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Exhibit 4.1
PUBLIC CREDIT AND REPACKAGED SECURITIES(SM) (PCARS)(SM) TRUSTS
--------------------------------------------------------------------------------
STANDARD TERMS FOR TRUST AGREEMENTS
Credit And Repackaging Vehicle Corporation
as Depositor
and
▇▇▇▇▇ Fargo Bank Minnesota, National Association
as Trustee
Dated July -, 2001
--------------------------------------------------------------------------------
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Certain Sections of these Standards Terms for Trust Agreements relating to
Sections 310 through 318, inclusive, of the Trust Indenture Act of 1939:
Trust Indenture Indenture Section
Act Section
Section 310(a)(1)..................................................................................10.06(a)
10.07(c)
(a)(2)..................................................................................10.06(a)
(a)(3)..................................................................................10.10(b)
(a)(4)............................................................................Not applicable
(a)(5)..................................................................................10.06(a)
(b).....................................................................................10.06(b)
Section 311(a).........................................................................................6.05
(b).........................................................................................6.05
Section 312(a)...............................................................................Not applicable
(b)......................................................................................4.05(b)
(c)......................................................................................4.05(c)
Section 313(a)......................................................................................4.02(f)
(b)......................................................................................4.02(f)
(c)......................................................................................4.02(f)
6.04(c)
8.01(c)
(d)......................................................................................4.02(f)
Section 314(a)(1)...................................................................................6.04(a)
(a)(2)...................................................................................6.04(b)
(a)(3)...................................................................................6.04(c)
(a)(4)............................................................................Not applicable
(b)...............................................................................Not applicable
(c)...............................................................................Not applicable
(d)...............................................................................Not applicable
(e)...............................................................................Not applicable
Section 315(a)..................................................................................10.01(e)(i)
(b)......................................................................................8.01(c)
(c).....................................................................................10.01(c)
(d).....................................................................................10.01(e)
(d)(2)..............................................................................10.01(e)(ii)
(d)(3)............................................................................Not applicable
(e)...............................................................................Not applicable
Section 316(a)(1)............................................................................Not applicable
(a)(1)(A).........................................................................Not applicable
(a)(1)(B)...............................................................................12.01(c)
(a)(2)............................................................................Not applicable
(b)...............................................................................Not applicable
(c)...............................................................................Not applicable
Section 317(a)......................................................................................8.01(a)
(b)......................................................................................5.10(a)
Section 318 ..........................................................................................12.09
Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of any Trust Agreement.
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TABLE OF CONTENTS
Page
----
ARTICLE I
DEFINITIONS; CONSTRUCTION
SECTION 1.01. Definitions..................................................................... 2
SECTION 1.02. Rules of Construction........................................................... 13
SECTION 1.03. Article and Section References.................................................. 14
SECTION 1.04. References to Credit Support, Swap Agreement
and Call Right.................................................................. 14
ARTICLE II
DECLARATION OF TRUST; ENTRY INTO SWAP AGREEMENT;
ISSUANCE OF CERTIFICATES
SECTION 2.01. Creation and Declaration of Trust; Assignment of Securities..................... 14
SECTION 2.02. Swap Agreement, Swap Guarantee and Underwriting Agreement....................... 15
SECTION 2.03. Acceptance by Trustee........................................................... 16
SECTION 2.04. Sale............................................................................ 16
SECTION 2.05. Representations and Warranties of the Depositor................................. 16
SECTION 2.06. Agreement to Execute, Authenticate and Deliver Certificates..................... 17
ARTICLE III
TRUST POWERS; ADMINISTRATION OF THE TRUST PROPERTY
SECTION 3.01. Trust Property.................................................................. 18
SECTION 3.02. Administration of the Trust..................................................... 18
SECTION 3.03. Collection of Certain Payments.................................................. 20
SECTION 3.04. Certificate Account............................................................. 20
SECTION 3.05. Investment of Funds in the Accounts............................................. 21
SECTION 3.06. Retained Interest............................................................... 22
SECTION 3.07. Access to Certain Documentation................................................. 22
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ARTICLE IV
DISTRIBUTIONS TO CERTIFICATEHOLDERS AND REPORTING
SECTION 4.01. Distributions................................................................... 22
SECTION 4.02. Reports to Certificateholders................................................... 22
SECTION 4.03. Calculation of Interest Rates................................................... 25
SECTION 4.04. Compliance with Tax Reporting and Withholding Requirements...................... 25
SECTION 4.05. Preservation of Information, Communications to Holders.......................... 25
ARTICLE V
THE CERTIFICATES
SECTION 5.01. The Certificates................................................................ 26
SECTION 5.02. Execution, Authentication and Delivery.......................................... 26
SECTION 5.03. Temporary Certificates.......................................................... 27
SECTION 5.04. Registration; Registration of Transfer and Exchange............................. 28
SECTION 5.05. Mutilated, Destroyed, Lost and Stolen Certificates.............................. 29
SECTION 5.06. Distributions in Respect of Certificates........................................ 30
SECTION 5.07. Persons Deemed Owners........................................................... 30
SECTION 5.08. Cancellation.................................................................... 31
SECTION 5.09. Currency of Distributions in Respect of Certificates; Redenomination............ 31
SECTION 5.10. Appointment of Paying Agent..................................................... 31
SECTION 5.11. Authenticating Agent............................................................ 33
SECTION 5.12. Issuance and Transfer Restrictions.............................................. 34
SECTION 5.13. Optional Exchange............................................................... 38
SECTION 5.14. Callable Certificates........................................................... 39
ARTICLE VI
THE DEPOSITOR
SECTION 6.01. Liability of the Depositor...................................................... 40
SECTION 6.02. Limitation on Liability of the Depositor........................................ 41
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SECTION 6.03. Depositor May Purchase Certificates............................................. 41
SECTION 6.04. Preparation and Filing of Exchange Act Reports; Obligations of the Depositor.... 41
SECTION 6.05. Preferential Collection of Claims Against Depositor............................. 42
ARTICLE VII
RIGHTS OF CERTIFICATEHOLDERS
SECTION 7.01. Voting Rights with Respect to Securities........................................ 42
SECTION 7.02. Amendments and Waivers Under Swap Agreement and Swap Guarantee.................. 44
ARTICLE VIII
DEFAULT ON SECURITIES, CREDIT SUPPORT, SWAP
AGREEMENT, SWAP GUARANTEE OR PERMITTED INVESTMENTS
SECTION 8.01. Realization Upon Default........................................................ 44
ARTICLE IX
WIND-UP AND LIQUIDATION OF TRUST
SECTION 9.01. Trust Wind-Up Events............................................................ 45
SECTION 9.02. Liquidation Events.............................................................. 46
SECTION 9.03. Trust Property Made Available................................................... 46
SECTION 9.04. Limitation on Notice Requirement................................................ 48
SECTION 9.05. Excess Expense Event............................................................ 49
ARTICLE X
CONCERNING THE TRUSTEE
SECTION 10.01. Duties of Trustee............................................................... 49
SECTION 10.02. Certain Matters Affecting the Trustee........................................... 50
SECTION 10.03. Limitation on Liability of Trustee.............................................. 52
SECTION 10.04. Trustee May Own Certificates.................................................... 52
SECTION 10.05. Trustee Fees and Expenses; Limited Indemnification.............................. 52
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SECTION 10.06. Eligibility Requirements for Trustee............................................ 53
SECTION 10.07. Resignation or Removal of the Trustee........................................... 54
SECTION 10.08. Successor Trustee............................................................... 55
SECTION 10.09. Merger or Consolidation of Trustee.............................................. 55
SECTION 10.10. Appointment of Co-Trustee....................................................... 55
SECTION 10.11. Representations and Warranties of Trustee....................................... 56
SECTION 10.12. Non-Petition.................................................................... 58
ARTICLE XI
TERMINATION
SECTION 11.01. Termination of the Trust........................................................ 58
ARTICLE XII
MISCELLANEOUS TERMS
SECTION 12.01. Amendment of Trust Agreement.................................................... 59
SECTION 12.02. Counterparts.................................................................... 60
SECTION 12.03. Limitation on Rights of Certificateholders...................................... 60
SECTION 12.04. Governing Law; Jurisdiction..................................................... 61
SECTION 12.05. Notices......................................................................... 61
SECTION 12.06. Severability of Terms........................................................... 61
SECTION 12.07. Perfection of Swap Counterparty Security Interest............................... 62
SECTION 12.08. No Recourse..................................................................... 62
SECTION 12.09. Conflict With Trust Indenture Act............................................... 62
EXHIBIT A Form of Trust Agreement and Terms Schedule
EXHIBIT B Form of Certificate
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PUBLIC CREDIT AND REPACKAGED SECURITIES(SM) (PCARS)(SM) TRUSTS
STANDARD TERMS FOR
TRUST AGREEMENTS
These Standard Terms for Trust Agreements, dated July [ ], 2001 (these
"Standard Terms"), may be incorporated by reference in one or more trust
agreements (each, a "Trust Terms Agreement") relating to a particular series of
Public Credit and Repackaged Securities(SM) (PCARS)(SM) Trust Certificates
described in the Prospectus dated July [ ], 2001 and the applicable Prospectus
Supplement. Each Trust Terms Agreement may be in the form of Exhibit A hereto or
such other form as Credit And Repackaging Vehicle Corporation, as depositor (the
"Depositor"), and ▇▇▇▇▇ Fargo Bank Minnesota, National Association, as trustee
(the "Trustee"), may approve, such approval to be evidenced by their execution
of such Trust Agreement. Incorporation by reference of these Standard Terms into
a Trust Terms Agreement is for convenience only to avoid the necessity of
physically including these Standard Terms in such Trust Terms Agreement, and
each trust created by a Trust Terms Agreement shall be a legally separate and
distinct trust from any other trust created by a Trust Terms Agreement into
which these Standard Terms may also be incorporated by reference. These Standard
Terms shall by themselves be of no force and effect, and shall only have effect
as and to the extent incorporated by reference into a Trust Terms Agreement.
Execution hereof by the Trustee and the Depositor is for purposes of
identification only and the absence of such execution shall not affect the
validity of any Trust Agreement or these Standard Terms to the extent
incorporated therein. Each Trust Terms Agreement into which these Standard Terms
are incorporated by reference, including the Terms Schedule attached thereto and
made a part thereof and these Standard Terms so incorporated by reference
therein, as amended, modified or supplemented from time to time, shall together
constitute a single trust agreement and are referred to herein as the "Trust
Agreement". In the event of a conflict between any Trust Terms Agreement,
including the Terms Schedule attached thereto, and these Standard Terms, the
Trust Terms Agreement the Terms Schedule shall control.
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ARTICLE I
Definitions; Construction
SECTION 1.01. Definitions
Except as otherwise specified herein or as the context may otherwise
require, the following terms have the respective meanings set forth below for
all purposes of these Standard Terms:
"Affected Securities". With respect to any Liquidation Event, the
Securities affected by a Security Default, Disqualified Securities or Securities
related to a Disqualified Swap Transaction, as the case may be.
"Affected Swap Party". As defined in the Swap Agreement.
"Affected Swap Transaction". As defined in the Swap Agreement.
"Affiliate". With respect to any Person, any other Person directly or
indirectly controlling or controlled by, or under direct or indirect common
control with, such Person. For purposes of this definition, "control", when used
with respect to any Person, means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.
"Alternative ERISA Restrictions". The restrictions on transfer of
Certificates set forth in Section 5.12(c)(i).
"Authenticating Agent". As defined in Section 5.11.
