 4 (Covenant of Compliance) upon trust for itself
and the Noteholders according to its and their respective interests.
5. COVENANTS BY THE CURRENT ISSUER
The Current Issuer hereby covenants with the Note Trustee that, so long
as any of the Current Issuer Notes remains outstanding, it will:
(a) BOOKS AND RECORDS: at all times keep such books of account and
records as may be necessary to comply with all applicable laws and
so as to enable accounts of the Current Issuer to be prepared and
allow the Note Trustee and any person appointed by the Note
Trustee free access to such books of account and records at all
reasonable times during normal business hours;
(b) ACCOUNTS FOR STOCK EXCHANGE: cause to be prepared and certified by
the Auditors of the Current Issuer in respect of each Financial
Year, accounts in such form as will comply with all relevant legal
and accounting requirements and all requirements for the time
being of any stock exchange, competent listing authority and/or
quotation system on which the Current Issuer Notes are listed,
quoted and/or traded;
(c) NOTEHOLDER INFORMATION: send to the Note Trustee two copies of
every balance sheet, profit and loss account, report, circular and
notice of general meeting and every other document issued or sent
to its shareholders or holders of securities other than its
shareholders (including the Noteholders) (or any class of them) as
soon as practicable after the issue or publication thereof;
(d) INFORMATION: so far as permitted by applicable law, give or
procure to be given to the Note Trustee such opinions,
certificates, information and evidence as it shall require and in
such form as it shall require, including without limitation
9
the procurement by the Current Issuer of all such certificates
called for by the Note Trustee pursuant to these presents or the
purpose of the discharge or exercise of the duties, trusts,
powers, authorities and discretions vested in it under these
presents or by operation of law;
(e) NOTICE OF NOTE EVENT OF DEFAULT: give notice in writing to the
Note Trustee forthwith upon becoming aware of the occurrence of
any Note Event of Default or any Potential Note Event of Default
immediately upon becoming aware thereof, including the status of
any such default or matter and what action the Current Issuer is
taking or proposes to take with respect thereto, and without
waiting for the Note Trustee to take any action;
(f) CERTIFICATES RELATING TO FINANCIAL INFORMATION: give to the Note
Trustee (a) within 14 days after demand by the Note Trustee
therefor and (b) (without the necessity for any such demand)
promptly after the publication of its audited accounts in respect
of each Financial Year commencing with the Financial Year first
ending after the date hereof and in any event not later than 180
days after the end of each such Financial Year a certificate
signed by two directors of the Current Issuer to the effect that
as at a date not more than seven days prior to the date of such
certificate (the "CERTIFICATION DATE") there did not exist and had
not existed since the certification date of the previous
certificate (or in the case of the first such certificate the date
hereof) any Note Event of Default (or if such exists or existed
specifying the same) and that during the period from and including
the certification date of the last such certificate (or in the
case of the first such certificate the date hereof) to and
including the certification date of such certificate the Current
Issuer has complied, with all its obligations contained in these
presents and each of the Current Issuer Transaction Documents to
which it is a party or (if such is not the case) specifying the
respects in which it has not so complied;
(g) NOTICE OF DEFERRAL OF PAYMENTS: as soon as practicable after
becoming aware that any part of a payment of interest on the
Current Issuer Notes will be deferred or that a payment previously
deferred will be made in accordance with Condition 4 (Interest),
give notice thereof to the Noteholders in accordance with the
Current Issuer Conditions and, for so long as the Current Issuer
Notes are listed on the Official List of the UK Listing Authority
and admitted to trading by the London Stock Exchange and/or such
other exchange(s) or securities market(s) upon which the Current
Issuer Notes may become listed, to the UK Listing Authority and to
the London Stock Exchange and/or such other exchange(s) or
securities market(s);
(h) FURTHER ASSURANCES: so far as permitted by applicable law, at all
times execute and do all such further documents, acts and things
as may be necessary at any time or times in the opinion of the
Note Trustee to give effect to these presents and the other
Current Issuer Transaction Documents;
(i) AGENT BANK, REFERENCE BANKS ETC.: at all times maintain an Agent
Bank, four Reference Banks, a Paying Agent, a Transfer Agent and a
Registrar in accordance with the Current Issuer Conditions;
10
(j) NOTIFICATION OF NON-PAYMENT: procure that any Paying Agent notify
the Note Trustee forthwith in the event that (i) such Paying Agent
does not, on or before any Payment Date or due date, as the case
may be, for any payment in respect of any of the Current Issuer
Notes, receive unconditionally pursuant to the Current Issuer
Paying Agent and Agent Bank Agreement the full amount in the
requisite currency of the monies payable on such Payment Date or
due date, as the case may be, on all such Current Issuer Notes, or
(ii) there are insufficient funds in Sterling, Euro or US dollars,
as the case may be, available to the relevant Paying Agent to
discharge the amount of the monies payable on such Payment Date or
due date, as the case may be;
(k) NOTIFICATION OF LATE PAYMENT: in the event of the unconditional
payment to the Paying Agents or the Note Trustee of any sum due in
respect of any of the Current Issuer Notes or any of them being
made after the due date for payment thereof, forthwith give or
procure to be given notice to the relevant Noteholders in
accordance with the Current Issuer Conditions that such payment
has been made;
(l) LISTING AND ADMISSION TO TRADING: use reasonable endeavours to
maintain the listing of the Current Issuer Notes on the Official
List of the UK Listing Authority and their admission to trading by
the London Stock Exchange or, if it is unable to do so having used
reasonable endeavours, use reasonable endeavours to obtain and
maintain a quotation or listing of the Current Issuer Notes on
such other stock exchange or exchanges or securities market or
markets as the Current Issuer may decide (with the prior written
approval of the Note Trustee) and shall also upon obtaining a
quotation or listing of the Current Issuer Notes on such other
stock exchange or exchanges or securities market or markets enter
into a trust deed supplemental to these presents to effect such
consequential amendments to these presents as the Note Trustee may
require or as shall be requisite to comply with the requirements
of any such stock exchange or securities market;
(m) CHANGE OF AGENTS, ETC.: subject to the Current Issuer Paying Agent
and Agent Bank Agreement, give notice to the Noteholders in
accordance with the Current Issuer Conditions of any appointment,
resignation or removal of any Agent Bank, Reference Bank, Paying
Agent, Transfer Agent or Registrar (other than the appointment of
the initial Agent Bank, Reference Banks, Paying Agents, Transfer
Agent and Registrar) after, except in the case of resignation,
having obtained the prior written approval of the Note Trustee
(not to be unreasonably withheld or delayed) thereto or any change
of the Specified Office of any Agent Bank, Paying Agent, Transfer
Agent or Registrar provided always that so long as any of the
Current Issuer Notes remains outstanding, in the case of the
termination of the appointment of the Agent Bank, the Transfer
Agent or the Registrar, or so long as any of the Current Issuer
Notes remains liable to prescription, in the case of the
termination of the appointment of the Principal Paying Agent, no
such termination shall take effect until a new Agent Bank, the
Transfer Agent, Registrar or Principal Paying Agent (as the case
may be) has been appointed on terms previously approved in writing
by the Note Trustee;
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(n) PRE-APPROVAL OF NOTICES: obtain the prior written approval of the
Note Trustee to, and upon publication promptly give to the Note
Trustee and the Rating Agencies two copies of, every notice given
to the Noteholders in accordance with the Current Issuer
Conditions (such approval, unless so expressed, not to constitute
approval for the purposes of Section 21 of the Financial Services
and Markets ▇▇▇ ▇▇▇▇ (the "FSMA") of the United Kingdom of any
such notice the content of which is an invitation or inducement to
engage in investment activities within the meaning of Section 21
of the FSMA);
(o) MEETINGS: from time to time as required or contemplated by these
presents or as reasonably requested by the Note Trustee, make
available through the Paying Agents or otherwise such documents as
may be required by the Noteholders in connection with Meetings;
(p) COMPLIANCE WITH CURRENT ISSUER PAYING AGENT AND AGENT BANK
AGREEMENT: (A) observe and comply with its obligations and use its
reasonable endeavours to procure that the Agent Bank, the Paying
Agents, the Transfer Agent and the Registrar comply with and
perform all their respective obligations under the Current Issuer
Paying Agent and Agent Bank Agreement and any notice given by the
Note Trustee pursuant to Clause 2.5(a) and not make any amendment
or modification to such agreement or agree to waive or authorise
any breach thereof without the prior written approval of the Note
Trustee and notify the Note Trustee forthwith upon becoming aware
of any breach by any of the Agent Bank, the Paying Agents, the
Transfer Agent and/or the Registrar, and (B) ensure that each
Paying Agent under the Current Issuer Paying Agent and Agent Bank
Agreement agrees in writing to (1) hold funds received by such
Paying Agent for the payment of any sums due in respect of any
Current Issuer Notes for the relevant Noteholders or the Note
Trustee in trust to the extent required by Section 317(b) of the
Trust Indenture Act, and (2) notify the Note Trustee of any
default by the Current Issuer in making any such payment;
(q) COMPLIANCE WITH CURRENT ISSUER TRANSACTION DOCUMENTS: observe and
comply with its obligations and use its reasonable endeavours to
procure that each other party to any of the Current Issuer
Transaction Documents complies with and performs all its
respective obligations under any Current Issuer Transaction
Document and not make any amendment or modification to such
agreement or agree to waive or authorise any breach thereof
without the prior written approval of the Note Trustee and notify
the Note Trustee forthwith upon becoming aware of any breach by
such other party to any Current Issuer Transaction Document;
(r) INDIVIDUAL NOTE CERTIFICATES: notify the Note Trustee upon the
occurrence of any of the events referred to in Clause 3.3
(Individual Note Certificates) and shall promptly give notice
thereto and of its obligations to issue Individual Note
Certificates to the Noteholders in accordance with Condition 14
(Notice to Noteholders);
(s) EXERCISE OF REDEMPTION RIGHTS: subject to paragraph (t) below, in
the event that any notice of prepayment of the Current Issuer
Intercompany Loan is given under Clause 8 (Prepayment) of the
Intercompany Loan Terms and
12
Conditions, the Current Issuer shall exercise its right to redeem
the Current Issuer Notes on the same Payment Date under Condition
5(D) (Optional Redemption in Full) or, as applicable, Condition
5(E) (Optional Redemption for Tax and other Reasons);
(t) REDEMPTION REQUIREMENTS: not redeem or, as the case may be, give
notice of redemption to Noteholders of all or any part of a class
or classes of Current Issuer Notes pursuant to Condition 5(D)
(Optional Redemption in Full) or Condition 5(E) (Optional
Redemption for Tax and other Reasons) unless it shall first have
provided to the Note Trustee such certificates and opinions as may
be required to be given to the Note Trustee pursuant to and in
accordance with Condition 5(D) (Optional Redemption in Full) or,
as the case may be Condition 5(E)(Optional Redemption for Tax and
other Reasons);
(u) UNITED STATES REPORTING REQUIREMENTS: file with the Note Trustee
copies of the annual reports and of the information, documents,
and other reports (or copies of such portions of any of the
foregoing as the SEC may by rules and regulations prescribe) which
the Current Issuer is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act within 15 days after it
files them with the SEC and comply with the other provisions of
Section 314(a) of the Trust Indenture Act;
(v) INTEREST IN CURRENT ISSUER CHARGED PROPERTY: ensure that, save as
permitted in these presents, the Current Issuer Deed of Charge and
the other Current Issuer Transaction Documents, no person other
than the Current Issuer and the Note Trustee shall have any
equitable interest in the Current Issuer Charged Property;
(w) MAINTENANCE OF CURRENT ISSUER CASH MANAGER: ensure that there is
at all times a cash manager appointed in accordance with the
provisions of the Current Issuer Cash Management Agreement;
(x) TAX DEDUCTION: take reasonable steps to ensure that it does not
engage in any course of conduct that would lead to a deduction,
for United Kingdom corporation tax purposes, in respect of accrued
interest or discount on the Current Issuer Notes by the Current
Issuer being denied, postponed or restricted (whether such denial,
postponement or restriction results from the application of
paragraph 2 or 13 of Schedule 9 of the Finance ▇▇▇ ▇▇▇▇ or
otherwise);
(y) UNITED KINGDOM AND UNITED STATES TAX STATUS: ensure that it is at
all times solely resident in the United Kingdom for United Kingdom
tax purposes and has no branch, business establishment or other
fixed establishment outside the United Kingdom; and furthermore,
ensure that it will not engage in any activities in the United
States (directly or through agents), will not derive any income
from United States sources as determined under United States
income tax principles, will not hold any property if doing so
would cause it to be engaged or deemed to be engaged in a trade or
business within the United States as determined under United
States income tax principles, and will not (and will use its best
efforts to procure that any affiliate of the Current Issuer,
including Funding, will not) take any position that would
contradict the
13
treatment of the Current Issuer Notes as indebtedness for United
States federal income tax purposes;
(z) CURRENT ISSUER PRE-ENFORCEMENT PRIORITY OF PAYMENTS: prior to any
enforcement of the security created under the Current Issuer Deed
of Charge, ensure that amounts standing to the credit of the
Current Issuer Transaction Account on a Payment Date will be
applied by the Current Issuer in or towards satisfaction of such
of the obligations set out in the applicable Current Issuer Pre-
Enforcement Priority of Payments as may be, at any given time,
then due and payable (in each case only if and to the extent that
payments or provisions of a higher order of priority which are
also due and payable or, where relevant, are likely to fall due at
that time or prior to the next succeeding Payment Date have been
made or provided for in full);
(aa) AVAILABILITY OF INFORMATION: make available for inspection by
Noteholders at the Specified Office of the Principal Paying Agent
during normal business hours on any London Business Day copies of
each balance sheet and profit and loss account sent to the Note
Trustee pursuant to these presents, the Current Issuer Paying
Agent and Agent Bank Agreement and the other Current Issuer
Transaction Documents;
(bb) RATINGS: furnish, or procure that there is furnished, from time to
time, any and all documents, instruments, information and
undertakings that may be reasonably necessary in order to maintain
the current ratings of the Current Issuer Notes by the Rating
Agencies (save that when any such document, instrument,
information and/or undertaking is not within the possession or
control of the Current Issuer, the Current Issuer agrees to use
its reasonable efforts to furnish, or procure that there is
furnished, from time to time any such documents, instruments,
information and undertakings as may be reasonably necessary in
order to maintain the current ratings of the Current Issuer Notes
by the Rating Agencies);
(cc) CALCULATIONS: procure that there are done on its behalf, all
calculations required pursuant to the Current Issuer Conditions;
(dd) DTC, EUROCLEAR AND CLEARSTREAM, LUXEMBOURG: use its reasonable
endeavours to procure that DTC, Euroclear and/or Clearstream,
Luxembourg (as the case may be) issue(s) any certificate or other
document requested by the Note Trustee acting reasonably pursuant
to these presents as soon as practicable after such request;
(ee) INFORMATION REGARDING NOTEHOLDERS: pursuant to Section 312(a) of
the Trust Indenture Act, furnish or cause to be furnished to the
Note Trustee on 31st March and 30th September of each year,
commencing 30th September 2003, and at such other times as the
Note Trustee may request in writing, all information in the
possession or control of the Current Issuer or of any of its
Paying Agents as to the names and addresses of the Noteholders,
and requiring the Note Trustee to preserve, in as current a form
as is reasonably practicable, all such information so furnished to
it;
14
(ff) OFFICERS' CERTIFICATES AND OPINIONS OF COUNSEL; STATEMENTS TO BE
CONTAINED THEREIN: upon any application, demand or request by the
Current Issuer to the Note Trustee to take any action under any of
the provisions of these presents (other than the issuance of
Current Issuer Notes) and upon request of the Note Trustee,
furnish to the Note Trustee an officers' certificate and opinion
of counsel complying with the provisions of Section 314 of the
Trust Indenture Act (an "OFFICERS' CERTIFICATE" and "OPINION OF
COUNSEL", respectively);
(gg) PROTECTION OF SECURITY: promptly after the execution and delivery
of these presents and each supplement hereto, pursuant to Section
314(b) of the Trust Indenture Act furnish to the Note Trustee an
Opinion of Counsel stating that in the opinion of such counsel,
appropriate steps have been taken to protect the security
interests of the Note Trustee in the Current Issuer Charged
Property under the Current Issuer Deed of Charge and reciting the
details of such action, or stating that in the opinion of such
counsel no such action is necessary; and the Current Issuer shall
furnish annually to the Note Trustee, not more than three (3)
months after the anniversary of the signing of this Deed,
commencing with calendar year 2003, an Opinion of Counsel stating
either that, in the opinion of such counsel, (i) such action has
been taken as is necessary for the proper protection of the
security interests of the Note Trustee in the Current Issuer
Charged Property under the Current Issuer Deed of Charge and
reciting the details of such action or (ii) no such action is
necessary for any of such purposes;
(hh) AUTHORISED SIGNATORIES: upon the execution of this Deed and
thereafter forthwith upon any change of the same, deliver to the
Note Trustee (with a copy to the Principal Paying Agent and the
Registrar) a list of the Authorised Signatories of the Current
Issuer, together with certified specimen signatures of the same;
and
(ii) CURRENT ISSUER NOTES: in order to enable the Note Trustee to
ascertain the number and amount of Current Issuer Notes for the
time being outstanding for any of the purposes referred to in the
proviso to the definition of "OUTSTANDING" contained in Clause
1.6, deliver to the Note Trustee forthwith upon being so requested
in writing by the Note Trustee a certificate in writing signed by
two Authorised Signatories of the Current Issuer setting out the
total number and the principal amount of the Current Issuer Notes,
if any, which:
(a) up to and including the date of such certificate have been
purchased by the Current Issuer and cancelled; and
(b) are at the date of such certificate beneficially held by or
for the account of the Current Issuer, any of its
subsidiaries or holding companies or other subsidiaries of
such holding companies.
6. ENFORCEMENT
6.1 PROCEEDINGS: At any time after the occurrence of a Note Event of Default,
the Note Trustee may, at its discretion and without notice (and in
compliance with Section 317(a) of the Trust Indenture Act), recover
judgment in its own name and as trustee of an express trust against the
Current Issuer for the whole amount of principal and
15
interest remaining unpaid; institute such proceedings and/or take other
action against or in relation to the Current Issuer or any other person
as it may think fit to enforce the obligations of the Current Issuer
under these presents, the Current Issuer Notes and/or any of the other
Current Issuer Transaction Documents but it shall not be bound to take
such action save as provided in Clause 7 (Proceedings, Actions and
Indemnification).
6.2 EXERCISE OF POWERS: The Note Trustee shall be entitled to enforce the
obligations of the Current Issuer under the Current Issuer Notes
(including the Current Issuer Conditions) and to exercise any other
rights, powers, authorities and discretions conferred upon the Note
Trustee in the Current Issuer Conditions as scheduled to this Trust Deed,
which shall be read and construed as one document with the Current Issuer
Notes.
6.3 EVIDENCE OF DEFAULT: Unless the contrary be proved, proof that as regards
any specified Current Issuer Note the Current Issuer has made default in
paying any amount due in respect of such Current Issuer Note shall be
sufficient evidence that the Current Issuer has made the like default as
regards all other Current Issuer Notes in respect of which the
corresponding amount is then due and payable in accordance with the
Current Issuer Conditions and for the purposes of this Clause 6.3
(Evidence of Default) an amount shall be a corresponding amount
notwithstanding that it is due in respect of a Current Issuer Note of a
different denomination from that in respect of the above specified
Current Issuer Note. The Note Trustee may file such proofs of claim and
other papers or documents as may be necessary or advisable in order to
have the claims of the Note Trustee and the Noteholders allowed in any
judicial proceedings relative to the Current Issuer, its creditors or its
property.
7. PROCEEDINGS, ACTIONS AND INDEMNIFICATION
7.1 The Note Trustee shall not be bound to take any proceedings mentioned in
Clause 6.1 (Proceedings) or any other action in relation to these
presents, the Current Issuer Notes or any documents executed pursuant
thereto or any of the other Current Issuer Transaction Documents to which
the Note Trustee is a party unless:
(a) it shall have been so directed by an Extraordinary Resolution of
the Senior Noteholders or the Mezzanine Noteholders or the Junior
Noteholders as appropriate; or
(b) it shall have been so requested in writing by the holders of at
least one quarter of the aggregate Principal Amount Outstanding of
the Senior Notes or by the holders of at least one quarter of the
aggregate Principal Amount Outstanding of the Mezzanine Notes or
by the holders of at least one quarter of the aggregate Principal
Amount Outstanding of the Junior Notes; and
(c) in either case it shall have been indemnified and/or secured to
its satisfaction against all liabilities, proceedings, claims,
demands, costs, charges and expenses to which it may thereby
become liable or which may be incurred by it in connection
therewith,
provided that:
16
(i) the Note Trustee shall not be held liable for the
consequence of taking any such action and may take such
action without having regard to the effect of such action on
individual Noteholders or any other Current Issuer Secured
Creditor; and
(ii) save to the extent provided otherwise under the Current
Issuer Conditions, the Note Trustee shall not and shall not
be obliged to act at the direction or request of the
Mezzanine Noteholders as aforesaid unless at such time no
Senior Notes are then outstanding; and
(iii) save to the extent provided otherwise under the Current
Issuer Conditions, the Note Trustee shall not and shall not
be obliged to act at the direction or request of the Junior
Noteholders as aforesaid unless at such time there are no
Senior Notes and no Mezzanine Notes then outstanding.
7.2 ONLY NOTE TRUSTEE TO ENFORCE: Only the Note Trustee may enforce the
provisions of these presents, the Current Issuer Conditions or the
Current Issuer Notes. No Noteholder or other Current Issuer Secured
Creditor shall be entitled to proceed directly against the Current Issuer
or any other party to any of the Transaction Documents unless the Note
Trustee having become bound as aforesaid to institute proceedings has
failed to do so within 30 days of becoming so bound and such failure is
continuing; provided that save to the extent provided in the Current
Issuer Conditions, no Junior Noteholder and no Mezzanine Noteholder shall
be entitled to take proceedings for the winding up or administration of
the Current Issuer unless there are no outstanding Current Issuer Notes
of a class with higher priority, or if Current Issuer Notes of a class
with higher priority are outstanding, there is consent of Noteholders of
not less than 25 per cent. of the aggregate principal amount of the
Current Issuer Notes outstanding of the class or classes of Current
Issuer Notes with higher priority. Notwithstanding the foregoing and
notwithstanding any other provision of these presents, consistent with
Section 316 of the Trust Indenture Act, the right of each Noteholder to
receive principal and/or interest on its Current Issuer Notes on or after
the due date for payment of such principal or interest in accordance with
the Current Issuer Conditions or to institute suit for the enforcement of
the payment of that principal and/or interest may not be impaired or
affected without the consent of the such Noteholder. Notwithstanding
anything herein to the contrary any action to be taken under Section
316(a) of the Trust Indenture Act shall comply with Section 316(c) of the
Trust Indenture Act and the record date for the purpose of Section 316(c)
shall be such date as the Current Issuer shall notify to the relevant
Noteholders in accordance with the Current Issuer Conditions.
8. APPLICATION OF MONEYS ETC.
8.1 APPLICATION OF MONEYS: All moneys received by the Note Trustee in
respect of the Current Issuer Notes or amounts payable under these
presents will (including any moneys which represent principal or interest
in respect of Current Issuer Notes which have become void under the
Current Issuer Conditions) be held by the Note Trustee on trust to apply
them (subject to Clause 8.3 (Authorised Investments)) in accordance with
the Current Issuer Priority of Payments.
8.2 INVESTMENT OF MONEYS: If the amount of the moneys at any time available
for
17
payment of principal and interest in respect of the Current Issuer Notes
under Clause 8.1 (Application of Moneys) shall be less than a sum
sufficient to pay at least one-tenth of the principal amount of the
Current Issuer Notes then outstanding, the Note Trustee may, at its
discretion, invest such moneys upon some or one of the investments
hereinafter authorised with power from time to time, with like
discretion, to vary such investments; and such investment with the
resulting income thereof may be accumulated until the accumulations
together with any other funds for the time being under the control of the
Note Trustee and available for the purpose shall amount to a sum
sufficient to pay at least one-tenth of the principal amount of the
Current Issuer Notes then outstanding and such accumulation and funds
(after deduction of any taxes and any other deductibles applicable
thereto) shall then be applied in the manner aforesaid.
8.3 AUTHORISED INVESTMENTS: Any moneys which under the trusts herein
contained may be invested by the Note Trustee may be invested in the name
or under the control of the Note Trustee in any Authorised Investments
and the Note Trustee may at any time vary or transfer any of such
Authorised Investments for or into other such Authorised Investments as
the Note Trustee in its absolute discretion may determine, and shall not
be responsible (save where any loss results from the Note Trustee's
fraud, wilful default or negligence or that of its officers or employees)
for any loss occasioned by reason of any such investments whether by
depreciation in value or otherwise, provided that such Authorised
Investments were made in accordance with the foregoing provisions.
8.4 PAYMENT TO NOTEHOLDERS: Any payment to be made in respect of the Current
Issuer Notes by the Current Issuer or the Note Trustee may be made in the
manner provided in the Current Issuer Conditions and any payment so made
shall be a good discharge, to the extent of such payment, to the Current
Issuer or the Note Trustee, as the case may be.
8.5 PRODUCTION OF NOTE CERTIFICATES: Upon any payment under Clause 8.4
(Payment to Noteholders) of principal or interest, the Note Certificate
representing the relevant Current Issuer Note in respect of which such
payment is made shall, if the Note Trustee so requires, be produced to
the Note Trustee or the Paying Agent by or through whom such payment is
made and the Note Trustee shall, in the case of part payment, require the
Registrar to make a notation in the Register of the amount and date of
payment thereon or, in the case of payment in full, shall cause such Note
Certificate to be surrendered or shall cancel or procure the same to be
cancelled and shall certify or procure the certification of such
cancellation, in each case subject to and in accordance with the Current
Issuer Paying Agent and Agent Bank Agreement.
9. REMUNERATION AND INDEMNIFICATION OF NOTE TRUSTEE
9.1 NORMAL REMUNERATION: The Current Issuer shall (subject as hereinafter
provided) pay to the Note Trustee remuneration of such amount as shall
from time to time be agreed by the Current Issuer and the Note Trustee.
The rate of remuneration in force from time to time may upon the final
redemption of the whole of the Current Issuer Notes of any Series be
reduced by such amount as shall be agreed between the Current Issuer and
the Note Trustee, such reduced remuneration to be calculated from such
date as shall be agreed as aforesaid. Such remuneration shall be payable
in priority to payments to Noteholders and other Current Issuer Secured
Creditors on each Payment
18
Date subject to and in accordance with the relevant Current Issuer
Priority of Payments. Such remuneration shall accrue from day to day and
be payable up to and including the date when, all the Current Issuer
Notes having become due for redemption, the redemption monies and
interest thereon to the date of redemption have been paid to the
Principal Paying Agent or, as the case may be, the Note Trustee PROVIDED
THAT if upon due presentation of any Note Certificate or any cheque
payment of the monies due in respect thereof is improperly withheld or
refused, remuneration will commence again to accrue until payment to
Noteholders is made.
9.2 EXTRA REMUNERATION: In the event of the occurrence of a Note Event of
Default or the Note Trustee considering it expedient or necessary or
being requested by the Current Issuer to undertake duties which the Note
Trustee and the Current Issuer agree to be of an exceptional nature or
otherwise outside the scope of the normal duties of the Note Trustee
under these presents, the Current Issuer shall pay to the Note Trustee
such additional remuneration as shall be agreed between them;
9.3 FAILURE TO AGREE: In the event of the Note Trustee and the Current
Issuer failing to agree:
(a) (in a case to which Clause 9.1 (Normal Remuneration) applies) upon
normal remuneration; or
(b) (in a case to which Clause 9.2 (Extra Remuneration) applies) upon
whether such duties shall be of an exceptional nature or otherwise
outside the scope of the normal duties of the Note Trustee under
these presents, or upon such additional remuneration;
such matters shall be determined by an investment bank (acting as an
expert and not as an arbitrator) selected by the Note Trustee and
approved by the Current Issuer or, failing such approval, nominated (on
the application of the Note Trustee) by the President for the time being
of The Law Society of England and Wales (the expenses involved in such
nomination and the fees of such investment bank being payable by the
Current Issuer) and the determination of any such investment bank shall
be final and binding upon the Note Trustee and the Current Issuer.
9.4 EXPENSES: In addition to the remuneration hereunder, the Current Issuer
shall on written request, pay all other costs, charges and expenses
(against production of invoices) which the Note Trustee may properly
incur in relation to:
(a) the negotiation, preparation and execution of, the exercise of its
powers and discretions and the performance of its duties under
these presents and any other Current Issuer Transaction Documents
including, but not limited to legal and travelling expenses; and
(b) any other action taken by or on behalf of the Note Trustee to
enforce the obligations of the Current Issuer under or resolving
any doubt in respect of these presents and/or any of the other
Current Issuer Transaction Documents.
9.5 INDEMNITY: The Current Issuer shall indemnify the Note Trustee in
respect of all proceedings, claims, demands, losses, costs, charges,
expenses and liabilities to which it (or any person appointed by it to
whom any trust, power, authority or discretion
19
may be delegated by it in the execution or purported execution of the
trusts, powers, authorities or discretions vested in it by or pursuant to
these presents and any of the other Current Issuer Transaction Documents)
may be or become liable or which may be properly incurred by it (or any
such person as aforesaid) in the execution or purported execution of any
of its trusts, powers, authorities and discretions hereunder or its
functions under any such appointment or in respect of any other matter or
thing done or omitted in any way relating to these presents and any of
the other Current Issuer Transaction Documents provided that it is
expressly stated that Clause 10.12 (Note Trustee Liable for Negligence
etc.) shall apply in relation to these provisions.
9.6 STAMP DUTIES: The Current Issuer shall, pay all stamp duties and other
duties or taxes of a similar nature, including for the avoidance of doubt
any duty levied under the ▇▇▇▇▇ ▇▇▇ ▇▇▇▇ as amended and supplemented, (if
any) payable in the United Kingdom and/or Jersey on or arising out of or
in consequence of:
(a) the execution and delivery of these presents and any other Current
Issuer Transaction Document to which the Note Trustee is a party;
(b) the constitution and issue of the Current Issuer Notes;
(c) the initial delivery of the Note Certificates representing the
Current Issuer Notes; and
(d) any action in any jurisdiction taken by or on behalf of the Note
Trustee. If the Note Trustee (or any Noteholder or Current Issuer
Secured Creditor) where permitted under these presents so to do)
shall take any proceedings against the Current Issuer in any other
jurisdiction and if for the purpose of any such proceedings these
presents or any Note Certificates are taken into any such
jurisdiction and any stamp duties or other duties or taxes become
payable thereon in any such jurisdiction, the Current Issuer will
pay (or reimburse the person making payment of) such stamp duties
or other duties or taxes (including penalties).
9.7 VAT: The Current Issuer shall in addition pay to the Note Trustee an
amount equal to any value added tax or similar tax chargeable in respect
of its remuneration under these presents.
9.8 INTEREST: Subject as provided in Clause 9.9 (Payment), all sums payable
by the Current Issuer under this Clause 9 (Remuneration and
Indemnification of Note Trustee) shall be payable on demand or, in the
case of any remuneration payable under Clause 9.1 (Normal Remuneration)
on the due date specified therein and shall carry interest at the rate
per annum, which is one per cent. per annum above the base rate from time
to time of the National Westminster Bank Plc from the date on which they
were paid, charged or incurred by the Note Trustee or, in the case of
remuneration, the due date for payment thereof, to the date of actual
payment, and in all other cases shall (if not paid on the date specified
in such demand or, if later, within three days after such demand and, in
either case, the Note Trustee so requires) carry interest at such rate
from the date specified in such demand.
9.9 PAYMENT: Notwithstanding the other provisions of this Deed, any amount
owing by the Current Issuer pursuant to this Clause 9 (Remuneration and
Indemnification of
20
Note Trustee) shall only be payable by the Current Issuer subject to and
in accordance with the applicable Current Issuer Priority of Payments
which applies at such time.
9.10 APPORTIONMENT: The Note Trustee shall be entitled in its absolute
discretion to determine in respect of which Series of Current Issuer
Notes any costs, charges, expenses or liabilities incurred under these
presents have been incurred or to allocate such costs, charges, expenses
or liabilities between two or more Series of Current Issuer Notes.
9.11 SURVIVAL: Unless otherwise specifically stated in any discharge of this
Deed, the provisions of this Clause 9 (Remuneration and Indemnification
of Note Trustee) shall continue in full force and effect notwithstanding
such discharge.
10. SUPPLEMENT TO THE TRUSTEE ACTS
10.1 TRUSTEE ▇▇▇ ▇▇▇▇ AND TRUSTEE ▇▇▇ ▇▇▇▇: The Note Trustee shall have all
the powers conferred upon trustees by the Trustee ▇▇▇ ▇▇▇▇ and the
Trustee ▇▇▇ ▇▇▇▇ of England and Wales and by way of supplement thereto it
is expressly declared as set out in the remaining provisions of this
Clause 10 (Supplement to Trustee Acts) (which provisions, except as
expressly provided therein, shall be in lieu of the provisions contained
in Section 315(a) of the Trust Indenture Act).
10.2 RELIANCE ON INFORMATION:
(a) The Note Trustee may in relation to these presents act on the
opinion or advice of, or a certificate or any information obtained
from, any lawyer, banker, valuer, surveyor, securities company,
broker, auctioneer, accountant or other expert in the United
Kingdom or elsewhere, whether obtained by the Current Issuer, the
Note Trustee or otherwise, and shall not be responsible for any
loss occasioned by so acting. Any such opinion, advice,
certificate or information may be sent or obtained by letter,
facsimile reproduction or in any other form and the Note Trustee
shall not be liable for acting in good faith on any opinion,
advice, certificate or information purporting to be so conveyed
although the same shall contain some error or shall not be
authentic provided that such error or lack of authenticity is not
manifest.
(b) Except in the event of wilful default or manifest error, the Note
Trustee may call for and shall be entitled to rely upon a
certificate, reasonably believed by it to be genuine, of the
Current Issuer or any other person in respect of every matter and
circumstance for which a certificate is expressly provided for
under these presents, the Current Issuer Conditions or any other
Current Issuer Transaction Document and to call for and rely upon
a certificate of the Agent Bank, any Paying Agent, Registrar,
Transfer Agent, any Reference Bank or any other person reasonably
believed by it to be genuine as to any other fact or matter prima
facie within the knowledge of such Agent Bank, Paying Agent,
Registrar, Transfer Agent, Reference Bank or such other person as
sufficient evidence thereof and the Note Trustee shall not be
bound in any such case to call for further evidence or be
responsible for any loss, liability, costs, damages, expenses or
inconvenience that may be caused by it failing to do so.
21
10.3 POWERS AND DUTIES:
(a) The Note Trustee shall not have any responsibility for or have any
duty to make any investigation in respect of or in any way be
liable whatsoever for the nature, status, creditworthiness or
solvency of the Current Issuer. Each Noteholder and each other
Current Issuer Secured Creditor shall be solely responsible for
making its own independent appraisal of and investigation into the
financial condition, creditworthiness, affairs, status and nature
of the Current Issuer and the Note Trustee shall not at any time
have any responsibility for the same and each Noteholder and other
Current Issuer Secured Creditors shall not rely on the Note
Trustee in respect thereof.
(b) Save as required for the purposes of the Trust Indenture Act, the
Note Trustee shall not be responsible for the execution, legality,
effectiveness, adequacy, genuineness, validity or enforceability
or admissibility in evidence of any Current Issuer Transaction
Document or any other document entered into in connection
therewith or any security thereby constituted or purported to be
constituted thereby nor shall it be responsible or liable to any
person because of any invalidity of any provision of such
documents or the unenforceability thereof, whether arising from
statute, law or decision of any court.