"Available Funds". With respect to any Distribution Date, the sum of
(i) all amounts received by the Trustee on or with respect to the Securities or
other Trust Property, plus (ii) all investment income from Permitted
Investments, plus (iii) all Swap Amounts, if any, paid to the Trustee by the
Swap Counterparty pursuant to the Swap Agreement, or by any Swap Guarantor
pursuant to any Swap Guarantee, minus (iv) all amounts paid or payable to the
Swap Counterparty by the Trustee pursuant to the Swap Agreement, minus (v) any
amounts reimbursable to the Trustee under Section 10.02(ix). To the extent that
the amount constituting such sum is on deposit in the Certificate Account and
available for distribution on such Distribution Date.
"Bearer Certificate". Any Certificate (with or without coupons), title
of which passes by delivery only, but exclusive of any coupons.
"Benefit Plan". As defined in Section 5.12(c)(i).
"Book-Entry Certificate". A Certificate represented by a Global
Certificate.
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"Business Day". Unless otherwise specified in the Terms Schedule, any
day, other than a Saturday or Sunday, that is (i) not a day on which banking
institutions are authorized or required by law or regulation to be closed in (A)
The City of New York or in the city where the Corporate Trust Office is located
or (B) if the Specified Currency is other than Dollars, the financial center of
the country issuing the Specified Currency and (ii) if the Interest Rate is
based on the London Interbank Borrowing Rate, a day on which dealings in
deposits in the Specified Currency are transacted in the London interbank
market.
"Calculation Agent". As specified in the Terms Schedule, if so
specified.
"Call Date". As defined in Section 5.14(a).
"Call Price". As defined in Section 5.14(a).
"Call Right". As defined in Section 5.14(a).
"Callable Series". A Series so designated in the Terms Schedule
providing for a Call Right with respect to the Certificates of such Series.
"Certificate Account". As defined in Section 3.04.
"Certificate Document". A certificate in the form attached as Exhibit
B, evidencing a Certificate.
"Certificate of Non-U.S. Beneficial Ownership". As defined in Section
5.12(b)(iii).
"Certificate Register" and "Certificate Registrar". As defined in
Section 5.04.
"Certificateholder". In the case of a Registered Certificate, the
Person in whose name such Certificate is registered in the Certificate Register
on the applicable Record Date, and in the case of a Bearer Certificate, the
bearer of such Certificate.
"Certificates". The securities authorized by, and authenticated and
delivered under, the Trust Agreement and evidenced by one or more Certificate
Documents.
"Class". A separately denominated class of Certificates of any Series,
entitled to specified rights with respect to the Trust Property.
"Clearstream". Clearstream Banking operated by Clearstream
International.
"Closing Date". As specified in the Terms Schedule.
"Code". The Internal Revenue Code of 1986, as amended, and Treasury
Regulations promulgated thereunder.
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"Commission". The Securities and Exchange Commission, or any successor
agency.
"Concentrated Security". Any Security that on the Closing Date
constitutes 10% or more of the Securities held by the Trust.
"Corporate Trust Office". The Trustee's offices at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, or such other address as the Trustee may
designate from time to time by notice to the Certificateholders, the Depositor,
the Swap Counterparty and the Swap Guarantor.
"Credit Support". With respect to any Series (or any Class within such
Series), any combination of insurance policies, letters of credit, reserve
accounts and other types of rights or assets designed to support or ensure the
servicing and distribution of amounts due in respect of the Trust Property,
which in each case is specified as such in the Terms Schedule.
"Credit Support Default". As specified in the Terms Schedule.
"Credit Support Provider". With respect to any Series (or any Class
within such Series), the bank issuing a letter of credit or the financial
guarantor or surety company issuing a financial guaranty or surety bond that
serves as Credit Support.
"Currency". Dollars or Foreign Currency.
"Cut-Off Date". As defined in the Terms Schedule.
"Definitive Registered Certificate". A Registered Certificate in
definitive, certificated form without coupons attached.
"Depositary". DTC or, if specified in the Terms Schedule, Euroclear or
Clearstream or any other depositary.
"Depositor". As defined in the preamble hereto, including any
successors and permitted assigns.
"Disqualified Credit Support". Any Credit Support with respect to which
(i) the Credit Support Provider ceases to be an Eligible Issuer and no means of
replacing such Credit Support Provider or otherwise satisfying the Depositor's
reporting obligations under the Exchange Act regarding such Credit Support is
described in the Terms Schedule, or (ii) whether or not the Credit Support
Provider was initially an Eligible Issuer, it becomes impossible or
impracticable for the Depositor to satisfy its reporting obligations under the
Exchange Act regarding such Credit Support.
"Disqualified Security". Any (i) Concentrated Security the issuer of
which ceases to be an Eligible Issuer and (ii) any Security other than a
Concentrated Security the issuer
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of which ceases to be an Eligible Issuer or a Reporting Issuer, in each case of
clauses (i) and (ii) unless any additional means of providing current
information regarding such Security Issuer is described in the Terms Schedule
and available.
"Disqualified Swap Transaction". Any Swap Transaction with respect to
which (i) the Swap Counterparty ceases to be an Eligible Issuer, unless any
means of replacing such Swap Counterparty or otherwise satisfying the
Depositor's reporting obligations under the Exchange Act is described in the
Terms Schedule and available, (ii) whether or not the related Swap Counterparty
was initially an Eligible Issuer, it becomes impossible or impracticable for the
Depositor to satisfy its reporting obligations under the Exchange Act, or (iii)
in the case of a credit swap transaction, the Deliverable Obligation (as defined
in the Swap Agreement) has become a Disqualified Security.
"Distribution Date". As specified in the Terms Schedule.
"Dollar", "$" or "USD". Such currency of the United States as at the
time of payment is legal tender for the payment of public and private debts.
"DTC". The Depository Trust Company, a limited purpose trust company
organized under the laws of the State of New York, including any successors and
assigns.
"Early Swap Termination Date". The "Early Termination Date" as defined
in the Swap Agreement.
"Eligible Account". A non-interest bearing account, held in the United
States, in the name of the Trustee for the benefit of the Certificateholders,
that is either (i) a segregated account maintained with a Federal or State
chartered depository institution or trust company the short-term and long-term
unsecured debt obligations of which (or, in the case of a depository institution
or trust company that is the principal subsidiary of a holding company, the
short-term and long-term unsecured debt obligations of which) are rated P-1 and
Aaa by Moody's, or A-1+ and AAA by S&P at the time any amounts are held on
deposit therein, including when such amounts are initially deposited therein, or
(ii) a segregated trust account maintained as a segregated account and held by
the Trustee at its Corporate Trust Office in trust for the benefit of the
Certificateholders.
"Eligible Issuer". Any corporation, limited partnership, trust, limited
liability company or other organization, banking organization or insurance
company, in each case which (i) is eligible to register and offer securities
under paragraph I.B.1 of the General Instructions to Form S-3 under the
Securities Act, (ii) has (or is a direct or indirect subsidiary of a
corporation, limited partnership, trust, limited liability company or other
organization, banking organization or insurance company, in each case which has)
common equity securities registered under Section 12 of the Exchange Act and
(iii) is subject to the reporting requirements of the Exchange Act and which, in
accordance therewith, files reports and other information with the Commission
(or another applicable agency pursuant to Section 12(i) of the Exchange Act).
For all purposes under the Trust
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Agreement, a Person which is fully guaranteed by a guarantor that is an Eligible
Issuer shall be considered an Eligible Issuer.
"ERISA". The Employee Retirement Income Security Act of 1974, as
amended, including any successor statute.
"ERISA Plan". As defined in Section 5.12(c)(iii).
"Euroclear". The Euroclear System operated by Euroclear Bank S.A./N.V.
"Excess Expense Event". As defined in Section 9.05(a).
"Exchange Act". The Securities Exchange Act of 1934, as amended.
"Exchange Rate Agent". Unless otherwise specified in the Terms
Schedule, ▇▇▇▇▇▇▇ ▇▇▇▇▇ or any Affiliate or agent of ▇▇▇▇▇▇▇ Sachs designated by
it.
"Exchangeable Series". A series so designated in the Terms Schedule
which grants Certificateholders the right to exchange their Certificates for pro
rata portions of the Trust Property.
"Executive Officer". With respect to any corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer, President,
any Vice President, the Secretary, any Assistant Secretary, the Treasurer or any
Assistant Treasurer thereof; with respect to any partnership, any general
partner thereof.
"Extraordinary Trust Expense". As defined in Section 10.05(b).
"Foreign Currency". A currency issued by the government of any country
other than the United States or a composite currency the value of which is
determined by reference to the values of the currencies of any group of
countries.
"Global Certificate". A Certificate in global form issued to the
Depositary and (in the case of a Registered Certificate) registered in the name
of the Depositary or its nominee.
"▇▇▇▇▇▇▇ ▇▇▇▇▇". ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co., including any successors and
permitted assigns.
"Initial Security Accrual Period". The period from and including the
Closing Date to but excluding the next Security Payment Date.
"Initial Swap Rate Accrual Period". The period from and including the
Closing Date to but excluding the next Swap Payment Date.
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"Interest Rate". The interest rate applicable to the Certificates as
determined in accordance with Section 4.03, including, if applicable, by
reference to the Terms Schedule.
"Investment Company Act". The Investment Company Act of 1940, as
amended.
"Liquidation Event". Any of the events described in Section 9.02.
"Maximum Reimbursable Amount". As specified in the Terms Schedule (or
any other amount specified by the party agreeing to indemnify the Trustee).
"Moody's". ▇▇▇▇▇'▇ Investors Service Inc., including any successor
rating agency.
"Notional Amount". The notional amount specified in the Terms Schedule
with respect to any Class of Certificates, with respect to which distributions
of interest or other distributions are determined but which does not represent a
Principal Balance.
"Officers' Certificate". The certificate signed by any one (or, if
specified in the Trust Agreement, more than one) Executive Officer of the
applicable Person, and delivered to the Trustee.
"Opinion of Counsel". A written opinion of counsel, who may, except as
otherwise expressly provided in the Trust Terms Agreement, be counsel for the
Depositor, acceptable to the Trustee.
"Optional Exchange Date". As defined in Section 5.13(c).
"Outstanding". As of any date of determination, all Certificates
theretofore authenticated and delivered under the Trust Agreement, except for:
(i) Certificates theretofore canceled by the Certificate Registrar
or delivered to the Trustee for cancellation;
(ii) Certificates for whose payment or redemption money in the
necessary amount has been deposited with the Trustee or any
Paying Agent (other than the Depositor) in trust, or set aside
and segregated in trust by the Depositor (if the Depositor is
acting as its own Paying Agent), for the holders of such
Certificates, provided, if such Certificates are to be
redeemed, notice of such redemption has been duly given
pursuant to the Trust Agreement or provision therefore
satisfactory to the Trustee has been made; and
(iii) Certificates in exchange for or in lieu of which other
Certificates have been authenticated and delivered pursuant to
the Trust Agreement, unless proof satisfactory to the Trustee
is presented that any such Certificates are
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held by a bona fide purchaser in whose hands such Certificates
represent interests in the Trust.
"Paying Agent". As defined in Section 5.10.