(c) The Note Trustee shall not be responsible for the scope or
accuracy of any recitals, statements, warranty, representation or
covenant of any party (other than the Note Trustee) contained
herein or in any other Current Issuer Transaction Document or any
other document entered into in connection therewith and shall
assume the accuracy and correctness thereof.
(d) The Note Trustee may accept without enquiry, requisition or
objection such title as the Current Issuer may have to the Current
Issuer Charged Property or as Funding may have to the Funding
Charged Property or any part thereof from time to time and shall
not be required to investigate or make any enquiry into or be
liable for any defect in the title of the Current Issuer to the
Current Issuer Charged Property or of Funding to the Funding
Charged Property or any part thereof from time to time whether or
not any defect was known to the Note Trustee or might have been
discovered upon examination, inquiry or investigation and whether
or not capable of remedy.
(e) The Note Trustee shall not be bound to give notice to any person
of the execution of these presents or of an Event of Default under
the Current Issuer Intercompany Loan Agreement nor shall it have
any duty to make any investigation in respect of or in any way be
liable whatsoever for the registration, filing, protection or
perfection of any security constituted by any Current Issuer
Transaction Document relating to the Current Issuer Charged
Property or the priority of the security created thereby and shall
not be liable for any failure, omission or defect in perfecting,
protecting, procuring the registration of or further assuring the
security created or purported to be created thereby.
(f) The Note Trustee shall not have any duty to make any investigation
in respect of or in any way be liable whatsoever for the failure
to call for delivery of documents of title to or require any
transfers, legal mortgages, charges or other
22
further assurances in relation to any of the assets the subject
matter of any of these presents or any other document.
(g) The Note Trustee shall be under no obligation to monitor or
supervise and shall not have any duty to make any investigation in
respect of or in any way be liable whatsoever for the performance
or observance by the Current Issuer or any other person of the
provisions of these presents or any other Current Issuer
Transaction Document and shall be entitled to assume that each
person is properly performing and complying with its obligations.
(h) The Note Trustee shall not have any responsibility for or have any
duty to make any investigation in respect of or in any way be
liable whatsoever for the existence, accuracy or sufficiency of
any legal or other opinions, searches, reports, certificates,
valuations or investigations delivered or obtained or required to
be delivered or obtained at any time in connection with the
Current Issuer Charged Property or any Current Issuer Transaction
Document.
(i) The Note Trustee shall have no responsibility whatsoever to any
Current Issuer Secured Creditor as regards any deficiency which
might arise because the Note Trustee is subject to any Tax in
respect of the Current Issuer Charged Property or any part thereof
or any income therefrom or any proceeds thereof or is required by
law to make any withholding or deduction from any payment to any
Current Issuer Secured Creditor.
(j) The Note Trustee will not be responsible or liable for any
inadequacy or unfitness of any Current Issuer Charged Property as
security or any decline in value of any loss realised upon any
disposition of the Current Issuer Charged Property.
(k) The Note Trustee shall not be responsible for, nor shall it have
any liability with respect to, any loss or theft of the Current
Issuer Charged Property.
(l) The Note Trustee shall not be liable or responsible for any loss,
cost, damage, expense or inconvenience which may result from
anything done or omitted to be done by it under these presents or
under any of the other Current Issuer Transaction Documents save
where the same arises as a result of the Note Trustee's fraud,
wilful default or gross negligence.
(m) The Note Trustee shall not be responsible for the receipt or
application by the Current Issuer of the proceeds of the Current
Issuer Notes, the exchange of any Global Note Certificate for
another Global Note Certificate or Individual Note Certificates or
the exchange of any Individual Note Certificate for another
Individual Note Certificate or the delivery of any Global Note
Certificate or Individual Note Certificates to the person(s)
entitled to it or them.
(n) The Note Trustee may appoint and pay any person to act as a
custodian or nominee on any terms in relation to such assets of
the trust as the Note Trustee may determine, including for the
purpose of depositing with a custodian this Deed or any Current
Issuer Transaction Document and the Note Trustee shall not be
responsible for any loss, liability, expense, demand, cost, claim
or
23
proceedings incurred by reason of the misconduct, omission or
default on the part of any person appointed by it hereunder or be
bound to supervise the proceedings or acts of any such person.
(o) The Note Trustee shall (save as expressly otherwise provided in
these presents or in any other Current Issuer Transaction
Document) as regards all rights, powers, authorities and
discretions vested in it by these presents or any other Current
Issuer Transaction Document, or by operation of law, have absolute
and uncontrolled discretion as to the exercise or non-exercise
thereof and whenever the Note Trustee is bound to act at the
request or direction of the Noteholders or any class of them, the
Note Trustee shall nevertheless not be so bound unless first
indemnified to its satisfaction against all actions, proceedings,
claims and demands to which it may render itself liable and all
costs, expenses, damages and liabilities which it may incur by so
doing.
(p) The Note Trustee as between itself and the Noteholders or any
class of them shall have full power to determine all questions and
doubts arising in relation to any of the provisions of these
presents and/or any other Current Issuer Transaction Document and
every such determination, whether made upon a question actually
raised or implied in the acts or proceedings of the Note Trustee,
shall be conclusive and shall bind the Note Trustee, the
Noteholders and the other Current Issuer Secured Creditors.
(q) In connection with the exercise by it of any of its trusts,
powers, authorities and discretions under these presents
(including without limitation any power to authorise any amendment
or to waive any breach or to make any determination) the Note
Trustee shall always have regard to all the Noteholders, provided
that:
(i) without prejudice to the provisions of sub-paragraph (ii)
below where it is required to have regard to the interests
of the Noteholders, it shall have regard to the interests of
the Noteholders as a class and, in particular but without
prejudice to the generality of the foregoing, shall not have
regard to, or be in any way liable for, the consequences of
any exercise thereof for any individual Noteholder resulting
from their being domiciled or resident or otherwise
connected with or subject to the jurisdiction of, any
particular territory or any political sub-division thereof
and the Note Trustee shall not be entitled to require, nor
shall any Noteholder be entitled to claim, from the Current
Issuer, the Note Trustee or any other person any
indemnification or payment in respect of any tax consequence
of any such exercise upon individual Noteholders;
(ii) except where expressly provided otherwise in these presents
or any other Current Issuer Transaction Document, the Note
Trustee shall solely have regard to the interests of the
Noteholders provided that (a) if in the opinion of the Note
Trustee there is a conflict between the interests of the
Senior Noteholders, on the one hand and the interests of the
Mezzanine Noteholders and/or the Junior Noteholders on the
other hand, the Note Trustee shall have regard only to the
interests of the Senior Noteholders or (b) if in the opinion
of the Note Trustee there is
24
a conflict between the interests of the Mezzanine
Noteholders on the one hand and the interests of the Junior
Noteholders on the other hand, the Note Trustee shall have
regard only to the interests of the Mezzanine Noteholders;
but so that this proviso shall not apply in the case of
powers, authorities or discretions in relation to which it
is expressly stated that they may be exercised by the Note
Trustee only if in its opinion the interests of all the
Noteholders would not be materially prejudiced thereby; and
(iii) it shall not have regard to, or be in any way liable for,
the consequences of any exercise thereof for any other
Current Issuer Secured Creditor or any other person.
(r) The Note Trustee may determine whether or not a default in the
performance by the Current Issuer of any obligation under the
provisions of this Deed or any other Current Issuer Transaction
Document or a default in the performance by Funding of any
obligation under the Current Issuer Intercompany Loan Agreement is
capable of remedy and/or whether the same is materially
prejudicial to the interests of the Noteholders or any class or
classes of them and if the Note Trustee shall certify that any
such default is, in its opinion, not capable of remedy and/or
materially prejudicial to the interests of the Noteholders or any
class or classes of them, such certificate shall be conclusive and
binding upon the Current Issuer, the Noteholders and the other
Current Issuer Secured Creditors.
(s) The Note Trustee may, in the conduct of its trust business,
instead of acting personally, employ and pay an agent on any
terms, whether or not a lawyer or other professional person, to
transact or conduct, or concur in transacting or conducting, any
business and to do or concur in doing all acts required to be done
by the Note Trustee (including the receipt and payment of monies).
(t) In relation to any asset held by the Note Trustee under these
presents, the Note Trustee may appoint any person to act as its
nominee on any terms.
(u) Any trustee of these presents being a lawyer, accountant, broker
or other person engaged in any profession or business shall be
entitled to charge and be paid all usual professional and other
charges for business transacted and acts done by him or his firm
in connection with the trusts of this Deed and the Current Issuer
Transaction Documents and also his charges in addition to
disbursements for all other work and business done and all time
spent by him or his firm in connection with matters arising in
connection with this Deed and the Current Issuer Transaction
Documents, including matters which might or should have been
attended to in person by a trustee not being a banker, lawyer,
broker or other professional person.
(v) The Note Trustee may, in the execution of all or any of the
trusts, powers, authorities and discretions vested in it by these
presents or any of the other Current Issuer Transaction Documents,
act by responsible officers or a responsible officer for the time
being of the Note Trustee. The Note Trustee may also, whenever it
thinks expedient in the interests of the Noteholders, whether by
power of attorney or otherwise, delegate to any person or persons
25
all or any of the trusts, rights, powers, duties, authorities and
discretions vested in it by these presents or any of the other
Current Issuer Transaction Documents. Any such delegation may be
made upon such terms and subject to such Current Issuer Conditions
and subject to such regulations (including power to sub-delegate)
as the Note Trustee may think fit in the interests of the
Noteholders. The Note Trustee shall give prompt notice to the
Current Issuer of the appointment of any delegate as aforesaid and
shall procure that any delegate shall also give prompt notice of
the appointment of any sub-delegate to the Current Issuer.
(w) If the Note Trustee exercises reasonable care in selecting any
custodian, agent, delegate, nominee or any other person appointed
under this Clause 10.3 (Powers and Duties) (each, an "APPOINTEE")
it will not have any obligation to supervise such Appointee or be
responsible for any loss, liability, costs, claim, proceedings or
expenses incurred by reason of such Appointee's misconduct,
omission or default or the misconduct, omission or default of any
substitute lawfully appointed by such Appointee.
(x) Where it is necessary or desirable for any purpose in connection
with these presents to convert any sum from one currency to
another it shall (unless otherwise provided by this Deed or
required by law) be converted at such rate or rates in accordance
with such method and as at such date for the determination of such
rate of exchange, as may be specified by the Note Trustee in its
absolute discretion but having regard to current rates of exchange
if available and the Note Trustee shall not be liable for any loss
occasioned by the said conversion under this paragraph (x) and any
rate mentioned and date so specified shall be binding on the
Current Issuer Secured Creditors.
(y) Any consent given by the Note Trustee for the purposes of these
presents or any of the other Current Issuer Transaction Documents
may be given on such terms and subject to such conditions (if any)
as the Note Trustee thinks fit and may be given retrospectively.
(z) The Note Trustee shall not be liable for any error of judgment
made in good faith by any officer or employee of the Note Trustee
assigned by the Note Trustee to administer its corporate trust
matters unless the Note Trustee was negligent in ascertaining the
pertinent facts.
(aa) The Note Trustee shall not (unless required by law or ordered to
do so by a court of competent jurisdiction) be required to
disclose to any Noteholder or any other person any information
made available to the Note Trustee by the Current Issuer or any
other person in connection with the trusts of these presents or
any other Current Issuer Transaction Documents and no Noteholder
or any other person shall be entitled to take any action to obtain
from the Note Trustee any such information. The Note Trustee
shall not be responsible for exercising the rights of any of the
parties under the Current Issuer Transaction Documents or
considering the basis upon which the approvals or consents are
granted by any of the parties under the Current Issuer Transaction
Documents.
26
(bb) Notwithstanding anything else in these presents, the Current
Issuer Notes or any other Current Issuer Transaction Document, the
Note Trustee may refrain from doing anything which would or might
in its opinion be contrary to any law of any jurisdiction or any
directive or regulation of any governmental agency or which would
or might otherwise render it liable to any person and may do
anything which is, in its opinion, necessary to comply with any
such law, directive or regulation.
(cc) The Note Trustee shall not be liable to any person by reason of
having acted upon an Extraordinary Resolution in writing or any
Extraordinary Resolution or other resolution whether in writing or
purporting to have been passed at any Meeting of all or any class
or classes in respect whereof minutes have been made and signed
even though subsequent to its acting it may be found that there
was some defect in the constitution of the Meeting or the passing
of the resolution or (in the case of an Extraordinary Resolution
or other resolution in writing) that not all Noteholders had
signed the Extraordinary Resolution or other resolution or that
for any reason the resolution was not valid or binding upon such
Noteholders.
(dd) Without prejudice to the right of the Note Trustee to require
and/or accept any other evidence, the Note Trustee may accept as
conclusive evidence of any fact or matter in relation to the
Current Issuer or required to be certified by the Current Issuer
under the Current Issuer Conditions, a certificate signed by two
directors of the Current Issuer and the Note Trustee shall not be
bound in any such case to call for further evidence or be
responsible for any liability that may be occasioned by it or any
other person acting on such certificate.
(ee) The Note Trustee shall not be liable to any person by reason of
having accepted as valid or not having rejected any Note
Certificate purporting to be such and subsequently found to be
forged or not authentic.
(ff) The Note Trustee shall not be liable to the Current Issuer or any
Noteholder by reason of having accepted as valid or not having
rejected any entry on the Register later found to be forged or not
authentic and can assume for all purposes in relation hereto that
any entry on the Register is correct.
(gg) The Note Trustee shall be entitled to assume, for the purposes of
exercising any power, right, trust, authority, duty or discretion
under or in relation to these presents or any of the other Current
Issuer Transaction Documents, that such exercise will not be
materially prejudicial to the interests of any class of Senior
Noteholders if each of the Rating Agencies has confirmed that the
then current rating by it of the Senior Notes would not be
adversely affected by such exercise, that such exercise will not
be materially prejudicial to the interests of any class of
Mezzanine Noteholders if each of the Rating Agencies has confirmed
that the then current rating by it of the Mezzanine Notes would
not be adversely affected by such exercise and that such exercise
will not be materially prejudicial to the interests of any class
of Junior Noteholders if each of the Rating Agencies has confirmed
that the then current rating by it of the Junior Notes will not be
adversely affected by such exercise.
27
(hh) The Note Trustee may call for any certificate or other document to
be issued by DTC, Euroclear or Clearstream, Luxembourg as to the
Principal Amount Outstanding of the Current Issuer Notes standing
to the account of any person. Any such certificate or other
document shall be conclusive and binding for all purposes. The
Note Trustee shall not be liable to any person by reason of having
accepted as valid or not having rejected any certificate or other
document to such effect purporting to be issued by DTC, Euroclear
or Clearstream, Luxembourg and subsequently found to be forged or
not authentic.
(ii) The Note Trustee shall have no responsibility for the maintenance
of any rating of any of the Current Issuer Notes by the Rating
Agencies or any other person.
(jj) If required by Section 313(a) of the Trust Indenture Act, within
60 days after 31st December of any year and commencing 31 December
2003, the Note Trustee shall deliver to each Noteholder a brief
report dated as of such 31st December that complies with Section
313(a) of the Trust Indenture Act. The Note Trustee also shall
comply with Sections 313(b), 313(c) and 313(d) of the Trust
Indenture Act. Reports delivered pursuant to this paragraph (jj)
shall be sent as provided in Clause 19 (Notices).
(kk) The Note Trustee shall comply with Trust Indenture Act Section
311(a), excluding any creditor relationship listed in Trust
Indenture Act Section 311(b). A Note Trustee who has resigned or
been removed shall be subject to Trust Indenture Act Section
311(a) to the extent indicated therein. The provisions of Trust
Indenture Act Section 311 shall apply to the Current Issuer as the
obligor of the Current Issuer Notes.
(ll) If a Note Event of Default occurs and is continuing and if it is
known to an Authorised Officer of the Note Trustee, the Note
Trustee shall mail to each Noteholder notice of such Note Event of
Default within 90 days after it occurs.
(mm) The Note Trustee has no responsibility to verify or monitor the
contents of, or (if applicable) to check any calculations
contained in, any reports, information, documents, Officers'
Certificates and Opinions of Counsel delivered to the Note Trustee
in accordance with paragraphs (u) (United States Reporting
Requirements), (ee) (Information Regarding Noteholders) or (ff)
(Officers' Certificates and Opinions of Counsel; Statements to be
Contained Therein) of Clause 5 (Covenants by Current Issuer) or
Clause 16 (Certificates and Opinions), and is under no obligation
to inform Noteholders of the contents of any such reports,
information, documents, Officers' Certificates and Opinions of
Counsel, other than allowing Noteholders upon reasonable notice,
to inspect such reports, information, documents, Officers'
Certificates and Opinions of Counsel.
(nn) The powers conferred by these presents upon the Note Trustee or
any Receiver shall be in addition to and not in substitution for
any powers which may from time to time be conferred on the Note
Trustee or any such Receiver by statute or under common law.
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(oo) The Note Trustee has no duties or responsibilities except those
expressly set out in this Deed or in the other Current Issuer
Transaction Documents.
(pp) In the absence of knowledge or express notice to the contrary, the
Note Trustee may assume without enquiry (other than requesting a
certificate of the Current Issuer) that no Current Issuer Notes
are for the time being held by or for the benefit of the Current
Issuer.
(qq) The Note Trustee may, without the consent of the Current Issuer or
the Noteholders prescribe such regulations regarding the giving of
directions by the Noteholders as provided in the Current Issuer
Conditions, as the Note Trustee may in its sole discretion
determine.
(rr) Without prejudice to the provisions of any Current Issuer
Transaction Documents relating to insurance, the Note Trustee
shall not be under any obligation to insure any of the Current
Issuer Charged Property or the Funding Charged Property or any
deeds or documents of title or other evidence in respect of the
Current Issuer Charged Property or the Funding Charged Property or
to require any other person to maintain any such insurance or
monitor the adequacy of any such insurance and shall not be
responsible for any liability which may be suffered by any person
as a result of the lack of or inadequacy of any such insurance.
(ss) The Note Trustee shall have no liability whatsoever for any loss,
cost, damages or expenses directly or indirectly suffered or
incurred by a person as a result of the delivery by the Note
Trustee to the Current Issuer or to any other party to the Current
Issuer Transaction Documents of a certificate as to material
prejudice pursuant to the Current Issuer Conditions or any Current
Issuer Transaction Documents on the basis of an opinion formed by
it in good faith.
(tt) For the purpose of either Condition 5(D) (Optional Redemption in
Full) or Condition 5(E) (Optional Redemption for Tax and other
Reasons), the Note Trustee shall not be satisfied that the Current
Issuer will be in a position to fulfil its obligations referred to
therein unless, inter alia, either (i) the Current Issuer has
available to it sufficient cash in the Current Issuer Transaction
Account and/or in Authorised Investments which will mature on or
before the relevant Payment Date or (ii) the Current Issuer has
entered into a legally binding contract with an entity (a) the
long term unsecured debt of which is rated at least as high as the
then current rating of the Current Issuer Notes by the Rating
Agencies or (b) any of whose short term unsecured debt is rated
A-1 by S&P and P-1 by ▇▇▇▇▇'▇ to provide sufficient cash on or
before the relevant Payment Date, in each case to enable the
Current Issuer to fulfil its obligations as aforesaid.
10.4 NO FINANCIAL LIABILITY: Notwithstanding any other provision of these
presents or of any other Current Issuer Transaction Document, nothing
shall require the Note Trustee to risk its own funds or otherwise incur
any financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers or otherwise in connection with
these presents or any other Current Issuer Transaction Document
(including, without limitation, forming any opinion or employing any
29
legal, financial or other adviser), if it shall believe that repayment of
such funds or adequate indemnity against such risk or liability is not
assured to it. The Note Trustee shall not be responsible for exercising
the rights of any of the parties under the Current Issuer Transaction
Documents or considering the basis upon which the approvals or consents
are granted by any of the parties under the Current Issuer Transaction
Documents.
10.5 ASCERTAINING DEFAULT: The Note Trustee shall not be responsible or
liable for:
(i) exercising any rights or powers which are assigned to it by
any party to the Current Issuer Transaction Documents,
including, without limitation, any servicing, administration
and management functions in relation to the Mortgage Loans
and shall not be liable to any person for the exercise or
non-exercise of any such rights and powers;
(ii) ascertaining whether a default has occurred under the terms
of any of the Current Issuer Transaction Documents and nor
is the Note Trustee responsible for taking any action in
connection with any such default or alleged default;
10.6 RATING OF CURRENT ISSUER NOTES: The Note Trustee shall have no
responsibility for the maintenance of any rating of the Current Issuer
Notes by the Rating Agencies or any other credit-rating agency or any
other person.
10.7 DELIVERY OF CERTIFICATES: The Note Trustee shall have no liability
whatsoever for any loss, cost damages or expenses directly or indirectly
suffered or incurred by the Current Issuer, any Noteholder or any other
person as a result of the delivery by the Note Trustee of a certificate,
or the omission by it to deliver a certificate, to the Current Issuer as
to material prejudice, on the basis of an opinion formed by it in good
faith.
10.8 ASSUMPTION OF NO DEFAULT: Except to the extent required pursuant to
Section 315(b) of the Trust Indenture Act, the Note Trustee shall not be
bound to ascertain whether any Current Issuer Note Event of Default or
Potential Current Issuer Event of Default has happened and, until it
shall have actual knowledge or express notice to the contrary, the Note
Trustee shall be entitled to assume that no such Current Issuer Note
Event of Default or Potential Current Issuer Event of Default has
happened and that the Current Issuer is observing and performing all the
obligations on its part under the Current Issuer Notes and these presents
and no event has happened as a consequence of which any Current Issuer
Notes may become repayable.
10.9 ASSUMPTION OF NO INTERCOMPANY LOAN DEFAULT: The Note Trustee shall not be
bound to ascertain whether any Intercompany Loan Event of Default or
Potential Intercompany Loan Event of Default has happened and, until it
shall have actual knowledge or express notice to the contrary, the Note
Trustee shall be entitled to assume that no such Intercompany Loan Event
of Default or Potential Intercompany Loan Event of Default has happened
and that Funding is observing and performing all the obligations on its
part;
10.10 COMMERCIAL TRANSACTIONS: The Note Trustee shall not, and no director,
officer or employee of any corporation being a Note Trustee hereof shall
by reason of the
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fiduciary position of the Note Trustee be in any way precluded from
making any commercial contracts or entering into any commercial
transactions with any party to the Current Issuer Transaction Documents,
whether directly or through any subsidiary or associated company, or from
accepting the trusteeship of any other debenture stock, debentures or
securities of any party to the Current Issuer Transaction Documents, and
without prejudice to the generality of these provisions, it is expressly
declared that such contracts and transactions include any contract or
transaction in relation to the placing, underwriting, purchasing,
subscribing for or dealing with or lending monies upon or making payments
in respect of or any stock, shares, debenture stock, debentures or other
securities of any party to the Current Issuer Transaction Documents or
any contract of banking or insurance of any party to the Current Issuer
Transaction Documents and neither the Note Trustee nor any such director,
officer or employee shall be accountable to any Noteholder or to any
party to the Current Issuer Transaction Documents for any profit, fees,
commissions, interest, discounts or share of brokerage earned, arising or
resulting from any such contracts or transactions, and the Note Trustee
and any such director, officer or employee shall also be at liberty to
retain the same without accounting therefor.
10.11 DISAPPLICATION: Section 1 of the Trustee Act 2000 shall not apply to the
duties of the Note Trustee in relation to the trusts constituted by this
Deed. Where there are any inconsistencies between the Trustee Acts and
the provisions of this Deed, the provisions of this Deed shall, to the
extent allowed by law, prevail and, in the case of any such inconsistency
with the Trustee ▇▇▇ ▇▇▇▇, the provisions of this Deed shall constitute a
restriction or exclusion for the purposes of that Act.
10.12 NOTE TRUSTEE LIABLE FOR NEGLIGENCE ETC.: Notwithstanding any other
provision of these presents, in compliance with Section 315(d) of the
Trust Indenture Act, none of the provisions of these presents shall, in
any case in which the Note Trustee has failed to show the degree of care
and diligence required of it as trustee under these presents (including
any requirement under the Trust Indenture Act), having regard to the
provisions of these presents conferring on the Note Trustee any powers,
authorities or discretions, relieve the Note Trustee from or indemnify
the Note Trustee against any liabilities which by virtue of any rule of
law (including any provision of the Trust Indenture Act) would otherwise
attach to it in respect of any negligence, default, breach of duty or
breach of trust of which it may be guilty in relation to its duties under
these presents.
11. MODIFICATION AND WAIVER
11.1 MODIFICATION: The Note Trustee may without the consent or sanction of
relevant class or classes of the Noteholders at any time and from time to
time concur with the Current Issuer in making any modification (except a
Basic Terms Modification (as defined in Schedule 4 (Provisions for
Meetings of Noteholders) hereto)) (i) to these presents, the Current
Issuer Notes or any of the other Current Issuer Transaction Documents,
provided that the Note Trustee is of the opinion that such modification
will not be materially prejudicial to the interests of the relevant class
or classes of Noteholders; or (ii) to these presents, the Current Issuer
Notes or any of the other Current Issuer Transaction Documents, if in the
opinion of the Note Trustee such modification is of a formal, minor or
technical nature or to correct a manifest error; or (iii) to any of the
Current Issuer Transaction Documents which it may be necessary to make or
which are required by the Rating Agencies in respect of any New Issuer or
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any other person who has executed an Accession Undertaking pursuant to
Clause 3.11 (New Intercompany Loans) of the Funding Deed of Charge or
Clause 2.2 (New Intercompany Loan Agreement) of the Intercompany Loan
Terms and Conditions. Any such modification may be made on such terms and
subject to such conditions (if any) as the Note Trustee may determine,
shall be binding upon the Noteholders and, unless the Note Trustee agrees
otherwise, shall be notified by the Current Issuer to the Noteholders and
the Rating Agencies in accordance with the Current Issuer Conditions as
soon as practicable thereafter. So long as any of the Current Issuer
Notes are rated by the Rating Agencies, the Current Issuer shall notify
the Rating Agencies in writing as soon as reasonably practicable
thereafter of any modification to the provisions of these presents, the
Current Issuer Notes or any of the other Current Issuer Transaction
Documents. The Note Trustee may also agree, without the consent of the
Noteholders, to a change of the laws governing the Current Issuer Notes
and/or the Current Issuer Transaction Documents provided that such change
would not, in the opinion of the Note Trustee, be materially prejudicial
to the interests of the Noteholders.
11.2 WAIVER: Subject as expressly provided otherwise in the Current Issuer
Notes or in any other Current Issuer Transaction Document, the Note
Trustee may from time to time and at any time without the consent or
sanction of the relevant class or classes of Noteholders and without
prejudice to its rights in respect of any subsequent breach, but only if
and in so far as in its opinion the interests of the relevant class or
classes of Noteholders shall not be materially prejudiced thereby, waive
or authorise any breach or proposed breach by the Current Issuer or any
other party thereto of any of the covenants or provisions contained in
these presents or in any of the other Current Issuer Transaction
Documents or determine that any Note Event of Default shall not be
treated as such for the purposes of these presents and the Current Issuer
Notes provided always that the Note Trustee shall not exercise any powers
conferred on it by this Clause in contravention of any express direction
given by an Extraordinary Resolution, or of a request in writing made by
the holders of not less than 25 per cent. in aggregate principal amount
of the relevant class of Current Issuer Notes then outstanding, in
accordance with the Current Issuer Conditions (but so that no such
direction or request shall affect any waiver, authorisation or
determination previously given or made). Any such waiver, authorisation
or determination may be given or made on such terms and subject to such
conditions (if any) as the Note Trustee may determine, shall be binding
on the Noteholders and, if, but only if, the Note Trustee shall so
require, shall be notified by the Current Issuer to the Noteholders in
accordance with the Current Issuer Conditions as soon as practicable
thereafter. The provisions of this Clause 11.2 (Waivers) shall be in lieu
of Section 316(a)(1)(B) of the Trust Indenture Act and Section
316(a)(1)(B) of the Trust Indenture Act is hereby expressly excluded from
these presents and the Current Issuer Notes, as permitted by the Trust
Indenture Act.
11.3 MATERIAL PREJUDICE: For the avoidance of doubt (in the context of
deciding material prejudice in respect of Clauses 11.1 (Modifications)
and 11.2 (Waiver)), if the Note Trustee considers in its sole opinion
that the Noteholders of the same class of any or all series to which the
modification or waiver relates are materially prejudiced by such waivers,
the Note Trustee will not be able to sanction such modification or waiver
itself, and will instead require an Extraordinary Resolution of the
Noteholders of the Current Issuer Notes of such class outstanding to be
passed by means of a Meeting.
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In accordance with the general provision contained herein, such
Extraordinary Resolution must also be ratified by the Noteholders of the
Current Issuer Notes of the higher class or classes in order for the
Extraordinary Resolution which seeks approval of the modification or
waiver to be valid and effective.
12. ENTITLEMENT TO TREAT HOLDER AS OWNER
The Current Issuer, the Note Trustee and any Paying Agent may (to the
fullest extent permitted by applicable laws) deem and treat the holder of
any Note Certificate as the absolute owner of such Note Certificate, for
all purposes (whether or not such Current Issuer Note represented by such
Note Certificate shall be overdue and notwithstanding any notation of
ownership or other writing thereon or any notice of loss or theft of such
Note Certificate), and, except as ordered by a court of competent
jurisdiction or as required by applicable law, the Current Issuer, the
Note Trustee and the Paying Agents shall not be affected by any notice to
the contrary. All payments made to any such holder shall be valid and, to
the extent of the sums so paid, effective to satisfy and discharge the
liability for the monies payable in respect of such Current Issuer Note.
13. CURRENCY INDEMNITY
13.1 CURRENCY AND INDEMNITY: The sole currency of account and payment (the
"CONTRACTUAL CURRENCY") for all sums payable by the Current Issuer under
or in connection with these presents, the Current Issuer Notes and the
other Current Issuer Secured Obligations including damages is (a) in
relation to any class of Current Issuer Notes, the currency in which such
class of Current Issuer Notes is denominated and (b) in relation to
Clauses 9.1 (Normal Remuneration), 9.2 (Extra Remuneration), 9.3 (Failure
to Agree), 9.4 (Expenses), 9.5 (Indemnity), 9.7 (VAT) and 9.8 (Interest),
pounds sterling. An amount received or recovered in a currency other
than the Contractual Currency (whether as a result of, or of the
enforcement of, a judgment or order of a court of any jurisdiction, in
the winding-up or dissolution of the Current Issuer or otherwise), by the
Note Trustee or any Noteholder or other Current Issuer Secured Creditors
in respect of any sum expressed to be due to it from the Current Issuer
will only discharge the Current Issuer to the extent of the Contractual
Currency amount which the recipient is able to purchase with the amount
so received or recovered in that other currency on the date of that
receipt or recovery (or, if it is not practicable to make that purchase
on that date, on the first date on which it is practicable to do so). If
the Contractual Currency amount is less than the Contractual Currency
amount expressed to be due to the recipient under these presents or the
Current Issuer Notes, or the other Current Issuer Transaction Documents
the Current Issuer will indemnify the recipient against any loss
sustained by it as a result. In any event, the Current Issuer will
indemnify the recipient against the cost of making any such purchase.
13.2 INDEMNITIES SEPARATE: The indemnities in these presents constitute
separate and independent obligations from the other obligations in these
presents and the other Current Issuer Transaction Documents, will give
rise to separate and independent causes of action, will apply
irrespective of any indulgence granted by the Note Trustee and/or any
Noteholder or other Current Issuer Secured Creditor and will continue in
full force and effect despite any judgment, order, claim or proof for a
liquidated amount in respect of any sum due under these presents, the
Current Issuer
33
Notes, any other Current Issuer Transaction Documents or any other
judgment or order. Any such loss as referred to in Clause 13.1 (Currency
and Indemnity) shall be deemed to constitute a loss suffered by the Note
Trustee, the Noteholders or the relevant Current Issuer Secured Creditors
and no proof or evidence of any actual loss shall be required by the
Current Issuer or its liquidator or liquidators.
14. APPOINTMENT, REMOVAL AND RETIREMENT OF NOTE TRUSTEE
14.1 POWER OF CURRENT ISSUER: Subject to the provisions of this Clause 14
(Appointment, Removal and Retirement of Note Trustee), the power of
appointing a new Note Trustee in place of an existing Note Trustee shall
be vested in the Current Issuer but such appointment or removal must be
approved by (save to the extent otherwise provided in the Current Issuer
Conditions) an Extraordinary Resolution of the Senior Noteholders, the
Mezzanine Noteholders and the Junior Noteholders of the Notes then
outstanding. A trust corporation may be appointed sole trustee hereof
but subject thereto there shall be at least two trustees hereof, one at
least of which shall be a trust corporation. Any appointment of a new
Note Trustee and any retirement of an existing Note Trustee hereof shall
as soon as practicable thereafter be notified by the Current Issuer to
the Noteholders. Any new Note Trustee must meet the requirements set out
in Clause 14.2 (Eligibility and Disqualification) and Clause 14.6
(Retirement or Removal Not Effective).
14.2 ELIGIBILITY AND DISQUALIFICATION: This Deed shall always have a Note
Trustee which shall be eligible to act as Note Trustee under Trust
Indenture Act Sections 310(a)(1) and 310(a)(2). The Note Trustee shall
have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition. If the Note
Trustee has or shall acquire any "CONFLICTING INTEREST" within the
meaning of Trust Indenture Act Section 310(b), the Note Trustee and the
Current Issuer shall comply with the provisions of Trust Indenture Act
Section 310(b); provided, however, that there shall be excluded from the
operation of Trust Indenture Act Section 310(b)(1) any deed or deeds
under which other securities or certificates of interest or participation
in other securities of the Current Issuer are outstanding if the
requirements for such exclusion set forth in Trust Indenture Act Section
310(b)(1) are met. If at any time the Note Trustee shall cease to be
eligible in accordance with the provisions of this Clause 14.2
(Eligibility and Disqualification), the Note Trustee shall resign
promptly in the manner and with the effect specified in Clause 14.5
(Retirement or Removal of Note Trustee).
14.3 POWERS OF NOTE TRUSTEE TO APPOINT: Notwithstanding the provisions of
Clause 14.1 (Power of Current Issuer), the Note Trustee may (as attorney
for the Current Issuer) upon giving prior notice to the Current Issuer
but without the consent of the Current Issuer or the Noteholders appoint
any person established or resident in any jurisdiction (whether a trust
corporation or not) to act either as a separate trustee or as a co-
trustee jointly with the Note Trustee:
(a) if the Note Trustee considers such appointment to be in the
interests of the Noteholders; or
(b) for the purposes of conforming to any legal requirements,
restrictions or Current Issuer Conditions in any jurisdiction in
which any particular act or acts is or are to be performed; or
34
(c) for the purposes of obtaining a judgment in any jurisdiction or
the enforcement in any jurisdiction of either a judgment already
obtained or any of the provisions of these presents or any of the
other Current Issuer Transaction Documents against the Current
Issuer or any other party thereto.
The Current Issuer hereby irrevocably appoints the Note Trustee to be its
attorney in its name and on its behalf to execute any such instrument of
appointment. Such a person shall (subject always to the provisions of
these presents and any other Current Issuer Transaction Document to which
the Note Trustee is a party) have such trusts, powers, authorities and
discretions (not exceeding those conferred on the Note Trustee by these
presents or any of the other Current Issuer Transaction Documents to
which the Note Trustee is a party) and such duties and obligations as
shall be conferred or imposed on it by the instrument of appointment.