"Permitted Investments". All investments made by the Trustee pursuant
to Section 3.05 in any one or more of the following; provided that the total
return specified by the terms of each such obligation or security shall be at
least equal to the purchase price thereof; provided, further, that each such
obligation or security shall be held in the name of the Trustee on behalf of the
Trust:
(i) direct obligations of, and obligations fully guaranteed by,
the United States, the Federal Home Loan Mortgage Corporation,
the Federal National Mortgage Association, the Federal Farm
Credit System or any agency or instrumentality of the United
States the obligations of which are explicitly backed by the
full faith and credit of the United States; provided that
obligations of, or guaranteed by, the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage
Association or the Federal Farm Credit System shall be
Permitted Investments only if, at the time and during the
course of investment, such entity has a credit rating at the
time of acquisition of at least P-1 or Aaa by ▇▇▇▇▇'▇ or A-1+
or AAA by S&P;
(ii) demand and time deposits in, certificates of deposit of, or
bankers' acceptances issued by, any depository institution or
trust company (including the Trustee or any agent of the
Trustee acting in their respective commercial capacities)
incorporated under the laws of the United States or any State
thereof and subject to supervision and examination by Federal
or State banking authorities so long as the commercial paper
or the short-term debt obligations of such depository
institution or trust company, at the time and during the
course of such investment or contractual commitment providing
for such investment, have a credit rating at the time of
acquisition of at least P-1 or Aaa by ▇▇▇▇▇'▇ or A-l+ or AAA
by S&P (or, in the case of a depository institution which is
the principal subsidiary of a holding company, the commercial
paper or other short-term debt obligations of such holding
company have a credit rating at the time of acquisition of at
least P-1 or Aaa by ▇▇▇▇▇'▇ or A-1+ or AAA by S&P);
(iii) commercial paper having a maturity of not more than 180 days
and having, at the time and during the course of such
investment, a credit rating at the time of acquisition of at
least P-1 by ▇▇▇▇▇'▇ or A-1+ by S&P;
(iv) repurchase agreements with respect to (A) any security
described in clause (i) above or (B) any other security issued
or guaranteed by an agency or instrumentality of the United
States with an entity having a credit rating at the time of
acquisition of at least P-1 or Aaa by ▇▇▇▇▇'▇ or A-1+ or AAA
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by S&P. Copies of any repurchase agreement entered into by the
Trustee on behalf of the Trust shall be delivered to the
Rating Agencies; and
(v) money market funds having a credit rating at the time of
acquisition of at least Aaa by ▇▇▇▇▇'▇ or AAA by S&P,
including any funds for which the Trustee or any of its
Affiliates serves as an investment advisor, administrator,
shareholder servicing agent, custodian or subcustodian, in
each case the sole assets of which consist of U.S. Treasury
securities.
In no event shall a Permitted Investment at any time constitute (x) a swap
agreement, as defined in the United States Bankruptcy Code, 11 U.S.C. Section
101 et seq., (y) an interest-only or principal-only security or (z) a liability
of the Trust in excess of the principal amount invested by the Trustee.
Permitted Investments shall include, without limitation, any investments with
respect to which the Trustee or an Affiliate of the Trustee provides services.
"Person". Any individual, corporation, partnership, joint venture,
association, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision
thereof.
"Predecessor Certificate". With respect to any particular Certificate,
each previous Certificate evidencing all or a portion of the same interest as
that evidenced by such Certificate; provided that, for purposes of this
definition, any Certificate authenticated and delivered under Section 5.05 in
lieu of a lost, destroyed or stolen Certificate shall be deemed to evidence the
same interest as such lost, destroyed or stolen Certificate.
"Principal Balance". With respect to a Certificate that is Outstanding,
as determined at any time, the maximum amount that the holder thereof is
entitled to receive as distributions allocable to principal payments on the
Securities.
"Proceeding". Any suit in equity, action at law or other judicial or
administrative proceeding.
"Rating Agencies". As specified in the Terms Schedule.
"Rating Agency Condition". Any condition the occurrence of which would
cause the Rating Agencies to reduce or withdraw the then current rating of the
Certificates.
"Record Date". As specified in the Terms Schedule.
"Registered Certificate". Any Certificate in registered form the
ownership of which is evidenced by the Certificate Register.
"Reporting Issuer". Either an Eligible Issuer or a domestic
corporation, limited partnership, trust, limited liability company or other
domestic organization, domestic
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banking organization or domestic insurance company which is subject to the
information requirements of the Exchange Act and which, in accordance therewith,
files reports and other information with the Securities and Exchange Commission
(or another applicable agency pursuant to Section 12(i) of the Exchange Act).
For all purposes under the Trust Agreement, a Person which is fully guaranteed
by a guarantor that is a Reporting Issuer shall be considered a Reporting
Issuer.
"Responsible Officer". With respect to the Trustee, any officer within
its Corporate Trust Office, including any Vice President, Assistant Vice
President, Secretary, Assistant Secretary and (i) any other officer of the
Trustee customarily performing functions similar to those performed by any of
the aforementioned officers and (ii) any other officer of the Trustee to whom a
particular matter is referred because of such officer's knowledge of and
familiarity with the particular subject. The foregoing definition shall apply
mutatis mutandis with respect to the Certificate Registrar.
"Retained Interest". With respect to any Security or other Trust
Property, any ownership interest therein and any right to a portion of the
payments thereon, as specified in the Terms Schedule, held by a Person other
than a Certificateholder, as specified in the Terms Schedule.
"S&P". Standard & Poor's, a division of the ▇▇▇▇▇▇-▇▇▇▇ Companies Inc.,
including any successor rating agency.
"Scheduled Final Distribution Date". As specified in the Terms
Schedule.
"Securities". As specified in the Terms Schedule. In the event that the
Depositor transfers more than one series (or more than one class of the same
series) of Securities to the Trust, "Securities" shall mean each such series or
class specified in the Terms Schedule.
"Securities Act". The Securities Act of 1933, as amended.
"Security Accrual Period". The Initial Security Accrual Period and each
period from and including a Security Payment Date to but excluding the next
succeeding Security Payment Date.
"Security Default". Unless otherwise specified in the Terms Schedule,
(i) the acceleration of the maturity of the Securities under the Securities or
the Security Issuance Agreement whether by declaration of the holders thereof or
the Security Trustee or otherwise, (ii) the failure to pay an installment of
principal of, or any amount of interest due on, the Securities on the due date,
after the expiration of any applicable cure period, (iii) the occurrence of any
event of default relating to bankruptcy or insolvency of the Security Issuer
under the Securities or the Security Issuance Agreement or (iv) the occurrence
of a waiver, deferral, restructuring, rescheduling, exchange or other adjustment
with respect to the Security such that the Swap Counterparty reasonably
determines that (A) the economic terms of the Security are materially different
or (B) the
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Security represents materially greater credit or other risks. In the case of
clauses (i) and (ii) of the preceding sentence, a Security Default shall be
deemed to have occurred for all purposes of the Trust Agreement notwithstanding
any rescission or annulment of any such acceleration or any subsequent payment
(after the default and after any applicable grace period) of such overdue
principal or interest.
"Security Issuance Agreement". The indenture, fiscal agency agreement
or other agreement under which the Securities were issued.
"Security Issuer". As specified in the Terms Schedule. In the event
that the Depositor transfers more than one series (or more than one class of the
same series) of Securities to the Trust, "Security Issuer" shall mean the issuer
of each such series or class specified in the Terms Schedule.
"Security Payment Date". As specified in the Terms Schedule.
"Security Rate". As specified in the Terms Schedule.
"Security Trustee". As specified in the Terms Schedule.
"Selling Agent". Unless otherwise specified in the Terms Schedule,
▇▇▇▇▇▇▇ ▇▇▇▇▇ or any Affiliate of ▇▇▇▇▇▇▇ Sachs designated by it.
"Series". All of the Certificates issued by the Trust.
"Special Depositor Wind-up Event". As defined in Section 9.01(f).
"Specified Currency". Unless otherwise specified in the Terms Schedule,
Dollars.
"Standard Terms". As defined in the preamble hereto.
"State". Any one of the ▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ or the District
of Columbia.
"Swap Agreement". The ISDA Master Agreement (including the Schedule
thereto, the Confirmation or Confirmations thereunder and any Credit Support
Annex forming a part thereof), if any, to which the Trust is a party, as
specified in the Terms Schedule. In the event that the Trust enters into more
than one ISDA Master Agreement, "Swap Agreement" shall mean each such ISDA
Master Agreement specified in the Terms Schedule.
"Swap Amount". With respect to each Swap Payment Date, an amount,
payable by, or on behalf of, the Swap Counterparty, equal to the accrued
interest or other payment obligation calculated with reference to the Swap
Notional Amount for the immediately preceding Swap Rate Accrual Period at the
Swap Rate.
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"Swap Calculation Agent". The "Calculation Agent" as defined in the
Swap Agreement.
"Swap Counterparty". ▇▇▇▇▇▇▇ ▇▇▇▇▇, unless another Person is identified
in the Terms Schedule as the counterparty of the Trust under the Swap Agreement,
including any successors and permitted assignees. In the event that the Trust
enters into more than one Swap Agreement, "Swap Counterparty" shall mean each
counterparty of the Trust specified in the Terms Schedule.
"Swap Default". Any "Event of Default" as defined in the Swap
Agreement.
"Swap Guarantee". The guarantee (if any) specified in the Terms
Schedule of the obligations of the Swap Counterparty under the Swap Agreement.
"Swap Guarantor". The guarantor (if any) who issues, and is specified
in, the Swap Guarantee, including any successors and permitted assigns.
"Swap Notional Amount". As specified in the Terms Schedule.
"Swap Payment Date". As specified in the Terms Schedule.
"Swap Rate". As specified in the Terms Schedule.
"Swap Rate Accrual Period". The Initial Swap Rate Accrual Period and
each period from and including a Swap Payment Date to but excluding the next
succeeding Swap Payment Date.
"Swap Termination Event". Any "Termination Event" as defined in the
Swap Agreement.
"Swap Termination Payment". Any amounts payable under the Swap
Agreement in accordance with its terms, whether to or by the Trust, as the case
may be, as a result of an early termination of one or more Swap Transactions.
"Swap Transaction". Any "Transaction" as defined in the Swap Agreement.
"Terms Schedule". The schedule or schedules (which may be in the form
of "Schedule I - Trust Property and Certificates", "Schedule II - Trust
Property" and "Schedule III - Swap Agreement", attached to Exhibit A hereto)
which contains information with respect to the terms of the Certificates, as
well as the Securities, the Swap Agreement and any other Trust Property.
"TIA". The Trust Indenture Act of 1939, as amended.
"Trigger Amount". As specified in the Terms Schedule.
"Trust". The trust created by the Trust Agreement.
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"Trust Agreement". As defined in the preamble hereto.
"Trust Property". As defined in Section 3.01(a).
"Trust Terms Agreement". As defined in the preamble hereto.
"Trust Wind-Up Event". As defined in Section 9.01.
"Trustee". As defined in the preamble hereto, including any successor
trustee or co-trustee appointed in accordance with the Trust Agreement.
"Trustee Fee Letter". A letter agreement between the Trustee and the
Depositor dated on or before the Closing Date setting forth the fees and
expenses of the Trust and the Trustee which are subject to reimbursement by the
Depositor.
"Trustee Fees". The amount or amounts set forth in the Trustee Fee
Letter.
"UCC". The Uniform Commercial Code as in effect from time to time in
the relevant jurisdiction or, with respect to the State of Louisiana, the
equivalent body of statutory and common law.
"Underwriter". Each Person acting as underwriter, dealer, placement
agent or in any similar capacity in connection with the distribution of the
Certificates.
"Underwriting Agreement". The agreement between the Underwriter or
Underwriters and the Depositor relating to the distribution of the Certificates.
"United States" or "U.S.". The United States of America (including the
several States and the District of Columbia), its territories, its possessions
and other areas subject to its jurisdiction.
"U.S. Person". A citizen or resident of the United States, a
corporation, partnership or other entity created or organized in or under the
laws of the United States or any political subdivision thereof, an estate the
income of which is subject to U.S. federal income taxation regardless of its
source or a trust if (i) a U.S. court is able to exercise primary supervision
over the trust's administration and (ii) one or more U.S. persons have the
authority to control all of the trust's substantial decisions.
Certain additional defined terms have the meanings assigned thereto in
other provisions hereof.
SECTION 1.02. Rules of Construction
Unless the context otherwise requires:
(i) a term has the meaning assigned to it;
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(ii) an accounting term not otherwise defined has the
meaning assigned to it in accordance with generally accepted accounting
principles applicable in the United States from time to time;
(iii) "or" is not exclusive;
(iv) the words "herein", "hereof", "hereunder" and other
words of similar import refer to the Trust Agreement as a whole and not
to any particular Article, section or other subdivision thereof;
(v) "including" means including without limitation; and
(vi) words in the singular include the plural and words in
the plural include the singular.
SECTION 1.03. Article and Section References.
All Article and Section references used in these Standard Terms, unless
otherwise provided, are to Articles and Sections of these Standard Terms. Any
reference to "this Section" appearing within a particular paragraph of a Section
is a reference to such Section as a whole.
SECTION 1.04. References to Credit Support, Swap Agreement and Call
Right
If the Terms Schedule does not specify any Credit Support or Swap
Agreement, all references herein to the "Credit Support" or the "Swap
Agreement", as the case may be, including in each case all related terms and
provisions, shall be deemed to be deleted. In the case of any Series that is not
designated as a "Callable Series" in the Terms Schedule, all references herein
to the "Call Right", including all related terms and provisions, shall be deemed
to be deleted.
ARTICLE II
Declaration of Trust; Entry into Swap Agreement;
Issuance of Certificates
SECTION 2.01. Creation and Declaration of Trust; Assignment of
Securities
(a) The Depositor, concurrently with the execution and delivery of the
Trust Agreement, shall transfer to the Trustee, on behalf and for the benefit of
the Certificateholders and without recourse, all the right, title and interest
of the Depositor, in, to and under (i) the Securities, (ii) the Certificate
Account, including all income from the investment of funds on deposit therein,
(iii) all payments on or under and all proceeds of any of the foregoing
(including all proceeds of the conversion thereof, voluntary or involuntary,
into cash or other liquid property, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts,
insurance
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proceeds, condemnation awards, causes of action, rights to payment of any and
every kind and other forms of obligations, receivables, instruments and other
property which at any time constitute all or part of or are included in the
proceeds of any of the foregoing) and (iv) all other assets included or to be
included in the Trust Property, in each case of clauses (i) through (iv) except
for any Retained Interest. The transfer of the Securities in accordance with the
immediately preceding sentence shall include all rights, powers and options of
the Depositor thereunder, including the first priority and continuing right to
claim for, collect, receive and give receipt for principal, premium, if any, and
interest payments in respect of the Securities and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings and generally to do and receive anything that the Depositor is or
may be entitled to do or receive thereunder or with respect thereto.
(b) In connection with the transfer of the Securities referred to in
paragraph (a) above, the Depositor shall, not later than the Closing Date, (i)
deposit the Securities with the Trustee by physical delivery of such Securities,
duly endorsed, to the Trustee or cause the Securities to be registered by
book-entry in the name of the Trustee (provided that the book-entry depositary
shall be an agency of the United States, DTC or another book-entry institution
acceptable to the Depositor) and (ii) deliver or cause to be delivered to the
Trustee all documents necessary to transfer the Securities to the Trustee.
SECTION 2.02. Swap Agreement, Swap Guarantee and Underwriting Agreement
Concurrently with the execution of the Trust Agreement, (i) the Trust
shall (A) execute and deliver the Swap Agreement and (B) accept any Swap
Guarantee and (ii) the Depositor shall enter into the Underwriting Agreement
with the Underwriter or Underwriters. It shall be a condition to the
effectiveness of the Trust Agreement that the Swap Agreement be effective as of
the date of the Trust Agreement. The Trustee shall, on behalf of the Trust,
perform the obligations of the Trust under the Swap Agreement in accordance with
its terms and shall make demands under any Swap Guarantee immediately upon
obtaining notice of any payment default by the Swap Counterparty under the Swap
Agreement. The Trustee and the Depositor agree, and each Certificateholder by
acquiring Certificates shall be deemed to agree, that the Swap Agreement does
not represent an ownership interest in the Trust or its assets and that none of
them shall treat the Swap Agreement as an ownership interest in the Trust for
any purpose. Except as expressly set forth in the Trust Agreement and in the
Swap Agreement, the receipt by the Trustee of the Securities and the execution
by the Trustee of the Swap Agreement shall not constitute, and is not intended
to result in, an assumption by the Trustee or any Certificateholder of any
obligation of the Security Issuer or the Swap Counterparty or any other Person
in connection with the Securities or the Swap Agreement or under any agreements
or instruments relating to any of them.
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SECTION 2.03. Acceptance by Trustee
The Trustee shall acknowledge receipt by it of (i) the Securities and
the related documents referred to in Section 2.01, (ii) the Swap Agreement, (ii)
any Swap Guarantee and (iv) the documents specified in the Swap Agreement (in
Part 3 of the Schedule to the ISDA Master Agreement), and declare that it will
hold such assets and all other assets comprising the Trust Property in trust,
for the exclusive use and benefit of all present and future Certificateholders
and for the purposes and subject to the terms and conditions set forth in the
Trust Agreement.
SECTION 2.04. Sale
The parties agree and intend that the transfer of Securities, the Swap
Agreement and all proceeds of any of the foregoing pursuant to this Article II
shall be treated as a sale and purchase by the Trust and not a loan or a pledge
to secure a loan. If for any reason and for any purpose whatsoever such transfer
is deemed to be a loan or a pledge to secure a loan, the parties intend that the
Trust Agreement shall be a security agreement pursuant to which there shall be
deemed to have been granted by the Depositor to the Trustee, for the benefit of
the Certificateholders, a security interest in all of the Depositor's right,
title and interest in the Securities, the Swap Agreement and all proceeds of any
of the foregoing, subject to a prior security interest in favor of the Swap
Counterparty pursuant to the Swap Agreement and to any obligation of the Trust
to pay Extraordinary Trust Expenses pursuant to Section 10.05(c). If the Trust
terminates prior to the satisfaction of the claims of any Certificateholder
under any Certificate, the security interest created hereby shall continue in
full force and effect and the Trustee shall be deemed to be the collateral agent
for the benefit of such Certificateholder, subject to the prior security
interest of the Swap Counterparty under the Swap Agreement and to any obligation
of the Trust to pay Extraordinary Trust Expenses pursuant to Section 10.05(c).
SECTION 2.05. Representations and Warranties of the Depositor
(a) The Depositor represents and warrants to the Trustee that, as of
the Closing Date or as of such other date specified in the Trust Agreement:
(i) the Depositor is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware;
(ii) to the Depositor's knowledge after due inquiry, the
Depositor has full power and authority to enter into and consummate all
transactions contemplated by the Trust Agreement, has duly authorized
the execution, delivery and performance of the Trust Agreement and has
duly executed and delivered the Trust Agreement. The Trust Agreement,
upon its execution and delivery thereof by the Depositor and assuming
the due authorization, execution and delivery thereof by the Trustee,
will constitute a valid, legal and binding obligation of the Depositor,
enforceable against it in accordance with the terms thereof, subject to
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bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
or similar laws of general applicability relating to or affecting
creditors' rights and to general equity principles;
(iii) the execution and delivery of the Trust Agreement by the
Depositor and its performance of and compliance with the terms thereof
will not violate the Depositor's certificate of incorporation or
by-laws or constitute a default (or an event which, with notice or
lapse of time, or both, would constitute a default) under, or result in
the breach or acceleration of, any material contract, agreement or
other instrument to which the Depositor is a party or by which the
Depositor is bound or to which the Depositor or any of its assets is
subject;
(iv) to the Depositor's knowledge after due inquiry, the
Depositor is not in violation, and the execution and delivery of the
Trust Agreement by the Depositor and its performance and compliance
with the terms thereof will not constitute a violation, of any order or
decree of any court or any order or regulation of any Federal, State,
municipal or governmental agency having jurisdiction over the Depositor
or its properties, which violation would reasonably be expected to have
a material and adverse effect on the duties and obligations of the
Depositor under the Trust Agreement; and
(v) to the Depositor's knowledge after due inquiry, there are
no liens or encumbrances on the Securities immediately prior to the
time of transfer, except those created by the Trust Agreement.
It is understood and agreed that the representations and warranties of
the Depositor in this paragraph (a) shall survive delivery of the respective
documents to the Trustee and shall inure to the benefit of the Trustee on behalf
of the Certificateholders notwithstanding any restrictive or qualified
endorsement or assignment.
(b) Upon discovery or receipt of notice by the Depositor that any
representations and warranties of the Depositor in paragraph (a) above is
inaccurate in any material respect, the Depositor shall (i) promptly notify the
Trustee thereof and (ii) if such inaccuracy, or the facts or circumstances to
which such inaccuracy relates, materially and adversely affects or affect the
rights of the Certificateholders to receive distributions under the Trust
Agreement when due and payable, promptly notify the Rating Agencies thereof. The
Depositor shall take such steps as may be required to ensure that the relevant
representation and warranty becomes accurate in all material respects within two
Business Days from the earlier of discovery or receipt of notice by it of such
inaccuracy.
SECTION 2.06. Agreement to Execute, Authenticate and Deliver
Certificates
The Trustee shall, concurrently with the transfer to and receipt by it
of the Securities and any Swap Guarantee and delivery to it by the Depositor of
the executed Trust Agreement and by the Swap Counterparty of the executed Swap
Agreement, and in
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exchange therefor, cause to be executed, authenticated and delivered to or upon
the order of the Depositor, Certificates duly executed and authenticated by or
on behalf of the Trustee in authorized denominations evidencing ownership of the
entire Trust Property, all in accordance with Section 5.02.
ARTICLE III
Trust Powers; Administration of the Trust Property
SECTION 3.01. Trust Property
(a) The "Trust Property" of the Trust shall consist of: (i) the
Securities and all payments on or collections in respect of the Securities due
after the Cut-off Date; (ii) all Permitted Investments and all funds from time
to time on deposit in the Certificate Account; (iii) all the right, title and
interest of the Trustee in, to and under the Credit Support; (iv) all the right,
title and interest of the Trustee in, to and under the Swap Agreement and any
Swap Guarantee; and (v) any other asset described in the Terms Schedule as
constituting a portion of the Trust Property, in each case of clauses (i)
through (v) exclusive of any Retained Interest.
(b) The Trust Property of the Trust shall not constitute trust property
of any other Trust. The holders of all Certificates together shall have an equal
and ratable undivided ownership interest in the Trust Property; provided that
the Terms Schedule may specify that certain assets constituting a part of the
Trust Property may be beneficially owned solely by or deposited solely for the
benefit of one Class or a group of Classes within the Series. In such event, the
other Classes of the Series shall not possess any beneficial ownership interest
in those specified assets constituting a part of the Trust Property.
SECTION 3.02. Administration of the Trust
(a) The Trustee shall administer the Trust Property for the benefit of
the Certificateholders. The duties of the Trustee shall be performed in
accordance with applicable local, State and Federal law.
(b) Subject to Article X, the Trustee is authorized to perform, and
from time to time hereafter shall perform, only those acts which are described
in the Trust Agreement as obligations of the Trustee. Notwithstanding the
generality of the foregoing, the Trustee is hereby specifically authorized and
directed to do the following on behalf of the Trust: (i) accept delivery of the
Securities; (ii) accept, or execute and deliver, as applicable, any
documentation relating to the Credit Support; (iii) execute and deliver any
documentation relating to the Call Right, (iv) execute and deliver, and perform
its obligations and exercise its rights under, the Swap Agreement; (v) accept,
and exercise its rights under, any Swap Guarantee; (vi) issue Certificate
Documents and establish and maintain the Certificate Account; (vii) pledge the
assets of the Trust (including the Securities) to secure obligations of the
Trust, including obligations under
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the Swap Agreement; (viii) sell Securities through the Selling Agent in
accordance with Section 9.03; (ix) make Permitted Investments pursuant to
Section 3.05; and (x) liquidate the Trust pursuant to Article IX and make
distributions pursuant to Article IV.