The Note Trustee shall have power in like manner to remove any such
person. Such proper remuneration as the Note Trustee may pay to any such
person, together with any attributable costs, charges and expenses
incurred by it in performing its function as such separate trustee or co-
trustee, shall for the purposes of these presents be treated as costs,
charges and expenses incurred by the Note Trustee.
14.4 MULTIPLE TRUSTEES: Whenever there shall be more than two trustees
hereof, the majority of such trustees shall (provided such majority
includes a trust corporation) be competent to execute and exercise all
the trusts, powers, authorities and discretions vested by these presents
and any of the other Current Issuer Transaction Documents in the Note
Trustee generally.
14.5 RETIREMENT OR REMOVAL OF NOTE TRUSTEE: Subject as provided in Clause
14.6 (Retirement or Removal not Effective), any Note Trustee for the time
being of this Deed may retire at any time upon giving not less than three
months' prior notice in writing to the Current Issuer without assigning
any reason therefor and without being responsible for any costs resulting
from such retirement. The Noteholders may by Extraordinary Resolution of
each class of Noteholders remove any trustee or trustees for the time
being of these presents
14.6 RETIREMENT OR REMOVAL NOT EFFECTIVE: The retirement or removal of any
Note Trustee shall not become effective unless (i) there remains at least
one trustee hereof being a trust corporation in office upon such
retirement or removal and (ii) while the Bank of New York remains Note
Trustee, the Bank of New York, in its capacity as Security Trustee shall
also retire or be removed simultaneously. The Current Issuer covenants
that, in the event of a trustee (being a sole trustee or the only trust
corporation) giving notice or being removed under Clause 14.5 (Retirement
or Removal of Note Trustee) it shall use its best endeavours to procure a
new Note Trustee of these presents (being a trust corporation) to be
appointed as soon as reasonably practicable thereafter (for the avoidance
of doubt, on the same terms as these presents). If within 30 days of
having given notice of its intention to retire, the Current Issuer has
failed to appoint a replacement Note Trustee, the outgoing Note Trustee
will be entitled to appoint its successor provided that the Rating
Agencies confirm that the then current ratings of the Current Issuer
Notes shall not be either downgraded or reviewed as a result of such
appointment.
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15. TRUST INDENTURE ACT PREVAILS
If any provision of these presents limits, qualifies or conflicts with
another provision which is required to be included in these presents by,
and is not subject to a contractual waiver under, the Trust Indenture
Act, the required provision of the Trust Indenture Act shall be deemed to
be incorporated into these presents and shall prevail.
16. CERTIFICATES AND OPINIONS
16.1 EVIDENCE OF COMPLIANCE AS TO CONDITIONS PRECEDENT: Upon any request or
application by the Current Issuer to the Note Trustee to take any action
under this Trust Deed or these presents, the Current Issuer shall furnish
to the Note Trustee in accordance with Section 314(c) of the Trust
Indenture Act:
(a) an Officers' Certificate (which shall include the statements set
forth in Clause 16.2 (Statements Required in Certificates and
Opinions) below stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in these presents
relating to the proposed action have been complied with; and
(b) an Opinion of Counsel (which shall include the statements set
forth in Clause 16.2 (Statements Required in Certificates and
Opinions) below) stating that, in the opinion of such counsel, all
such conditions precedent, if any, provided for in these presents
relating to the proposed action have been complied with.
16.2 STATEMENTS REQUIRED IN CERTIFICATES AND OPINIONS: Each certificate and
opinion with respect to compliance with a condition or covenant provided
for in these presents or these presents, in accordance with Section
314(e) of the Trust Indenture Act, shall include:
(a) a statement that the person making such certificate or opinion has
read such covenant or condition and the definitions relating
thereto;
(b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in
such certificate or opinion are based;
(c) a statement that, in the opinion of such person, it or he has made
such examination or investigation as is necessary to enable such
person to express an informed opinion as to whether or not such
covenant or condition has been complied with; and
(d) a statement as to whether or not, in the opinion of such person,
such covenant or condition has been complied with.
17. RELEASE OF COLLATERAL
17.1 LIMITATION ON RELEASE: Except to the extent expressly provided in this
Clause 17 (Release of Collateral), the Note Trustee shall release the
property from the security constituted by the Current Issuer Deed of
Charge only upon receipt of a request from the Current Issuer accompanied
by an Officers' Certificate, an Opinion of Counsel and certificates of
independent parties in accordance with Trust Indenture Act Sections
314(c) and 314(d)(1) ("INDEPENDENT CERTIFICATES") or an Opinion of
36
Counsel in lieu of such Independent Certificates to the effect that the
Trust Indenture Act does not require any such Independent Certificates.
17.2 FAIR VALUE: Prior to the release of any property or securities subject
to the lien of the Current Issuer Deed of Charge, the Current Issuer
shall, in addition to any obligation imposed in this Clause 17 (Release
of Collateral) or elsewhere in these presents, furnish to the Note
Trustee an Officers' Certificate certifying or stating the opinion of
each person signing such certificate as to the fair value to the Current
Issuer of the property or securities to be so released. The officers so
certifying may consult with, and may conclusively rely upon a certificate
as to the fair value of such property provided to such officers by an
internationally recognised financial institution with expertise in such
matters. Whenever the Current Issuer is required to furnish to the Note
Trustee an Officers' Certificate certifying or stating the opinion of any
signer thereof as to the matters described in this Clause 17.2 (Fair
Value), the Current Issuer shall also deliver to the Note Trustee an
Independent Certificate as to the same matters, if the fair value to the
Current Issuer of the property to be so released and of all other such
property made the basis of any such release since the commencement of the
then current fiscal year of the Current Issuer, as set forth in the
certificates delivered pursuant to this Clause 17 (Release of
Collateral), is 10% or more of the Principal Amount Outstanding of the
Current Issuer Notes, but such a certificate need not be furnished with
respect to any property so released if the fair value thereof to the
Current Issuer as set forth in the related Officers' Certificate is less
than $25,000 (or its equivalent) or less than one per cent. of the
Principal Amount Outstanding of the Current Issuer Notes.
17.3 NO IMPAIRMENT: Whenever any property is to be released from the security
constituted by the Current Issuer Deed of Charge, the Current Issuer
shall also furnish to the Note Trustee an Officer's Certificate
certifying or stating the opinion of each person signing such certificate
that in the opinion of such person the proposed release will not impair
the security under the Current Issuer Deed of Charge in contravention of
the provisions hereof.
17.4 PAYMENTS UNDER CURRENT ISSUER TRANSACTION DOCUMENTS: Notwithstanding
anything to the contrary contained herein, the Current Issuer may (a)
make cash payments out of the Current Issuer Bank Accounts relating to
the Current Issuer Notes as and to the extent permitted or required by
the Current Issuer Transaction Documents (b) act in relation to the
Current Issuer Charged Property as permitted under the Current Issuer
Deed of Charge and (c) take any other action not inconsistent with the
Trust Indenture Act.
18. RIGHTS CUMULATIVE
The respective rights of the Note Trustee and the Noteholders to these
presents are cumulative and may be exercised as often as each considers
appropriate and are in addition to their respective rights under the
general law. No failure on the part of the Note Trustee or any Noteholder
to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of
any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies in these presents are
cumulative and not exclusive of any remedies provided by law.
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19. NOTICES
19.1 Any notices or other communication or document to be given or delivered
pursuant to these presents to any of the parties hereto shall be
sufficiently served if sent by prepaid first class post, by hand or by
facsimile transmission and shall be deemed to be given (in the case of
facsimile transmission) when despatched or (where delivered by hand) on
the day of delivery if delivered before 17.00 hours on a London Business
Day or on the next London Business Day if delivered thereafter or (in the
case of first class post) when it would be received in the ordinary
course of the post and shall be sent:
(a) in the case of the Current Issuer, to Granite Mortgages 03-1 plc
▇/▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇ (facsimile
number 020 7606 0643) for the attention of The Company Secretary
with a copy to Northern Rock plc, Northern ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇ (facsimile number 0191 213 2203) for
the attention of the Group Secretary;
(b) in the case of the Note Trustee, to The Bank of ▇▇▇ ▇▇▇▇, ▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇ ▇▇▇ (facsimile number 020 7964
6061/6399) for the attention of (Corporate Trust) Global
Structured Finance;
or to such other address or facsimile number or for the attention of such
other person or entity as may from time to time be notified by any party
to the others by fifteen days prior written notice in accordance with the
provisions of this Clause 19 (Notices).
19.2 COMMUNICATIONS BY NOTEHOLDERS WITH OTHER NOTEHOLDERS: Noteholders may
communicate pursuant to Trust Indenture Act Section 312(b) with other
Noteholders with respect to their rights under these presents or the
Current Issuer Notes. The Current Issuer and the Note Trustee shall have
the protection of Trust Indenture Act Section 312(c).
19.3 NOTICES TO NOTEHOLDERS: Any notice or communication mailed to Noteholders
hereunder shall be transmitted by mail to (a) all Noteholders as the
names and addresses of such Noteholders appear upon the Register and (b)
such Noteholders to whom Trust Indenture Act Section 313(c) requires
reports to be transmitted.
20. THIRD PARTY RIGHTS
A person who is not a party to these presents may not enforce any of its
terms under the Contracts (Rights of Third Parties) ▇▇▇ ▇▇▇▇, but this
shall not affect any right or remedy of a third party which exists or is
available apart from that Act.
21. EXECUTION IN COUNTERPARTS; SEVERABILITY
21.1 COUNTERPARTS: This Trust Deed may be executed in any number of
counterparts (manually or by facsimile) and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which when taken together shall constitute
one and the same instrument.
21.2 SEVERABILITY: Where any provision in or obligation under these presents
shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and
38
enforceability of the remaining provisions or obligations under these
presents, or of such provision or obligation in any other jurisdiction,
shall not be affected or impaired thereby.
22. GOVERNING LAW AND JURISDICTION; APPROPRIATE FORUM
22.1 GOVERNING LAW: These presents and the Current Issuer Notes are governed
by, and shall be construed in accordance with, English law.
22.2 JURISDICTION: Each of the parties hereto agrees for the benefit of the
Note Trustee and the Noteholders that the courts of England shall have
jurisdiction to hear and determine any suit, action or proceeding, and to
settle any disputes, which may arise out of or in connection with these
presents and, for such purposes, irrevocably submits to the jurisdiction
of such courts.
22.3 APPROPRIATE FORUM: Each of the parties hereto irrevocably waives any
objection which it might now or hereafter have to the courts of England
being nominated as the forum to hear and determine any Proceedings and to
settle any disputes, and agrees not to claim that any such court is not a
convenient or appropriate forum.
IN WITNESS of which these presents has been executed by the parties hereto as a
deed which has been delivered on the date first appearing on page one.
39
SCHEDULE 1
FORMS OF GLOBAL NOTE CERTIFICATES
GRANITE MORTGAGES 03-1 PLC
(INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH REGISTERED
NUMBER 4598035)
SERIES 1 CLASS A1 GLOBAL NOTE CERTIFICATE
REPRESENTING
US$[{circle}] SERIES 1 CLASS A1 FLOATING RATE NOTES DUE [{circle}]
1. Introduction
This Series 1 Class A1 Global Note Certificate is issued in respect of the
US$[{circle}] Series 1 Class A1 Floating Rate Notes due [{circle}] (the
"NOTES") of Granite Mortgages 03-1 plc (the "CURRENT ISSUER"), and is
limited to the aggregate principal amount of
[{circle}] US Dollars
(US$[{circle}])
The Notes are constituted by, are subject to, and have the benefit of, a
trust deed dated [{circle}] 2003 (as amended or supplemented from time to
time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and The
Bank of New York as trustee (the trustee for the time being thereof being
herein called the "NOTE TRUSTEE") and are the subject of a paying agent
and agent bank agreement dated [{circle}] 2003 (as amended or
supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
which expression includes any successor registrar appointed from time to
time in connection with the Notes), the Transfer Agent, the US Paying
Agent and the Note Trustee.
2. References to Conditions
References herein to the Current Issuer Conditions (or to any particular
numbered Condition) shall be to the Current Issuer Conditions (or that
particular one of them) attached hereto.
3. Registered Holder
This is to certify that:
CEDE & CO.
is the person registered in the register maintained by the Registrar in
relation to the Notes (the "REGISTER") as the duly registered holder (the
"HOLDER") of
[{circle}] US Dollars
(US$[{circle}])
40
in aggregate principal amount of the Notes.
4. Promise to pay
Subject only as provided in this Global Note Certificate and the Current
Issuer Conditions, the Current Issuer, for value received, promises to
pay to the Holder the principal amount of this Global Note Certificate
(being at the date hereof [{circle}] US Dollars (US$[{circle}])) on the
Payment Date falling in [{circle}] (or on such earlier date as the said
principal amount may become repayable in accordance with the Current
Issuer Conditions or the Current Issuer Trust Deed) and to pay interest
on the principal amount from time to time (as noted in the records of the
custodian for DTC) of this Global Note Certificate in arrear on each
Interest Payment Date at the rates determined in accordance with the
Current Issuer Conditions together with such premium and other amounts
(if any) as may be payable, all subject to and in accordance with the
Current Issuer Conditions and the provisions of the Current Issuer Trust
Deed.
5. Exchange for Individual Note Certificates
This Global Note Certificate will be exchangeable (in whole but not in
part and free of charge to the holder) for duly authenticated and
completed individual note certificates ("INDIVIDUAL NOTE CERTIFICATES")
in substantially the form (subject to completion) set out in Schedule 2
to the Current Issuer Trust Deed only if (i) The Depository Trust Company
("DTC") has notified the Current Issuer that it is at any time unwilling
or unable to continue as, or ceases to be, a clearing agency under the
United States Securities Exchange Act of 1934, as amended (the "EXCHANGE
ACT"), and a successor to DTC registered as a clearing agency under the
Exchange Act is not appointed by the Current Issuer within 90 days of
such notification, or (ii) as a result of any amendment to, or change in,
the laws or regulations of the United Kingdom (or of any political
subdivision thereof), or of any authority therein or thereof having power
to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Closing Date, the Current Issuer or any Paying
Agent is or will be required to make any deduction or withholding from
any payment in respect of the Notes which would not be required were the
relevant Notes Individual Note Certificates. Such exchange shall be
effected in accordance with paragraph 6 (Delivery of Individual Note
Certificates) below.
6. Delivery of Individual Note Certificates
Whenever this Global Note Certificate is to be exchanged for Individual
Note Certificates, such Individual Note Certificates shall be issued in
an aggregate principal amount equal to the principal amount of this
Global Note Certificate within five business days of the delivery, by or
on behalf of the Holder and/or DTC, to the Registrar of such information
as is required to complete and deliver such Individual Note Certificates
(including, without limitation, the names and addresses of the persons in
whose names the Individual Note Certificates are to be registered and the
principal amount of each such person's holding) against the surrender of
this Global Note Certificate at the Specified Office (as defined in the
Current Issuer Conditions) of the Registrar. Such exchange shall be
effected in accordance with the provisions of the Current Issuer Paying
Agent and Agent Bank Agreement and the regulations
41
concerning the transfer and registration of Notes scheduled thereto and,
in particular, shall be effected without charge to any Holder or the Note
Trustee, but against such indemnity as the Registrar may require in
respect of any tax or other duty of whatsoever nature which may be levied
or imposed in connection with such exchange. In this paragraph,
"BUSINESS DAY" means a day on which commercial banks are open for
business in the city in which the Registrar has its Specified Office.
7. Payments
Payments of principal, premium (if any) and interest in respect of Notes
represented by this Global Note Certificate will be made in accordance
with the Current Issuer Conditions. All payments of any amounts payable
and paid to the Holder of this Global Note Certificate shall be valid
and, to the extent of the sums so paid, effectual to satisfy and
discharge the liability for the monies payable hereon.
8. Conditions apply
Save as otherwise provided herein, the Holder of this Global Note
Certificate shall have the benefit of, and be subject to, the Current
Issuer Conditions, and, for the purposes of this Global Note Certificate,
any reference in the Current Issuer Conditions to "NOTE CERTIFICATE" or
"NOTE CERTIFICATES" shall, except where the context otherwise requires,
be construed so as to include this Global Note Certificate.
9. Tax Treatment
The Current Issuer will treat the Notes as indebtedness for U.S. federal
income tax purposes. Each Holder of a Note, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as
indebtedness.
10. Notices
Notwithstanding Condition 14 (Notice to Noteholders), so long as this
Global Note Certificate is held on behalf of DTC or any other clearing
system (an "ALTERNATIVE CLEARING SYSTEM") notices to Holders of Notes
represented by this Global Note Certificate may be given by delivery of
the relevant notice to DTC or (as the case may be) such Alternative
Clearing System.
11. Determination of Entitlement
This Global Note Certificate is evidence of entitlement only and is not a
document of title. Entitlements are determined by the Registrar by
reference to the Register and only the Holder is entitled to payment in
respect of this Global Note Certificate.
12. Authentication
This Global Note Certificate shall not be or become valid for any purpose
unless and until authenticated by or on behalf of Citibank, N.A. as
Registrar.
13. Definitions
Terms not defined herein have the meaning ascribed to such terms in the
Current Issuer Conditions.
42
14. Rights of Third Parties
No person shall have any right under the Contracts (Rights of Third
Parties) ▇▇▇ ▇▇▇▇ to enforce any term or condition of this Global Note
Certificate, but this shall not affect any right or remedy which exists
or is available apart from that Act.
15. Governing law
This Global Note Certificate is governed by, and shall be construed in
accordance with, the laws of England.
IN WITNESS whereof the Current Issuer has caused this Global Note Certificate
to be signed manually or in facsimile by a person duly authorised on its
behalf.
43
GRANITE MORTGAGES 03-1 PLC
By:...................................
[manual or facsimile signature]
(duly authorised)
ISSUED in London, England on [{circle}] 2003.
AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability
.......................................
[manual signature]
(duly authorised)
44
FORM OF TRANSFER
FOR VALUE RECEIVED ........................, being the registered holder of
this Global Note Certificate, hereby transfers to...........................
of..........................................................................
.............................................................................
US$ ..................................... in principal amount of the
US$[amount] Series 1 Class A1 Floating Rate Notes due [maturity] (the "NOTES")
of Granite Mortgages 03-1 plc (the "CURRENT ISSUER") and irrevocably requests
and authorises Citibank, N.A., in its capacity as Registrar in relation to the
Notes (or any successor to Citibank, N.A., in its capacity as such) to effect
the relevant transfer by means of appropriate entries in the Register kept by
it.
Dated:................................
By:...................................
(duly authorised)
NOTES
The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the
face of this Global Note Certificate.
(a) A representative of such registered holder should state the capacity in
which he signs, e.g. executor.
(b) The signature of the person effecting a transfer shall conform to any
list of duly authorised specimen signatures supplied by the registered
holder or be certified by a recognised bank, notary public or in such
other manner as the Registrar may require.
(c) Any transfer of Notes shall be in an amount equal to US$1,000 or an
integral multiple of U.S.$1,000 in excess thereof.
45
[Attached to the Global Note Certificate:]
[Terms and Conditions as set out in Schedule 3]
[At the foot of the Terms and Conditions:]
PRINCIPAL PAYING AGENT REGISTRAR
[NAME] [NAME]
[ADDRESS] [ADDRESS]
PAYING AGENTS AND TRANSFER AGENT
[NAME] [NAME]
[ADDRESS] [ADDRESS]
46
GRANITE MORTGAGES 03-1 PLC
(INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH REGISTERED
NUMBER 4598035)
SERIES 1 CLASS [{circle}] GLOBAL NOTE CERTIFICATE
REPRESENTING
US$[{circle}] SERIES 1 CLASS [{circle}] FLOATING RATE NOTES DUE [{circle}]
1. Introduction
This Series 1 Class [{circle}] Global Note Certificate is issued in
respect of the US$[{circle}] Series 1 Class [{circle}] Floating Rate Notes
due [{circle}] (the "NOTES") of Granite Mortgages 03-1 plc (the "CURRENT
ISSUER"), and is limited to the aggregate principal amount of
[{circle}] US Dollars
(US$[{circle}])
The Notes are constituted by, are subject to, and have the benefit of, a
trust deed dated [{circle}] 2003 (as amended or supplemented from time to
time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and The
Bank of New York as trustee (the trustee for the time being thereof being
herein called the "NOTE TRUSTEE") and are the subject of a paying agent
and agent bank agreement dated [{circle}] 2003 (as amended or
supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
which expression includes any successor registrar appointed from time to
time in connection with the Notes), the Transfer Agent, the US Paying
Agent and the Note Trustee.
2. References to Conditions
References herein to the Current Issuer Conditions (or to any particular
numbered Condition) shall be to the Current Issuer Conditions (or that
particular one of them) attached hereto.
3. Registered Holder
This is to certify that:
CEDE & CO.
is the person registered in the register maintained by the Registrar in
relation to the Notes (the "REGISTER") as the duly registered holder (the
"HOLDER") of
[{circle}] US Dollars
(US$[{circle}])
in aggregate principal amount of the Notes.
47
4. Promise to pay
Subject only as provided in this Global Note Certificate and the Current
Issuer Conditions, the Current Issuer, for value received, promises to
pay to the Holder the principal amount of this Global Note Certificate
(being at the date hereof [{circle}] US Dollars (US$[{circle}])) on the
Payment Date falling in [{circle}] (or on such earlier date as the said
principal amount may become repayable in accordance with the Current
Issuer Conditions or the Current Issuer Trust Deed) and to pay interest
on the principal amount from time to time (as noted in the records of the
custodian for DTC) of this Global Note Certificate quarterly in arrear on
each Interest Payment Date at the rates determined in accordance with the
Current Issuer Conditions together with such premium and other amounts
(if any) as may be payable, all subject to and in accordance with the
Current Issuer Conditions and the provisions of the Current Issuer Trust
Deed.
5. Exchange for Individual Note Certificates
This Global Note Certificate will be exchangeable (in whole but not in
part and free of charge to the holder) for duly authenticated and
completed individual note certificates ("INDIVIDUAL NOTE CERTIFICATES")
in substantially the form (subject to completion) set out in Schedule 2
to the Current Issuer Trust Deed only if (i) The Depository Trust Company
("DTC") has notified the Current Issuer that it is at any time unwilling
or unable to continue as, or ceases to be, a clearing agency under the
United States Securities Exchange Act of 1934, as amended (the "EXCHANGE
ACT"), and a successor to DTC registered as a clearing agency under the
Exchange Act is not appointed by the Current Issuer within 90 days of
such notification, or (ii) as a result of any amendment to, or change in,
the laws or regulations of the United Kingdom (or of any political
subdivision thereof), or of any authority therein or thereof having power
to tax, or in the interpretation or administration by a revenue authority
or a court or administration of such laws or regulations which becomes
effective on or after the Closing Date, the Current Issuer or any Paying
Agent is or will be required to make any deduction or withholding from
any payment in respect of the Notes which would not be required were the
relevant Notes Individual Note Certificates. Such exchange shall be
effected in accordance with paragraph 6 (Delivery of Individual Note
Certificates) below.
6. Delivery of Individual Note Certificates
Whenever this Global Note Certificate is to be exchanged for Individual
Note Certificates, such Individual Note Certificates shall be issued in
an aggregate principal amount equal to the principal amount of this
Global Note Certificate within five business days of the delivery, by or
on behalf of the Holder and/or DTC, to the Registrar of such information
as is required to complete and deliver such Individual Note Certificates
(including, without limitation, the names and addresses of the persons in
whose names the Individual Note Certificates are to be registered and the
principal amount of each such person's holding) against the surrender of
this Global Note Certificate at the Specified Office (as defined in the
Current Issuer Conditions) of the Registrar. Such exchange shall be
effected in accordance with the provisions of the Current Issuer Paying
Agent and Agent Bank Agreement and the regulations concerning the
transfer and registration of Notes scheduled thereto and, in particular,
shall be effected without charge to any Holder or the Note Trustee, but
against such
48
indemnity as the Registrar may require in respect of any tax or other
duty of whatsoever nature which may be levied or imposed in connection
with such exchange. In this paragraph, "BUSINESS DAY" means a day on
which commercial banks are open for business in the city in which the
Registrar has its Specified Office.
7. Payments
Payments of principal, premium (if any) and interest in respect of Notes
represented by this Global Note Certificate will be made in accordance
with the Current Issuer Conditions. All payments of any amounts payable
and paid to the Holder of this Global Note Certificate shall be valid
and, to the extent of the sums so paid, effectual to satisfy and
discharge the liability for the monies payable hereon.
8. Conditions apply
Save as otherwise provided herein, the Holder of this Global Note
Certificate shall have the benefit of, and be subject to, the Current
Issuer Conditions, and, for the purposes of this Global Note Certificate,
any reference in the Current Issuer Conditions to "NOTE CERTIFICATE" or
"NOTE CERTIFICATES" shall, except where the context otherwise requires,
be construed so as to include this Global Note Certificate.
9. Tax Treatment
The Current Issuer will treat the Notes as indebtedness for U.S. federal
income tax purposes. Each Holder of a Note, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as
indebtedness.
10. Notices
Notwithstanding Condition 14 (Notice to Noteholders), so long as this
Global Note Certificate is held on behalf of DTC or any other clearing
system (an "ALTERNATIVE CLEARING SYSTEM") notices to Holders of Notes
represented by this Global Note Certificate may be given by delivery of
the relevant notice to DTC or (as the case may be) such Alternative
Clearing System.
11. Determination of Entitlement
This Global Note Certificate is evidence of entitlement only and is not a
document of title. Entitlements are determined by the Registrar by
reference to the Register and only the Holder is entitled to payment in
respect of this Global Note Certificate.
12. Authentication
This Global Note Certificate shall not be or become valid for any purpose
unless and until authenticated by or on behalf of Citibank, N.A. as
Registrar.
13. Definitions
Terms not defined herein have the meaning ascribed to such terms in the
Current Issuer Conditions.
49
14. Rights of Third Parties
No person shall have any right under the Contracts (Rights of Third
Parties) ▇▇▇ ▇▇▇▇ to enforce any term or condition of this Global Note
Certificate, but this shall not affect any right or remedy which exists
or is available apart from that Act.
15. Governing law
This Global Note Certificate is governed by, and shall be construed in
accordance with, the laws of England.
IN WITNESS whereof the Current Issuer has caused this Global Note Certificate
to be signed manually or in facsimile by a person duly authorised on its
behalf.
50
GRANITE MORTGAGES 03-1 PLC
By:...................................
[manual or facsimile signature]
(duly authorised)
ISSUED in London, England on [{circle}] 2003.
AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability
.......................................
[manual signature]
(duly authorised)
51
FORM OF TRANSFER
FOR VALUE RECEIVED ........................, being the registered holder of
this Global Note Certificate, hereby transfers to.............................
of............................................................................
...............................................................................
US$ ..................................... in principal amount of the
US$[amount] Series 1 Class [{circle}]Floating Rate Notes due [maturity] (the
"NOTES") of Granite Mortgages 03-1 plc (the "CURRENT ISSUER") and irrevocably
requests and authorises Citibank, N.A., in its capacity as Registrar in
relation to the Notes (or any successor to Citibank, N.A., in its capacity as
such) to effect the relevant transfer by means of appropriate entries in the
Register kept by it.
Dated:................................
By:...................................
(duly authorised)
NOTES
The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the
face of this Global Note Certificate.
(a) A representative of such registered holder should state the capacity in
which he signs, e.g. executor.
(b) The signature of the person effecting a transfer shall conform to any
list of duly authorised specimen signatures supplied by the registered
holder or be certified by a recognised bank, notary public or in such
other manner as the Registrar may require.
(c) Any transfer of Notes shall be in an amount equal to US$1,000 or an
integral multiple of U.S.$1,000 in excess thereof.
52
[Attached to the Global Note Certificate:]
[Terms and Conditions as set out in Schedule 3]
[At the foot of the Terms and Conditions:]
PRINCIPAL PAYING AGENT REGISTRAR
[NAME] [NAME]
[ADDRESS] [ADDRESS]
PAYING AGENTS AND TRANSFER AGENT
[NAME] [NAME]
[ADDRESS] [ADDRESS]
53
FORM OF GLOBAL NOTE CERTIFICATE
THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO
THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND THE
COMMENCEMENT OF THE OFFERING OF THE CURRENT ISSUER NOTES MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON
(AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES.
54
GRANITE MORTGAGES 03-1 PLC
(INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH REGISTERED
NUMBER 4598035)
SERIES 2 CLASS [{circle}] GLOBAL NOTE CERTIFICATE
REPRESENTING
[Euro][{circle}] SERIES 2 CLASS [{circle}] FLOATING RATE NOTES DUE [{circle}]
1. Introduction
This Series 2 Class [{circle}] Global Note Certificate is issued in
respect of the e[{circle}] Series 2 Class [{circle}] Floating Rate Notes
due [{circle}] (the "NOTES") of Granite Mortgages 03-1 plc (the "CURRENT
ISSUER"), and is limited to the aggregate principal amount of
[{circle}] Euro
(e[{circle}])
The Notes are constituted by, are subject to, and have the benefit of, a
trust deed dated [{circle}] 2003 (as amended or supplemented from time to
time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and The
Bank of New York as trustee (the trustee for the time being thereof being
herein called the "NOTE TRUSTEE") and are the subject of a paying agent
and agent bank agreement dated [{circle}] 2003 (as amended or
supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
which expression includes any successor registrar appointed from time to
time in connection with the Notes), the Transfer Agent, the US Paying
Agent and the Note Trustee.
2. References to Conditions
References herein to the Current Issuer Conditions (or to any particular
numbered Condition) shall be to the Current Issuer Conditions (or that
particular one of them) attached hereto.
3. Registered Holder
This is to certify that:
CITIVIC NOMINEES LTD.
is the person registered in the register maintained by the Registrar in
relation to the Notes (the "REGISTER") as the duly registered holder (the
"HOLDER") of
[{circle}] Euro
(e[{circle}])
in aggregate principal amount of the Notes.
55
4. Promise to pay
Subject only as provided in this Global Note Certificate and the Current
Issuer Conditions, the Current Issuer, for value received, promises to
pay to the Holder the principal amount of this Global Note Certificate
(being at the date hereof [{circle}] Euro (e[{circle}])) on the Payment
Date falling in [{circle}] (or on such earlier date as the said principal
amount may become repayable in accordance with the Current Issuer
Conditions or the Current Issuer Trust Deed) and to pay interest on the
principal amount from time to time (as noted in the records of the common
depositary for Euroclear and Clearstream, Luxembourg of this Global Note
Certificate) quarterly in arrear on each Interest Payment Date at the
rates determined in accordance with the Current Issuer Conditions
together with such premium and other amounts (if any) as may be payable,
all subject to and in accordance with the Current Issuer Conditions and
the provisions of the Current Issuer Trust Deed.
5. Exchange for Individual Note Certificates
This Global Note Certificate will be exchangeable (in whole but not in
part and free of charge to the holder) for duly authenticated and
completed individual note certificates ("INDIVIDUAL NOTE CERTIFICATES")
in substantially the form (subject to completion) set out in Schedule 2
to the Current Issuer Trust Deed only if (i) both Euroclear and
Clearstream, Luxembourg are closed for a continuous period of 14 days
(other than by reason of a holiday, statutory or otherwise) or announce
an intention to permanently cease business and do so cease to do business
and no alternative clearing system satisfactory to the Note Trustee is
available or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision
thereof), or of any authority therein or thereof having power to tax, or
in the interpretation or administration by a revenue authority or a court
or administration of such laws or regulations which becomes effective on
or after the Closing Date, the Current Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Notes which would not be required were the relevant Notes
Individual Note Certificates. Such exchange shall be effected in
accordance with paragraph 6 (Delivery of Individual Note Certificates)
below.
6. Delivery of Individual Note Certificates
Whenever this Global Note Certificate is to be exchanged for Individual
Note Certificates, such Individual Note Certificates shall be issued in
an aggregate principal amount equal to the principal amount of this
Global Note Certificate within five business days of the delivery, by or
on behalf of the Holder, Euroclear and/or Clearstream, Luxembourg, to the
Registrar of such information as is required to complete and deliver such
Individual Note Certificates (including, without limitation, the names
and addresses of the persons in whose names the Individual Note
Certificates are to be registered and the principal amount of each such
person's holding) against the surrender of this Global Note Certificate
at the Specified Office (as defined in the Current Issuer Conditions) of
the Registrar. Such exchange shall be effected in accordance with the
provisions of the Current Issuer Paying Agent and Agent Bank Agreement
and the regulations concerning the transfer and registration of Notes
scheduled thereto and, in particular, shall be effected without charge to
any Holder or the Note Trustee, but against such indemnity as the
Registrar may require in
56
respect of any tax or other duty of whatsoever nature which may be levied
or imposed in connection with such exchange. In this paragraph,
"BUSINESS DAY" means a day on which commercial banks are open for
business in the city in which the Registrar has its Specified Office.
7. Payments
Payments of principal, premium (if any) and interest in respect of Notes
represented by this Global Note Certificate will be made in accordance
with the Current Issuer Conditions. All payments of any amounts payable
and paid to the Holder of this Global Note Certificate shall be valid
and, to the extent of the sums so paid, effectual to satisfy and
discharge the liability for the monies payable hereon.
8. Conditions apply
Save as otherwise provided herein, the Holder of this Global Note
Certificate shall have the benefit of, and be subject to, the Current
Issuer Conditions, and, for the purposes of this Global Note Certificate,
any reference in the Current Issuer Conditions to "NOTE CERTIFICATE" or
"NOTE CERTIFICATES" shall, except where the context otherwise requires,
be construed so as to include this Global Note Certificate.
9. Notices
Notwithstanding Condition 14 (Notice to Noteholders), so long as this
Global Note Certificate is held on behalf of Euroclear and Clearstream,
Luxembourg or any alternative clearing system (an "ALTERNATIVE CLEARING
SYSTEM"), notices to Holders of Notes represented by this Global Note
Certificate may be given by delivery of the relevant notice to Euroclear
and Clearstream, Luxembourg or (as the case may be) such Alternative
Clearing System.
10. Determination of Entitlement
This Global Note Certificate is evidence of entitlement only and is not a
document of title. Entitlements are determined by the Registrar by
reference to the Register and only the Holder is entitled to payment in
respect of this Global Note Certificate.
11. Authentication
This Global Note Certificate shall not be or become valid for any purpose
unless and until authenticated by or on behalf of Citibank, N.A. as
Registrar.
12. Definitions
Terms not defined herein have the meaning ascribed to such terms in the
Current Issuer Conditions.
13. Rights of Third Parties
No person shall have any right under the Contracts (Rights of Third
Parties) ▇▇▇ ▇▇▇▇ to enforce any term or condition of this Global Note
Certificate, but this shall not affect any right or remedy which exists
or is available apart from that Act.
57
14. Governing law
This Global Note Certificate is governed by, and shall be construed in
accordance with, the laws of England.
IN WITNESS whereof the Current Issuer has caused this Global Note Certificate
to be signed manually or in facsimile by a person duly authorised on its
behalf.
58
GRANITE MORTGAGES 03-1 PLC
By:...................................
[manual or facsimile signature]
(duly authorised)
ISSUED in London, England on [{circle}] 2003.
AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability
.................................
[manual signature]
(duly authorised)
59
FORM OF TRANSFER
FOR VALUE RECEIVED .............................., being the registered
holder of this Global Note Certificate, hereby transfers to...................
...............................................................................
of............................................................................
...............................................................................
[e] ................................. in principal amount of the [e][amount]
Series 2 Class [{circle}] Floating Rate Notes due [maturity] (the "NOTES") of
Granite Mortgages 03-1 plc (the "CURRENT ISSUER") and irrevocably requests and
authorises Citibank, N.A., in its capacity as Registrar in relation to the
Notes (or any successor to Citibank, N.A., in its capacity as such) to effect
the relevant transfer by means of appropriate entries in the Register kept by
it.
Dated:................................
By:...................................
(duly authorised)
NOTES
The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the
face of this Global Note Certificate.
(a) A representative of such registered holder should state the capacity in
which he signs, e.g. executor.
(b) The signature of the person effecting a transfer shall conform to any
list of duly authorised specimen signatures supplied by the registered
holder or be certified by a recognised bank, notary public or in such
other manner as the Registrar may require.
(c) Any transfer of Notes shall be in an amount equal to [e]1,000 or
an integral multiple of [e]1,000 in excess thereof.
60
[Attached to the Global Note Certificate:]
[Terms and Conditions as set out in Schedule 3]
[At the foot of the Terms and Conditions:]
PRINCIPAL PAYING AGENT REGISTRAR
[NAME] [NAME]
[ADDRESS] [ADDRESS]
PAYING AGENTS AND TRANSFER AGENT
[NAME] [NAME]
[ADDRESS] [ADDRESS]
61
FORM OF GLOBAL CERTIFICATE
THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO
THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND THE
COMMENCEMENT OF THIS OFFERING OF THE CURRENT ISSUER NOTES MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON
(AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES.
62
GRANITE MORTGAGES 03-1 PLC
(INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH REGISTERED
NUMBER 4598035)
SERIES 3 CLASS [{circle}] GLOBAL NOTE CERTIFICATE
REPRESENTING
{pound-sterling} [{circle}] SERIES 3 CLASS [{circle}] FLOATING RATE NOTES DUE
[{circle}]
1. Introduction
This Series 3 Class [{circle}] Global Note Certificate is issued in
respect of the {pound-sterling} [{circle}] Series 3 Class [{circle}]
Floating Rate Notes due [{circle}] (the "NOTES") of Granite Mortgages 03-
1 plc (the "CURRENT ISSUER"), and is limited to the aggregate principal
amount of
[{circle}] Pounds Sterling
({pound-sterling}[{circle}])
The Notes are constituted by, are subject to, and have the benefit of, a
trust deed dated [{circle}] 2003 (as amended or supplemented from time to
time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and The
Bank of New York as trustee (the trustee for the time being thereof being
herein called the "NOTE TRUSTEE") and are the subject of a paying agent
and agent bank agreement dated [{circle}] 2003 (as amended or
supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
which expression includes any successor registrar appointed from time to
time in connection with the Notes), the Transfer Agent, the US Paying
Agent and the Note Trustee.
2. References to Conditions
References herein to the Current Issuer Conditions (or to any particular
numbered Condition) shall be to the Current Issuer Conditions (or that
particular one of them) attached hereto.
3. Registered Holder
This is to certify that:
CITIVIC NOMINEES LTD.
is the person registered in the register maintained by the Registrar in
relation to the Notes (the "REGISTER") as the duly registered holder (the
"HOLDER") of
[{circle}] Pounds Sterling
({pound-sterling}[{circle}])
in aggregate principal amount of the Notes.
63
4. Promise to pay
Subject only as provided in this Global Note Certificate and the Current
Issuer Conditions, the Current Issuer, for value received, promises to
pay to the Holder the principal amount of this Global Note Certificate
(being at the date hereof [{circle}] Pounds Sterling
({pound-sterling}[{circle}])) on the Payment Date falling in [{circle}]
(or on such earlier date as the said principal amount may become
repayable in accordance with the Current Issuer Conditions or the Current
Issuer Trust Deed) and to pay interest on the principal amount from time
to time (as noted in the records of the common depositary for Euroclear
and Clearstream, Luxembourg of this Global Note Certificate) quarterly in
arrear on each Interest Payment Date at the rates determined in
accordance with the Current Issuer Conditions together with such premium
and other amounts (if any) as may be payable, all subject to and in
accordance with the Current Issuer Conditions and the provisions of the
Current Issuer Trust Deed.
5. Exchange for Individual Note Certificates
This Global Note Certificate will be exchangeable (in whole but not in
part and free of charge to the holder) for duly authenticated and
completed individual note certificates ("INDIVIDUAL NOTE CERTIFICATES")
in substantially the form (subject to completion) set out in Schedule 2
to the Current Issuer Trust Deed only if (i) both Euroclear and
Clearstream, Luxembourg are closed for a continuous period of 14 days
(other than by reason of a holiday, statutory or otherwise) or announce
an intention to permanently cease business and do so cease to do business
and no alternative clearing system satisfactory to the Note Trustee is
available or (ii) as a result of any amendment to, or change in, the laws
or regulations of the United Kingdom (or of any political subdivision
thereof), or of any authority therein or thereof having power to tax, or
in the interpretation or administration by a revenue authority or a court
or administration of such laws or regulations which becomes effective on
or after the Closing Date, the Current Issuer or any Paying Agent is or
will be required to make any deduction or withholding from any payment in
respect of the Notes which would not be required were the relevant Notes
Individual Note Certificates. Such exchange shall be effected in
accordance with paragraph 6 (Delivery of Individual Note Certificates)
below.
6. Delivery of Individual Note Certificates
Whenever this Global Note Certificate is to be exchanged for Individual
Note Certificates, such Individual Note Certificates shall be issued in
an aggregate principal amount equal to the principal amount of this
Global Note Certificate within five business days of the delivery, by or
on behalf of the Holder, Euroclear and/or Clearstream, Luxembourg, to the
Registrar of such information as is required to complete and deliver such
Individual Note Certificates (including, without limitation, the names
and addresses of the persons in whose names the Individual Note
Certificates are to be registered and the principal amount of each such
person's holding) against the surrender of this Global Note Certificate
at the Specified Office (as defined in the Current Issuer Conditions) of
the Registrar. Such exchange shall be effected in accordance with the
provisions of the Current Issuer Paying Agent and Agent Bank Agreement
and the regulations concerning the transfer and registration of Notes
scheduled thereto and, in particular, shall be effected without charge to
any Holder or the Note Trustee, but against such indemnity as the
Registrar may require in
64
respect of any tax or other duty of whatsoever nature which may be levied
or imposed in connection with such exchange. In this paragraph,
"BUSINESS DAY" means a day on which commercial banks are open for
business in the city in which the Registrar has its Specified Office.
7. Payments
Payments of principal, premium (if any) and interest in respect of Notes
represented by this Global Note Certificate will be made in accordance
with the Current Issuer Conditions. All payments of any amounts payable
and paid to the Holder of this Global Note Certificate shall be valid
and, to the extent of the sums so paid, effectual to satisfy and
discharge the liability for the monies payable hereon.
8. Conditions apply
Save as otherwise provided herein, the Holder of this Global Note
Certificate shall have the benefit of, and be subject to, the Current
Issuer Conditions, and, for the purposes of this Global Note Certificate,
any reference in the Current Issuer Conditions to "NOTE CERTIFICATE" or
"NOTE CERTIFICATES" shall, except where the context otherwise requires,
be construed so as to include this Global Note Certificate.
9. Notices
Notwithstanding Condition 14 (Notice to Noteholders), so long as this
Global Note Certificate is held on behalf of Euroclear and Clearstream,
Luxembourg or any alternative clearing system (an "ALTERNATIVE CLEARING
SYSTEM"), notices to Holders of Notes represented by this Global Note
Certificate may be given by delivery of the relevant notice to Euroclear
and Clearstream, Luxembourg or (as the case may be) such Alternative
Clearing System.
10. Determination of Entitlement
This Global Note Certificate is evidence of entitlement only and is not a
document of title. Entitlements are determined by the Registrar by
reference to the Register and only the Holder is entitled to payment in
respect of this Global Note Certificate.
11. Authentication
This Global Note Certificate shall not be or become valid for any purpose
unless and until authenticated by or on behalf of Citibank, N.A. as
Registrar.
12. Definitions
Terms not defined herein have the meaning ascribed to such terms in the
Current Issuer Conditions.
13. Rights of Third Parties
No person shall have any right under the Contracts (Rights of Third
Parties) ▇▇▇ ▇▇▇▇ to enforce any term or condition of this Global Note
Certificate, but this shall not affect any right or remedy which exists
or is available apart from that Act.
65
14. Governing law
This Global Note Certificate is governed by, and shall be construed in
accordance with, the laws of England.
IN WITNESS whereof the Current Issuer has caused this Global Note Certificate
to be signed manually or in facsimile by a person duly authorised on its
behalf.
66
GRANITE MORTGAGES 03-1 PLC
By:...................................
[manual or facsimile signature]
(duly authorised)
ISSUED in London, England on [{circle}] 2003.
AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability
.................................
[manual signature]
(duly authorised)
67
FORM OF TRANSFER
FOR VALUE RECEIVED ................................., being the registered
holder of this Global Note Certificate, hereby transfers to...................
of ...........................................................................
...............................................................................
...............................................................................
{pound-sterling}..............................................................
in principal amount of the {pound-sterling}[amount] Series 3 Class [{circle}]
Floating Rate Notes due [maturity] (the "NOTES") of Granite Mortgages 03-1 plc
(the "CURRENT ISSUER") and irrevocably requests and authorises Citibank, N.A.,
in its capacity as Registrar in relation to the Notes (or any successor to
Citibank, N.A., in its capacity as such) to effect the relevant transfer by
means of appropriate entries in the Register kept by it.
Dated:................................
By:...................................
(duly authorised)
NOTES
The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the
face of this Global Note Certificate.
(a) A representative of such registered holder should state the capacity in
which he signs, e.g. executor.
(b) The signature of the person effecting a transfer shall conform to any
list of duly authorised specimen signatures supplied by the registered
holder or be certified by a recognised bank, notary public or in such
other manner as the Registrar may require.
(c) Any transfer of Notes shall be in an amount equal to
{pound-sterling}1,000 or an integral multiple of {pound-sterling}1,000 in
excess thereof.
68
[Attached to the Global Note Certificate:]
[Terms and Conditions as set out in Schedule 3]
[At the foot of the Terms and Conditions:]
PRINCIPAL PAYING AGENT REGISTRAR
[NAME] [NAME]
[ADDRESS] [ADDRESS]
PAYING AGENTS AND TRANSFER AGENT
[NAME] [NAME]
[ADDRESS] [ADDRESS]
69
SCHEDULE 2
FORMS OF INDIVIDUAL NOTE CERTIFICATES
------------------------------------------------------------------------------
US$[1,000/10,000] [ISIN] [CUSIP] [COMMON CODE] [SERIES] [SERIAL NO.]
------------------------------------------------------------------------------
GRANITE MORTGAGES 03-1 PLC
(INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH REGISTERED
NUMBER 4598035)
SERIES 1 CLASS A1 INDIVIDUAL NOTE CERTIFICATE
REPRESENTING
US$[{circle}] SERIES 1 CLASS A1 FLOATING RATE NOTES DUE [{circle}]
1. Introduction
This Series 1 Class A1 Individual Note Certificate is issued in respect
of the US$[{circle}] Series 1 Class A1 Floating Rate Notes due [{circle}]
(the "NOTES") of Granite Mortgages 03-1 plc (the "CURRENT ISSUER"),
limited to the aggregate principal amount of
[{circle}] US Dollars
(US$[{circle}])
The Notes are constituted by, are subject to, and have the benefit of, a
trust deed dated [{circle}] 2003 (as amended or supplemented from time to
time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and The
Bank of New York as trustee (the trustee for the time being thereof being
herein called the "NOTE TRUSTEE") and are the subject of a paying agent
and agent bank agreement dated [{circle}] 2003 (as amended or
supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
which expression includes any successor registrar appointed from time to
time in connection with the Notes), the Transfer Agent, the US Paying
Agent and the Note Trustee.
2. References to Conditions
References herein to the Current Issuer Conditions (or to any particular
numbered Condition) shall be to the Current Issuer Conditions (or that
particular one of them) attached hereto.
3. Registered Holder
This is to certify that
[NOTEHOLDER]
is the person registered in the register maintained by the Registrar in
relation to the Notes (the "REGISTER") as the duly registered holder (the
"HOLDER") of Notes represented from time to time by this Individual Note
Certificate in the aggregate principal amount of:
70
US$[{circle}]
US DOLLARS [AMOUNT IN WORDS]
in aggregate principal amount of the Notes.
4. Promise to pay
Subject only as provided in this Individual Note Certificate and the
Current Issuer Conditions, the Current Issuer, for value received,
promises to pay to the Holder the principal amount of this Individual
Note Certificate (being at the date hereof [{circle}] US Dollars
(US$[{circle}])) on the Payment Date falling in [{circle}] (or on such
earlier date as the said principal amount may become repayable in
accordance with the Current Issuer Conditions or the Current Issuer Trust
Deed) and to pay interest on the principal amount from time to time of
this Individual Note Certificate in arrear on each Interest Payment Date
at the rates determined in accordance with the Current Issuer Conditions
together with such premium and other amounts (if any) as may be payable,
all subject to and in accordance with the Current Issuer Conditions and
the provisions of the Current Issuer Trust Deed.
5. Payments
Payments of principal, premium (if any) and interest in respect of Notes
represented by this Individual Note Certificate will be made in
accordance with the Current Issuer Conditions. All payments of any
amounts payable and paid to the Holder of this Individual Note
Certificate shall be valid and, to the extent of the sums so paid,
effectual to satisfy and discharge the liability for the monies payable
hereon.
6. Conditions apply
Save as otherwise provided herein, the Holder of this Individual Note
Certificate shall have the benefit of, and be subject to, the Current
Issuer Conditions, and, for the purposes of this Individual Note
Certificate, any reference in the Current Issuer Conditions to "NOTE
CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
otherwise requires, be construed so as to include this Individual Note
Certificate.
7. Determination of Entitlement
This Individual Note Certificate is evidence of entitlement only and is
not a document of title. Entitlements are determined by the Registrar by
reference to the Register and only the Holder is entitled to payment in
respect of this Individual Note Certificate.
8. Authentication
This Individual Note Certificate shall not be or become valid for any
purpose unless and until authenticated by or on behalf of Citibank, N.A.
as Registrar.
71
9. Tax Treatment
The Current Issuer will treat the Notes as indebtedness for U.S. federal
income tax purposes. Each holder of a Note, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as
indebtedness.
10. Definitions
Terms not defined herein have the meaning ascribed to such terms in the
Current Issuer Conditions.
11. Rights of Third Parties
No person shall have any right under the Contracts (Rights of Third
Parties) ▇▇▇ ▇▇▇▇ to enforce any term or condition of this Individual
Note Certificate, but this shall not affect any right or remedy which
exists or is available apart from that Act.
12. Governing law
This Individual Note Certificate is governed by, and shall be construed
in accordance with, the laws of England.
IN WITNESS whereof the Current Issuer has caused this Individual Note
Certificate to be signed manually or in facsimile by a person duly authorised
on its behalf.
GRANITE MORTGAGES 03-1 PLC
By:...................................
[manual or facsimile signature]
(duly authorised)
ISSUED in London, England on [{circle}].
AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability
.......................................
[manual signature]
(duly authorised)
72
FORM OF TRANSFER
FOR VALUE RECEIVED ..................................................., being
the registered holder of this Individual Note Certificate, hereby transfers to
...............................................................................
of.........................US$ .................. in principal amount of the
US$[amount] Series 1 Class A1 Floating Rate Notes due [maturity] (the "NOTES")
of Granite Mortgages 03-1 plc (the "CURRENT ISSUER") and irrevocably requests
and authorises Citibank, N.A., in its capacity as Registrar in relation to the
Notes (or any successor to Citibank, N.A., in its capacity as such) to effect
the relevant transfer by means of appropriate entries in the Register kept by
it.
We as transferor of the Notes represented by this Individual Note Certificate
hereby certify that such Notes are being transferred in accordance with the
transfer restrictions set forth in Schedule 2 to the Current Issuer Paying
Agency and Agent Bank Agreement.
Dated:................................
By:...................................
(duly authorised)
NOTES
The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the
face of this Individual Note Certificate.
(a) A representative of such registered holder should state the capacity in
which he signs, e.g. executor.
(b) The signature of the person effecting a transfer shall conform to any
list of duly authorised specimen signatures supplied by the registered
holder or be certified by a recognised bank, notary public or in such
other manner as the Registrar may require.
(c) Any transfer of Notes shall be in an amount equal to US$1,000 or an
integral multiple of U.S.$1,000 in excess thereof.
73
[Attached to the Individual Note Certificate:]
[Terms and Conditions as set out in Schedule 3]
[At the foot of the Terms and Conditions:]
PRINCIPAL PAYING AGENT REGISTRAR
[NAME] [NAME]
[ADDRESS] [ADDRESS]
PAYING AGENTS AND TRANSFER AGENT
[NAME] [NAME]
[ADDRESS] [ADDRESS]
74
FORM OF INDIVIDUAL NOTE CERTIFICATE
THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO
THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND THE
COMMENCEMENT OF THE OFFERING OF THE CURRENT ISSUER NOTES MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON
(AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES.
75
-------------------------------------------------------------------------------
US$[1,000/10,000] [ISIN] [CUSIP] [COMMON CODE] [SERIES] [SERIAL NO.]
-------------------------------------------------------------------------------
GRANITE MORTGAGES 03-1 PLC
(INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH REGISTERED
NUMBER 4598035)
SERIES 1 CLASS [{circle}] INDIVIDUAL NOTE CERTIFICATE
REPRESENTING
US$[{circle}] SERIES 1 CLASS [{circle}] FLOATING RATE NOTES DUE [{circle}]
1. Introduction
This Series 1 Class [{circle}] Individual Note Certificate is issued in
respect of the US$[{circle}] Series 1 Class [{circle}] Floating Rate
Notes due [{circle}] (the "NOTES") of Granite Mortgages 03-1 plc (the
"CURRENT ISSUER"), limited to the aggregate principal amount of
[{circle}] US Dollars
(US$[{circle}])
The Notes are constituted by, are subject to, and have the benefit of, a
trust deed dated [{circle}] 2003 (as amended or supplemented from time to
time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and The
Bank of New York as trustee (the trustee for the time being thereof being
herein called the "NOTE TRUSTEE") and are the subject of a paying agent
and agent bank agreement dated [{circle}] 2003 (as amended or
supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
which expression includes any successor registrar appointed from time to
time in connection with the Notes), the Transfer Agent, the US Paying
Agent and the Note Trustee.
2. References to Conditions
References herein to the Current Issuer Conditions (or to any particular
numbered Condition) shall be to the Current Issuer Conditions (or that
particular one of them) attached hereto.
3. Registered Holder
This is to certify that
[NOTEHOLDER]
is the person registered in the register maintained by the Registrar in
relation to the Notes (the "REGISTER") as the duly registered holder (the
"HOLDER") of Notes represented from time to time by this Individual Note
Certificate in the aggregate principal amount of:
US$[{circle}]
US DOLLARS [AMOUNT IN WORDS]
76
in aggregate principal amount of the Notes.
4. Promise to pay
Subject only as provided in this Individual Note Certificate and the
Current Issuer Conditions, the Current Issuer, for value received,
promises to pay to the Holder the principal amount of this Individual
Note Certificate (being at the date hereof [{circle}] US Dollars
(US$[{circle}])) on the Payment Date falling in [{circle}] (or on such
earlier date as the said principal amount may become repayable in
accordance with the Current Issuer Conditions or the Current Issuer Trust
Deed) and to pay interest on the principal amount from time to time of
this Individual Note Certificate quarterly in arrear on each Interest
Payment Date at the rates determined in accordance with the Current
Issuer Conditions together with such premium and other amounts (if any)
as may be payable, all subject to and in accordance with the Current
Issuer Conditions and the provisions of the Current Issuer Trust Deed.
5. Payments
Payments of principal, premium (if any) and interest in respect of Notes
represented by this Individual Note Certificate will be made in
accordance with the Current Issuer Conditions. All payments of any
amounts payable and paid to the Holder of this Individual Note
Certificate shall be valid and, to the extent of the sums so paid,
effectual to satisfy and discharge the liability for the monies payable
hereon.
6. Conditions apply
Save as otherwise provided herein, the Holder of this Individual Note
Certificate shall have the benefit of, and be subject to, the Current
Issuer Conditions, and, for the purposes of this Individual Note
Certificate, any reference in the Current Issuer Conditions to "NOTE
CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
otherwise requires, be construed so as to include this Individual Note
Certificate.
7. Determination of Entitlement
This Individual Note Certificate is evidence of entitlement only and is
not a document of title. Entitlements are determined by the Registrar by
reference to the Register and only the Holder is entitled to payment in
respect of this Individual Note Certificate.
8. Authentication
This Individual Note Certificate shall not be or become valid for any
purpose unless and until authenticated by or on behalf of Citibank, N.A.
as Registrar.
9. Tax Treatment
The Current Issuer will treat the Notes as indebtedness for U.S. federal
income tax purposes. Each holder of a Note, by the acceptance hereof,
agrees to treat this Note for U.S. federal income tax purposes as
indebtedness.
77
10. Definitions
Terms not defined herein have the meaning ascribed to such terms in the
Current Issuer Conditions.
11. Rights of Third Parties
No person shall have any right under the Contracts (Rights of Third
Parties) ▇▇▇ ▇▇▇▇ to enforce any term or condition of this Individual
Note Certificate, but this shall not affect any right or remedy which
exists or is available apart from that Act.
12. Governing law
This Individual Note Certificate is governed by, and shall be construed
in accordance with, the laws of England.
IN WITNESS whereof the Current Issuer has caused this Individual Note
Certificate to be signed manually or in facsimile by a person duly authorised
on its behalf.
GRANITE MORTGAGES 03-1 PLC
By:...................................
[manual or facsimile signature]
(duly authorised)
ISSUED in London, England on [{circle}].
AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability
.......................................
[manual signature]
(duly authorised)
78
FORM OF TRANSFER
FOR VALUE RECEIVED ..................................................., being
the registered holder of this Individual Note Certificate, hereby transfers to
...............................................................................
of...........................................................................,
US$ ..................................... in principal amount of the
US$[amount] Series 1 Class [{circle}] Floating Rate Notes due [maturity] (the
"NOTES") of Granite Mortgages 03-1 plc (the "CURRENT ISSUER") and irrevocably
requests and authorises Citibank, N.A., in its capacity as Registrar in
relation to the Notes (or any successor to Citibank, N.A., in its capacity as
such) to effect the relevant transfer by means of appropriate entries in the
Register kept by it.
We as transferor of the Notes represented by this Individual Note Certificate
hereby certify that such Notes are being transferred in accordance with the
transfer restrictions set forth in Schedule 2 to the Current Issuer Paying
Agency and Agent Bank Agreement.
Dated:................................
By:...................................
(duly authorised)
NOTES
The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the
face of this Individual Note Certificate.
(a) A representative of such registered holder should state the capacity in
which he signs, e.g. executor.
(b) The signature of the person effecting a transfer shall conform to any
list of duly authorised specimen signatures supplied by the registered
holder or be certified by a recognised bank, notary public or in such
other manner as the Registrar may require.
(c) Any transfer of Notes shall be in an amount equal to US$1,000 or an
integral multiple of U.S.$1,000 in excess thereof.
79
[Attached to the Individual Note Certificate:]
[Terms and Conditions as set out in Schedule 3]
[At the foot of the Terms and Conditions:]
PRINCIPAL PAYING AGENT REGISTRAR
[NAME] [NAME]
[ADDRESS] [ADDRESS]
PAYING AGENTS AND TRANSFER AGENT
[NAME] [NAME]
[ADDRESS] [ADDRESS]
80
FORM OF INDIVIDUAL NOTE CERTIFICATE
THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO
THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND THE
COMMENCEMENT OF THE OFFERING OF THE CURRENT ISSUER NOTES MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON
(AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES.
81
----------------------------------------------------------------------------
[e][1,000/10,000] [ISIN] [COMMON CODE] [SERIES] [SERIAL NO.]
----------------------------------------------------------------------------
GRANITE MORTGAGES 03-1 PLC
(INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH REGISTERED
NUMBER 4598035)
SERIES 2 CLASS [{circle}] INDIVIDUAL NOTE CERTIFICATE
REPRESENTING
[e][{circle}] SERIES 2 [{circle}] CLASS FLOATING RATE NOTES DUE [{circle}]
1. Introduction
This Series 2 Class [{circle}] Individual Note Certificate is issued in
respect of the e[{circle}] Series 2 Class [{circle}] Floating Rate Notes
due [{circle}] (the "NOTES") of Granite Mortgages 03-1 plc (the "CURRENT
ISSUER"), limited to the aggregate principal amount of
[{circle}] Euro
([e][{circle}])
The Notes are constituted by, are subject to, and have the benefit of, a
trust deed dated [{circle}] 2003 (as amended or supplemented from time to
time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and The
Bank of New York as trustee (the trustee for the time being thereof being
herein called the "NOTE TRUSTEE") and are the subject of a paying agent
and agent bank agreement dated [{circle}] 2003 (as amended or
supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
which expression includes any successor registrar appointed from time to
time in connection with the Notes), the Transfer Agent, the US Paying
Agent and the Note Trustee.
2. References to Conditions
References herein to the Current Issuer Conditions (or to any particular
numbered Condition) shall be to the Current Issuer Conditions (or that
particular one of them) attached hereto.
3. Registered Holder
This is to certify that
[NOTEHOLDER]
is the person registered in the register maintained by the Registrar in
relation to the Notes (the "REGISTER") as the duly registered holder (the
"HOLDER") of Notes represented from time to time by this Individual Note
Certificate in the aggregate principal amount of:
[e][{circle}]
EURO[AMOUNT IN WORDS]
82
in aggregate principal amount of the Notes.
4. Promise to pay
Subject only as provided in this Individual Note Certificate and the
Current Issuer Conditions, the Current Issuer, for value received,
promises to pay to the Holder the principal amount of this Individual
Note Certificate (being at the date hereof [{circle}] Euro
([e][{circle}])) on the Payment Date falling in [{circle}] (or on such
earlier date as the said principal amount may become repayable in
accordance with the Current Issuer Conditions or the Current Issuer Trust
Deed) and to pay interest on the principal amount from time to time of
this Individual Note Certificate quarterly in arrear on each Interest
Payment Date at the rates determined in accordance with the Current
Issuer Conditions together with such premium and other amounts (if any)
as may be payable, all subject to and in accordance with the Current
Issuer Conditions and the provisions of the Current Issuer Trust Deed.
5. Payments
Payments of principal, premium (if any) and interest in respect of Notes
represented by this Individual Note Certificate will be made in
accordance with the Current Issuer Conditions. All payments of any
amounts payable and paid to the Holder of this Individual Note
Certificate shall be valid and, to the extent of the sums so paid,
effectual to satisfy and discharge the liability for the monies payable
hereon.
6. Conditions apply
Save as otherwise provided herein, the Holder of this Individual Note
Certificate shall have the benefit of, and be subject to, the Current
Issuer Conditions, and, for the purposes of this Individual Note
Certificate, any reference in the Current Issuer Conditions to "NOTE
CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
otherwise requires, be construed so as to include this Individual Note
Certificate.
7. Determination of Entitlement
This Individual Note Certificate is evidence of entitlement only and is
not a document of title. Entitlements are determined by the Registrar by
reference to the Register and only the Holder is entitled to payment in
respect of this Individual Note Certificate.
8. Authentication
This Individual Note Certificate shall not be or become valid for any
purpose unless and until authenticated by or on behalf of Citibank, N.A.
as Registrar.
9. Definitions
Terms not defined herein have the meaning ascribed to such terms in the
Current Issuer Conditions.
83
10. Rights of Third Parties
No person shall have any right under the Contracts (Rights of Third
Parties) ▇▇▇ ▇▇▇▇ to enforce any term or condition of this Individual
Note Certificate, but this shall not affect any right or remedy which
exists or is available apart from that Act.
11. Governing law
This Individual Note Certificate is governed by, and shall be construed
in accordance with, the laws of England.
IN WITNESS whereof the Current Issuer has caused this Individual Note
Certificate to be signed manually or in facsimile by a person duly authorised
on its behalf.
GRANITE MORTGAGES 03-1 PLC
By:...................................
[manual or facsimile signature]
(duly authorised)
ISSUED in London, England on [{circle}].
AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability
.......................................
[manual signature]
(duly authorised)
84
FORM OF TRANSFER
FOR VALUE RECEIVED ..................................................., being
the registered holder of this Individual Note Certificate, hereby transfers
to ............................................................................
of.............................................................................
...............................................................................,
[e] ................................... in principal amount of the [e][amount]
Series 2 Class [{circle}] Floating Rate Notes due [maturity] (the "NOTES") of
Granite Mortgages 03-1 plc (the "CURRENT ISSUER") and irrevocably requests and
authorises Citibank, N.A., in its capacity as Registrar in relation to the
Notes (or any successor to Citibank, N.A., in its capacity as such) to effect
the relevant transfer by means of appropriate entries in the Register kept by
it.
We as transferor of the Notes represented by this Individual Note Certificate
hereby certify that such Notes are being transferred in accordance with the
transfer restrictions set forth in Schedule 2 to the Current Issuer Paying
Agent and Agent Bank Agreement.
Dated:................................
By:...................................
(duly authorised)
NOTES
The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the
face of this Individual Note Certificate.
(a) A representative of such registered holder should state the capacity in
which he signs, e.g. executor.
(b) The signature of the person effecting a transfer shall conform to any
list of duly authorised specimen signatures supplied by the registered
holder or be certified by a recognised bank, notary public or in such
other manner as the Registrar may require.
(c) Any transfer of Notes shall be in an amount equal to [e]1,000 or
an integral multiple of [e]1,000 in excess thereof.
85
[Attached to the Individual Note Certificate:]
[Terms and Conditions as set out in Schedule 3]
[At the foot of the Terms and Conditions:]
PRINCIPAL PAYING AGENT REGISTRAR
[NAME] [NAME]
[ADDRESS] [ADDRESS]
PAYING AGENTS AND TRANSFER AGENT
[Name] [Name]
[Address] [Address]
86
FORM OF INDIVIDUAL NOTE CERTIFICATE
THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO
THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND THE
COMMENCEMENT OF THE OFFERING OF THE CURRENT ISSUER NOTES MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON
(AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES.
87
------------------------------------------------------------------------------
{pound-sterling}[1,000/10,000] [ISIN] [COMMON CODE] [SERIES] [SERIAL NO.]
------------------------------------------------------------------------------
GRANITE MORTGAGES 03-1 PLC
(INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH REGISTERED
NUMBER 4598035)
SERIES 3 CLASS [{circle}] INDIVIDUAL NOTE CERTIFICATE
REPRESENTING
{pound-sterling} [{circle}] SERIES 3 CLASS [{circle}] FLOATING RATE NOTES DUE
[{circle}]
1. Introduction
This Series 3 Class [{circle}] Individual Note Certificate is issued in
respect of the {pound-sterling} [{circle}] Series 3 Class [{circle}]
Floating Rate Notes due [{circle}] (the "NOTES") of Granite Mortgages 03-
1 plc (the "CURRENT ISSUER"), limited to the aggregate principal amount
of
[{circle}] Pounds Sterling
({pound-sterling}[{circle}])
The Notes are constituted by, are subject to, and have the benefit of, a
trust deed dated [{circle}] 2003 (as amended or supplemented from time to
time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and The
Bank of New York as trustee (the trustee for the time being thereof being
herein called the "NOTE TRUSTEE") and are the subject of a paying agent
and agent bank agreement dated [{circle}] 2003 (as amended or
supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
which expression includes any successor registrar appointed from time to
time in connection with the Notes), the Transfer Agent, the US Paying
Agent and the Note Trustee.
2. References to Conditions
References herein to the Current Issuer Conditions (or to any particular
numbered Condition) shall be to the Current Issuer Conditions (or that
particular one of them) attached hereto.
3. Registered Holder
This is to certify that
[NOTEHOLDER]
is the person registered in the register maintained by the Registrar in
relation to the Notes (the "REGISTER") as the duly registered holder (the
"HOLDER") of Notes represented from time to time by this Individual Note
Certificate in the aggregate principal amount of:
{pound-sterling} [{circle}]
POUNDS STERLING [AMOUNT IN WORDS]
88
in aggregate principal amount of the Notes.
4. Promise to pay
Subject only as provided in this Individual Note Certificate and the
Current Issuer Conditions, the Current Issuer, for value received,
promises to pay to the Holder the principal amount of this Individual
Note Certificate (being at the date hereof [{circle}] Pounds Sterling
({pound-sterling}[{circle}])) on the Payment Date falling in [{circle}]
(or on such earlier date as the said principal amount may become
repayable in accordance with the Current Issuer Conditions or the Current
Issuer Trust Deed) and to pay interest on the principal amount from time
to time of this Individual Note Certificate quarterly in arrear on each
Interest Payment Date at the rates determined in accordance with the
Current Issuer Conditions together with such premium and other amounts
(if any) as may be payable, all subject to and in accordance with the
Current Issuer Conditions and the provisions of the Current Issuer Trust
Deed.
5. Payments
Payments of principal, premium (if any) and interest in respect of Notes
represented by this Individual Note Certificate will be made in
accordance with the Current Issuer Conditions. All payments of any
amounts payable and paid to the Holder of this Individual Note
Certificate shall be valid and, to the extent of the sums so paid,
effectual to satisfy and discharge the liability for the monies payable
hereon.
6. Conditions apply
Save as otherwise provided herein, the Holder of this Individual Note
Certificate shall have the benefit of, and be subject to, the Current
Issuer Conditions, and, for the purposes of this Individual Note
Certificate, any reference in the Current Issuer Conditions to "NOTE
CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
otherwise requires, be construed so as to include this Individual Note
Certificate.
7. Determination of Entitlement
This Individual Note Certificate is evidence of entitlement only and is
not a document of title. Entitlements are determined by the Registrar by
reference to the Register and only the Holder is entitled to payment in
respect of this Individual Note Certificate.
8. Authentication
This Individual Note Certificate shall not be or become valid for any
purpose unless and until authenticated by or on behalf of Citibank, N.A.
as Registrar.
9. Definitions
Terms not defined herein have the meaning ascribed to such terms in the
Current Issuer Conditions.
89
10. Rights of Third Parties
No person shall have any right under the Contracts (Rights of Third
Parties) ▇▇▇ ▇▇▇▇ to enforce any term or condition of this Individual
Note Certificate, but this shall not affect any right or remedy which
exists or is available apart from that Act.
11. Governing law
This Individual Note Certificate is governed by, and shall be construed
in accordance with, the laws of England.
IN WITNESS whereof the Current Issuer has caused this Individual Note
Certificate to be signed manually or in facsimile by a person duly authorised
on its behalf.
GRANITE MORTGAGES 03-1 PLC
By:...................................
[manual or facsimile signature]
(duly authorised)
ISSUED in London, England on [{circle}].
AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability
.......................................
[manual signature]
(duly authorised)
90
FORM OF TRANSFER
FOR VALUE RECEIVED ..................................................., being
the registered holder of this Individual Note Certificate, hereby transfers to
of ............................................................................
............................................., {pound-sterling}.................
............. in principal amount of the {pound-sterling} [amount]
Series 3 Class [{circle}] Floating Rate Notes due [maturity] (the "NOTES") of
Granite Mortgages 03-1 plc (the "CURRENT ISSUER") and irrevocably requests
and authorises Citibank, N.A., in its capacity as Registrar in relation
to the Notes (or any successor to Citibank, N.A., in its capacity as such)
to effect the relevant transfer by means of appropriate entries in the
Register kept by it.