(c) Notwithstanding anything to the contrary herein, the Trust shall
not engage in any business or activities other than receiving and holding the
Securities and any Credit Support or other Trust Property, accepting, or
executing and delivering, any documentation relating to the Credit Support,
executing and delivering any documentation relating to the Call Right, entering
into the Swap Agreement, accepting the benefits of, and making demands and
exercising its rights, under any Swap Guarantee, issuing Certificate Documents,
making Permitted Investments in accordance with Section 3.05 and engaging in any
business activities related or incidental to the foregoing. In no event shall
the Trust engage in any business or activity which would cause it to be or
become an open-end investment company, unit investment trust or face-amount
certificate company that is or is required to be registered under Section 8 of
the Investment Company Act, or to be or become a closed-end investment company
required to be registered, but not so registered, under the Investment Company
Act.
(d) The Trustee shall not transfer, assign, pledge, sale, or otherwise
dispose of, the Securities, the Swap Agreement, any Swap Guarantee, the Credit
Support or other Trust Property, or any interest therein, to any Person or
Persons, except (i) to a successor trustee in accordance with Section 10.08,
(ii) through the Selling Agent in accordance with Section 9.03, (iii) in
accordance with Section 10.02(a)(x), (iv) as required under the Swap Agreement
or (v) as otherwise expressly permitted hereunder. This paragraph (d) shall not
be construed to prohibit transfers of the Certificates.
(e) The Trustee shall have the legal power to exercise all of the
rights, powers and privileges of holders of the Securities, subject to the other
provisions of this Section 3.02, Article X and the other provisions hereof.
Except as specifically provided in Section 8.01 or elsewhere in the Trust
Agreement or in the TIA, neither the Trustee nor the Depositor shall be under
any obligation whatsoever to appear in, prosecute or defend any Proceeding in
respect of the Securities.
(f) Except for actions expressly authorized by the Trust Agreement, the
Trustee shall not take any actions that are reasonably likely to (nor fail to
take any actions, if such failure would be reasonably likely to) (i) impair the
interests of the Trust in the Securities, the Swap Agreement, any Swap
Guarantee, the Credit Support, or any other Trust Property, (ii) impair the
value of the Securities, the Credit Support, the Swap Agreement, any Swap
Guarantee or any other Trust Property, (iii) alter the classification of the
Trust for U.S. federal income tax purposes or (iv) impair the Trust's ability to
rely upon Rule 3a-7 under the Investment Company Act for exemption from status
as an investment company thereunder.
(g) Except as expressly provided in the Trust Agreement, the Trustee
shall have no power to vary the corpus of the Trust Property, whether by (i)
accepting any
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substitute obligation or asset for any Security or any Credit Support (except in
connection with any exchange of, or substitution for, any Securities approved in
accordance with Section 7.01(c)), (ii) entering into any amendment or
modification of the Securities or the Swap Agreement, (iii) accepting any
substitute guarantee for any Swap Guarantee, (iv) adding any other investment,
obligation or security to the Trust Property, (v) withdrawing from the Trust
Property any Securities or Credit Support, (vi) terminating the Swap Agreement
other than in accordance with its terms or (vii) rejecting or otherwise failing
to accept the continuing benefits of any Swap Guarantee.
SECTION 3.03. Collection of Certain Payments
The Trustee shall make reasonable efforts to collect all payments
required to be made pursuant to the terms of the Securities in a manner
consistent with the terms of the Trust Agreement, the Securities, the Swap
Agreement and any Swap Guarantee, as applicable. In engaging in such activities,
the Trustee shall follow or cause to be followed collection procedures in
accordance with the terms of the Trust Agreement, the Securities, the Swap
Agreement and any Swap Guarantee, as applicable.
SECTION 3.04. Certificate Account
(a) The Trustee shall establish and maintain one or more Eligible
Accounts (collectively, the "Certificate Account"), held in trust for the
benefit of the Certificateholders, subject to the prior security interest of the
Swap Counterparty under the Swap Agreement and to any obligation of the Trust to
pay Extraordinary Trust Expenses pursuant to Section 10.05(c). The Trustee, on
behalf of the Certificateholders, shall possess all right, title and interest in
all funds from time to time on deposit in the Certificate Account and in all
proceeds thereof, subject to the prior security interest of the Swap
Counterparty pursuant to the Swap Agreement and to any obligation of the Trust
to pay Extraordinary Trust Expenses pursuant to Section 10.05(c). The
Certificate Account shall be under the sole dominion and control of the Trustee.
The Trustee shall deposit or cause to be deposited in the Certificate Account
all amounts collected with respect to the Securities, the Swap Agreement and any
Swap Guarantee, including:
(i) all payments received by the Trustee on account of
principal of the Securities;
(ii) all payments received by the Trustee on account of
interest (if any) on the Securities;
(iii) all payments received by the Trustee on account of
premium (if any) on the Securities;
(iv) all payments received by the Trustee in connection with
the consummation of any exchange of, substitution or tender for, or
consent solicitation relating to, any Securities approved in accordance
with Section 7.01(c);
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(v) all payments received by the Trustee on account of the
Credit Support;
(vi) all Swap Amounts and all other payments (if any) received
by the Trustee on account of the Swap Agreement;
(vii) all payments received by the Trustee on account of any
Swap Guarantee;
(viii) the Principal Balance, if applicable;
(ix) all payments in the nature of prepayment or redemption
penalties, late payment charges or assumption fees which may be
received by the Trustee;
(x) all payments held in trust pursuant to the second sentence
of Section 11.01(c); and
(xi) any portion of the net proceeds of any sale made pursuant
to Section 5.13(b) not paid to a Certificateholder pursuant to such
Section.
(b) If at any time a formerly Eligible Account constituting a part of
the Certificate Account no longer satisfies the requirements for Eligible
Accounts, the Trustee shall, no later than the fifth Business Day after the day
of such occurrence or prior to the next succeeding Distribution Date, whichever
occurs earlier, establish a new Account meeting such requirements and transfer
any cash and investments on deposit in the formerly Eligible Account to such new
Eligible Account, and from the date of such transfer, such new Eligible Account
shall constitute a part of the Certificate Account for all purposes of the Trust
Agreement.
(c) The Trustee shall give notice to the Depositor and the Rating
Agencies of the location of each Eligible Account constituting a part of the
Certificate Account.
SECTION 3.05. Investment of Funds in the Accounts
The Depositor, on behalf of the Trust, shall direct in writing the
Trustee or any depositary institution maintaining any Eligible Account
constituting a part of the Certificate Account to invest the funds on deposit
therein in one or more Permitted Investments bearing interest or sold at a
discount, which shall be held to maturity unless payable on demand. If the
Depositor does not provide any investment directions to the Trustee, then the
Trustee shall invest, or cause to be invested, all funds from time to time on
deposit in the Certificate Account in Permitted Investments of a type specified
in clause (i) or (v) of the definition thereof upon receipt of such funds;
provided that such Permitted Investments shall mature at least one calendar day
prior to the next Distribution Date.
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SECTION 3.06. Retained Interest
The Retained Interest, if any, in any Security or other Trust Property
shall initially be held by the Person specified in the Terms Schedule. Unless
otherwise specified in the Terms Schedule, a portion corresponding to the
Retained Interest, if any, with respect to any Security or other Trust Property
(i) shall be deducted by the Trustee from applicable collections in respect of
such Security or other Trust Property, (ii) shall not be deposited in the
Certificate Account, (iii) shall not constitute a part of the Trust and (iv)
shall be distributed to the holder of such Retained Interest.
SECTION 3.07. Access to Certain Documentation
The Trustee shall provide to any Federal, State or local regulatory
authority with jurisdiction over the Depositor, the Swap Counterparty, the Swap
Guarantor or any Certificateholder access to the documentation regarding the
Securities, the Swap Agreement and any Swap Guarantee required by applicable
laws and regulations. Such access shall be afforded without charge, but only
upon reasonable request and during normal business hours at the offices of the
Trustee designated by it. In addition, access to the documentation regarding the
Securities, the Swap Agreement and any Swap Guarantee shall be provided to the
Depositor, the Swap Counterparty, the Swap Guarantor or any Certificateholder
upon reasonable request during normal business hours at the offices of the
Trustee designated by it, at the expense of the Person requesting such access.
ARTICLE IV
Distributions to Certificateholders and Reporting
SECTION 4.01. Distributions
On each Distribution Date for the Certificates (including the Scheduled
Final Distribution Date), the Trustee shall distribute to each Certificateholder
the pro rata portion of the Available Funds as of such date that is allocable to
such Certificateholder.
SECTION 4.02. Reports to Certificateholders
(a) On each Distribution Date, the Trustee shall provide or cause to be
provided to the Depositor and each Certificateholder a statement setting forth:
(i) the amounts distributed on such Distribution Date to
Certificateholders in respect of, respectively, principal of or
interest or premium, if any, on the Certificates;
(ii) the applicable Interest Rate;
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(iii) the aggregate stated principal amount of the Securities
as of such Distribution Date and, to the extent that such information
has been provided to the Trustee, the interest rate applicable to the
Securities for the immediately following Security Accrual Period;
(iv) the amounts received by the Trustee in respect of the
Securities during the immediately preceding Security Accrual Period;
(v) any change in the available amount of each element of
Credit Support;
(vi) the amounts and the recipients of any payments under the
Swap Agreement during the immediately preceding Swap Rate Accrual
Period;
(vii) if feasible, the new Swap Rate applicable to the
immediately following Swap Rate Accrual Period;
(viii) the aggregate Principal Balance (or Notional Amount, if
applicable) at the close of business on the Business Day immediately
preceding such Distribution Date;
(ix) the current ratings of the Certificates and the
Securities, respectively, and the names of the Rating Agencies that
assigned such ratings, all to the extent that such information has been
provided to the Trustee by the Depositor;
(x) the cumulative amount of Extraordinary Trust Expenses, if
any, as of such Distribution Date; and
(xi) any additional information relevant to the
Certificateholders, as specified in the Terms Schedule.
In the case of information furnished pursuant to clause (i) above, each amount
shall be expressed as a Dollar amount (or the equivalent thereof in any other
Specified Currency) per minimum denomination of Certificates or for any other
specified portion thereof. Within a reasonable period of time after the end of
each calendar year, the Trustee shall furnish to each Person who at any time
during such year was a Certificateholder a statement containing the information
set forth in clause (i) above, aggregated for such year or the applicable
portion thereof during which such Person was a Certificateholder, which
statement shall contain sufficient information to enable each Certificateholder
to calculate its U.S. Federal income tax liability with respect to the
Certificates. Such obligation of the Trustee shall be deemed to have been
satisfied to the extent that substantially comparable information has been
provided by the Trustee in accordance with any applicable requirements of the
Code.
(b) At any time when the Trust (or the Depositor on behalf of the
Trust) is not subject to Section 13 or 15(d) of the Exchange Act, upon receiving
a request by a Certificateholder, or a prospective purchaser from a
Certificateholder, for the information
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required pursuant to Rule 144A(d)(4)(i) under the Securities Act, the Trustee
shall promptly notify the Depositor of such request, and the Depositor shall
promptly thereafter provide such information to the Trustee, and the Trustee
shall forward such information to such Certificateholder or prospective
purchaser, as the case may be; provided that, for purposes of this paragraph
(b), the information required by Rule 144A(d)(4)(i) shall be as interpreted in
Release No. 33-6862, Part D.
(c) The Trustee shall furnish to Certificateholders, as promptly as
possible, copies of any and all notices and communications that it receives from
the Security Issuer, including notice of any call of Securities by the Security
Issuer. The Trustee shall also notify the Certificateholders of any call of
Securities by the Swap Counterparty in accordance with the Swap Agreement.