We as transferor of the Notes represented by this Individual Note Certificate
hereby certify that such Notes are being transferred in accordance with the
transfer restrictions set forth in Schedule 2 to the Current Issuer Paying
Agent and Agent Bank Agreement.
Dated:................................
By:...................................
(duly authorised)
NOTES
The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the
face of this Individual Note Certificate.
(a) A representative of such registered holder should state the capacity in
which he signs, e.g. executor.
(b) The signature of the person effecting a transfer shall conform to any
list of duly authorised specimen signatures supplied by the registered
holder or be certified by a recognised bank, notary public or in such
other manner as the Registrar may require.
(c) Any transfer of Notes shall be in an amount equal to
{pound-sterling}1,000 or an integral multiple of {pound-sterling}1,000 in
excess thereof.
91
[Attached to the Individual Note Certificate:]
[Terms and Conditions as set out in Schedule 3]
[At the foot of the Terms and Conditions:]
PRINCIPAL PAYING AGENT REGISTRAR
[NAME] [NAME]
[ADDRESS] [ADDRESS]
PAYING AGENTS AND TRANSFER AGENT
[Name] [Name]
[Address] [Address]
92
SCHEDULE 3
CURRENT ISSUER CONDITIONS OF THE NOTES
Terms and conditions of the notes
The following are the Terms and Conditions (the "Conditions", and any
reference to a "Condition" shall be construed accordingly) of the Notes in the
form (subject to amendment) in which they will be set out in the Current
Issuer Trust Deed. Investors should note that the issuer is referred to in the
Conditions as the "Current Issuer" and references to those documents to which
the issuer is a party are generally preceded with the words "Current Issuer".
A glossary of definitions appears in Condition 17 of these Conditions.
The Notes of the Current Issuer are constituted by the Current Issuer
Trust Deed. The security for the Notes is created pursuant to, and on the
terms set out in, the Current Issuer Deed of Charge. By the Current Issuer
Paying Agent and Agent Bank Agreement, provision is made for, inter alia, the
payment of principal and interest in respect of the Notes.
The statements in these Conditions include summaries of, and are subject
to, the detailed provisions of the Current Issuer Trust Deed, the Current
Issuer Deed of Charge and the Current Issuer Paying Agent and Agent Bank
Agreement. The Notes are also the subject of the Current Issuer Dollar
Currency Swap Agreements, the Current Issuer Euro Currency Swap Agreements and
the Current Issuer Basis Rate Swap Agreement.
Copies of the Current Issuer Trust Deed, the Current Issuer Deed of
Charge, the Current Issuer Master Definitions Schedule dated on or about the
Closing Date, the Current Issuer Paying Agent and Agent Bank Agreement and
each of the other Transaction Documents are available for inspection at the
head office for the time being of (i) the Principal Paying Agent, being at the
date hereof ▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇ OPA and (ii) the US Paying Agent,
being at the date hereof 14th Floor Zone 3, 111 Wall Street, New York, New
York 1 0043. The Noteholders are entitled to the benefit of, are bound by, and
are deemed to have notice of, all the provisions of, and definitions contained
or incorporated in, the Current Issuer Trust Deed, the Current Issuer Deed of
Charge, the Current Issuer Intercompany Loan Agreement, the Funding Deed of
Charge, the Current Issuer Cash Management Agreement, the Current Issuer
Paying Agent and Agent Bank Agreement, the Current Issuer Basis Rate Swap
Agreement, the Current Issuer Dollar Currency Swap Agreements and the Current
Issuer Euro Currency Swap Agreements.
The issue of the Notes was authorised by a resolution of the Board of
Directors of the Current Issuer passed on or about 22 January 2003.
1. Form, Denomination, Register, Title and Transfers
(A) Form and Denomination
The Dollar Notes will initially be offered and sold pursuant to a
registration statement filed with the United States Securities and Exchange
Commission. Each class of the Dollar Notes will be in fully registered global
form in denominations of $10,000 and $1,000 and will be initially represented
by a US Global Note Certificate. The Dollar Notes will be issued in an
aggregate principal amount equal to the Principal Amount Outstanding from time
to time of the Dollar Notes.
The Euro Notes will initially be offered and sold outside the United
States to non-US persons pursuant to Reg S. Each class of the Euro Notes will
be in fully registered global form in denominations of (euro)10,000 and
(euro)1,000 and will be initially represented by a Reg S Global Note
Certificate. The Euro Notes will be issued in an aggregate principal amount
equal to the Principal Amount Outstanding from time to time of the Euro Notes.
The Sterling Notes will initially be offered and sold outside the United
States to non-US persons pursuant to Reg S. Each class of the Sterling Notes
will be in fully registered global form in denominations of (pound)10,000 and
(pound)1,000 and will be initially represented by a Reg S Global Note
Certificate. The Sterling Notes will be issued in an aggregate principal
amount equal to the Principal Amount Outstanding from time to time of the
Sterling Notes.
93
Global Note Certificates will be exchanged for Individual Note
Certificates in definitive registered form only under certain limited
circumstances (as described in the relevant Global Note Certificate). If
Individual Note Certificates are issued, they will be serially numbered and
issued in an aggregate principal amount equal to the Principal Amount
Outstanding of the relevant Global Note Certificates and in registered form
only.
(B) Register
The Registrar will maintain the Register in respect of the Notes in
accordance with the provisions of the Current Issuer Paying Agent and Agent
Bank Agreement. In these Conditions, the "Holder" of a Note means the person
in whose name such Note is for the time being registered in the Register (or,
in the case of a joint holding, the first named thereof). A Note Certificate
will be issued to each Noteholder in respect of its registered holding. Each
Note Certificate will be numbered serially with an identifying number which
will be recorded in the Register.
(C) Title
The Holder of each Note shall (except as otherwise required by law) be
treated by the Current Issuer, the Note Trustee, the Agent Bank and any Agent
as the absolute owner of such Note for all purposes (whether or not it is
overdue and regardless of any notice of ownership, trust or any other interest
therein, any writing on the Note Certificate relating thereto (other than the
endorsed form of transfer) or any notice of any previous loss or theft of such
Note Certificate) and no person shall be liable for so treating such Holder.
(D) Transfers
Subject as provided otherwise in this Condition 1 (D), a Note may be
transferred upon surrender of the relevant Note Certificate, with the endorsed
form of transfer duly completed, at the Specified Office of the Registrar or
the Transfer Agent, together with such evidence as the Registrar or (as the
case may be) such Transfer Agent may reasonably require to prove the title of
the transferor and the authority of the individuals who have executed the form
of transfer; provided, however, that a Note may not be transferred unless the
principal amount of Notes transferred and (where not all of the Notes held by
a Holder are being transferred) the principal amount of the balance of Notes
not transferred are Authorised Holdings. Where not all the Notes represented
by the surrendered Note Certificate are the subject of the transfer, a new
Note Certificate in respect of the balance of the Notes will be issued to the
transferor.
Within five Commercial Business Days of such surrender of a Note
Certificate, the Registrar will register the transfer in question and deliver
a new Note Certificate of a like principal amount to the Notes transferred to
each relevant Holder at its Specified Office or (as the case may be) the
Specified Office of the Transfer Agent or (at the request and risk of any such
relevant Holder) by uninsured first class mail (and by airmail if the Holder
is overseas) to the address specified for such purpose by such relevant
Holder. In this paragraph, "Commercial Business Day" means a day on which
commercial banks are open for business in the city where the Registrar or (as
the case may be) Transfer Agent has its Specified Office.
The transfer of a Note will be effected without charge by or on behalf of
the Current Issuer, the Registrar or the Transfer Agent but against such
indemnity as the Registrar or (as the case may be) such Transfer Agent may
require in respect of any tax or other duty of whatsoever nature which may be
levied or imposed in connection with such transfer.
Noteholders may not require transfers of Notes to be registered during
the period of 15 days ending on the due date for any payment of principal or
interest in respect of the Notes.
All transfers of Notes and entries on the Register are subject to the
detailed regulations concerning the transfer of Notes scheduled to the Current
Issuer Paying Agent and Agent Bank Agreement. The regulations may be changed
by the Current Issuer with the prior written approval of the Note Trustee and
the Registrar. A copy of the current regulations will be mailed (free of
charge) by the Registrar to any Noteholder who requests in writing a copy of
such regulations.
94
2. Status, Priority and Security
(A) Status
The Class A Notes, the Class B Notes and the Class C Notes are direct,
secured and unconditional obligations of the Current Issuer and are all
secured by the same security. Payments on each class of Notes will be made
equally amongst all Notes of that class.
(B) Priority
(i) Interest
Among the Series 1 Notes, payments of interest on the Series 1 Class A
Notes will be made ahead of payments of interest on the Series 1 Class B Notes
and the Series 1 Class C Notes, and payments of interest on the Series 1 Class
B Notes will be made ahead of payments of interest on the Series 1 Class C
Notes.
Among the Series 2 Notes, payments of interest on the Series 2 Class A
Notes will be made ahead of payments of interest on the Series 2 Class B Notes
and the Series 2 Class C Notes, and payments of interest on the Series 2 Class
B Notes will be made ahead of payments of interest on the Series 2 Class C
Notes.
Among the Series 3 Notes, payments of interest on the Series 3 Class A
Notes will be made ahead of payments of interest on the Series 3 Class B Notes
and the Series 3 Class C Notes and payments of interest on the Series 3 Class
B Notes will be made ahead of payments of interest on the Series 3 Class C
Notes.
Among the Series 1 Notes, the Series 2 Notes and the Series 3 Notes,
payments of interest will be made on the Series 1 Class Al Notes, the Series 1
Class A2 Notes, the Series 1 Class A3 Notes, the Series 2 Class A Notes and
the Series 3 Class A Notes in no order of priority among them but in
proportion to the respective amounts due on the Class A Notes. These payments
of interest will be made ahead of payments of interest on the Class B Notes
and the Class C Notes of each series.
Payments of interest will be made on the Series 1 Class B Notes, the
Series 2 Class B Notes and the Series 3 Class B Notes in no order of priority
among them but in proportion to the respective amounts due on the Class B
Notes. These payments of interest will be made ahead of payments of interest
on the Class C Notes of each series.
Payments of interest will be made on the Series 1 Class C Notes, the
Series 2 Class C Notes and the Series 3 Class C Notes in no order of priority
among them but in proportion to the respective amounts due on the Class C
Notes.
(ii) Principal
Subject to there being no Trigger Event and no enforcement of the Funding
Security and/or the Current Issuer Security, no class of Notes will be repaid
an amount of principal which is greater than the Controlled Amortisation
Amount in respect of that class of Notes for the relevant Payment Date and,
subject also to the satisfaction of certain conditions in relation to the
payment of principal on the Class B Notes and the Class C Notes at any time
when any Class A Notes are outstanding, payments of principal will be made in
accordance with the following priority.
Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 1 Class Al Notes will be made ahead of repayment of principal in
respect of the Controlled Amortisation Amount on the Series 1 Class A2 Notes,
the Series 1 Class A3 Notes, the Series 2 Class A Notes and the Series 3 Class
A Notes.
Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 1 Class A2 Notes and the Controlled Amortisation Amount on the
Series 1 Class A3 Notes will be made in no order of priority between them but
in proportion to the respective Controlled Amortisation Amounts due on the
Series 1 Class A2 Notes and the Series 1 Class A3 Notes and
95
will be made ahead of repayment of principal in respect of the Controlled
Amortisation Amount on the Series 2 Class A Notes and the Series 3 Class A
Notes. Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 2 Class A Notes and the Series 3 Class A Notes will be made in
no order of priority between them but in proportion to the respective
Controlled Amortisation Amounts due on the Series 2 Class A Notes and the
Series 3 Class A Notes.
Repayment of principal in respect of the Controlled Amortisation Amount
on the Class A Notes will be made ahead of repayment of principal in respect
of the Controlled Amortisation Amount on the Class B Notes.
Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 1 Class B Notes, the Controlled Amortisation Amount on the
Series 2 Class B Notes and the Controlled Amortisation Amount on the Series 3
Class B Notes will be made in no order of priority among them but in
proportion to the respective Controlled Amortisation Amounts due on the Class
B Notes. However, repayment of principal in respect of the Controlled
Amortisation Amount on the Class B Notes will be made ahead of repayment of
principal in respect of the Controlled Amortisation Amount on the Class C
Notes.
Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 1 Class C Notes, the Controlled Amortisation Amount on the
Series 2 Class C Notes and the Controlled Amortisation Amount on the Series 3
Class C Notes will be made in no order of priority among them but in
proportion to the respective Controlled Amortisation Amounts due on the Class
C Notes.
The above priority of payments will change and the Current Issuer will
make repayments of principal in accordance with and subject to the Current
Issuer Priority of Payments as set out in the Current Issuer Cash Management
Agreement or, as the case may be, the Current Issuer Deed of Charge (1)
following the occurrence of a Trigger Event, and/or (2) following the
enforcement of the Funding Security and/or the enforcement of the Current
Issuer Security.
If any Class A Notes are outstanding and the Issuer Arrears Test, the
Issuer Reserve Requirement and the Subordinated Principal Test (as specified
in the Current Issuer Cash Management Agreement) are not satisfied on the
relevant Payment Date, no amount of principal will be payable in respect of
the Class B Notes or the Class C Notes.
Notwithstanding the foregoing priorities, the Controlled Amortisation
Amount payable in respect of each class of Notes is determined by a schedule
that indicates the target balance for that class of Notes on the relevant
Payment Date and not all classes of Notes are scheduled to receive payments of
principal on each Payment Date, with some lower ranking classes of Notes being
repaid principal before higher ranking classes of notes. The Controlled
Amortisation Amount payable on some classes of Notes will also be zero.
(C) Conflict between the classes of Notes
Each of the Current Issuer Trust Deed and the Current Issuer Deed of
Charge contains provisions requiring the Note Trustee to have regard to the
interests of the Class A Noteholders, the Class B Noteholders and the Class C
Noteholders equally as regards all powers, trusts, authorities, duties and
discretions of the Note Trustee (except where expressly provided otherwise),
but requiring the Note Trustee to have regard (a) (for so long as there are
any Class A Notes outstanding (as that term is defined in the Current Issuer
Trust Deed)) only to the interests of the Class A Noteholders if, in the Note
Trustee's opinion, there is or may be a conflict between the interests of the
Class A Noteholders and the interests of the Class B Noteholders and/or the
interests of the Class C Noteholders and (b) subject to (a) above, for so long
as there are any Class B Notes outstanding) only to the interests of the Class
B Noteholders if, in the Note Trustee's opinion, there is or may be a conflict
between the interests of the Class B Noteholders and the interests of the
Class C Noteholders. Except where expressly provided otherwise, so long as any
of the Notes remains outstanding, the Note Trustee is not required to
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have regard to the interests of any persons (other than the class or classes
of Noteholders described above) entitled to the benefit of the Current Issuer
Security.
The Current Issuer Trust Deed contains provisions limiting the powers of
the Class B Noteholders and the Class C Noteholders, inter alia, to request or
direct the Note Trustee to take any action or to pass an effective
Extraordinary Resolution according to the effect thereof on the interests of
the Class A Noteholders. Except in certain circumstances described in
Condition 11, the Current Issuer Trust Deed contains no such limitation on the
powers of the Class A Noteholders, the exercise of which will be binding on
the Class B Noteholders and the Class C Noteholders respectively, irrespective
of the effect thereof on their interests.
Similarly, the Current Issuer Trust Deed contains provisions limiting the
powers of the Class C Noteholders, inter alia, to request or direct the Note
Trustee to take any action or to pass an effective Extraordinary Resolution
according to the effect thereof on the interests of the Class B Noteholders.
Except in certain circumstances described above and in Condition 11, the
Current Issuer Trust Deed contains no such limitation on the powers of the
Class B Noteholders, the exercise of which will be binding on the Class C
Noteholders, irrespective of the effect thereof on their interests.
The Note Trustee shall be entitled to assume, for the purpose of
exercising any right, power, trust, authority, duty or discretion under or in
relation to these Conditions or any of the Transaction Documents, that such
exercise will not be materially prejudicial to the interests of the
Noteholders (or any series and/or class thereof) if the Rating Agencies have
confirmed that the then current ratings of the applicable series and/or class
or classes of Notes would not be adversely affected by such exercise.
The Noteholders will share in the benefit of the security created by the
Current Issuer Deed of Charge, upon and subject to the terms thereof.
(D) Security
As security for, inter alia, the payment of all monies payable in respect
of the Notes, the Current Issuer has entered into the Current Issuer Deed of
Charge creating the Current Issuer Security in favour of the Note Trustee for
itself and on trust for the Current Issuer Secured Creditors including, inter
alia, the following:
(i) an assignment by way of first fixed security of the Current
Issuer's rights and claims in respect of all security and other
rights held on trust by the Security Trustee pursuant to the
Funding Deed of Charge, save to the extent that any of the Current
Issuer's rights and claims derive from property that is situated
in Jersey, which will be assigned to the Note Trustee for the
purpose of creating a Security Interest in accordance with Jersey
law;
(ii) an assignment by way of first fixed security of the Current
Issuer's rights, title, interest and benefit in and to the
Transaction Documents to which the Current Issuer is a party,
including:
(a) the Current Issuer Intercompany Loan Agreement;
(b) a deed of accession to the Funding Deed of Charge;
(c) the Current Issuer Basis Rate Swap Agreement;
(d) any Current Issuer Dollar Currency Swap Agreement in relation
to the Dollar Notes;
(e) any Current Issuer Euro Currency Swap Agreement in relation
to the Euro Notes;
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(f) the Current Issuer Paying Agent and Agent Bank Agreement;
(g) the Current Issuer Underwriting Agreement and the Current
Issuer Subscription Agreement;
(h) the Current Issuer Corporate Services Agreement;
(i) the Current Issuer Bank Account Agreement;
(j) the Current Issuer Cash Management Agreement;
(k) the Current Issuer Trust Deed;
(l) any Swap Collateral Ancilliary Document; and
(m) such other documents as are expressed to be subject to the
charges under the Current Issuer Deed of Charge, in each
case, save to the extent that such rights, title, interest
and benefit derive from property that is situated in Jersey.
To the extent that the same are derived from property
situated in Jersey, the Current Issuer will assign such
rights, title, interest and benefit to the Note Trustee for
the purpose of creating a Security Interest in those rights,
title, interest and benefit in accordance with Jersey law;
(iii) an assignment by way of first fixed security over the Current
Issuer's rights, title, interest and benefit, in and to the
Current Issuer Transaction Accounts, any Swap Collateral Account
and each other account (if any) of the Current Issuer and all
amounts or securities standing to the credit of those accounts
(including all interest or other income or distributions earned on
such amounts or securities);
(iv) a first fixed charge (which may take effect as a floating charge)
over the Current Issuer's rights, title, interest and benefit in
and to all Authorised Investments made by or on behalf of the
Current Issuer, including all monies and income payable
thereunder; and
(v) a first ranking floating charge over the whole of the assets and
undertaking of the Current Issuer which are not otherwise
effectively subject to any fixed charge or assignment by way of
security as described in (i), (ii), (iii) or (iv) above, all as
more particularly set out in the Current Issuer Deed of Charge.
3. Covenants
Save with the prior written consent of the Note Trustee or unless
provided in or contemplated under these Conditions or any of the Transaction
Documents to which the Current Issuer is a party, the Current Issuer shall
not, so long as any Note remains outstanding:
(A) Negative Pledge
create or permit to subsist any mortgage, pledge, lien, charge or other
Security Interest whatsoever (unless arising by operation of law), upon the
whole or any part of its assets (including any uncalled capital) or its
undertakings, present or future;
(B) Disposal of Assets
sell, assign, transfer, lease or otherwise dispose of, or deal with, or
grant any option or present or future right to acquire all or any of its
properties, assets, or undertakings or any interest, estate, right, title or
benefit therein or thereto or agree or attempt or purport to do any of the
foregoing;
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(C) Equitable Interest
permit any person other than itself and the Note Trustee (as to itself
and on behalf of the Current Issuer Secured Creditors) to have any equitable
interest in any of its assets or undertakings or any interest, estate, right,
title or benefit therein;
(D) Bank Accounts
have an interest in any bank account, other than a Current Issuer Bank
Account or a Swap Collateral Account;
(E) Restrictions on Activities
carry on any business other than as described in the Prospectus dated 23
January 2003 relating to the issue of the Dollar Notes and the related
activities described therein or as contemplated in the Transaction Documents
relating to the issue of the Notes and the making of the Current Issuer
Intercompany Loan;
(F) Borrowings
incur any indebtedness in respect of borrowed money whatsoever or give
any guarantee or indemnity in respect of any indebtedness or obligation of any
person;
(G) Merger
consolidate or merge with any other person or convey or transfer
substantially all of its properties or assets to any other person;
(H) Waiver or Consent
permit the validity or effectiveness of any of the Current Issuer Trust
Deed or the Current Issuer Deed of Charge or the priority of the security
interests created thereby to be amended, terminated, postponed, waived or
discharged, or permit any other person whose obligations form part of the
Current Issuer Security to be released from such obligations;
(I) Employees or premises
have any employees or premises or subsidiaries;
(J) Dividends and Distributions
pay any dividend or make any other distribution to its shareholders or
issue any further shares or alter any rights attaching to its shares as at the
date of the Current Issuer Deed of Charge;
(K) Purchase Notes
purchase or otherwise acquire any Note or Notes; or
(L) United States activities
engage in any activities in the United States (directly or through
agents), or derive any income from United States sources as determined under
United States income tax principles, or hold any property if doing so would
cause it to be engaged in a trade or business within the United States as
determined under United States income tax principles.
4. Interest
(A) Period of Accrual
Each Note bears interest on its Principal Amount Outstanding from (and
including) the Closing Date. Each Note (or, in the case of redemption in part
only of a Note, that part only of such Note) shall cease to bear interest from
its due date for redemption unless, upon due presentation, payment of the
relevant amount of principal or any part thereof is improperly withheld or
refused. In such event, interest will continue to accrue on such unpaid amount
(before as well as after any judgment) at the rate applicable to such Note up
to (but excluding) the date on which, on presentation of such Note, payment in
full of the relevant amount of principal is made, or (if earlier) the seventh
day after notice is duly given by the Principal Paying Agent or the US Paying
Agent, as the case may be, to the Holder thereof (either in accordance
99
with Condition 14 or individually) that upon presentation thereof being duly
made, such payment will be made, provided that upon presentation thereof being
duly made, payment is in fact made.
Whenever it is necessary to compute an amount of interest in respect of
the Notes for any period (including any Interest Period), such interest shall
be calculated:
(i) in respect of the Dollar Notes and the Euro Notes, on the basis of
actual days elapsed in a 360-day year; and
(ii) in respect of the Sterling Notes, on the basis of actual days
elapsed in a 365-day year (or, in the case of an Interest Period
ending in a leap year, a 366-day year).
(B) Interest Payment Dates and Interest Periods
Interest on the Notes is payable in arrear on each Interest Payment Date.
The order of payments of interest to be made on the classes of Notes will
be prioritised so that interest payments due and payable on the Class C Notes
will be subordinated to interest payments due and payable on the Class B Notes
and the Class A Notes and interest payments due and payable on the Class B
Notes will be subordinated to interest payments due and payable on the Class A
Notes, in each case in accordance with the relevant Current Issuer Priority of
Payments.
To the extent that the funds available to the Current Issuer, subject to
and in accordance with the relevant Current Issuer Priority of Payments, to
pay interest on the Class B Notes or the Class C Notes on an Interest Payment
Date (in each case, after discharging the Current Issuer's liabilities of a
higher priority) are insufficient to pay the full amount of such interest,
payment of the shortfall attributable to the Class B Notes or the Class C
Notes, as the case may be (in each case, "Deferred Interest"), which will be
borne by each Class B Note or Class C Note, as the case may be, in proportion
to the amount of interest due, subject to this Condition 4(B), on a Class B
Note or Class C Note, as the case may be, on such Interest Payment Date, will
not then fall due but will instead be deferred until the first Interest
Payment Date thereafter on which sufficient funds are available (after
allowing for the Current Issuer's liabilities of a higher priority and subject
to and in accordance with the relevant Current Issuer Priority of Payments) to
fund the payment of such Deferred Interest to the extent of such available
funds.
Such Deferred Interest will accrue interest ("Additional Interest") at
the rate of interest applicable from time to time to the Class B Notes or the
Class C Notes, as the case may be, and payment of any Additional Interest will
also be deferred until the first Interest Payment Date thereafter on which
funds are available (after allowing for the Current Issuer's liabilities of a
higher priority subject to and in accordance with the relevant Current Issuer
Priority of Payments) to the Current Issuer to pay such Additional Interest to
the extent of such available funds.
Amounts of Deferred Interest and Additional Interest shall not be
deferred beyond the Final Maturity Date of the Class B Notes or the Class C
Notes, as the case may be, when such amounts will become due and payable.
It is possible that all or any part of any interest due on the Class B
Notes or the Class C Notes, as the case may be, may never be paid if there are
insufficient funds available (subject to and in accordance with the relevant
Current Issuer Priority of Payments) to fund the payment of such interest
after paying amounts of a higher priority.
Payments of interest due on an Interest Payment Date in respect of the
Class A Notes will not be deferred. In the event of the delivery of a Class A
Note Enforcement Notice (as described in Condition 9), the amount of interest
that was due but not paid on such Interest Payment Date will itself bear
interest at the applicable rate until both the unpaid interest and the
interest on that interest are paid.
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(C) Rates of Interest
In relation to each Class of Notes the rate of interest payable in
respect of such Class (each a "Rate of Interest" and together the "Rates of
Interest") and the relevant Interest Amount in respect of such Class shall be
determined on the basis of the provisions set out below:
(i) In respect of each Class of Notes (other than the Series 1 Class A3
Notes),
(a) On each Interest Determination Date in relation to such Class,
the Agent Bank will determine the Relevant Screen Rate in
respect of such Class as at or about the Quotation Time for
such Class.
If the Relevant Screen Rate is unavailable, the Agent Bank
will request the principal London office of each of the
Reference Banks to provide the Agent Bank with its offered
quotation to leading banks for the relevant Quotation Deposits
for the relevant Quotation Period in the relevant Quotation
Market as at or about the relevant Quotation Time on such
Interest Determination Date.
The Rate of Interest for such Class for the Interest Period
relating to such Class shall be the aggregate of (a) the
Relevant Margin in respect of such Class and (b) the Relevant
Screen Rate in respect of such Class or, if the Relevant
Screen Rate is unavailable, the arithmetic mean (or, in the
case of the initial Interest Determination Date relating to
such Class, the linear interpolation of the arithmetic mean)
of such offered quotations by the Reference Banks (rounded
upwards, if necessary, to five decimal places).
(b) If on any Interest Determination Date in relation to such
Class, the Relevant Screen Rate in respect of such Class is
unavailable and only two or three of the Reference Banks
provide offered quotations, the Rates of Interest for such
Class for the relevant Interest Period shall be determined in
accordance with the provisions of sub-paragraph (a) above on
the basis of the offered quotations of those Reference Banks
providing such quotations.
If, on any such Interest Determination Date, only one or none
of the Reference Banks provides the Agent Bank with such an
offered quotation, the Agent Bank shall forthwith consult with
the Note Trustee for the purposes of agreeing two banks (or,
where one only of the Reference Banks provided such a
quotation, one additional bank) to provide such a quotation or
quotations to the Agent Bank (which bank or banks are in the
opinion of the Note Trustee suitable for such purpose) and the
Rates of Interest for the Interest Period in question shall be
determined, as aforesaid, on the basis of the offered
quotations of such banks as so agreed (or, as the case may be,
the offered quotations of such bank as so agreed and the
relevant Reference Bank).
If no such bank or banks is or are so agreed or such bank or
banks as so agreed does or do not provide such a quotation or
quotations, then the Rates of Interest for the relevant
Interest Period shall be the Rates of Interest in relation to
such Class in effect for the immediately preceding Interest
Period to which sub-paragraph (a) above shall have applied but
taking account of any change in the Relevant Margin in
relation to such Class.
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(ii) In respect of the Series 1 Class A3 Notes:
(a) On each Interest Determination Date, the Agent Bank will
determine the Federal Funds Rate in respect of the Series 1
Class A3 Notes as at or about 5:00 p.m. New York City time.
The "Federal Funds Rate" applicable to the Series 1 Class A3
Notes for the related Interest Period in which such Interest
Determination Date occurs shall be determined by calculating
the weighted average of the Daily Federal Funds Rate during
the Series 1 Class A3 Interest Determination Period (as
defined below) ending on such Interest Determination Date, as
calculated in the following manner:
(1) On each calendar day beginning on (and including) an
Interest Determination Date to (but excluding) the
next following Interest Determination Date (or in
respect of the first Interest Period in respect of
the Series 1 Class A3 Notes, on each calendar day
beginning on (and including) the Closing Date to
(but excluding) the first Interest Determination
Date occurring in April 2003) (the "Series 1 Class
A3 Interest Determination Period"), the Agent Bank
will determine the federal funds rate as set forth
in H.l5(5l9) opposite the caption "Federal funds
(effective)", as such rate is displayed on the
Telerate Page 120. However, if, by 5:00 p.m., New
York City time, on any calendar day the federal
funds rate does not appear on the Telerate Page 120
or is not yet published in H.15(5l9), the rate for
such day will be the rate set forth in H. 15 Daily
Update, or such other recognized electronic source
used for the purpose of displaying such rate, for
that day opposite the caption "Federal funds
(effective)", and if, by 5:00 p.m., New York City
time, on any calendar day the federal funds rate
does not appear on the Telerate Page 120 or is not
yet published in H.l5(5l9), H.15 Daily Update or
another recognized electronic source, the rate for
such day will be the rate for the first preceding
day for which such rate is set forth in H. 15(519)
opposite the caption "Federal funds (effective)", as
such rate is displayed on the Telerate Page 120. The
foregoing is referred to herein as the "Daily
Federal Funds Rate".
(2) On each Interest Determination Date, the Agent Bank
will calculate the weighted average of the Daily
Federal Funds Rates determined in (1) above by
dividing (x) the sum of the Daily Federal Funds Rate
determined each calendar day during the relevant
Series 1 Class A3 Interest Determination Period, by
(y) the number of calendar days in such Series 1
Class A3 Interest Determination Period.
The Rate of Interest for the Series 1 Class A3 Notes for
any Interest Period relating to the Series 1 Class A3
Notes shall be the aggregate of the Relevant Margin in
respect of such Series 1 Class A3 Notes and the Federal
Funds Rate (as determined in (2) above on the applicable
Interest Determination Date and applying to such Interest
Period in which such Interest Determination Date occurs)
for such Series 1 Class A3 Notes.
There will be no minimum or maximum Rate of Interest.
(D) Determination of Rates of Interest and Calculation of Interest Amounts
(i) The Agent Bank shall, as soon as practicable after the Quotation
Time (or with respect to the Series 1 Class A3 Notes, 5.00 p.m. New
York City time) on each
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Interest Determination Date, determine and notify the Current
Issuer, the Current Issuer Cash Manager, the Note Trustee and the
Paying Agents of (i) the Rates of Interest applicable to each Class
of Notes for the relevant Interest Period, (ii) the Interest Amount
payable in respect of each class of Notes for the relevant Interest
Period and (iii) the Note Interest Amount payable in respect of
each Note for the relevant Interest Period.
(ii) The amount of interest in respect of each class of Notes in respect
of an Interest Period (in each case, the "Interest Amount") shall
be determined by applying the relevant Rate of Interest to the
aggregate Principal Amount Outstanding of the relevant class of
Notes, multiplying the sum by the applicable day count fraction
described in Condition 4(A) and rounding the resultant figure to
the nearest cent, amounts equal to or above half a cent being
rounded upwards and amounts below half a cent being rounded
downwards (in the case of Dollar Notes and the Euro Notes) and the
nearest ▇▇▇▇▇, amounts equal to or above half a ▇▇▇▇▇ being rounded
upwards and amounts below half a ▇▇▇▇▇ being rounded downwards (in
the case of the Sterling Notes).
The amount of interest in respect of each Note in respect of an
Interest Period (in each case, the "Note Interest Amount") shall be
the proportion of the relevant Interest Amount in relation to the
relevant class of Notes on such date equal to the proportion that
the Principal Amount Outstanding of the relevant Note bears to the
aggregate Principal Amount Outstanding of the relevant class of
Notes rounding the resulting figure to the nearest cent, amounts
equal to or above half a cent being rounded upwards and amounts
below half a cent being rounded downwards (in respect of the Dollar
Notes and the Euro Notes) and the nearest ▇▇▇▇▇, amounts equal to
or above half a ▇▇▇▇▇ being rounded upwards and amounts below half
a ▇▇▇▇▇ being rounded downwards (in respect of the Sterling Notes).
The amount of interest in respect of each Note in respect of an
Interest Period (in each case, the "Note Interest Amount") shall be the
proportion of the relevant Interest Amount in relation to the relevant class
of Notes on such date equal to the proportion that the Principal Amount
Outstanding of the relevant Note bears to the aggregate Principal Amount
Outstanding of the relevant class of Notes rounded down to the nearest cent in
respect of the Dollar Notes and the Euro Notes, and rounded down to the
nearest ▇▇▇▇▇ in respect of the Sterling Notes.
(E) Publication of Rates of Interest, Interest Amounts and other Notices
As soon as possible, the Agent Bank will cause the Rate of Interest and
the Interest Amount applicable to each class of Notes for each Interest Period
and the Interest Payment Date falling at the end of such Interest Period to be
notified to the Current Issuer, the Current Issuer Cash Manager, the Note
Trustee, the Paying Agents, the Registrar and to each stock exchange,
competent listing authority and/or quotation system (if any) on or by which
the Notes are then listed, quoted and/or traded and will cause notice thereof
to be given to the relevant class of Noteholders in accordance with Condition
14. The Interest Amounts and Interest Payment Dates so notified may
subsequently be amended (or appropriate alternative arrangements made by way
of adjustment) without notice in the event of any extension or shortening of
the relevant Interest Period.
(F) Determination and/or Calculation by Note Trustee
If the Agent Bank does not at any time for any reason determine the Rate
of Interest and/or calculate the Interest Amount for any class of Notes in
accordance with the foregoing paragraphs, the Note Trustee shall (i) determine
the Rate of Interest at such rate as (having such regard as it shall think fit
to the procedure described above) it shall in its sole discretion deem fair
and reasonable in all the circumstances and/or (as the case may be) (ii)
calculate the Interest Amount for such class of Notes in the manner specified
in paragraph (D) above, and any such determination and/or calculation shall be
deemed to have been made by the Agent Bank.
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(G) Notifications to be Final
All notifications, opinions, determinations, certificates, calculations,
quotations and decisions given, expressed, made or obtained for the purposes
of this Condition 4, whether by the Reference Banks (or any of them) or any
other bank or the Agent Bank (in the absence of wilful default, bad faith or
manifest error) be binding on the Current Issuer, the Current Issuer Cash
Manager, the Reference Banks, such other bank, the Agent Bank, the Note
Trustee and all Noteholders and (in such absence as aforesaid) no liability to
the Noteholders shall attach to the Current Issuer, the Reference Banks, such
other bank, the Agent Bank, the Note Trustee or the Current Issuer Cash
Manager in connection with the exercise or non-exercise by them or any of them
of their powers, duties and discretions hereunder.