(d) If so specified in the Terms Schedule, the Trustee shall use
reasonable efforts to cause a firm of independent public accountants to furnish
to the Trustee, commencing on a date specified in the Terms Schedule and on or
before each anniversary of such date, a statement to the effect that such firm
has examined certain documents and records relating to the administration of the
Trust Property during the immediately preceding 12-month period (or, in the case
of the first such report, the period ending on or before the date specified in
the Terms Schedule, which date shall not be more than one year after the related
Closing Date) and that, on the basis of certain agreed upon procedures
considered appropriate under the circumstances, such firm is of the opinion that
such administration was conducted in compliance with the terms of the Trust
Agreement, except for such exceptions as such firm believes to be immaterial and
such other exceptions and qualifications as shall be set forth in such report.
If so specified in the Terms Schedule, the Trustee shall furnish to the
Depositor, upon written request by the Depositor, on or before a specified date
in each year, an annual statement signed by one or more Responsible Officers of
the Trustee to the effect that the Trustee has fulfilled its obligations under
the Trust Agreement during the immediately preceding 12-month period with
respect to the Certificates.
Copies of the annual accountants' statement and the statement of
officers of the Trustee, in each case if applicable, may be obtained by
Certificateholders without charge upon written request to the Trustee.
(e) Promptly upon receiving any notice of the exercise of the Call
Right, if any, with respect to the Certificates by a Person entitled to exercise
the Call Right, the Trustee shall provide notice thereof as specified in the
Terms Schedule.
(f) The Trustee shall transmit to Certificateholders such reports
concerning the Trustee and its actions under the Trust Agreement as may be
required pursuant to the TIA at the times and in the manner provided therein. A
copy of any such report shall, at the time of such transmission to
Certificateholders, be filed by the Trustee with each stock exchange on which
the Certificates are then listed, with the Commission and with
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the Depositor. The Depositor shall notify the Trustee when the Certificates are
listed on any stock exchange.
SECTION 4.03. Calculation of Interest Rates
Unless otherwise specified in the Terms Schedule, the Interest Rate
shall be the rate applicable to payments received by the Trust under the
Securities or the Swap Agreement (as determined by the Swap Calculation Agent),
as applicable. If the Terms Schedule specifies a Calculation Agent, such
Calculation Agent shall calculate the Interest Rate applicable to the
Certificates from time to time in the manner specified in the Terms Schedule.
All calculations by the Calculation Agent hereunder shall, in the absence of
manifest error, be conclusive for all purposes and binding on
Certificateholders. Each of the protections, releases, indemnities and other
terms applicable to the Trustee under Sections 10.01, 10.02, 10.03 and 10.05
shall apply, mutatis mutandis, to the Calculation Agent in connection with its
actions as such.
SECTION 4.04. Compliance with Tax Reporting and Withholding
Requirements
Unless otherwise specified in the Terms Schedule, the Trustee shall
file or cause to be filed, within the time limits established by law, Federal
and State income tax returns and information statements as a grantor trust for
each of the Trust's taxable years. The Trust's taxable year shall be the
calendar year. Notwithstanding any other provision of the Trust Agreement to the
contrary, the Trustee shall comply with all Federal withholding requirements
regarding distributions to, or receipts of amounts on behalf of,
Certificateholders that the Trustee reasonably believes are applicable under the
Code. The consent of Certificateholders shall not be required for any such
withholding. In the event that the Trustee withholds any amount from interest or
original issue discount distributions to any Certificateholder pursuant to
Federal withholding requirements, the Trustee shall indicate in any statement
required to be provided to such Certificateholder pursuant to Section 4.02(d)
the amount so withheld.
SECTION 4.05. Preservation of Information, Communications to Holders
(a) The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of the Registered Certificateholders
contained in the most recent list furnished to the Trustee and the names and
addresses of Registered Certificateholders received by the Trustee in its
capacity as Certificate Registrar. The Trustee may destroy any list furnished to
it as provided upon receipt of a new list.
(b) Certificateholders shall have the right to communicate pursuant to
TIA Section 312(b) with other Certificateholders with respect to their rights
under this Agreement or under the Certificates.
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(c) Irrespective of whether the TIA shall apply to this Agreement, the
Depositor, the Trustee, the Paying Agent and the Certificate Registrar shall
have the benefit of protections equivalent to those provided by TIA Section
312(c).
ARTICLE V
The Certificates
SECTION 5.01. The Certificates
(a) The Certificates shall be represented by one or more Certificate
Documents in the denominations specified in the Terms Schedule; provided that,
unless provided otherwise in the Trust Terms Agreement, all Certificates
denominated in Dollars shall be issued in minimum denominations of $1,000 and
integral multiples of $1,000 in excess thereof. No interests in the Trust other
than the Certificates shall be issued, except in accordance with Section 5.05.
(b) Each Series may be limited to a single class, or, if so specified
in the Terms Schedule, may include two or more Classes differing as to
entitlement to distributions of principal, interest or premium, and one or more
Classes may be subordinated in certain respects to other Classes of the same
Series with respect to the allocation of losses arising from any defaults with
respect to the Trust Property. All Certificates of a particular Class shall be
identical in all respects, except for the denominations thereof.
(c) Unless otherwise specified in the Terms Schedule, all Certificates
of a particular Series (or, if more than one Class exists within the same
Series, any particular Class within such Series) will, upon issuance, be
represented by one or more Global Certificates that will be deposited with, or
on behalf of, DTC (in the case of Registered Certificates denominated and
payable in Dollars), Euroclear, Clearstream or any other Depositary specified in
the Terms Schedule. Global Certificates may be issued as either Registered
Certificates or Bearer Certificates and in either temporary or permanent form.
Global Certificates representing Registered Certificates shall be registered in
the name of a nominee of the Depositary, and shall clear and settle in
book-entry form only through the facilities of one or more Depositaries.
SECTION 5.02. Execution, Authentication and Delivery
(a) The Certificates shall be executed on behalf of the Trust by a
Responsible Officer of the Trustee. The signature of any of these officers may
be manual or in facsimile form. Certificates bearing the manual or facsimile
signature of individuals who were at any time the proper officers of the Trustee
shall be binding, notwithstanding the fact that such individuals or any of them
may have ceased to hold such offices prior to the authentication and delivery of
such Certificates or did not hold such offices at the date of such Certificates.
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(b) The Trustee shall not be required to authenticate any Certificates
if the issuance of such Certificates pursuant to the Trust Agreement would
adversely affect the Trustee's own rights, duties or immunities under the Trust
Agreement.
(c) Each Certificate shall be dated as of the date of its
authentication.
(d) No Certificate shall be entitled to any benefit under the Trust
Agreement or be valid or obligatory for any purpose, unless there appears on
such Certificate a certificate of authentication substantially in the form set
forth in Exhibit B hereto, executed manually by one of the Responsible Officers
of the Trustee, except as provided otherwise in Section 5.11(e). Such
certificate of authentication shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered under
the Trust Agreement and is entitled to the benefits of the Trust Agreement.
Notwithstanding the foregoing, if any Certificate has been authenticated and
delivered hereunder but never issued and sold by or on behalf of the Trust, and
such Certificate is delivered by or on behalf of the Trust to the Trustee for
cancellation pursuant to Section 5.08, for all purposes of the Trust Agreement
such Certificate shall be deemed never to have been authenticated and delivered
and shall never be entitled to the benefits of the Trust Agreement.
SECTION 5.03. Temporary Certificates
Pending the preparation of definitive Certificates of any Series, the
Trustee shall cause one of its Responsible Officers to execute, authenticate and
deliver temporary Certificates of such Series, substantially in the form of the
definitive Certificate in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as such
Responsible Officer may determine, as evidenced by the execution of such
Certificates by such Responsible Officer.
If temporary Certificates of any Series are issued, the Trustee shall
cause definitive Certificates of such Series to be prepared without unreasonable
delay. After the preparation of definitive Certificates of such Series, the
temporary Certificates of such Series shall be exchangeable (subject to Section
5.12(b), if applicable) for definitive Certificates of such Series upon
surrender of the temporary Certificates of such Series at the office or agency
of the Trustee for such purpose, without charge to the holder thereof. Upon
surrender for cancellation of any temporary Certificates of any Series, the
Trustee shall cause one of its Responsible Officers to execute, authenticate and
deliver one or more definitive Certificates of such Series of any authorized
denomination or denominations of like tenor and aggregate Principal Balance (or
Notional Amount, as applicable). Until so exchanged, the temporary Certificates
of any Series shall in all respects be entitled to the same benefits under the
Trust Agreement as definitive Securities of such Series.
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SECTION 5.04. Registration; Registration of Transfer and Exchange
(a) The Trustee shall cause to be kept at its Corporate Trust office a
register for Registered Certificates (the registers maintained in such office
and in any other office or agency of the Trustee from which distributions are
made are collectively referred to as the "Certificate Register") in which,
subject to such reasonable regulations as it may prescribe, a transfer agent and
registrar (which may be the Trustee) (the "Certificate Registrar") shall provide
for the registration of Registered Certificates and of transfers and exchanges
thereof. The Trustee shall have the right to rely upon a certificate executed on
behalf of the Certificate Registrar by one or more of its Responsible Officers
as to the names and addresses of the holders of Registered Certificates and the
Principal Balance (or Notional Amount, as applicable) thereof held by each such
holder.
The Trustee is initially appointed as Certificate Registrar for
purposes of registering Registered Certificates and transfers and exchanges
thereof as herein provided and shall remain Certificate Registrar for such
purposes until the earliest to occur of (i) the appointment by the Depositor of
a different Certificate Registrar, (ii) the resignation or termination of the
Trustee and appointment of a successor trustee in accordance with Section 10.08,
in which case such successor trustee shall be deemed to be appointed as
Certificate Registrar and (iii) the termination of the Trust and discharge of
the Trustee's obligations under the Trust Agreement in accordance with the
applicable terms of Articles IX and XI; provided, however, that the Trustee may
appoint one or more co-Certificate Registrars. Upon the resignation of any
Certificate Registrar appointed by the Depositor pursuant to clause (i) of the
immediately preceding sentence, the Trustee shall promptly assume the duties of
Certificate Registrar. Upon (i) the appointment by the Depositor of a Person
other than the Trustee as Certificate Registrar, (ii) the appointment of any
co-Certificate Registrar or (iii) any change in the identity of the Certificate
Registrar or any co-Certificate Registrar, the Depositor shall, within three
Business Days from such occurrence, give notice thereof to each of the Trustee
and the Rating Agencies, which notice shall also specify the location, and any
change in the location, of the Certificate Register.
(b) Upon surrender for registration of transfer of any Registered
Certificate at the office or agency of the Trustee, if the requirements of
Section 8-401(1) of the UCC are met to the Trustee's satisfaction, and subject
to the transfer restrictions set forth in Section 5.12, the Trustee shall
execute, authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Registered Certificates of any authorized
denominations, of like tenor and aggregate Principal Balance (or Notional
Amount, as applicable). All transfers of Registered Certificates are subject to
the approval of the Trustee and the Trustee shall not approve any transfer of
Registered Certificates if such transfer would violate any provision of the
Trust Agreement.
At the option of the holder of any Registered Certificate, such
Certificate may be exchanged for one or more other Registered Certificates of
any authorized denomination or denominations of like tenor and aggregate
Principal Balance (or Notional Amount, as
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applicable) upon surrender of the Registered Certificate to be exchanged at the
office or agency of the Trustee maintained for such purpose. Whenever any
Registered Certificates are so surrendered for exchange, the Trustee shall
execute, authenticate and deliver the Registered Certificates that the
exchanging holder is entitled to receive.
All Registered Certificates issued upon registration of any transfer or
exchange of Registered Certificates shall constitute complete and indefeasible
evidence of ownership in the Trust Property and be entitled to the same benefits
under the Trust Agreement as the Registered Certificates surrendered upon such
registration of transfer or exchange.