(H) Reference Banks and Agent Bank
The Agent Bank shall ensure that, so long as any of the Notes remains
outstanding, there shall at all times be four Reference Banks with offices in
London and an Agent Bank. In the event of any Reference Bank being unable or
unwilling to continue to act as a Reference Bank, the Current Issuer shall,
with the approval of the Note Trustee, appoint a successor Reference Bank to
act as such in its place. In the event of the then Agent Bank being unwilling
to act as the Agent Bank, or resigning pursuant to the Current Issuer Paying
Agent and Agent Bank Agreement, the Current Issuer shall, with the approval of
the Note Trustee, appoint a successor Agent Bank. If the Current Issuer shall
fail to appoint a successor Reference Bank or successor Agent Bank (as the
case may be), the Agent Bank shall appoint such other bank as may be
previously approved in writing by the Note Trustee to act as the Reference
Bank or Agent Bank (as the case may be). The resignation of the Agent Bank
will not take effect until a successor approved by the Note Trustee has been
appointed.
5. Redemption, Purchase and Cancellation
(A) Final Redemption
Unless previously redeemed in full as provided in this Condition 5, the
Current Issuer shall redeem each class of Notes at their then Principal Amount
Outstanding together with all accrued interest on the Final Maturity Date in
respect of such class of Notes.
The Current Issuer may not redeem the Notes in whole or in part prior to
those respective dates except as provided in paragraph (B), (D) or (E) below,
but without prejudice to Condition 9.
(B) Mandatory Redemption of the Notes in Part
On each Payment Date, other than a Payment Date on which the Notes are to
be redeemed under Conditions 5(A), (D) or (E), the Current Issuer shall repay
principal in respect of the Notes in accordance with and subject to the
relevant Current Issuer Priority of Payments applicable to the Current Issuer
on such Payment Date and then only to the extent of Current Issuer Available
Principal Receipts on such Payment Date in the manner described in and subject
to the Current Issuer Cash Management Agreement and/or, as applicable, the
Current Issuer Deed of Charge.
(C) Note Principal Payments, Principal Amount Outstanding and Pool Factor
The principal amount redeemable (the "Note Principal Payment") in respect
of each Note of a particular class of Notes on any Payment Date under
paragraph (B) above shall be a proportion of the amount required as at that
Payment Date to be applied in redemption of the relevant class of Notes on
such date equal to the proportion that the Principal Amount Outstanding of the
relevant Note bears to the aggregate Principal Amount Outstanding of the
relevant class of Notes rounded down to the nearest cent in respect of the
Dollar Notes and the Euro Notes, and rounded down to the nearest ▇▇▇▇▇ in
respect of the Sterling Notes; provided always that no such Note Principal
Payment may exceed the Principal Amount Outstanding of the relevant Note.
On each Note Determination Date the Current Issuer shall determine (or
cause the Current Issuer Cash Manager to determine) (i) the amount of any Note
Principal Payment payable in respect of each Note of the relevant series and
class on the immediately following
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Payment Date, (ii) the Principal Amount Outstanding of each such Note which
shall be $1,000 or, as the case may be, $10,000 (in the case of each Dollar
Note), (euro)1,000 or, as the case may be, (euro)10,000 (in the case of each
Euro Note) and (pound)1,000 or, as the case may be, (pound)10,000 (in the case
of each Sterling Note) less (in each case) the aggregate amount of all Note
Principal Payments in respect of such Notes that have been paid since the
Closing Date and on or prior to that Note Determination Date (the "Principal
Amount Outstanding") and (iii) the fraction expressed as a decimal to the
fifth decimal point (the "Pool Factor"), of which the numerator is the
Principal Amount Outstanding of that Note (as referred to in (ii) above) and
the denominator is $1,000 or, as the case may be, $10,000 (in the case of each
Dollar Note), (euro)1,000 or, as the case may be, (euro)10,000 (in the case of
each Euro Note) and (pound)1,000 or, as the case may be, (pound)10,000 (in the
case of each Sterling Note). Each determination by or on behalf of the Current
Issuer of any Note Principal Payment of a Note, the Principal Amount
Outstanding of a Note and the Pool Factor shall in each case (in the absence
of wilful default, bad faith or manifest error) be final and binding on all
persons.
With respect to the Notes of each class, the Current Issuer will cause
each determination of the Note Principal Payment, the Principal Amount
Outstanding and the Pool Factor to be notified forthwith, and in any event not
later than 1.00 p.m. (London time) on the Business Day immediately succeeding
the Note Determination Date, to the Note Trustee, the Paying Agents, the
Registrar, the Agent Bank and (for so long as the Notes are listed on one or
more stock exchanges) the relevant stock exchanges, and will cause notice of
each determination of the Note Principal Payment, the Principal Amount
Outstanding and the Pool Factor to be given to Noteholders in accordance with
Condition 14 by no later than the Business Day after the relevant Payment
Date.
If the Current Issuer does not at any time for any reason determine (or
cause the Current Issuer Cash Manager to determine), a Note Principal Payment,
the Principal Amount Outstanding or the Pool Factor in accordance with the
preceding provisions of this paragraph, such Note Principal Payment, Principal
Amount Outstanding and/or Pool Factor may be determined by the Note Trustee in
accordance with this paragraph (C) in the manner the Note Trustee in its
discretion considers fair and reasonable in the circumstances, having regard
to this paragraph (C), and each such determination or calculation shall be
deemed to have been made by the Current Issuer. Any such determination shall
(in the absence of wilful default, bad faith or manifest error) be binding on
the Current Issuer, the Current Issuer Cash Manager and the Noteholders.
(D) Optional Redemption in Full
Subject to the provisos below, upon giving not more than 60 nor less than
30 days' prior notice to the Note Trustee and the Noteholders in accordance
with Condition 14, the Current Issuer may redeem all (but not some only) of
the Notes at their Principal Amount Outstanding together with any accrued
interest on the following dates:
(i) the Payment Date falling in April 2008 and on any Payment Date
thereafter. This gives the Current Issuer the option to redeem the
Notes after the April 2008 step-up date for interest; or
(ii) any Payment Date on which the aggregate Principal Amount
Outstanding of the Notes is less than 10 per cent. of the aggregate
Principal Amount Outstanding of the Notes as at the Closing Date,
PROVIDED THAT (a) (in either of the cases above), prior to giving any
such notice, the Current Issuer shall have provided to the Note Trustee prior
to the date of such redemption a certificate signed by two directors of the
Current Issuer to the effect that it will have the funds, not subject to any
interest of any other person, required to redeem the Notes as aforesaid and
any amounts required to be paid in priority to or pari passu with the Notes
outstanding in accordance with the terms and conditions of the Current Issuer
Cash Management Agreement and (b) the
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Note Trustee is satisfied in accordance with the Transaction Documents that
there are sufficient funds to allow the Current Issuer to redeem the Notes.
(E) Optional Redemption for Tax and other Reasons
If the Current Issuer at any time satisfies the Note Trustee immediately
prior to the giving of the notice referred to below that on the next Payment
Date or Interest Payment Date either (i) the Current Issuer would be required
to deduct or withhold from any payment of principal or interest or any other
amount under any of the Notes any amount for or on account of any present or
future taxes, duties, assessments or governmental charges of whatever nature
or (ii) Funding would be required to deduct or withhold from amounts due under
the Current Issuer Intercompany Loan any amount on account of any present or
future taxes, duties, assessments or governmental charges of whatever nature
and (iii) such obligation of the Current Issuer or Funding (as the case may
be) cannot be avoided by the Current Issuer or Funding (as the case may be)
taking reasonable measures available to it, then the Current Issuer shall use
its reasonable endeavours to arrange the substitution of a company
incorporated in another jurisdiction approved by the Note Trustee as principal
debtor under the Class A Notes, the Class B Notes and the Class C Notes and/or
as lender under the Current Issuer Intercompany Loan Agreement, as the case
may be, upon the Note Trustee being satisfied that (1) such substitution will
not be materially prejudicial to the Noteholders, and (2) that the position of
the Current Issuer Secured Creditors will not thereby be adversely affected,
and (3) that such substitution would not require registration of any new
security under United States securities laws or would materially increase the
disclosure requirements under United States law or the costs of issuance. Only
if the Current Issuer is unable to arrange a substitution will the Current
Issuer be entitled to redeem the Notes as described in this Condition 5(E).
Subject to the proviso below, if the Current Issuer is unable to arrange
a substitution as described above and, as a result, one or more of the events
described in (i) or (ii) above (as the case may be) is continuing, then the
Current Issuer may, having given not more than 60 nor less than 30 days'
notice to the Note Trustee and the Noteholders in accordance with Condition
14, redeem all (but not some only) of the Notes on the immediately succeeding
Payment Date at their aggregate Principal Amount Outstanding together with any
interest accrued thereon provided that (in either case), prior to giving any
such notice, the Current Issuer shall have provided to the Note Trustee (A) a
certificate signed by two directors of the Current Issuer stating the
circumstances referred to in (i) or (ii) and (iii) above prevail and setting
out details of such circumstances and (B) an opinion in form and substance
satisfactory to the Note Trustee of independent legal advisors of recognised
standing to the effect that the Current Issuer has or will become obliged to
pay such additional amounts as a result of such change or amendment. The Note
Trustee shall be entitled to accept such certificate and opinion as sufficient
evidence of the satisfaction of the circumstance set out in (i) or (ii) and
(iii) above, in which event they shall be conclusive and binding on the
Noteholders. The Current Issuer may only redeem the Notes as aforesaid if the
Note Trustee is satisfied in accordance with the Transaction Documents that
the Current Issuer will have the funds, not subject to the interest of any
other person, required to redeem the Notes as aforesaid and any amounts
required under the Current Issuer Pre-Enforcement Revenue Priority of Payments
currently set out in the Current Issuer Cash Management Agreement to be paid
in priority to or pari passu with the Notes outstanding in accordance with the
terms and conditions thereof.
In addition to the foregoing, if at any time it becomes unlawful for the
Current Issuer to make, fund or allow to remain outstanding the Current Issuer
Intercompany Loan, then the Current Issuer may require Funding upon giving not
more than 60 nor less than 30 days' (or such shorter period as may be required
under any relevant law) prior written notice to the Current Issuer and the
Note Trustee, to prepay the Current Issuer Intercompany Loan on any Payment
Date subject to and in accordance with the provisions of the Current Issuer
Intercompany Loan Agreement to the extent necessary to cure such illegality.
Such monies received by the Current Issuer shall be used to redeem the Current
Issuer Notes in full on that Payment Date.
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6. Payments
(A) Payment of Interest and Principal
Payments of principal shall be made by US Dollar cheque, in the case of
the Dollar Notes, Euro cheque, in the case of the Euro Notes or Sterling
cheque in the case of the Sterling Notes, drawn on, or upon application by a
Holder of the relevant Note to the Specified Office of the Principal Paying
Agent not later than the fifteenth day before the due date for any such
payment, or by transfer to a US Dollar account maintained by the payee with a
bank in New York City or (as the case may be) to a Sterling account maintained
by the payee with a bank in London or (as the case may be) to a Euro account
maintained by the payee with a bank as specified by the payee, and (in the
case of final redemption) upon surrender (or, in the case of part payment
only, endorsement) of the relevant Note Certificates at the Specified Office
of any Paying Agent.
Payments of interest shall be made by US Dollar cheque, in the case of
the Dollar Notes, Euro cheque, in the case of the Euro Notes or Sterling
cheque, in the case of the Sterling Notes, drawn on, or upon application by a
Holder of the relevant Note to the Specified Office of the Principal Paying
Agent not later than the fifteenth day before the due date for any such
payment, or by transfer to a US Dollar account maintained by the payee with a
bank in New York City or (as the case may be) to a Sterling account maintained
by the payee with a bank in London or (as the case may be) to a Euro account
maintained by the payee with a bank as directed by the payee, and (in the case
of interest payable on redemption) upon surrender (or, in the case of part
payment only, endorsement) of the relevant Note Certificates at the Specified
Office of any Paying Agent.
(B) Laws and Regulations
Payments of principal and interest in respect of the Notes are subject in
all cases to any fiscal or other laws and regulations applicable thereto.
Noteholders will not be charged commissions or expenses on payments.
(C) Payment of Interest following a failure to pay Principal
If payment of principal is improperly withheld or refused on or in
respect of any Note or part thereof, the interest which continues to accrue in
respect of such Note in accordance with Condition 4(A) will be paid in
accordance with this Condition 6.
(D) Change of Agents
The initial Principal Paying Agent, the Registrar, the Transfer Agent and
the initial Paying Agents and their respective initial Specified Offices are
listed at the end of these Conditions. The Current Issuer reserves the right,
subject to the prior written approval of the Note Trustee, at any time to vary
or terminate the appointment of the Principal Paying Agent, the Registrar, the
Transfer Agent and the US Paying Agent and to appoint additional or other
Paying Agents. The Current Issuer will at all times maintain a Paying Agent
with a Specified Office in London and a US Paying Agent with a Specified
Office in New York and a Registrar. Except where otherwise provided in the
Current Issuer Trust Deed, the Current Issuer will cause at least 30 days'
notice of any change in or addition to the Paying Agents, the Transfer Agent
or the Registrar or their Specified Offices to be given in accordance with
Condition 14 and will notify the Rating Agencies of such change or addition.
(E) No payment on non-Business Day
Where payment is to be made by transfer to a US Dollar account, Sterling
account or Euro account, payment instructions (for value the due date or, if
the due date is not a Payment Business Day, for value the next succeeding
Business Day) will be initiated and, where payment is to be made by US Dollar
cheque, Sterling cheque or Euro cheque, the cheque will be mailed (i) (in the
case of payments of principal and interest payable on redemption) on the later
of the due date for payment and the day on which the relevant Note is
surrendered (or, in the case of part payment only, endorsed) at the Specified
Office of a Paying Agent and (ii) (in the case of payments of interest payable
other than on redemption) on the due date for payment. A Holder of a Note
shall not be entitled to any interest or other payment in respect of any delay
in payment
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resulting from (A) the due date for a payment not being a Payment Business Day
or (B) a cheque mailed in accordance with this Condition 6(E) arriving after
the due date for payment or being lost in the mail.
(F) Partial Payment
If a Paying Agent makes a partial payment in respect of any Note, the
Current Issuer shall procure and the registrar will ensure that the amount and
date of such payment are noted on the Register and, in the case of partial
payment upon presentation of a Note Certificate, that a statement indicating
the amount and date of such payment is endorsed on the relevant Note
Certificate.
(G) Record Date
Each payment in respect of a Note will be made to the person shown as the
Holder in the Register at the opening of business in the place of the
Registrar's Specified Office on the fifteenth day before the due date for such
payment (the "Record Date"). Where payment in respect of a Note is to be made
by cheque, the cheque will be mailed to the address shown as the address of
the Holder in the Register at the opening of business on the relevant Record
Date.
(H) Payment of Interest
Subject as provided otherwise in these Conditions, if interest is not
paid in respect of a Note of any class on the date when due and payable (other
than because the due date is not a Payment Business Day) or by reason of
non-compliance with Condition 6(A), then such unpaid interest shall itself
bear interest at the Rate of Interest applicable from time to time to such
Note until such interest and interest thereon are available for payment and
notice thereof has been duly given in accordance with Condition 14.
7. Prescription
Claims against the Current Issuer for payment of interest and principal
on redemption shall be prescribed and become void if the relevant Note
Certificates are not surrendered for payment within a period of 10 years from
the relevant date in respect thereof. After the date on which a payment under
a Note becomes void in its entirety, no claim may be made in respect thereof.
In this Condition 7, the "relevant date", in respect of a payment under a
Note, is the date on which the payment in respect thereof first becomes due or
(if the full amount of the monies payable in respect of those payments under
all the Notes due on or before that date has not been duly received by the
Principal Paying Agent, the US Paying Agent or the Note Trustee on or prior to
such date) the date on which the full amount of such monies having been so
received or notice to that effect is duly given to Noteholders in accordance
with Condition 14.
8. Taxation
All payments in respect of the Notes will be made without withholding or
deduction for, or on account of, any present or future taxes, duties or
charges of whatsoever nature unless the Current Issuer or any relevant Paying
Agent is required by applicable law to make any payment in respect of the
Notes subject to any such withholding or deduction. In that event, the Current
Issuer or such Paying Agent shall make such payment after such withholding or
deduction has been made and shall account to the relevant authorities for the
amount so required to be withheld or deducted. No Paying Agent nor the Current
Issuer will be obliged to make any additional payments to Noteholders in
respect of such withholding or deduction.
9. Events of Default
(A) Class A Noteholders:
The Note Trustee in its absolute discretion may give notice to the
Current Issuer and the Security Trustee of a Current Issuer Note Event of
Default (as defined below) in respect of the Class A Notes (a "Class A Note
Enforcement Notice"), and shall give such notice if it is indemnified to its
satisfaction and (1) if so requested in writing by the Holders of not less
than 25 per cent. in aggregate Principal Amount Outstanding of the Class A
Notes or (2) if so directed by or pursuant to an Extraordinary Resolution
passed at a meeting of the Class A Noteholders, declaring (in writing) the
Notes to be due
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and repayable (and they shall forthwith become due and repayable) at any time
after the happening of any of the following events which is continuing or
unwaived:
(i) default being made for a period of seven Business Days in the
payment of any amount of principal on any Class A Note when and as
the same ought to be paid in accordance with these Conditions or
default being made for a period of fifteen Business Days in the
payment of any amount of interest on any Class A Note when and as
the same ought to be paid in accordance with these Conditions; or
(ii) the Current Issuer failing duly to perform or observe any other
obligation binding upon it under the Class A Notes, the Current
Issuer Trust Deed, the Current Issuer Deed of Charge or any other
Transaction Document and, in any such case (except where the Note
Trustee certifies that, in its opinion, such failure is incapable
of remedy, in which case no notice will be required), such failure
is continuing unremedied for a period of 30 days following the
service by the Note Trustee on the Current Issuer of notice
requiring the same to be remedied and the Note Trustee has
certified that the failure to perform or observe is materially
prejudicial to the interests of the Class A Noteholders; or
(iii) the Current Issuer, otherwise than for the purposes of such
amalgamation or reconstruction as is referred to in sub-paragraph
(iv) below, ceases or threatens to cease to carry on its business
or a substantial part of its business or the Current Issuer is
deemed unable to pay its debts within the meaning of section
123(1)(a), (b), (c) or (d) of the Insolvency ▇▇▇ ▇▇▇▇ (as that
section may be amended, modified or re-enacted) or becomes unable
to pay its debts within the meaning of section 123(2) of the
Insolvency Act 1986 (as that section may be amended, modified or
re-enacted); or
(iv) an order being made or an effective resolution being passed for
the winding-up of the Current Issuer except a winding-up for the
purposes of or pursuant to an amalgamation, restructuring or
merger the terms of which have previously been approved by the
Note Trustee in writing or by an Extraordinary Resolution of the
Class A Noteholders; or
(v) proceedings being otherwise initiated against the Current Issuer
under any applicable liquidation, insolvency, composition,
reorganisation or other similar laws (including, but not limited
to, presentation of a petition for an administration order) and
(except in the case of presentation of a petition for an
administration order) such proceedings are not, in the opinion of
the Note Trustee, being disputed in good faith with a reasonable
prospect of success, or an administration order being granted or
an administrative receiver or other receiver, liquidator or other
similar official being appointed in relation to the Current Issuer
or in relation to the whole or any substantial part of the
undertaking or assets of the Current Issuer, or an encumbrancer
taking possession of the whole or any substantial part of the
undertaking or assets of the Current Issuer, or a distress,
execution, diligence or other process being levied or enforced
upon or sued out against the whole or any substantial part of the
undertaking or assets of the Current Issuer and such possession or
process (as the case may be) not being discharged or not otherwise
ceasing to apply within 30 days, or the Current Issuer initiating
or consenting to judicial proceedings relating to itself under
applicable liquidation, insolvency, composition, reorganisation or
other similar laws or making a conveyance or assignment for the
benefit of its creditors generally; or
(vi) if an Intercompany Loan Enforcement Notice is served under any
Intercompany Loan Agreement while any of the Class A Notes is
outstanding.
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(B) Class B Noteholders
This Condition 9(B) shall have no effect if, and for as long as, any
Class A Notes are outstanding. Subject thereto, for so long as any Class B
Notes are outstanding, the Note Trustee in its absolute discretion may give
notice to the Current Issuer and the Security Trustee of a Current Issuer Note
Event of Default (as defined below) in respect of the Class B Notes (a "Class
B Note Enforcement Notice"), and shall give such notice if it is indemnified
to its satisfaction and (1) if so requested in writing by the Holders of not
less than 25 per cent. in aggregate Principal Amount Outstanding of the Class
B Notes or (2) if so directed by or pursuant to an Extraordinary Resolution
passed at a meeting of the Class B Notes Noteholders, declaring (in writing)
the Notes to be due and repayable (and they shall forthwith become due and
repayable) at any time after the happening of any of the following events:
(i) default being made for a period of seven Business Days in the
payment of any amount of principal on any Class B Note when and as
the same ought to be paid in accordance with these Conditions or
default being made for a period of fifteen Business Days in the
payment of any amount of interest on any Class B Note when and as
the same ought to be paid in accordance with these Conditions; or
(ii) the occurrence of any of the events in Condition 9(A)(ii), (iii),
(iv), (v) or (vi) above provided that the references in Condition
9(A)(ii) and Condition 9(A)(iv) to Class A Notes and Class A
Noteholders shall be read as references to Class B Notes and Class
B Noteholders, respectively.
(C) Class C Noteholders
This Condition 9(C) shall have no effect if, and for as long as, any
Class A Notes or any Class B Notes are outstanding. Subject thereto, for so
long as any Class C Notes are outstanding, the Note Trustee in its absolute
discretion may give notice to the Current Issuer and the Security Trustee of a
Current Issuer Note Event of Default (as defined below) in respect of the
Class C Notes (a "Class C Note Enforcement Notice"), and shall give such
notice if it is indemnified to its satisfaction and (1) if so requested in
writing by the Holders of not less than 25 per cent. in aggregate Principal
Amount Outstanding of the Class C Notes or (2) if so directed by or pursuant
to an Extraordinary Resolution passed at a meeting of the Class C Noteholders,
declaring (in writing) the Notes to be due and repayable (and they shall
forthwith become due and repayable) at any time after the happening of any of
the following events:
(i) default being made for a period of seven Business Days in the
payment of any amount of principal on any Class C Note when and as
the same ought to be paid in accordance with these Conditions or
default being made for a period of fifteen Business Days in the
payment of any amount of interest on any Class C Note when and as
the same ought to be paid in accordance with these Conditions; or
(ii) the occurrence of any of the events in Condition 9(A)(ii), (iii),
(iv), (v) or (vi) above provided that the references in Condition
9(A)(ii) and Condition 9(A)(iv) to Class A Notes and Class A
Noteholders shall be read as references to Class C Notes and Class
C Noteholders respectively.
(D) Following Service of a Note Enforcement Notice
For the avoidance of doubt, upon any Note Enforcement Notice being given
by the Note Trustee in accordance with Condition 9(A), (B) or (C) above, all
classes of the Notes then outstanding shall immediately become due and
repayable, without further action or formality, at their Principal Amount
Outstanding together with accrued interest as provided in the Current Issuer
Trust Deed.
10. Enforcement of Notes
The Note Trustee may, at its discretion and without notice at any time
and from time to time, take such steps and institute such proceedings against
the Current Issuer or any other person as it may think fit to enforce the
provisions of the Notes, the Current Issuer Trust Deed
110
(including these Conditions), the Current Issuer Deed of Charge or any of the
other Transaction Documents. The Note Trustee may, at its discretion and
without notice, at any time after the Current Issuer Security has become
enforceable, take such steps as it may think fit to enforce the Current Issuer
Security. The Note Trustee shall not be bound to take any such proceedings or
steps unless:
(i) (subject in all cases to restrictions contained in the Current
Issuer Trust Deed or, as the case may be, the Current Issuer Deed
of Charge to protect the interests of any higher ranking class of
Noteholders) it shall have been so directed by an Extraordinary
Resolution (as described in Condition 9) of the Class A
Noteholders, the Class B Noteholders or the Class C Noteholders or
so requested in writing by the Holders of at least 25 per cent. in
Principal Amount Outstanding of the Class A Notes, Class B Notes
outstanding or Class C Notes outstanding; and
(ii) it shall have been indemnified to its satisfaction.
Amounts available for distribution after enforcement of the Current
Issuer Security shall be distributed in accordance with the terms of the
Current Issuer Deed of Charge.
No Noteholder may institute any proceedings against the Current Issuer to
enforce its rights under or in respect of the Notes or the Current Issuer
Trust Deed unless (1) the Note Trustee has become bound to institute
proceedings and has failed to do so within 30 days of becoming so bound and
(2) such failure is continuing; provided that, no Class B Noteholder or Class
C Noteholder will be entitled to commence proceedings for the winding up or
administration of the Current Issuer unless there are no outstanding Notes of
a class with higher priority, or if Notes of a class with higher priority are
outstanding, there is consent of Noteholders of not less than 25 per cent. of
the aggregate principal amount of the Notes outstanding (as defined in the
Current Issuer Trust Deed) of the class or classes of Notes with higher
priority. Notwithstanding the foregoing and notwithstanding any other
provision of the Current Issuer Trust Deed, the right of any Noteholder to
receive payment of principal and interest on its Notes on or after the due
date for such principal or interest, or to institute suit for the enforcement
of payment of that principal or interest, may not be impaired or affected
without the consent of that Noteholder.
In the event that (a) the Current Issuer Security is enforced and after
payment of all other claims ranking in priority to the Notes under the Current
Issuer Deed of Charge, the remaining proceeds of such enforcement are
insufficient to pay in full all principal and interest and other amounts
whatsoever due in respect of the Notes and all other claims ranking pari passu
therewith or (b) within 20 days following the Final Maturity Date of the
latest maturing Note, the Note Trustee certifies that there is no further
amount outstanding under the related Current Issuer Intercompany Loan, then
all interests in the Global Note Certificate will be automatically exchanged
for equivalent interests in an equivalent amount of Notes in an equivalent
Principal Amount Outstanding in Individual Note Certificates and such Global
Note Certificate will be cancelled on the date of such exchange. The
Noteholders are required and the Note Trustee is required on their behalf at
the request of the Post Enforcement Call Option Holder, to transfer or (as the
case may be) procure transfer of all (but not some only) of the Notes to the
Post Enforcement Call Option Holder pursuant to the option granted to it by
the Note Trustee (as agent for the Noteholders) pursuant to the Current Issuer
Post Enforcement Call Option Agreement. The Noteholders will not be paid for
that transfer. Immediately upon such transfer, no such former Noteholder shall
have any further interest in the Notes. Each of the Noteholders acknowledges
that the Note Trustee has the authority and the power to bind the Noteholders
in accordance with the terms and conditions set out in the Current Issuer Post
Enforcement Call Option Agreement and each Noteholder, by subscribing for or
purchasing Notes, agrees to be so bound.
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11. Meetings of Noteholders, Modifications and Waiver
(A) Meetings of Noteholders
The Current Issuer Trust Deed contains provisions for convening meetings
of each class of Noteholders to consider any matter affecting their interests,
including the sanctioning by Extraordinary Resolution of a modification of any
provision of these Conditions or the provisions of any of the Transaction
Documents.
(1) Class A Notes
The Current Issuer Trust Deed provides that:
(i) a single meeting of the Holders of all series of Class A Notes may
be held whether or not there is a conflict of interest between the
Holders of such series of the Class A Notes;
(ii) there shall be no provision for a meeting of the Holders of one
series only of the Class A Notes; and
(iii) as the Class A Notes are not all denominated in the same currency,
the Principal Amount Outstanding of any Class A Note denominated
in Dollars or Euro shall be converted into Sterling at the
relevant Current Issuer Dollar Currency Swap Rate or Current
Issuer Euro Currency Swap Rate, respectively.
(2) Class B Notes
The Current Issuer Trust Deed provides that:
(i) a single meeting of the Holders of all series of Class B Notes may
be held whether or not there is a conflict of interest between the
Holders of such series of the Class B Notes;
(ii) there shall be no provision for a meeting of the Holders of one
series only of the Class B Notes; and
(iii) as the Class B Notes are not all denominated in the same currency,
the Principal Amount Outstanding of any Class B Note denominated
in Dollars or Euro shall be converted into Sterling at the
relevant Current Issuer Dollar Currency Swap Rate or Current
Issuer Euro Currency Swap Rate, respectively.
(3) The Class C Notes
The Current Issuer Trust Deed provides that:
(i) a single meeting of the Holders of all series of Class C Notes may
be held whether or not there is a conflict of interest between the
Holders of such series of the Class C Notes;
(ii) there shall be no provision for a meeting of the Holders of one
series only of the Class C Notes; and
(iii) as the Class C Notes are not all denominated in the same currency,
the Principal Amount Outstanding of any Class C Note denominated
in Dollars or Euro shall be converted into Sterling at the
relevant Current Issuer Dollar Currency Swap Rate or Current
Issuer Euro Currency Swap Rate, respectively.
Subject as provided in the following paragraph, the quorum at any meeting
of the Noteholders of any class convened to consider an Extraordinary
Resolution will be two or more persons holding or representing more than half
of the aggregate Principal Amount Outstanding of the Notes of that class or,
at any adjourned meeting, two or more persons being or representing
112
Noteholders of that class, whatever the aggregate Principal Amount Outstanding
of the Notes so held or represented.
The quorum at any meeting of the Noteholders of any class for passing an
Extraordinary Resolution which includes the sanctioning of a modification
which would have the effect of altering the amount, rate or timing of payments
on the Notes, the currency of payment of the Notes, or altering the priority
of payments or altering the quorum or majority required in relation to this
exception (a "Basic Terms Modification"), shall be two or more persons holding
or representing not less than three quarters or, at any adjourned and
reconvened meeting, not less than one quarter of the aggregate Principal
Amount Outstanding of the Notes of such class.
A resolution signed by or on behalf of all the Noteholders of the
relevant class who for the time being are entitled to receive notice of a
meeting under the Current Issuer Trust Deed shall for all purposes be as valid
and effective as an Extraordinary Resolution passed at a meeting of such class
of Noteholders.
(B) Limitations on Class B Noteholders
Subject as provided below in relation to an Extraordinary Resolution
concerning a Basic Terms Modification, no Extraordinary Resolution of the
Class B Noteholders shall take effect for any purpose while any Class A Notes
remain outstanding unless it shall have been sanctioned by an Extraordinary
Resolution of the Class A Noteholders or the Note Trustee is of the opinion
that it would not be materially prejudicial to the interests of the Class A
Noteholders.
(C) Limitations on Class C Noteholders
Subject as provided below in relation to an Extraordinary Resolution
concerning a Basic Terms Modification, no Extraordinary Resolution of the
Class C Noteholders shall take effect for any purpose while any Class A Notes
or any Class B Notes remain outstanding unless it shall have been sanctioned
by an Extraordinary Resolution of the Class A Noteholders and an Extraordinary
Resolution of the Class B Noteholders, or the Note Trustee is of the opinion
that it would not be materially prejudicial to the interests of the Class A
Noteholders and the Class B Noteholders.
(D) Basic Terms Modifications
(i) An Extraordinary Resolution of the Class A Noteholders concerning
a Basic Terms Modification will not be effective unless it shall
have been sanctioned by an Extraordinary Resolution of the Class B
Noteholders and an Extraordinary Resolution of the Class C
Noteholders.
(ii) An Extraordinary Resolution of the Class B Noteholders concerning
a Basic Terms Modification will not be effective unless it shall
have been sanctioned by an Extraordinary Resolution of the Class A
Noteholders and an Extraordinary Resolution of the Class C
Noteholders.
(iii) An Extraordinary Resolution of the Class C Noteholders concerning
a Basic Terms Modification will not be effective unless it is also
sanctioned by an Extraordinary Resolution of the Class A
Noteholders and an Extraordinary Resolution of the Class B
Noteholders.
(E) Modifications and Determinations by Note Trustee
The Note Trustee may agree, without the consent of the relevant class of
Noteholders, (i) to any modification (other than a Basic Terms Modification)
of, or to the waiver or authorisation of any breach or proposed breach of, the
Conditions of a particular class or classes or any of the Transaction
Documents which is not, in the opinion of the Note Trustee, materially
prejudicial to the interests of the relevant class or classes of the
Noteholders or (ii) to any modification of these Conditions or any of the
Transaction Documents which, in the opinion of the Note Trustee, is of a
formal, minor or technical nature or is to correct a manifest error.
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Any such modification, waiver, authorisation or determination shall be
binding on the Noteholders and, unless the Note Trustee agrees otherwise, any
such modification shall be notified to the Noteholders and the Rating Agencies
in accordance with Condition 14 as soon as practicable thereafter.
The Note Trustee may agree, without the consent of the Holders of the
Sterling Notes on or after the Specified Date (as defined below), to such
modifications to the Sterling Notes and the Current Issuer Trust Deed in
respect of redenomination of such Notes in euro and associated
reconventioning, renominalisation and related matters in respect of such Notes
as may be proposed by the Current Issuer (and confirmed by an independent
financial institution approved by the Note Trustee to be in conformity with
then applicable market conventions) and to provide for redemption at the euro
equivalent of the sterling principal amount of the Sterling Notes. For these
purposes, "Specified Date" means the date on which the United Kingdom
participates in the third stage of European economic and monetary union
pursuant to the Treaty establishing the European Community, as amended by the
Treaty on European Union, or otherwise participates in European economic and
monetary union in a manner with an effect similar to such third stage.
Any such modification shall be binding on the Holders of the Sterling
Notes and, unless the Note Trustee agrees otherwise, any such modification
shall be notified to such Noteholders in accordance with Condition 14 as soon
as practicable thereafter.
(F) Exercise of Note Trustee's Functions
Where the Note Trustee is required, in connection with the exercise of
its powers, trusts, authorities, duties and discretions, to have regard to the
interests of the Noteholders of one class, it shall have regard to the
interests of such Noteholders as a class and, in particular but without
prejudice to the generality of the foregoing, the Note Trustee shall not have
regard to, or be in any way liable for, the consequences of such exercise for
individual Noteholders resulting from their being for any purpose domiciled or
resident in, or otherwise connected with, or subject to the jurisdiction of,
any particular territory. In connection with any such exercise, the Note
Trustee shall not be entitled to require, and no Noteholder shall be entitled
to claim, from the Current Issuer or any other person, any indemnification or
payment in respect of any tax consequence of any such exercise upon individual
Noteholders.
12. Indemnification of the Note Trustee
The Current Issuer Trust Deed and the Current Issuer Deed of Charge
contain provisions governing the responsibility (and relief from
responsibility) of the Note Trustee and providing for its indemnification in
certain circumstances, including, among others, provisions relieving it from
taking enforcement proceedings or enforcing the Current Issuer Security unless
indemnified to its satisfaction. The Note Trustee is also entitled to be paid
its costs and expenses in priority to any interest payments to Noteholders.
The Note Trustee and its related companies are entitled to enter into
business transactions with the Current Issuer, the Current Issuer Cash
Manager, Northern Rock plc and/or the related companies of any of them and to
act as note trustee for the Holders of any new Notes and/or any other person
who is a party to any Transaction Document or whose obligations are comprised
in the Current Issuer Security and/or any of its subsidiary or associated
companies without accounting for any profit resulting therefrom.
The Note Trustee will not be responsible for any loss, expense or
liability which may be suffered as a result of any assets comprised in the
Current Issuer Security, or any deeds or documents of title thereto, being
uninsured or inadequately insured or being held by clearing organisations or
their operators or by intermediaries such as banks, brokers or other similar
persons on behalf of the Note Trustee.
Furthermore, the Note Trustee will be relieved of liability for making
searches or other inquiries in relation to the assets comprising the Current
Issuer Security. The Note Trustee does
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not have any responsibility in relation to the legality and the enforceability
of the trust arrangements and the related Current Issuer Security. The Note
Trustee will not be obliged to take any action which might result in its
incurring personal liabilities. The Note Trustee is not obliged to monitor or
investigate the performance of any other person under the Current Issuer
related documents or the documents relating to the Current Issuer Intercompany
Loan and the Mortgages Trust and is entitled to assume, until it has actual
knowledge to the contrary, that all such persons are properly performing their
duties, unless it receives express notice to the contrary.
The Note Trustee will not be responsible for any deficiency which may
arise because it is liable to tax in respect of the proceeds of any Current
Issuer Security.
Similar provisions in respect of the indemnification of the Security
Trustee are set out in the Transaction Documents.
13. Replacement of Notes
If Individual Note Certificates are lost, stolen, mutilated, defaced or
destroyed, the Noteholder can replace them at the Specified Office of any
Paying Agent. The Noteholder will be required both to pay the expenses of
producing a replacement and to comply with the Current Issuer's, the
Registrar's and the Paying Agent's reasonable requests for evidence and
indemnity. The Noteholder must surrender any defaced or mutilated Note
Certificates before replacements will be issued.
If a Global Note Certificate is lost, stolen, mutilated, defaced or
destroyed, the Current Issuer will deliver a replacement Global Note
Certificate to the registered holder upon satisfactory evidence and surrender
of any defaced or mutilated Global Note Certificate. A replacement will only
be made upon payment of the expenses for a replacement and compliance with the
Current Issuer's, Registrar's and Paying Agents' reasonable requests as to
evidence and indemnity.
14. Notice to Noteholders
(A) Publication of Notice
Notices to Noteholders will be sent to them by first class mail (or its
equivalent) or (if posted to a non-UK address) by airmail at the respective
addresses on the Register. Any such notice shall have been deemed to have been
given on the fourth day after the date of mailing. In addition, any notice
shall be validly given if published on the date of such mailing in The
Financial Times and, for so long as amounts are outstanding on the Dollar
Notes, in a daily newspaper of general circulation in New York (which is
expected to be The New York Times) or, if such publication is not practicable,
in a leading English language daily newspaper having general circulation in
the United States; provided that if, at any time, the Current Issuer procures
that the information concerned in such notice shall appear on a page of the
Reuters screen, or any other medium for electronic display of data as may be
previously approved in writing by the Note Trustee and notified to Noteholders
(in each case a "Relevant Screen"), publication in the newspapers set out
above or such other newspaper or newspapers shall not be required with respect
to such information, provided however, that in the case that any Notes are
listed on the Official List of the UK Listing Authority and admitted to
trading by the London Stock Exchange, notices of Noteholder Meetings shall
continue to be published as set forth above. Any such notice shall be deemed
to have been given on the date of such publication or, if published more than
once or on different dates, on the first date on which publication shall have
been made in the newspaper or newspapers in which (or on the Relevant Screen
on which) publication is required.
(B) Note Trustee's Discretion to Select Alternative Method
The Note Trustee shall be at liberty to sanction some other method of
giving notice to the Noteholders or any class or category of them if, in its
opinion, such other method is reasonable having regard to market practice then
prevailing and to the requirements of the stock exchanges on which the Notes
are then listed and provided that notice of such other method is given to the
Noteholders in such manner as the Note Trustee shall require.
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15. Governing Law and Jurisdiction
The Transaction Documents (other than the Current Issuer Underwriting
Agreement) and the Notes are governed by, and shall be construed in accordance
with, English law, except for those provisions in which security is taken over
property situated in Jersey, to which Jersey law shall apply. The courts of
England are to have non-exclusive jurisdiction to settle any disputes which
may arise out of or in connection with the Notes and the Transaction Documents
(other than the Current Issuer Underwriting Agreement). The Current Issuer and
the other parties to the Transaction Documents (other than the Current Issuer
Underwriting Agreement) irrevocably submit to the non-exclusive jurisdiction
of the courts of England.
16. Contracts (Rights of Third Parties) Act 1999
No person shall have any right to enforce any term or condition of the
Notes under the Contracts (Rights of Third Parties) ▇▇▇ ▇▇▇▇, but this shall
not affect any right or remedy of a third party which exists or is available
apart from that Act.
17. Definitions
Unless otherwise defined in these Conditions or unless the context
otherwise requires, in these Conditions the following words shall have the
following meanings and any other capitalised terms used in these Conditions
shall have the meanings ascribed to them or incorporated in the Current Issuer
Trust Deed or the Current Issuer Master Definitions Schedule. The provisions
of Clause 2 (Interpretation and Construction) of the Current Issuer Master
Definitions Schedule are incorporated into and shall apply to these
Conditions.
For the purposes of these Conditions the following expressions shall have
the following meanings:
"Additional Interest" has the meaning indicated in Condition 4(B);
"Agents" means the Paying Agents, the Transfer Agent, the Registrar and
the Agent Bank;
"Agent Bank" means Citibank, N.A. in its capacity as agent bank at its
Specified Office or such other person for the time being acting as agent bank
under the Current Issuer Paying Agent and Agent Bank Agreement;
"Asset Trigger Event" means the event that occurs when there is a
positive balance on the Class A Principal Deficiency Sub-Ledger in respect of
any Issuer;
"Authorised Holding" means, in respect of the US Global Note
Certificates, $1,000 and integral multiples in excess thereof, and in respect
of the Reg S Global Note Certificates, (euro)1,000 and integral multiples in
excess thereof (in respect of the Euro Notes) and (pound)1,000 and integral
multiples in excess thereof (in respect of the Sterling Notes);
"Authorised Investments" means (i) Sterling gilt-edged investments and
(ii) Sterling demand or time deposits, certificates of deposit and short-term
debt obligations (including commercial paper) (which may include deposits in
any account which earns a rate of interest related to LIBOR) provided that in
all cases such investments have a maturity date of 90 days or less and mature
on or before the next following Payment Date and the short-term unsecured,
unguaranteed and unsubordinated debt obligations of the issuing or
guaranteeing entity or entity with which the demand or time deposits are made
(being an authorised institution under the Financial Services and Markets Act
2000) are rated at least equal to A-l + by Standard Poor's, F1 + by Fitch and
P-1 by ▇▇▇▇▇'▇ or which are otherwise acceptable to the Rating Agencies (if
they are notified in advance) to maintain the then-current ratings of the
Notes;
"Basic Terms Modification" has the meaning indicated in Condition 11 (A);
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"Business Day" means a day which is a New York Business Day, a London
Business Day and a TARGET Business Day;
"Cash Management Agreement" means the cash management agreement dated the
Initial Closing Date, among the Cash Manager, the Mortgages Trustee, Funding
and the Security Trustee, as described further in "Cash management for the
mortgages trustee and Funding" in the Prospectus;
"Cash Manager" means Northern Rock or such other person or persons for
the time being acting, under the cash management agreement, as agent for the
Mortgages Trustee, Funding and (following enforcement of the Funding security)
the Security Trustee for the purposes of, inter alia, managing all cash
transactions and maintaining certain ledgers on behalf of the Mortgages
Trustee, Funding and (following enforcement of the Funding security) the
Security Trustee;
"Class" or "class" means, in relation to the Notes or the Noteholders, a
class of any of the Series 1 Notes, the Series 2 Notes or the Series 3 Notes,
as the context requires;
"Class A Note Enforcement Notice" has the meaning indicated in Condition
9(A); "Class A Noteholders" means the Holders of the Class A Notes;
"Class A Notes" means the Series 1 Class A1 Notes, the Series 1 Class A2
Notes, the Series 1 Class A3 Notes, the Series 2 Class A Notes and the Series
3 Class A Notes;
"Class B Note Enforcement Notice" has the meaning indicated in Condition
9(B); "Class B Noteholders" means the Holders of the Class B Notes;
"Class B Notes" means the Series 1 Class B Notes, the Series 2 Class B
Notes and the Series 3 Class B Notes;
"Class C Note Enforcement Notice" has the meaning indicated in Condition
9(C); "Class C Noteholders" means the Holders of the Class C Notes;
"Class C Notes" means the Series 1 Class C Notes, the Series 2 Class C
Notes and the Series 3 Class C Notes;
"Clearstream, Luxembourg" means Clearstream Banking, societe anonyme;
"Closing Date" means on or about 27 January 2003;
"Commercial Business Day" has the meaning indicated in Condition 1(D);
"Controlled Amortisation Amount" means on any Payment Date before the
occurrence of a Trigger Event for any Note or class of Notes issued by the
Current Issuer which is a Controlled Amortisation Note or class of such Notes,
the maximum aggregate principal amount which may be repaid by the Current
Issuer to the relevant Noteholder or Noteholders of such class on that Payment
Date in accordance with the Conditions and the Current Issuer Cash Management
Agreement;
"Controlled Amortisation Note" means any Note where, before the
occurrence of a Trigger Event, the conditions of such Note impose a limit on
the amount of principal which may be repaid by the Current Issuer to the
relevant Noteholder for that Note on any Payment Date. All of the Notes issued
by the Current Issuer are Controlled Amortisation Notes;
"Current Issuer" means Granite Mortgages 03-1 plc;
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"Current Issuer Account Bank" means Citibank, N.A., situated at ▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇. Citibank, N.A. or such other person for the
time being acting as account bank to the Current Issuer under the Current
Issuer Bank Account Agreement;
"Current Issuer Available Principal Receipts" means:
(a) prior to enforcement of the Current Issuer Security, for the Current
Issuer in respect of any Payment Date the sum calculated by the Current
Issuer Cash Manager on the Distribution Date immediately preceding such
Payment Date equal to the sum of:
(i) all principal amounts repaid by Funding to the Current Issuer
under the Current Issuer Intercompany Loan during the period from
(but excluding) the immediately preceding Payment Date to (and
including) that Payment Date; and
(ii) all Current Issuer Available Revenue Receipts which are to be used
on that Payment Date to credit any Current Issuer Principal
Deficiency Ledger for any class of Notes issued by the Current
Issuer;
less
(iii) the aggregate amount of all Current Issuer Available Principal
Receipts to be applied on the relevant Payment Date to pay items
(A) through (E), (G) and/or (I) of the Current Issuer
Pre-Enforcement Revenue Priority of Payments; and
(b) following enforcement of the Current Issuer Security, for the Current
Issuer in respect of any Payment Date the sum calculated by or on behalf
of the Note Trustee on the Distribution Date immediately preceding such
Payment Date as the amount to be repaid by Funding to the Current Issuer
under the Current Issuer Intercompany Loan during the relevant Interest
Period and/or the sum otherwise recovered by the Note Trustee (or the
receiver appointed on its behalf) representing the Principal Amount
Outstanding of the Notes;
"Current Issuer Available Revenue Receipts" means on any Payment Date the
sum of:
(a) interest, fees and any other amount (excluding principal) paid by Funding
on the relevant Payment Date under the terms of the Current Issuer
Intercompany Loan Agreement;
(b) amounts received by the Current Issuer under or in accordance with the
Current Issuer Basis Rate Swap Agreement (excluding Swap Collateral
Excluded Amounts) and any early termination amounts (other than such
early termination amounts applied or to be applied by the Current Issuer
in the purchase of one or more replacement hedge transactions) received
by the Current Issuer under the Current Issuer Swap Agreements;
(c) interest payable on the Current Issuer Bank Accounts and any income from
Authorised Investments made with funds standing to the credit of the
Current Issuer Bank Accounts in each case which has been or will be
received on or before the relevant Payment Date; and
(d) (only to the extent required after the Current Issuer Cash Manager has
made the relevant calculations set out in the Current Issuer Cash
Management Agreement) the amount of Current Issuer Available Principal
Receipts (if any) which are to be applied on the relevant Payment Date to
pay items (A) through (E), (G) and/or (I) of the Current Issuer
Pre-Enforcement Revenue Priority of Payments;
"Current Issuer Bank Accounts" means the Current Issuer Transaction
Accounts and also includes any additional or replacement bank account opened
in the name of the Current
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Issuer from time to time with the prior written consent of the Note Trustee
and the Rating Agencies;
"Current Issuer Bank Account Agreement" means the bank account agreement
entered into on or about the Closing Date between the Current Issuer, the
Current Issuer Cash Manager, the Current Issuer Account Bank and the Note
Trustee;
"Current Issuer Basis Rate Swap Agreement" means the ISDA master
agreement, schedule and confirmation thereto entered into on or about the
Closing Date and any credit support annex entered into at any time between the
Current Issuer, the Basis Rate Swap Provider and the Note Trustee, and
includes any additional and/or replacement Basis Rate Swap Agreement entered
into by the Current Issuer from time to time in connection with the Notes;
"Current Issuer Basis Rate Swap Provider" means Northern Rock plc or such
other basis rate swap provider appointed from time to time in accordance with
the terms of the Transaction Documents;
"Current Issuer Cash Management Agreement" means the cash management
agreement entered into on or about the Closing Date among the Current Issuer
Cash Manager, the Current Issuer and the Note Trustee;
"Current Issuer Corporate Services Agreement" means the corporate
services agreement entered into on or before the Closing Date between, among
others, the Current Issuer Corporate Services Provider, Holdings, the Post
Enforcement Call Option Holder and the Current Issuer, for the provision by
the Current Issuer Corporate Services Provider of certain corporate services;
"Current Issuer Corporate Services Provider" means Law Debenture
Corporate Services Limited or such other person for the time being acting as
corporate services provider to the Current Issuer under the Current Issuer
Corporate Services Agreement;
"Current Issuer Deed of Charge" means the deed of charge entered into on
or about the Closing Date between, among others, the Current Issuer and the
Note Trustee, under which the Current Issuer creates the Current Issuer
Security in favour of the Current Issuer Secured Creditors;
"Current Issuer Dollar Currency Swap Agreements" means the ISDA master
agreements, schedules and confirmations relating to the dollar currency swaps
entered into on the Closing Date and any credit support annexes entered into
at any time among the Current Issuer, the Dollar Currency Swap Provider and
the Note Trustee and includes any additional and/or replacement Dollar
Currency Swap Agreement entered into by the Current Issuer from time to time
in connection with the Notes;
"Current Issuer Dollar Currency Swap Provider" means CDC IXIS Capital
Markets or, as applicable, such other dollar currency swap provider appointed
from time to time in relation to the Dollar Notes (or any class of them, as
the context shall require), in accordance with the terms of the Transaction
Documents;
"Current Issuer Dollar Currency Swap Rate" means the rate at which
Dollars are converted to Sterling or, as the case may be, Sterling is
converted to Dollars pursuant to, as applicable, to any Current Issuer Dollar
Currency Swap Agreement, or, if there is no relevant Current Issuer Dollar
Currency Swap Agreement in effect at such time, the "spot" rate at which
Dollars are converted to Sterling or, as the case may be, Sterling is
converted to Dollars, on the foreign exchange markets;
"Current Issuer Euro Currency Swap Agreements" means the ISDA master
agreements, schedules and confirmations relating to the Euro currency swaps
entered into on
119
the Closing Date and any credit support annexes entered into at any time among
the Current Issuer, the Euro Currency Swap Provider and the Note Trustee and
includes any additional and/or replacement Euro Currency Swap Agreement
entered into by the Current Issuer from time to time in connection with the
Notes;
"Current Issuer Euro Currency Swap Provider" means Citibank, N.A. or, as
applicable, such other euro currency swap provider appointed from time to time
in relation to the Euro Notes (or any class of them, as the context shall
require), in accordance with the terms of the Transaction Documents;
"Current Issuer Euro Currency Swap Rate" means the rate at which Euro are
converted to Sterling or, as the case may be, Sterling is converted to Euro
pursuant to, as applicable, to any Current Issuer Euro Currency Swap
Agreement, or, if there is no relevant Current Issuer Euro Currency Swap
Agreement in effect at such time, the "spot" rate at which Euro are converted
to Sterling or, as the case may be, Sterling is converted to Euro, on the
foreign exchange markets;
"Current Issuer Intercompany Loan" means the loan made by the Current
Issuer to Funding on the Closing Date under the Current Issuer Intercompany
Loan Agreement;
"Current Issuer Intercompany Loan Agreement" means the intercompany loan
agreement entered into on or about the Closing Date between, among others,
Funding, the Current Issuer and the Security Trustee;
"Current Issuer Master Definitions Schedule" means the master definitions
schedule in connection with the Current Issuer dated on or about the Closing
Date setting out, among other things, definitions which apply to certain
Transaction Documents;
"Current Issuer Paying Agent and Agent Bank Agreement" means the paying
agent and agent bank agreement entered into on or about the Closing Date
between the Current Issuer, the Principal Paying Agent, the Paying Agents, the
Transfer Agent, the Registrar, the Agent Bank and the Note Trustee;
"Current Issuer Post Enforcement Call Option Agreement" means the post
enforcement call option agreement entered into on or about the Closing Date
between the Current Issuer the Post Enforcement Call Option Holder and the
Note Trustee;
"Current Issuer Post-Enforcement Priority of Payments" means the
provisions and the order of priority of payments in which all Current Issuer
Available Revenue Receipts, Current Issuer Available Principal Receipts and
all other monies, income, receipts and recoveries received by or on behalf of
the Current Issuer or the Note Trustee or any receiver of the Current Issuer
and the proceeds of enforcement of the Current Issuer Security are to be
applied following an enforcement of the Current Issuer Security as set out in
a schedule to the Current Issuer Deed of Charge, as the same may be amended,
varied or superseded from time to time in accordance with the terms of the
Current Issuer Deed of Charge;
"Current Issuer Pre-Enforcement Principal Priority of Payments" means the
provisions and the order of priority of payments in which the Current Issuer
Available Principal Receipts will be applied until enforcement of the Current
Issuer Security as set out in a schedule to the Current Issuer Cash Management
Agreement;
"Current Issuer Pre-Enforcement Revenue Priority of Payments" means the
provisions and the order of priority of payments in which the Current Issuer
Available Revenue Receipts will be applied until enforcement of the Current
Issuer Security and as set out in a schedule to the Current Issuer Cash
Management Agreement;
120
"Current Issuer Priority of Payments" means the relevant Current Issuer
Pre-Enforcement Revenue Priority of Payments, the Current Issuer
Pre-Enforcement Principal Priority of Payments and the Current Issuer
Post-Enforcement Priority of Payments;
"Current Issuer Reserve Fund" means the reserve fund established in the
name of Funding in respect of the Current Issuer on the Closing Date in an
amount up to (pound)21,000,000;
"Current Issuer Secured Creditors" means the Note Trustee (and any
receiver appointed under the Current Issuer Deed of Charge), the Swap
Providers, the Current Issuer Corporate Services Provider, the Current Issuer
Account Bank, the Current Issuer Cash Manager, the Paying Agents, the Agent
Bank, the Transfer Agent, the Registrar and the Noteholders;
"Current Issuer Security" means the security created by the Current
Issuer pursuant to the Current Issuer Deed of Charge;
"Current Issuer Subscription Agreement" means the subscription agreement
relating to the sale of the Euro Notes and the Sterling Notes, entered into on
or about 23 January 2003, between, among others, the Current Issuer, Funding,
the Mortgages Trustee, Salomon Brothers International Limited and ▇▇▇▇▇▇▇
▇▇▇▇▇ International;
"Current Issuer Swap Agreements" means the Current Issuer Dollar Currency
Swap Agreements, the Current Issuer Euro Currency Swap Agreements and the
Current Issuer Basis Rate Swap Agreement;
"Current Issuer Transaction Accounts" means the day to day bank accounts
of the Current Issuer, held with the Current Issuer Account Bank and
comprising the Current Issuer dollar account, the Current Issuer sterling
account and the Current Issuer euro account as at the Closing Date or that may
be opened, with the prior approval of the Note Trustee, after the Closing
Date;
"Current Issuer Trust Deed" means the trust deed entered into on or about
the Closing Date between the Current Issuer and the Note Trustee, among other
things, constituting the Notes;
"Current Issuer Underwriting Agreement" means the underwriting agreement
relating to the sale of the Dollar Notes, entered into on or about 23 January
2003 between, among others, the Current Issuer, Funding, the Mortgages
Trustee, ▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc. and ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇
Incorporated. The governing law and jurisdiction of the Current Issuer
Underwriting Agreement is the State of New York;
"Deferred Interest" has the meaning indicated in Condition 4(B);
"Distribution Date" means the London Business Day determined by the Cash
Manager falling no later than 6 business days after each Trust Determination
Date;
"Dollar Interest Determination Date" means (a) in relation to the Dollar
Notes (other than the Series 1 Class A3 Notes) and any Interest Period for
which the applicable Rate of Interest shall apply, two London Business Days
before the first day of such Interest Period and (b) in relation to the Series
1 Class A3 Notes, two London Business Days before the first day of the
immediately succeeding Interest Period;
"Dollar Notes" means the Series 1 Notes;
"Dollars", "US$", "US Dollars" or "$" means the lawful currency for the
time being of the United States of America;
121
"Euro", "euro" or "(euro)" means the currency of the Member States of the
European Union that adopt the single currency in accordance with the Treaty of
Rome of 25 March 1957, establishing the European Community, as amended from
time to time;
"Euro Interest Determination Date" for the Euro Notes and any Interest
Period for which the applicable Rate of Interest shall apply means two TARGET
Business Days before the first day of such Interest Period;
"Euro Notes" means the Series 2 Notes;
"Euroclear" means Euroclear Bank S.A./N.V., as operator of the Euroclear
System;
"Eurozone" means the region comprised of the member states of the
European Union that adopt the single currency in accordance with the Treaty
establishing the European Community (signed in Rome on 25th March 1957), as
amended by the Treaty on European Union (signed in Maastricht on 7th February
1992);
"Extraordinary Resolution" means (a) a resolution passed at a meeting of
the Noteholders of a particular class duly convened and held in accordance
with the provisions of the Current Issuer Trust Deed by a majority consisting
of not less than three-fourths of the persons voting thereat upon a show of
hands or if a poll is duly demanded by a majority consisting of not less than
three-fourths of the votes cast on such poll or (b) a resolution in writing
signed by or on behalf of all the Noteholders of a particular class, which
resolution in writing may be contained in one document or in several documents
in like form each signed by or on behalf of one or more of the Noteholders;
"Final Maturity Date" means:
(i) in respect of the Series 1 Class A1 Notes, the Payment Date
falling in January 2004;
(ii) in respect of the Series 1 Class A2 Notes, the Payment Date
falling in January 2020;
(iii) in respect of the Series 1 Class A3 Notes, the Payment Date
falling in January 2020;
(iv) in respect of the Series 2 Class A Notes, the Payment Date
falling in January 2043;
(v) in respect of the Series 3 Class A Notes, the Payment Date
falling in January 2043;
(vi) in respect of the Series 1 Class B Notes, the Payment Date
falling in January 2043;
(vii) in respect of the Series 2 Class B Notes, the Payment Date
falling in January 2043;
(viii) in respect of the Series 3 Class B Notes, the Payment Date
falling in January 2043;
(ix) in respect of the Series 1 Class C Notes, the Payment Date
falling in January 2043;
(x) in respect of the Series 2 Class C Notes, the Payment Date
falling in January 2043; and
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(xi) in respect of the Series 3 Class C Notes, the Payment Date
falling in January 2043.
"Funding" means Granite Finance Funding Limited;
"Funding Deed of Charge" means the deed of charge dated the Initial
Closing Date between, among others, Funding, the Security Trustee, the First
Issuer and the Note Trustee and each deed of accession entered into in
connection therewith;
"Funding Security" means the mortgages, charges, assignments, pledges and
other security created by Funding under or pursuant to the Funding Deed of
Charge in favour of the Security Trustee for the benefit of the secured
creditors of Funding as described under the Funding Deed of Charge;
"Global Note Certificates" means the US Global Note Certificates and the
Reg S Global Note Certificates;
"Holder" has the meaning indicated in Condition 1(B);
"Individual Note Certificates" means the note certificates representing
the Notes while in definitive form;
"Initial Relevant Screen Rate" means:
(i) in respect of the Series 1 Class A1 Notes, the arithmetic mean of
the offered quotations to leading banks for one month dollar
deposits in the London inter-bank market displayed on the
▇▇▇-▇▇▇▇▇/Telerate Monitor at Telerate Page No. 3750;
(ii) in respect of the Series 1 Class A2 Notes, the Series 1 Class B
Notes and the Series 1 Class C Notes, the linear interpolation of
the arithmetic mean of the offered quotations to leading banks
for two month Dollar deposits and the arithmetic mean of the
offered quotations to leading banks for three month Dollar
deposits (rounded upwards, if necessary, to five decimal places),
displayed on the ▇▇▇-▇▇▇▇▇ Telerate Monitor at Telerate Page No.
3750;
(iii) in respect of the Euro Notes, the linear interpolation of the
arithmetic mean of the offered quotations to leading banks for
two month Euro deposits and the arithmetic mean of the offered
quotations to leading banks for three month Euro deposits
(rounded upwards, if necessary, to five decimal places),
displayed on the ▇▇▇-▇▇▇▇▇ Telerate Monitor at Telerate Page No.
248; or
(iv) in respect of the Sterling Notes, the linear interpolation of the
arithmetic mean of the offered quotations to leading banks for
two month Sterling deposits and the arithmetic mean of the
offered quotations to leading banks for three month Sterling
deposits (rounded upwards, if necessary, to five decimal places),
displayed on the ▇▇▇-▇▇▇▇▇ Telerate Monitor at Telerate Page No.
3750;
"Interest Amount" has the meaning indicated in Condition 4(D)(ii);
"Interest Determination Date" means (a) in respect of each Class of
Dollar Notes, the Dollar Interest Determination Date, (b) in respect of each
Class of Euro Notes, the Euro Interest Determination Date, and (c) in respect
of each Class of Sterling Notes, the Sterling Interest Determination Date;
"Interest Payment Date" means (a) in relation to each of the Notes (other
than the Series 1 Class A1 Notes), the 20th day of January, April, July and
October in each year (or, if
123
such day is not a Business Day, the next succeeding Business Day), the first
Interest Payment Date in relation to the Notes (other than the Series 1 Class
A1 Notes) being the Interest Payment Date occurring in April 2003 in respect
of the Interest Period commencing on the Closing Date, and (b) in relation to
the Series 1 Class A1 Notes, the 20th day of each consecutive month in each
year (or, if such day is not a Business Day, the next succeeding Business
Day), up to and including the earliest of (i) the Interest Payment Date in
January 2004, (ii) the occurrence of a Trigger Event or (iii) enforcement of
the Current Issuer Security, and thereafter the 20th day of January, April,
July and October in each year (or, if such day is not a Business day, the next
succeeding Business Day), the first Interest Payment Date in relation to the
Series 1 Class A1 Notes being the Interest Payment Date occurring in February
2003 in respect of the Interest Period commencing on the Closing Date;
"Interest Period" means, in relation to each of the Notes and any
Interest Payment Date, the period from (and including) the immediately
preceding Interest Payment Date for such Note (or in respect of the first
Interest Period, the Closing Date) to (but excluding) the next following (or
first) Interest Payment Date for such Note;
"London Business Day" means a day (other than a Saturday or Sunday or
public holiday) on which banks are generally open for business in London;
"London Stock Exchange" means the London Stock Exchange plc;
"Mortgages Trust" means the trust of the trust property held by the
Mortgages Trustee under the Mortgages Trust Deed;
"New York Business Day" means a day (other than a Saturday or a Sunday)
on which banks are generally open in the city of New York;
"Non-Asset Trigger Event" means any of the following events: (a) an
Insolvency Event occurs in relation to the Seller, or (b) the role of the
Seller as Administrator under the Administration Agreement is terminated and a
new Administrator is not appointed within 60 days, or (c) the Current Seller
Share is equal to or less than the Minimum Seller Share;
"Note Certificates" means any Global Note Certificates or Individual Note
Certificates;
"Note Determination Date" means the Distribution Date immediately
preceding each Payment Date;
"Note Enforcement Notice" means any or all of a Class A Note Enforcement
Notice, a Class B Note Enforcement Notice and a Class C Note Enforcement
Notice;
"Note Interest Amount" has the meaning indicated in Condition 4(D)(ii);
"Note Principal Payment" has the meaning indicated in Condition 5(C);
"Note Trustee" means The Bank of New York and its successors or any
further or other note trustee under the Current Issuer Trust Deed, as trustee
for the Noteholders, and/or the Current Issuer Deed of Charge;
"Noteholders" means the Holders for the time being of the Notes;
"Notes" means the Class A Notes, the Class B Notes and the Class C Notes;
"Paying Agents" means the Principal Paying Agent and the US Paying Agent,
together with any further or other paying agents for the time being appointed
under the Current Issuer Paying Agent and Agent Bank Agreement;
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"Payment Business Day" means a day which is (i) a New York Business Day,
(ii) a London Business Day and (iii) a TARGET Business Day and, in the case of
surrender (or, in the case of part payment only, endorsement) of a Note
Certificate under Condition 6(E), means any day on which banks are open for
business in the place in which such Note Certificate is surrendered (or, as
the case may be, endorsed);
"Payment Date" means the 20th day of January, April, July and October in
each year (or, if such day is not a Business Day, the next succeeding Business
Day), the first Payment Date being the Payment Date occurring in April 2003;
"Pool Factor" has the meaning indicated in Condition 5(C);
"Post Enforcement Call Option Holder" means GPCH Limited;
"Principal Amount Outstanding" has the meaning indicated in Condition
5(C);
"Principal Paying Agent" means Citibank, N.A. in its capacity as
principal paying agent at its Specified Office or such other person for the
time being acting as principal paying agent under the Current Issuer Paying
Agent and Agent Bank Agreement;
"Quotation Deposits" means (a) in respect of each Class of Dollar Notes,
Dollar deposits of $10,000,000, (b) in respect of each Class of Euro Notes,
Euro deposits of (euro)10,000,000, and (c) in respect of each Class of
Sterling Notes, Sterling deposits of (pound)10,000,000;
"Quotation Market" means (a) in respect of each Class of Euro Notes, the
Eurozone inter-bank market, and (b) in respect of each other Class of Notes
(other than the Series 1 Class A3 Notes), the London inter-bank market;
"Quotation Period" means (a) on the initial Interest Determination Date
relating to a Class of Notes, three months and four months, and (b) on each
other Interest Determination Date relating to such Class, three months;
"Quotation Time" means (a) in respect of each Class of Euro Notes, 11.00
a.m. Brussels time on the relevant Interest Determination Date relating to
such Class, and (b) in respect of each other Class of Notes (other than the
series 1 Class A3 Notes), 11.00 a.m. London time on the relevant Interest
Determination Date relating to such Class;
"Rate of Interest" and "Rates of Interest" have the meanings indicated in
Condition 4(C);
"Rating Agencies" means Standard & Poor's Ratings Services, a division of
the ▇▇▇▇▇▇-▇▇▇▇ Companies Inc., ▇▇▇▇▇'▇ Investors Service Limited and Fitch
Ratings Ltd.;
"Reference Banks" means the principal London offices of Citibank, N.A.,
ABN AMRO Bank N.V., Barclays Bank plc and JPMorgan Chase Bank and their
successors and/or such other bank as may be appointed pursuant to Condition
4(H);
"Reg S" means Regulation S under the United States Securities Act of
1933, as amended;
"Reg S Global Note Certificates" means the note certificates representing
the Series 2 Notes and the Series 3 Notes while in global form;
"Register" means the register of Noteholders kept by the Registrar and
which records the identity of each Noteholder and the number of Notes that
each Noteholder owns;
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"Registrar" means Citibank, N.A. in its capacity as registrar at its
Specified Office or such other person for the time being acting as registrar
under the Current Issuer Paying Agent and Agent Bank Agreement;
"Relevant Margin" means:
(i) in respect of the Series 1 Class A1 Notes, (0.01) per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 0.00 per cent. per annum;
(ii) in respect of the Series 1 Class A2 Notes, 0.19 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 0.38 per cent. per annum;
(iii) in respect of the Series 1 Class A3 Notes, 0.40 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 0.80 per cent. per annum;
(iv) in respect of the Series 1 Class B Notes, 0.43 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 0.86 per cent. per annum;
(v) in respect of the Series 1 Class C Notes, 1.45 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 2.45 per cent. per annum;
(vi) in respect of the Series 2 Class A Notes, 0.24 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 0.48 per cent. per annum;
(vii) in respect of the Series 2 Class B Notes, 0.43 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 0.86 per cent. per annum;
(viii) in respect of the Series 2 Class C Notes, 1.45 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 2.45 per cent. per annum;
(ix) in respect of the Series 3 Class A Notes, 0.24 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 0.48 per cent. per annum;
(x) in respect of the Series 3 Class B Notes, 0.43 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 0.86 per cent. per annum; and
(xi) in respect of the Series 3 Class C Notes, 1.45 per cent. per
annum up to and including the Interest Payment Date in April 2008
and thereafter 2.45 per cent. per annum;
"Relevant Screen Rate" means
(i) in respect of the first Interest Period, the Initial Relevant
Screen Rate; and
(ii) (1) in respect of subsequent Interest Periods in respect of the
Series 1 Class A1 Notes, the arithmetic mean of the offered
quotations to leading banks for one month Dollar deposits in
the London inter-bank market displayed
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on the ▇▇▇-▇▇▇▇▇/Telerate Monitor at Telerate Page No. 3750
up to and including the earliest of (i) the Interest Payment
Date in January 2004, (ii) the occurrence of a Trigger Event
or (iii) enforcement of the Current Issuer Security, and
thereafter the arithmetic mean of the offered quotations to
leading banks for three month Dollar deposits in the London
inter-bank market displayed on the ▇▇▇-▇▇▇▇▇/ Telerate
Monitor at Telerate Page No. 3750;
(2) in respect of subsequent Interest Periods in respect of the
Series 1 Class A2 Notes, the Series 1 Class B Notes and the
Series 1 Class C Notes, the arithmetic mean of the offered
quotations to leading banks for three month Dollar deposits
in the London inter-bank market displayed on the ▇▇▇-▇▇▇▇▇/
Telerate Monitor at Telerate Page No. 3750;
(3) in respect of subsequent Interest Periods in respect of the
Euro Notes, the arithmetic mean of offered quotations for
three month Euro deposits in the Eurozone inter-bank market
displayed on the ▇▇▇-▇▇▇▇▇/Telerate Monitor at Telerate Page
No. 248; and
(4) in respect of subsequent Interest Periods in respect of the
Sterling Notes, the arithmetic mean of offered quotations
for three month Sterling deposits in the London inter-bank
market displayed on the ▇▇▇-▇▇▇▇▇/Telerate Monitor at
Telerate Page No. 3750;
in each case, displayed on the above-mentioned page of the
▇▇▇-▇▇▇▇▇/Telerate Monitor (or such replacement page on that service which
displays the information) or, if that service ceases to display the
information, such other screen service as may be determined by the Current
Issuer (with the approval of the Note Trustee, in its sole discretion)
(rounded upwards, if necessary, to five decimal places);
"Security Interest" means any mortgage or sub-mortgage, standard
security, charge or sub-charge (whether legal or equitable), encumbrance,
pledge, lien, hypothecation, assignment by way of security or other security
interest or title retention arrangement and any agreement, trust or
arrangement having substantially the same economic or financial effect as any
of the foregoing (other than a lien arising in the ordinary course of business
or by operation of law);
"Security Trustee" means The Bank of New York and its successors or any
other security trustee under the Funding Deed of Charge);
"Series" or "series" means, in relation to the Notes, the Series 1 Notes,
the Series 2 Notes or the Series 3 Notes, as the context requires;
"Series 1 Class A Notes" means the Series 1 Class A1 Notes, the Series 1
Class A2 Notes and the Series 1 Class A3 Notes;
"Series 1 Class A1 Notes" means the $925,000,000 Series 1 Class A1
floating rate notes due January 2004;
"Series 1 Class A2 Notes" means the $1,225,000,000 Series 1 Class A2
floating rate notes due January 2020;
"Series 1 Class A3 Notes" means the $300,000,000 Series 1 Class A3
floating rate notes due January 2020;
"Series 1 Class B Notes" means the $42,000,000 Series 1 Class B floating
rate notes due January 2043;
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"Series 1 Class C Notes" means the $56,000,000 Series 1 Class C floating
rate notes due January 2043;
"Series 1 Notes" means collectively the Series 1 Class A Notes, the
Series 1 Class B Notes and the Series 1 Class C Notes;
"Series 2 Class A Notes" means the(euro)900,000,000 Series 2 Class A
floating rate notes due January 2043;
"Series 2 Class B Notes" means the (euro)62,000,000 Series 2 Class B
floating rate notes due January 2043;
"Series 2 Class C Notes" means the (euro)94,500,000 Series 2 Class C
floating rate notes due January 2043;
"Series 2 Notes" means collectively the Series 2 Class A Notes, the
Series 2 Class B Notes and the Series 2 Class C Notes;
"Series 3 Class A Notes" means the (pound)665,000,000 Series 3 Class A
floating rate notes due January 2043;
"Series 3 Class B Notes" means the (pound)31,000,000 Series 3 Class B
floating rate notes due January 2043;
"Series 3 Class C Notes" means the (pound)41,000,000 Series 3 Class C
floating rate notes due January 2043;
"Series 3 Notes" means collectively the Series 3 Class A Notes, the
Series 3 Class B Notes and the Series 3 Class C Notes;
"Specified Date" has the meaning indicated in Condition 11(E);
"Specified Office" means, the context may require, in relation to any of
the Agents, the office specified against the name of such Agent in the Current
Issuer Paying Agent and Agent Bank Agreement or such other specified notice as
may be notified to the Current Issuer and the Note Trustee pursuant to the
Current Issuer Paying Agent and Agency Bank Agreement;
"Sterling", "Pounds Sterling" or "(pound)" means the lawful currency for
the time being of the United Kingdom of Great Britain and Northern Ireland;
"Sterling Notes" means the Series 3 Notes;
"Sterling Interest Determination Date" for the Sterling Notes and any
Interest Period for which the applicable Rate of Interest shall apply means
the first day of such Interest Period;
"Swap Collateral" means any asset (including, without limitation, cash
and/or securities) paid or transferred to the Current Issuer by a Swap
Provider in accordance with the terms of the relevant Current Issuer Swap
Agreement as collateral to secure the performance of that Swap Provider's
obligations under the relevant Current Issuer Swap Agreement together with any
income or distributions received in respect of such asset and any equivalent
of or replacement of such asset into which such asset is transformed;
"Swap Collateral Accounts" means the Swap Collateral Cash Account and the
Swap Collateral Securities Account;
"Swap Collateral Ancilliary Document" means any document (including,
without limitation, any custodial agreement or bank account agreement but
excluding the Current Issuer
128
Swap Agreements, the Current Issuer Cash Management Agreement and the Current
Issuer Deed of Charge) as may be entered into by the Current Issuer from time
to time in connection with the Swap Collateral;
"Swap Collateral Available Principal Amount" means, at any time, the
amount of Swap Collateral which under the terms of the relevant Current Issuer
Swap Agreement may be applied at that time in satisfaction of the relevant
Swap Provider's obligations to the Current Issuer to the extent that such
obligations relate to payments to be made in connection with the Current
Issuer Pre-Enforcement Principal Priority of Payments or Current Issuer
Post-Enforcement Priority of Payments, as the case may be;
"Swap Collateral Available Revenue Amount" means, at any time, the amount
of Swap Collateral which under the terms of the relevant Current Issuer Swap
Agreement may be applied at that time in satisfaction of the relevant Swap
Provider's obligations to the Current Issuer to the extent that such
obligations relate to payments to be made in connection with the Current
Issuer Pre-Enforcement Revenue Priority of Payments or Current Issuer
Post-Enforcement Priority of Payments, as the case may be;
"Swap Collateral Cash Account" means an account opened in the name of the
Current Issuer for the purpose of holding Swap Collateral in cash and
maintained in accordance with the terms of the Current Issuer Cash Management
Agreement;
"Swap Collateral Securities Account" means a securities account opened in
the name of the Current Issuer for the purpose of holding Swap Collateral in
the form of securities and maintained in accordance with the terms of the
Current Issuer Cash Management Agreement;
"Swap Providers" means each of the Current Issuer Basis Rate Swap
Provider, the Current Issuer Dollar Currency Swap Provider and the Current
Issuer Euro Currency Swap Provider, or any one of them as the context
requires;
"TARGET Business Day" means a day on which the Trans-European Automated
Real-time Gross settlement Express Transfer (TARGET) System is open;
"Transaction Documents" means the Current Issuer Corporate Services
Agreement, the Current Issuer Intercompany Loan Agreement, the Funding Deed of
Charge, the Current Issuer Bank Account Agreement, the Current Issuer Deed of
Charge, the Current Issuer Trust Deed, the Current Issuer Paying Agent and
Agent Bank Agreement, the Current Issuer Cash Management Agreement, the
Current Issuer Post-Enforcement Call Option Agreement, the Current Issuer
Dollar Currency Swap Agreement, the Current Issuer Euro Currency Swap
Agreement, the Current Issuer Basis Rate Swap Agreement, any Swap Collateral
Ancilliary Document, the Current Issuer Subscription Agreement, the Current
Issuer Underwriting Agreement, the Current Issuer Master Definitions Schedule
the Funding (Granite 03-1) Guaranteed Investment Contract, the Mortgages
Trustee Guaranteed Investment Contract, the Funding Guaranteed Investment
Contract and such other related documents which are referred to in the terms
of the above documents;
"Transfer Agent" means Citibank, N.A. in its capacity as transfer agent
at its Specified Office or such other person for the time being acting as
transfer agent under the Current Issuer Paying Agent and Agent Bank Agreement;
"Trigger Event" means an Asset Trigger Event or a Non-Asset Trigger
Event, as the case may be;
"Trust Determination Date" means the first day (or, if not a London
Business Day, the next succeeding London Business Day) of each calendar month;
129
"UK Listing Authority" means the United Kingdom Financial Services
Authority in its capacity as competent authority pursuant to Part VI of the
FSMA;
"US Global Note Certificates" means the note certificates representing
the Series 1 Notes while in global form; and
"US Paying Agent" means Citibank, N.A., acting in its capacity as US
paying agent through its New York office or such other person for the time
being acting as US paying agent under the Current Issuer Paying Agent and
Agent Bank Agreement.