(c) Each Registered Certificate presented or surrendered for
registration of transfer or exchange shall (if so required by the Trustee or the
Certificate Registrar) (i) be duly endorsed, or be accompanied by a written
instrument of transfer in a form satisfactory to the Trustee and the Certificate
Registrar duly executed, by the holder thereof or such holder's attorney duly
authorized in writing, which signature shall be guaranteed by a commercial bank
or trust company or by a member firm of a national securities exchange, and (ii)
be accompanied by such other documents as the Trustee may require.
(d) No service charge shall be imposed on a Certificateholder for any
registration of transfer or exchange of Registered Certificates, but the Trustee
may require payment by the Holders of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange, except in the case of any exchange pursuant to Section
5.03, 5.12(a)(ii) or 5.13(a).
SECTION 5.05. Mutilated, Destroyed, Lost and Stolen Certificates
If (i) any mutilated Certificate is presented to the Depositor or the
Trustee or (ii) the Depositor and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Certificate, and the
Depositor and the Trustee receive such security or indemnity as they may require
to save each of them and any Paying Agent harmless, and neither the Depositor
nor the Trustee receives notice that such Certificate has been acquired by a
bona fide purchaser, then, in each case, the Trustee shall cause one of its
Responsible Officers to execute, authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like tenor and Principal Balance (or Notional Amount, as
applicable), bearing a number not contemporaneously Outstanding, so that neither
gain nor loss in interest shall result from such exchange or substitution.
Upon the issuance of any new Certificate under this Section 5.05, the
Trustee may require the payment by the Person that will become the holder of
such Certificate of a sum sufficient to cover any tax or other governmental
charge that may be imposed with respect thereto and any other expenses
(including the fees and expenses of the Trustee) in connection therewith.
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Each new Certificate issued pursuant to this Section 5.05 shall
constitute complete and indefeasible evidence of a beneficial ownership interest
in the Trust Property, whether or not the destroyed, lost or stolen Certificate
shall at any time be enforceable by anyone, and shall be entitled to all the
benefits of the Trust Agreement equally and proportionately with any and all
other Certificates duly issued thereunder.
The terms of this Section 5.05 are exclusive and shall preclude (to the
extent permitted by applicable law) all other rights and remedies with respect
to the replacement or payment of mutilated, destroyed, lost or stolen
Certificates.
SECTION 5.06. Distributions in Respect of Certificates
(a) Any amount in respect of a Registered Certificate that is payable
and is punctually paid or duly provided for on any Distribution Date or any
other date shall be distributed to the Person in whose name such Registered
Certificate (or one or more Predecessor Certificates) is registered at the close
of business on the related Record Date, notwithstanding any cancellation of such
Registered Certificate upon any transfer or exchange subsequent to such Record
Date. Distributions on Registered Certificates shall be made, in accordance with
arrangements satisfactory to the Trustee, by wire transfer to an account
designated in writing by the Person entitled to receive such Distributions, or,
in the case of distributions of Securities in kind, by delivery of such
Securities to any DTC or other Depositary account designated in writing by such
Person, or, if such arrangements with respect to any Person are not so made no
later than 15 calendar days prior to the applicable Distribution Date, at the
Corporate Trust Office (with respect to the final distribution and distributions
in kind of Securities) or by check mailed to the address of the Person entitled
thereto as such address appears in the Certificate Register.
(b) Unless otherwise specified in the Terms Schedule, subject to
Section 5.12 and to applicable law, any amount in respect of a Bearer
Certificate that is punctually paid or duly provided for on any Distribution
Date or any other date shall be payable only upon surrender of the applicable
coupons or Certificates, as the case may be, and at such offices or agencies
outside the United States as the Trustee may from time to time designate.
(c) Subject to paragraphs (a) and (b) above, each Certificate delivered
under the Trust Agreement upon transfer of or in exchange for or in lieu of any
other Certificate shall carry the rights to amounts to be distributed that are
accrued and undistributed, and to accrue, that were carried by such other
Certificate.
SECTION 5.07. Persons Deemed Owners
The Depositor and the Trustee and any agent of the Depositor or the
Trustee may treat the Person in whose name any Registered Certificate is
registered as the owner of such Certificate on the relevant Record Date for the
purpose of receiving distributions of principal of, and any premium and any
interest on, such Certificate and for all other purposes whatsoever, whether or
not such Certificate shall be overdue, and neither the
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Depositor, the Trustee, nor any agent of the Depositor or the Trustee shall be
affected by notice to the contrary. All distributions made to any such Person,
or upon the order of such Person, shall be valid, and, to the extent of the sum
or sums paid, effectual to satisfy and discharge the liability for moneys
distributable in respect of such Certificate.
SECTION 5.08. Cancellation
All Certificates surrendered for payment, redemption or registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee and shall be promptly canceled by it. Any
Certificates previously authenticated and delivered hereunder (i) which may have
been acquired on behalf of the Trust or (ii) which have not been issued and sold
on behalf of the Trust, may be delivered on behalf of the Trust to the Trustee
(or to any other Person for delivery to the Trustee) for cancellation, and all
Certificates so delivered shall be promptly canceled by the Trustee. No
Certificates shall be authenticated in lieu of or in exchange for any
Certificates surrendered as provided in this Section 5.08, except as expressly
permitted by the Trust Agreement.
SECTION 5.09. Currency of Distributions in Respect of Certificates;
Redenomination
(a) Except as provided in (b) below, distributions of the principal of,
or any premium or any interest on, Certificates shall be made in the Specified
Currency.
(b) Unless otherwise provided in the Terms Schedule, if distributions
in respect of a Certificate are required to be made in a Specified Currency
other than Dollars, and such currency is unavailable due to the imposition of
exchange controls or other circumstances beyond the control of the Depositor,
the Trust and their respective Affiliates, or is no longer used by the
government of the country issuing such currency or for the settlement of
transactions by public institutions of or within the international banking
community, then all distributions in respect of such Certificate shall be made
at a time and in a manner determined by the Exchange Rate Agent in its sole
discretion, which may be in the Specified Currency at such reasonable time as
such currency is again available or so used, or in such other currency and at
such rates as the Exchange Rate Agent may determine.
Each of the protections, releases, indemnities and other terms
applicable to the Trustee under Sections 10.01, 10.02, 10.03 and 10.05 shall
apply, mutatis mutandis, to the Exchange Rate Agent in connection with its
actions as Exchange Rate Agent for the Trust.
SECTION 5.10. Appointment of Paying Agent
(a) The Trustee may appoint one or more paying agents (each, a "Paying
Agent") with respect to the Certificates, and shall appoint at least one Paying
Agent outside the United States in respect of payments to be made on any Bearer
Certificates.
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Any such Paying Agent shall be authorized to make distributions to
Certificateholders pursuant to the Trust Agreement and shall report the amounts
of such distributions to the Trustee. The Trustee may remove the Paying Agent if
the Trustee determines in its sole discretion that the Paying Agent has failed
to perform its obligations under the Trust Agreement in any material respect or
if the Paying Agent fails to satisfy the eligibility requirements set forth in
paragraph (b) below. The Paying Agent shall initially be the Trustee and any
co-Paying Agent selected by the Depositor and acceptable to the Trustee. Any
Paying Agent shall be permitted to resign as Paying Agent upon at least 30 days'
prior written notice to the Trustee. In the event that the Trustee is no longer
the Paying Agent, the Trustee shall appoint a successor or additional Paying
Agent. The Trustee shall cause each such Paying Agent to execute and deliver to
the Trustee an instrument in which such Paying Agent shall agree with the
Trustee that it will hold any and all sums held by it for distribution to the
Certificateholders in an Eligible Account in trust for the benefit of the
Certificateholders entitled thereto until such sums are distributed to such
Certificateholders. The Paying Agent shall return all unclaimed funds to the
Trustee within two years from the time such funds were first eligible to be
claimed and, in the event of its removal by the Trustee, shall promptly return
all funds in its possession to the Trustee.
(b) The Paying Agent shall at all times be a corporation or an
association, the combined capital and surplus of which is at least $50,000,000
and the long-term debt obligations of which are rated in one of the four highest
categories assigned to long-term debt obligations by each of the Rating
Agencies, and which is subject to supervision or examination by Federal or State
authorities. If such corporation or association publishes reports of conditions
at least annually, the combined capital and surplus of such corporation or
association at any time shall be deemed to be its combined capital and surplus
as set forth in its most recent report of conditions so published. In the event
that the Paying Agent at any time ceases to be eligible in accordance with the
terms of this paragraph (b), the Paying Agent shall promptly return all funds
then in its possession to the Trustee and then resign immediately. Upon such
resignation, the Trustee shall act as Paying Agent until the appointment of a
successor Paying Agent in accordance with paragraph (a) above.
(c) The Trustee shall pay to each Paying Agent from time to time
reasonable compensation for its services under this Section 5.10.
(d) The provisions of Sections 10.01, 10.02, 10.03, 10.05 and 10.06
shall apply to the Trustee also in its role as Paying Agent, if and for so long
as the Trustee acts as Paying Agent in accordance with this Section 5.10.
(e) Any reference in the Trust Agreement to the Paying Agent shall
include any co-Paying Agent, unless the context requires otherwise.
(f) Any funds returned by the Paying Agent to the Trustee pursuant to
the last sentence of paragraph (a) or the penultimate sentence of paragraph (b)
above shall be set
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aside and held in trust by the Trustee for the benefit of the Certificateholders
entitled to such funds.
SECTION 5.11. Authenticating Agent
(a) The Trustee may appoint one or more Authenticating Agents (each, an
"Authenticating Agent") with respect to the Certificates, each of which shall be
authorized to act on behalf of the Trustee in authenticating Certificates in
connection with the issuance, delivery and registration of transfer or exchange
thereof. Whenever reference is made in the Trust Agreement to the authentication
of Certificates by the Trustee or the Trustee's certificate of any
authentication, such reference shall be deemed to include any authentication on
behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent must
be acceptable to the Depositor.
(b) Any institution succeeding to the corporate agency business of any
Authenticating Agent shall be an Authenticating Agent without the execution or
filing of any power or any further act on the part of the Trustee or such
institution. An Authenticating Agent may at any time resign by giving notice of
resignation to the Trustee and the Depositor. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving a notice of
termination to such Authenticating Agent and the Depositor. Upon receiving such
a notice of resignation or giving such a notice of termination, or in the event
that at any time an Authenticating Agent shall cease to be acceptable to the
Trustee or the Depositor, as the case may be, the Trustee shall act as
Authenticating Agent until the appointment of a successor Authenticating Agent
in accordance with paragraph (a) above.
(c) The Trustee shall pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section 5.11.
(d) The provisions of Sections 10.01, 10.02, 10.03, 10.05 and 10.06
shall apply to the Trustee also in its role as Authenticating Agent if and for
so long as the Trustee acts as Authenticating Agent in accordance with this
Section 5.11.
(e) If an Authenticating Agent (other than the Trustee) is appointed
pursuant to this Section 5.11, the Certificates may have endorsed thereon, in
lieu of the Trustee's certificate of authentication pursuant to Section 5.02(d),
an alternate certificate of authentication in substantially the following form:
This is one of the Certificates referred to in the within-mentioned
Trust Agreement.
______________________________
as Authenticating Agent for
the Trustee
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By: ______________________________
Authorized Signatory
SECTION 5.12. Issuance and Transfer Restrictions
(a) If the Terms Schedule specifies that the Certificates shall be
Registered Certificates that are Book-Entry Certificates:
(i) Such Certificates shall be represented by one or more
Global Certificates registered in the name of a Depositary or its
nominee;
(ii) Unless otherwise provided in the Certificates or the
Terms Schedule, any Global Certificate representing such Certificates
shall be exchangeable for Certificate Documents registered in the name
of Persons other than the Depositary or its nominee only if (A) the
Depositary is no longer willing or able to act as a depositary and the
Trustee is unable to locate a qualified successor Depository within 30
days or (B) a Trust Wind-Up Event has occurred and be continuing. Upon
any such exchange, the Trustee shall register such Certificate
Documents in the name of, and cause such Certificate Documents to be
delivered to, such other Persons; and
(iii) Any Global Certificate representing such Certificates
shall bear a legend in substantially the following form:
"THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE
MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS CERTIFICATE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR
A CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS CERTIFICATE
IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST
AGREEMENT."