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SCHEDULE 4
PROVISIONS FOR MEETINGS OF NOTEHOLDERS
1 (A) DEFINITIONS
As used in this Schedule the following expressions shall have the
following meanings unless the context otherwise requires:
"BASIC TERMS MODIFICATION" means any of the following matters,
namely:
(i) any reduction or cancellation of the amount payable or,
where applicable, any modification, except where such
modification is in the opinion of the Note Trustee bound to
result in an increase, of the method of calculating the
amount payable or any modification of the date of payment
or, where applicable, of the method of calculating the date
of payment in respect of any principal, premium or interest
in respect of the Current Issuer Notes;
(ii) any alteration in the priority in which payments are made to
Noteholders pursuant to any Current Issuer Priority of
Payments;
(iii) any alteration of the currency in which payments under the
Current Issuer Notes are to be made;
(iv) any alteration of the quorum or majority required to pass an
Extraordinary Resolution in respect of any such Basic Terms
Modification; and
(v) any alteration of this proviso or the proviso to paragraph 6
below;
"BLOCK VOTING INSTRUCTION" shall mean, in relation to any Meeting,
an English language document issued by the Registrar and dated in
which:
(a) it is certified that:
(i) certain specified Current Issuer Notes (each a
"BLOCKED NOTE") have been blocked in an account with a
clearing system and will not be released until the
conclusion of the Meeting and that the holder of each
Blocked Note or a duly authorised person on its behalf
has instructed the Registrar that the votes
attributable to such Blocked Note are to be cast in a
particular way on each resolution to be put to the
Meeting; or
(ii) each registered holder of such Current Issuer Notes or
a duly authorised person on its behalf has instructed
the Registrar that the vote(s) attributable to the
Current Issuer Note or Current Issuer Notes so held
(each a "RELEVANT NOTE") should be cast in a
particular way in relation to the resolution or
resolutions to be put to such Meeting or any adjourned
such Meeting;
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(iii) and in each case that, all such instructions are,
during the period commencing 48 hours prior to the
time for which such Meeting or any such adjourned
Meeting is convened and ending at the conclusion or
adjournment thereof, neither revocable nor capable of
amendment;
(b) the aggregate principal amount of the Blocked Notes and
Relevant Notes so held are listed distinguishing with regard
to each such resolution between those in respect of which
instructions have been given as aforesaid that the votes
attributable thereto should be cast in favour of the
resolution and those in respect of which instructions have
been so given that the votes attributable thereto should be
cast against the resolution; and
(c) one or more persons named in such document is or are
authorised and instructed by such Registrar to cast the
votes attributable to such Blocked Note and Relevant Notes
so listed in accordance with the instructions referred to in
(a) above as set out in such document;
"CHAIRMAN" means, in relation to any Meeting, the individual who
takes the chair in accordance with paragraph 4 (Chairman);
"EXTRAORDINARY RESOLUTION" means (a) a resolution passed at a
Meeting duly convened and held in accordance with the provisions
of this Schedule 4 by a majority consisting of not less than
three-fourths of the persons voting thereat upon a show of hands
or if a poll is duly demanded by a majority consisting of not less
than three-fourths of the votes cast on such poll or (b) a
resolution in writing signed by or on behalf of all the
Noteholders of a particular class which resolution may be
contained in one document or several documents in like form each
signed by or on behalf of one or more of the Noteholders;
"FORM OF PROXY" means, in relation to any Meeting, a document in
the English language available from the Registrar signed by a
Noteholder or, in the case of a corporation, executed under its
seal or signed on its behalf by a duly authorised officer of the
corporation and delivered to the Registrar not later than 48 hours
before the time fixed for such Meeting, appointing one or more
persons who is or are authorised and instructed to vote in respect
of the Current Issuer Notes held by such Noteholder;
"MEETING" shall mean a meeting of Noteholders (whether originally
convened or reviewed following an adjournment);
"PROXY" means, in relation to any Meeting, a person appointed to
vote under a Block Voting Instruction or a Form of Proxy other
than:
(a) any such person whose appointment has been revoked and in
relation to whom the Registrar has been notified in writing
of such revocation by the time which is 48 hours before the
time fixed for such Meeting; and
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(b) any such person appointed to vote at a Meeting which has
been adjourned for want of a quorum and who has not been re-
appointed to vote at a Meeting when it is resumed;
"CURRENT ISSUER NOTES" and "NOTEHOLDERS" shall mean:
(a) in connection with a Meeting of Senior Noteholders, Senior
Notes and Senior Noteholders, respectively;
(b) in connection with a Meeting of Mezzanine Noteholders,
Mezzanine Notes and Mezzanine Noteholders respectively; and
(c) in connection with a Meeting of Junior Noteholders, Junior
Notes and Junior Noteholders respectively;
"WRITTEN RESOLUTION" means a resolution in writing signed by or on
behalf of all holders of a class of Current Issuer Notes who for
the time being are entitled to receive notice of a Meeting in
accordance with the provisions of this Schedule, whether contained
in one document or several documents in the same form, each signed
by or on behalf of one or more such holders of the relevant class
of Current Issuer Notes;
"24 HOURS" means a period of 24 hours including all or part of a
day upon which banks are open for business in both the place where
the relevant Meeting is to be held and in each of the places where
the Paying Agents have their Specified Offices (disregarding for
this purpose the day upon which such Meeting is to be held) and
such period shall be extended by one period or, to the extent
necessary, more periods of 24 hours until there is included as
aforesaid all or part of a day upon which banks are open for
business in all of the places as aforesaid; and
"48 HOURS" means 2 consecutive periods of 24 hours.
(B) ISSUE OF BLOCK VOTING INSTRUCTIONS
The holder of a Current Issuer Note may require the Registrar to issue a
Block Voting Instruction by arranging (to the satisfaction of the
Registrar) for such Current Issuer Note to be blocked in an account with
a clearing system not later than 48 hours before the time fixed for the
relevant Meeting. The holder of a Current Issuer Note may require the
Registrar to issue a Block Voting Instruction by delivering to the
Registrar written instructions not later than 48 hours before the time
fixed for the relevant Meeting. Any holder of a Current Issuer Note may
obtain an uncompleted and unexecuted Form of Proxy from the Registrar. A
Block Voting Instruction and a Form of Proxy cannot be outstanding
simultaneously in respect of the same Current Issuer Note.
(C) REFERENCES TO BLOCKING/RELEASE OF CURRENT ISSUER NOTES
Where Current Issuer Notes are represented by Global Note Certificates or
are held in individual certificated form within a Clearing System)
references to blocking or release, of Current Issuer Notes shall be
construed in accordance with the usual practices (including blocking the
relevant account) of the relevant Clearing System.
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(D) ISSUE OF FORMS OF PROXY
(i) A holder of Current Issuer Notes may obtain an uncompleted and
unexecuted Form of Proxy from the Registrar.
(ii) Any holder of Current Issuer Notes which is a corporation may by
resolution of its directors or other governing body authorise any
person to act as its representative (a "REPRESENTATIVE") in
connection with any Meeting.
(iii) Any Proxy or Representative shall, so long as such appointment
remains in force, be deemed for all purposes in connection with
the relevant Meeting, to be the holder of the Current Issuer Notes
to which such appointment relates and the holder of the Current
Issuer Notes shall be deemed for such purposes not to be the
holder.
2. CONVENING OF MEETING
The Current Issuer or the Note Trustee may convene a Meeting at any time,
and the Note Trustee shall be obliged to do so subject to it being
indemnified to its satisfaction upon a request in writing of Noteholders
holding not less than one-tenth in principal amount of the outstanding
Current Issuer Notes of any class or classes entitled to vote and, if the
Current Issuer defaults for a period of seven days in convening such a
Meeting, the same may be convened by the Note Trustee or the
requisitionists. Every such Meeting shall be held on such date and at
such time and place as the Note Trustee may appoint or approve.
3. NOTICE
At least 21 days' notice (exclusive of the day on which the notice is
given and the day on which the Meeting is to be held) specifying the
place, day and hour of Meeting shall be given to the Noteholders or, as
the case may be the Noteholders of any class of Current Issuer Notes
entitled to vote, the Paying Agents, the Agent Bank and the Registrar
prior to any Meeting. Such notice, which shall be in the English
language, shall state generally the nature of the business to be
transacted at the Meeting thereby convened and shall specify the terms of
any resolution to be proposed. Such notice shall include statements, if
applicable, to the effect that (a) Current Issuer Notes may be blocked in
clearing systems for the purposes of appointing Proxies under Block
Voting Instructions until 48 hours before the time fixed for the Meeting
and (b) a Noteholder may appoint a Proxy either (i) under a Block Voting
Instruction by delivering written instructions to the Registrar or (ii)
by executing and delivering a Form of Proxy to the Specified Office of
the Registrar, in either case until 48 hours before the time fixed for
the Meeting. A copy of the notice shall be sent by post to the Note
Trustee (unless the Meeting is convened by the Note Trustee) and, to the
Current Issuer (unless the Meeting is convened by the Current Issuer).
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4. CHAIRMAN
A person (who may, but need not be, a Noteholder) nominated in writing by
the Note Trustee shall be entitled to take the chair at the relevant
Meeting, but if no such nomination is made or if at any Meeting the
person nominated shall not be present within 15 minutes after the time
appointed for holding the Meeting the Noteholders present shall choose
one of their number to be Chairman, failing which the Current Issuer may
appoint a Chairman. The Chairman of an adjourned Meeting need not be the
same person as was Chairman of the Meeting from which the adjournment
took place.
5. QUORUM
Subject as provided in the Current Issuer Conditions:
(a) any such Meeting of two or more persons present holding Current
Issuer Notes or being Proxies or Representatives and holding or
representing in the aggregate not less than one-twentieth of the
principal amount of the Current Issuer Notes of the relevant class
or classes for the time being outstanding (or, at any adjourned
Meeting, two or more persons being or representing Noteholders
whatever the aggregate Principal Amount Outstanding of the Current
Issuer Notes of the relevant class or classes) shall (except for
the purpose of passing an Extraordinary Resolution) form a quorum
for the transaction of business and no business (other than the
choosing of a Chairman) shall be transacted at any Meeting unless
the requisite quorum be present at the commencement of the
relevant business;
(b) the quorum at any such Meeting for passing an Extraordinary
Resolution other than an Extraordinary Resolution to sanction a
Basic Term Modification shall (subject as provided below) be two
or more persons present holding or representing Current Issuer
Notes or being Proxies or Representatives and holding or
representing in the aggregate more than half of the aggregate
principal amount of the Current Issuer Notes outstanding (as
defined in Clause 1.6 of the Current Issuer Trust Deed) of the
Current Issuer Notes of the relevant class of classes (or, at any
adjourned Meeting, two or more persons being or representing
Noteholders whatever the aggregate principal amount of the Current
Issuer Notes outstanding (as defined in Clause 1.6 of the Current
Issuer Trust Deed) of the relevant class or classes so held or
represented); or
(c) at any Meeting the business of which includes the passing of an
Extraordinary Resolution to sanction a Basic Terms Modification,
the quorum for passing the requisite Extraordinary Resolution shall be
two or more persons present holding Current Issuer Notes or being Proxies
or Representatives and holding or representing in the aggregate not less
than three quarters in aggregate principal amount of the Current Issuer
Notes outstanding (as defined in Clause 1.6 of the Current Issuer Trust
Deed) of the relevant class or classes (or, at any adjourned Meeting, two
or more persons present holding or representing in the aggregate not less
than one quarter in aggregate principal amount of the Current Issuer
Notes outstanding (as defined in Clause 1.6 of the Current Issuer Trust
Deed) of the relevant class or classes);
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Provided always that so long as at least the relevant fraction of the
aggregate Principal Amount Outstanding of the relevant class of Current
Issuer Notes referred to in sub-paragraph (a), (b) or (c) above, as the
case may be, is represented by a Global Note Certificate or a single
Individual Note Certificate, a single person being a Proxy or
Representative of such class of Current Issuer Notes represented thereby
shall be deemed to be two persons for the purpose of forming a quorum.
6. ADJOURNMENT FOR WANT OF QUORUM
If within 15 minutes (or such longer period not exceeding 30 minutes as
the Chairman may decide) after the time appointed for any Meeting a
quorum is not present for the transaction of any particular business,
then, subject and without prejudice to the transaction of the business
(if any) for which a quorum is present:
(a) if convened upon the requisition of Noteholders, the Meeting shall
be dissolved; and
(b) in any other case, the Meeting shall stand adjourned to the same
day in the next week (or if such day is a public holiday the next
succeeding Business Day) at the same time and place (except in the
case of a Meeting at which an Extraordinary Resolution is to be
proposed in which case it shall stand adjourned for such period,
being not less than 13 clear days nor more than 42 clear days, and
to such place as may be appointed by the Chairman either at or
subsequent to such Meeting and approved by the Note Trustee).
Provided, however, that, if within 15 minutes (or such longer period not
exceeding 30 minutes as the Chairman may decide) after the time appointed
for any adjourned Meeting a quorum is not present for the transaction of
any particular business, then, subject and without prejudice to the
transaction of the business (if any) for which a quorum is present, the
Meeting shall be dissolved as no Meeting may be adjourned more than once
for want of a quorum.
7. NOTICE FOLLOWING ADJOURNMENT
Notice of any adjourned Meeting at which an Extraordinary Resolution is
to be submitted shall be given in the same manner as notice of an
original Meeting as provided in paragraph 3 above, but as if 10 days
notice (exclusive of the day on which the notice is given and the day on
which the Meeting is to be resumed) were substituted for the 21 days
notice as provided in paragraph 3 above, and such notice shall
specifically state the relevant quorum requirements which will apply when
the Meeting resumes. Subject as aforesaid it shall not be necessary to
give any notice of an adjourned Meeting.
8. SHOW OF HANDS
Every question submitted to a Meeting shall be decided in the first
instance by a show of hands and in case of equality of votes the Chairman
shall both on a show of hands and on a poll have a casting vote in
addition to the vote or votes (if any) to which he may be entitled as a
Noteholder or as a Proxy or as a Representative.
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9. CHAIRMAN'S DECLARATION
At any Meeting, unless a poll is (before or on the declaration of the
result of the show of hands) validly demanded by the Chairman, the
Current Issuer, the Note Trustee or any person present holding a
Individual Note Certificate or being a Proxy or Representative (whatever
the principal amount of the Current Issuer Notes so held or represented
by him) a declaration by the Chairman that a resolution has been carried
or carried by a particular majority or lost or not carried by a
particular majority shall be conclusive evidence of the fact without
proof of the number or proportion of the votes recorded in favour of or
against such resolution.
10. POLL
Subject to paragraph 12 (Limitation on Adjournments) below, if at such
Meeting a poll is demanded it shall be taken in such manner and subject
as hereinafter provided either at once or after an adjournment as the
Chairman directs and the result of such poll shall be deemed to be the
resolution of the Meeting at which the poll was demanded as at the date
of the taking of the poll. The demand for a poll shall not prevent the
continuance of the Meeting for the transaction of any business other than
the motion on which the poll has been demanded.
11. ADJOURNED MEETING
The Chairman may with the consent of (and shall if directed by) any such
Meeting adjourn the same from time to time and from place to place, but
no business shall be transacted at any adjourned Meeting except business
which might lawfully (but for lack of required quorum) have been
transacted at the Meeting from which the adjournment took place.
12. LIMITATION ON ADJOURNMENTS
Any poll demanded at any adjourned Meeting on the election of a Chairman
or on any question of adjournment shall be taken at the Meeting without
adjournment.
13. PARTICIPATION
Any Proxy and/or Representative, the Note Trustee and its lawyers and
financial advisers and any director, officer or employee of a corporation
being a trustee of the Current Issuer Trust Deed and any director or
officer of the Current Issuer and its lawyers and financial advisers, the
Registrar, and any other person authorised so to do by the Meeting or the
Note Trustee may attend and speak at any Meeting. Save as aforesaid, but
without prejudice to the definition of "Principal Amount Outstanding", no
person shall be entitled to attend and speak nor shall any person be
entitled to vote at any Meeting or join with others in requesting the
convening of such a Meeting or to exercise the rights conferred on the
Noteholders by Clause 7 (Proceedings, Actions and Indemnification) of the
Current Issuer Trust Deed unless he either produces a Note Certificate or
is a Proxy or a Representative or is the holder of an Individual Note
Certificate or Individual Note Certificates. No person shall be entitled
to vote at any Meeting in respect of Current Issuer Notes held by, for
the benefit of, or on behalf of, the Current Issuer or the Borrowers.
Nothing herein shall prevent any of the Proxies named in any Block Voting
Instruction or Form of Proxy or any
137
Representative from being a director, officer or representative of or
otherwise connected with the Current Issuer.
14. VOTES
Subject as provided in paragraph 13 (Participation) hereof at any
Meeting:
(a) on a show of hands every person who is present in person and is a
holder of Current Issuer Notes or is a Proxy or Representative
shall have one vote; and
(b) on a poll every such person who is so present shall have one vote
in respect of each US$1,000 (in the case of the Dollar Notes) or
{pound-sterling}1,000 (in the case of the Sterling Notes) or
e1,000 (in the case of the Euro Notes) in Principal Amount
Outstanding of the Current Issuer Notes in respect of which he is
a Proxy or Representative or in respect of which he is the holder.
Without prejudice to the obligations of the proxies named in any Block
Voting Instruction or Form of Proxy any person entitled to more than one
vote need not use all his votes or cast all the votes to which he is
entitled in the same way.
15. PROXIES NEED NOT BE NOTEHOLDERS
The Proxies named in any Block Voting Instruction or Form of Proxy and
representatives need not be Noteholders.
16. DEPOSIT OF VOTES
Each Block Voting Instruction together (if so requested by the Note
Trustee) with proof satisfactory to the Note Trustee of its due execution
on behalf of the Registrar and each Form of Proxy shall be deposited by
the Registrar at such place as the Note Trustee shall approve not less
than 24 hours before the time appointed for holding the Meeting or
adjourned Meeting at which the Proxies named in the Block Voting
Instruction or Form of Proxy propose to vote and in default the Block
Voting Instruction or Form of Proxy shall not be treated as valid unless
the Chairman decides otherwise before such Meeting or adjourned Meeting
proceeds to business. A notarially certified copy of each Block Voting
Instruction and Form of Proxy shall be deposited with the Note Trustee
before the commencement of the Meeting or adjourned Meeting but the Note
Trustee shall not thereby be obliged to investigate or be concerned with
the validity of or the authority of the Proxies named in any such Block
Voting Instruction or Form of Proxy.
17. VALIDITY OF VOTES BY PROXIES
Any vote by a Proxy given in accordance with the terms of a Block Voting
Instruction or Form of Proxy shall be valid notwithstanding the previous
revocation or amendment of the Block Voting Instruction or the Form of
Proxy or of any of the Noteholders' instructions pursuant to which it was
executed provided that no intimation in writing of such revocation or
amendment shall have been received from the Noteholder by the Registrar
by the time being 24 hours before the time appointed for holding the
Meeting or adjourned Meeting at which the Block Voting Instruction or
Form of Proxy is to be used. Unless revoked, any appointment of a Proxy
under a Block Voting Instruction or Form of Proxy in relation to a
Meeting shall remain in
138
force in relation to any resumption of such Meeting following an
adjournment; provided, however, that no such appointment of a Proxy in
relation to a Meeting originally convened which has been adjourned for
want of a quorum shall remain in force in relation to such Meeting when
it is resumed. Any person appointed to vote at such a Meeting must be
re-appointed under a Block Voting Instruction or Form of Proxy to vote at
the Meeting when it is resumed.
18. RECORD DATE
The Current Issuer may fix a record date for the purposes of any Meeting
or any resumption thereof following its adjournment for want of a quorum
provided that such record date is not more than 10 days prior to the time
fixed for such Meeting or (as the case may be) its resumption. The
person in whose name a Current Issuer Note is registered in the Register
on the record date at close of business in the city in which the
Registrar has its Specified Office shall be deemed to be the holder of
such Current Issuer Note for the purposes of such Meeting and
notwithstanding any subsequent transfer of such Current Issuer Note or
entries in the Register; and provided that any Proxy appointed pursuant
to a Form of Proxy shall so long as such appointment remains in force, be
deemed for all purposes in connection with any Meeting or proposed
Meeting specified in such appointment, to be the holder of the Current
Issuer Note to which such appointment relates and the holder of the
Current Issuer Note shall be deemed for the purposes not to be the
holder.
19. POWERS
Subject always to the provisions of Clause 11 (Modification and Waiver)
of the Current Issuer Trust Deed and the Current Issuer Conditions, a
Meeting shall, in addition to the powers hereinbefore given, have the
following powers exercisable only by Extraordinary Resolution (subject to
the provisions relating to quorum contained in paragraphs 5 (Quorum) and
6 (Adjournment for want of Quorum) above) namely:
(A) power to sanction any compromise or arrangement proposed to be
made between the Current Issuer, the Note Trustee, any appointee
of the Note Trustee and the Noteholders or any of them;
(B) power to sanction any abrogation, modification, compromise or
arrangement in respect of the rights of the Note Trustee, any
appointee of the Note Trustee, the Noteholders or the Current
Issuer against any other or others of them or against any other
party to any of the Current Issuer Transaction Documents or
against any of their property whether such rights shall arise
under the Current Issuer Trust Deed, any other Current Issuer
Transaction Document or otherwise;
(C) power to assent to any modification of the provisions of the
Current Issuer Conditions, the Current Issuer Trust Deed or any
other Current Issuer Transaction Document which shall be proposed
by the Current Issuer, the Note Trustee, or any Noteholder or any
other person;
(D) power to give any authority or sanction which under the provisions
of the Current Issuer Conditions or the Current Issuer Trust Deed
is required to be given by Extraordinary Resolution;
139
(E) power to appoint any persons (whether Noteholders or not) as a
committee or committees to represent the interests of the
Noteholders and to confer upon such committee or committees any
powers or discretions which the Noteholders could themselves
exercise by Extraordinary Resolution;
(F) power to approve of a person to be appointed a trustee and power
to remove any trustee or trustees for the time being of the
Current Issuer Trust Deed;
(G) power to discharge or exonerate the Note Trustee and/or any
appointee of the Note Trustee from all liability in respect of any
act or omission for which the Note Trustee and/or such appointee
may have become responsible under the Current Issuer Trust Deed;
(H) power to remove any trustee;
(I) power to authorise the Note Trustee and/or any appointee of the
Note Trustee to concur in and execute and do all such deeds,
instruments, acts and things as may be necessary to carry out and
give effect to any Extraordinary Resolution;
(J) power to sanction any scheme or proposal for the exchange or sale
of the Current Issuer Notes for or the conversion of the Current
Issuer Notes into or the cancellation of the Current Issuer Notes
in consideration of shares, stock, notes, bonds, debentures,
debenture stock and/or other obligations and/or notes of the
Current Issuer or any other company formed or to be formed, or for
or into or in consideration of cash, or partly for or into or in
consideration of such shares, stock, notes, bonds, debentures,
debenture stock and/or other obligations and/or notes as aforesaid
and partly for or into or in consideration of cash and for the
appointment of some person with power on behalf of the Noteholders
to execute an instrument of transfer of the Individual Note
Certificates held by them in favour of the persons with or to whom
the Current Issuer Notes are to be exchanged or sold respectively,
provided, however, that:
(i) no Extraordinary Resolution of the Senior Noteholders or the
Mezzanine Noteholders or the Junior Noteholders to sanction a
Basic Terms Modification shall be effective for any purpose unless
it shall have been sanctioned by an Extraordinary Resolution of
(in the case of an Extraordinary Resolution of the Senior
Noteholders) the Mezzanine Noteholders and the Junior Noteholders
or (in the case of an Extraordinary Resolution of the Mezzanine
Noteholders) the Senior Noteholders (to the extent that any Senior
Notes are then outstanding) and the Junior Noteholders, or (in the
case of an Extraordinary Resolution of the Junior Noteholders) the
Senior Noteholders and the Mezzanine Noteholders (to the extent
that any Senior Notes and/or Mezzanine Notes are then
outstanding).
(ii) subject as provided above in relation to an Extraordinary
Resolution concerning a Basic Terms Modification, no Extraordinary
Resolution of the Mezzanine Noteholders shall be effective for any
purpose while any Senior Notes remain outstanding unless either
(aa) the Note Trustee is of the opinion that it will not be
materially prejudicial to the interests of any or all of the
140
Senior Noteholders or (bb) it is sanctioned by an Extraordinary
Resolution of the Senior Noteholders.
(iii) subject as provided above in relation to an Extraordinary
Resolution concerning a Basic Terms Modification, no Extraordinary
Resolution of the Junior Noteholders shall be effective for any
purpose while any Senior Notes or Mezzanine Notes remain
outstanding unless either (aa) the Note Trustee is of the opinion
that it will not be materially prejudicial to the interests of any
or all of the Senior Noteholders and/or the Mezzanine Noteholders
(as the case may be) or (bb) it is sanctioned by an Extraordinary
Resolution of the Senior Noteholders and/or the Mezzanine
Noteholders (as the case may be).
20. EXTRAORDINARY RESOLUTION BINDS ALL NOTEHOLDERS
Subject to the provisos to paragraph 19 (Powers), any Extraordinary
Resolution passed at a Meeting duly convened and held in accordance with
the Current Issuer Trust Deed shall be binding upon the Noteholders of
all classes whether present or not present at such Meeting and whether or
not voting and each of them shall be bound to give effect thereto
accordingly and the passing of any such Extraordinary Resolution shall be
conclusive evidence that the circumstances justify the passing thereof.
Notice of the result of the voting on any Extraordinary Resolution duly
considered by the Noteholders shall be given by the Current Issuer to the
Noteholders in accordance with Condition 14 (Notice to Noteholders)
within 14 days of such result being known provided that the non-
publication of such notice shall not invalidate such result.
21. SENIOR NOTES
Notwithstanding the foregoing, the following additional provisions shall
apply to Senior Notes:
(i) a single Meeting of the holders of all classes of Senior Notes may
be held whether or not there is a conflict of interest between the
holders of such series of the Senior Notes;
(ii) there shall be no provision for a Meeting of the holders of one
class only of the Senior Notes; and
(iii) as the Senior Notes are not all denominated in the same currency,
the Principal Amount Outstanding of any Senior Note denominated in
Dollars or Euro shall be converted into Sterling at the relevant
Dollar Currency Swap Rate or Euro Currency Swap Rate, as the case
may be.
22. MEZZANINE NOTES
Notwithstanding the foregoing, the following additional provisions shall
apply to Mezzanine Notes:
(i) a single Meeting of the holders of all classes of Mezzanine Notes
may be held whether or not there is a conflict of interest between
the holders of such series of the Mezzanine Notes;
141
(ii) there shall be no provision for a Meeting of the holders of one
class only of the Mezzanine Notes; and
(iii) as the Mezzanine Notes are not all denominated in the same
currency, the Principal Amount Outstanding of any Mezzanine Note
denominated in Dollars or Euro shall be converted into Sterling at
the relevant Dollar Currency Swap Rate or Euro Currency Swap Rate,
as the case may be.
23. JUNIOR NOTES
Notwithstanding the foregoing, the following additional provisions shall
apply to Junior Notes
(i) a single Meeting of the holders of all classes of Junior Notes may
be held whether or not there is a conflict of interest between the
holders of such series of the Junior Notes;
(ii) there shall be no provision for a Meeting of the holders of one
class only of the Junior Notes; and
(iii) as the Junior Notes are not all denominated in the same currency,
the Principal Amount Outstanding of any Junior Note denominated in
Dollars or Euro shall be converted into Sterling at the relevant
Dollar Currency Swap Rate or Euro Currency Swap Rate, as the case
may be.
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24. MINUTES
Minutes of all resolutions and proceedings at every Meeting shall be made
and entered in books to be from time to time provided for that purpose by
the Current Issuer and any such minutes as aforesaid if purporting to be
signed by the Chairman of the Meeting at which such resolutions were
passed or proceedings transacted shall be conclusive evidence of the
matters therein contained and until the contrary is proved every such
Meeting in respect of the proceedings of which minutes have been made
shall be deemed to have been duly held and convened and all resolutions
passed or proceedings transacted thereat to have been duly passed or
transacted.
25. FURTHER REGULATIONS
Subject to all other provisions of the Current Issuer Trust Deed, the
Note Trustee may without the consent of the Current Issuer or the
Noteholders:-
(i) prescribe such further regulations regarding the requisitioning
and/or the holding of Meetings of Noteholders and attendance and
voting thereat as the Note Trustee may in its sole discretion
think fit; and
(ii) interpret the Current Issuer Conditions in the context of the more
detailed provisions set out herein.
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EXECUTION PAGE
THE CURRENT ISSUER
EXECUTED BY
GRANITE MORTGAGES 03-1 PLC
AS ITS DEED AS FOLLOWS:
Signed for and on its behalf by one of its directors
and by another of its directors/its secretary
By________________________________
Director
Name______________________________
By________________________________
for and on behalf of LDC
Securitisation Director No.1 Limited
Name______________________________
THE NOTE TRUSTEE
EXECUTED BY
THE BANK OF NEW YORK
AS FOLLOWS:
Signed for and on its behalf by one of its duly
authorised attorneys/signatories
By________________________________
Duly Authorised Attorney/Signatory
Name______________________________
144