(b) If the Terms Schedule specifies that the Certificates shall be
Bearer Certificates:
(i) The Underwriting Agreement with respect to such
Certificates shall provide that, in connection with the original
issuance of such Certificates and during the period ending 40 days
after such issuance, the Underwriter or Underwriters thereunder shall
not offer, sell or deliver such Certificates, directly or indirectly,
to a U.S. Person or to any Person within the United States, except to
the extent permitted under U.S. Treasury regulations;
(ii) Such Certificates shall bear a legend to the following
effect.
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"ANY U.S. PERSON WHO HOLDS THIS OBLIGATION SHALL BE SUBJECT TO
LIMITATIONS UNDER U.S. INCOME TAX LAWS, INCLUDING THE LIMITATIONS
PROVIDED IN SECTIONS 165(J) AND 1287(A) OF THE INTERNAL REVENUE CODE.";
and
(iii) Pending the availability of a permanent Global
Certificate or definitive Bearer Certificates, as the case may be,
Certificates that are issuable as Bearer Certificates may initially be
represented by a single temporary Global Certificate, without interest
coupons, to be deposited with a common depositary in London for
Euroclear and Clearstream for credit to the accounts designated by or
on behalf of the purchasers thereof. Following the availability of a
permanent Global Certificate in bearer form, without coupons attached,
or definitive Bearer Certificates, and subject to any further
limitations specified in the Terms Schedule, any such temporary Global
Certificate shall be exchangeable, in accordance with Section 5.03, for
interests in such permanent Global Certificate or for definitive Bearer
Certificates, respectively, only upon receipt by the Trustee of a
certificate acceptable to the Depositor and the Trustee to the effect
that a beneficial interest in a temporary Global Certificate is owned
by a Person that is not a U.S. Person or is owned by or through a
financial institution in compliance with applicable U.S. Treasury
regulations (a "Certificate of Non-U.S. Beneficial Ownership"). No
Bearer Certificate shall be delivered in or to the United States. If so
specified in the Terms Schedule, interest on a temporary Global
Certificate will be distributed to each of Euroclear and Clearstream
with respect to that portion of such temporary Global Certificate held
by it, but only upon receipt by the Trustee as of the relevant
Distribution Date of a Certificate of Non-U.S. Beneficial Ownership.
(c) (i) Subject to clause (ii) below, if the Terms Schedule specifies
that the "Alternative ERISA Restrictions" apply:
(A) The Certificates shall be issued only as
definitive Registered Certificates and no transfer of any
Certificate Document shall be made to any employee benefit
plan, domestic or foreign, whether or not subject to ERISA, or
described in Section 4975(e)(1) of the Code, or comparable
terms of any subsequent enactments, or a trustee of any such
plan, or an entity whose underlying assets include the assets
of any such plan (each of the foregoing a "Benefit Plan"),
unless immediately after such transfer Certificates
representing a percentage interest of not more than 24.9% are
held by Benefit Plans (for this purpose the percentage
interest shall be calculated as if any Certificates held by
the Depositor, the Trustee or any of their affiliates (within
the meaning of Department of Labor Reg. ss. 2510.3-101(f)(3))
were not outstanding);
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(B) any prospective transferee shall be required to
certify whether or not it is a Benefit Plan or is acquiring
the Certificates with the assets of any Benefit Plan; and
(C) after the initial distribution of the
Certificates subject to the Alternative ERISA Restrictions,
neither the Depositor nor the Trustee or any of their
Affiliates shall acquire any Certificate, unless immediately
after such acquisition Certificates held by Benefit Plans
would not represent a percentage interest of more than 24.9%
(calculated as described in subclause (A) of this clause (i)).
(ii) If the Terms Schedule specifies that the "Deemed Representations"
apply:
(A) The restrictions described in clause (i) above
shall not apply and the Certificates shall be issued in
reliance on certain exemptions from the prohibited transaction
provisions of Section 406 of ERISA and Section 4975 of the
Code which may be applicable, depending in part on the type of
Plan fiduciary making the decision to acquire a Certificate
and the circumstances under which such decision is made.
Included among these exemptions are Prohibited Transaction
Class Exemption ("PTCE") 91-38 (relating to investments by
bank collective investment funds), PTCE 84-14 (relating to
transactions effected by a "qualified professional asset
manager"), ▇▇▇▇ ▇▇-▇ (relating to investments by insurance
company pooled separate accounts), PTCE 95-60 (relating to
transactions involving insurance company general accounts) and
PTCE 96-23 (relating to transactions determined by in-house
asset managers);
(B) BY ITS PURCHASE OF ANY CERTIFICATE, THE PURCHASER
WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED EITHER THAT
(1) IT IS NOT AN ERISA PLAN OR OTHER PLAN, A GOVERNMENTAL PLAN
WHICH IS SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW THAT IS
SUBSTANTIALLY SIMILAR TO THE PROVISIONS OF SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE OR AN ENTITY WHOSE
UNDERLYING ASSETS INCLUDE THE ASSETS OF ANY SUCH ERISA PLAN OR
OTHER PLAN, OR (2) ITS PURCHASE, HOLDING AND DISPOSITION OF A
CERTIFICATE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR, IN THE
CASE OF A GOVERNMENTAL PLAN, ANY SUBSTANTIALLY SIMILAR
FEDERAL, STATE OR LOCAL LAW) FOR WHICH AN EXEMPTION IS NOT
AVAILABLE; AND
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(C) Each Person that acquires a Certificate, and each
fiduciary which causes a Person to acquire a Certificate, in
such fiduciary's individual capacity, hereby agrees to
indemnify and hold harmless the Depositor, the Trustee and
their respective affiliates from any cost, damage, loss or
expense incurred by them as a result of the representation set
forth in subclause (B) of this clause (ii) not being true.
(iii) Unless the Terms Schedule specifies that either
the "Alternative ERISA Restrictions" or the "Deemed
Representations" apply:
(A) no Certificate may be transferred to any Benefit
Plan that is subject to the fiduciary responsibility
provisions of Title I of ERISA or Section 4975(e) of the Code
(an "ERISA Plan"), or that is a governmental or other plan
subject to substantially similar legal requirements, or to any
Person that is acquiring the Certificate with the assets of
any such Benefit Plan. Any purported transfer in violation of
this restriction shall be void ab initio;
(B) BY ITS PURCHASE OF ANY CERTIFICATE, THE PURCHASER
WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT IT IS
NOT AN ERISA PLAN, IS NOT A GOVERNMENTAL OR OTHER PLAN SUBJECT
TO SUBSTANTIALLY SIMILAR LEGAL REQUIREMENTS, AND IS NOT USING
THE ASSETS OF ANY SUCH BENEFIT PLAN TO PURCHASE THE
CERTIFICATE; AND
(C) each Person that acquires a Certificate, and each
fiduciary which causes a Person to acquire a Certificate, in
such fiduciary's individual capacity, hereby agrees to
indemnify and hold harmless the Depositor, the Trustee and
their respective affiliates from any cost, damage, loss or
expense incurred by them as a result of the representation set
forth in subclause (B) of this clause (iii) not being true.
(d) Each of the Trustee and the Depositor is entitled to request
additional evidence from a proposed transferee of any Certificate to ensure to
its sole satisfaction the accuracy of the representations in the Underwriting
Agreement relating to the matters identified in the preceding paragraphs.
(e) If, at any time, the Trustee learns that any of the representations
or warranties provided by a transferee or prospective transferee of any
Certificate is inaccurate or that any agreement made therein has been breached,
any purported transfer of such Certificate to such transferee or prospective
transferee shall be null and void ab initio. The Trustee shall arrange for the
compulsory sale (at a price determined by the Depositor) for any purported
transfer of a Certificate in contravention of any of the transfer restrictions
set forth herein. The Trustee shall also have such other powers as
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may be necessary, in its sole discretion, to effect compliance with the terms of
this Section 5.12.
SECTION 5.13. Optional Exchange
(a) In order for a Certificate of any Exchangeable Series (or Class
within such Exchangeable Series) to be exchanged by a holder thereof, the
Trustee must receive, at least 30 (or such shorter period acceptable to the
Trustee) but not more than 45 days prior to an Optional Exchange Date, (i) such
Certificate with the form entitled "Option to Elect Exchange" duly completed or
(ii) in the case of a Registered Certificate, a telegram, telex, facsimile
transmission or letter from a member of a national securities exchange, the
National Association of Securities Dealers, Inc., the Depositary (in accordance
with its normal procedures) or a commercial bank or trust company in the United
States, which shall set forth the name of such holder, the Principal Balance (or
Notional Amount, as applicable) to be exchanged, the certificate number or a
description of the tenor and terms of such Registered Certificate, a statement
that the option to elect exchange is being exercised thereby and a guarantee
that such Registered Certificate with the form entitled "Option to Elect
Exchange" duly completed will be received by such Trustee not later than five
Business Days after the date of such telegram, telex, facsimile transmission or
letter. If the procedure described in clause (ii) of the immediately preceding
sentence is chosen, then such Registered Certificate and duly completed form
must be received by the Trustee by such fifth Business Day. Any tender of a
Certificate by the holder thereof for exchange shall be irrevocable. The
exchange option may be exercised by the holder of a Certificate for less than
the entire Principal Balance (or Notional Amount, as applicable), of such
Certificate, provided the Principal Balance (or Notional Amount, as applicable),
of such Certificate remaining outstanding after such exchange is an authorized
denomination and any other requirements specified in the Terms Schedule are
satisfied. Upon any such partial exchange, such Certificate shall be canceled
and a new Certificate or Certificates of like tenor for the remaining Principal
Balance (or Notional Amount, as applicable) thereof shall be issued in the name
of the holder of such exchanged Certificate.
(b) Unless otherwise specified in the Terms Schedule, upon satisfaction
of the conditions specified in paragraph (a) above and any applicable conditions
with respect to the related Trust Property, the exchanging Certificateholder
shall be entitled to receive a distribution of a pro rata share of such Trust
Property, in the manner and to the extent specified in the Terms Schedule.
Alternatively, if so specified in the Terms Schedule, the exchanging
Certificateholder, upon satisfaction of such conditions, may direct the Trustee
to sell, on behalf of such Certificateholder, such pro rata share of such Trust
Property, in which case the Certificateholder shall be entitled to receive the
net proceeds of such sale, less any costs and expenses incurred by the Trustee
in facilitating such sale, subject to any additional adjustments set forth in
the Terms Schedule. Notwithstanding the foregoing, to the extent that any
portion of such pro rata share does not correspond to an even number of related
Securities (or of any other elements of such Trust Property that are
indivisible), the Trustee shall sell the number of such Securities (or such
other
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elements, as the case may be) most closely corresponding to such portion, in
which case the Certificateholder shall be entitled to receive such portion of
the net proceeds of such sale, less any costs and expenses incurred by the
Trustee in facilitating such sale, with the balance of such proceeds to be
deposited in the Certificate Account.
(c) Notwithstanding the preceding paragraphs, any right of exchange in
respect of an Exchangeable Series shall be exercisable only to the extent that
the Depositor determines that such exchange would not be inconsistent with the
Depositor's and the Trust's continued satisfaction of the applicable
requirements for exemption under Rule 3a-7 under the Investment Company Act. The
Terms Schedule shall specify any additional terms pertaining to any right of
exchange, including the following:
(i) a requirement that the exchanging Holder tender to the
Trustee Certificates of each Class within the Exchangeable Series;
(ii) a minimum Principal Balance (or Notional Amount, as
applicable), with respect to each Certificate being tendered for
exchange;
(iii) a requirement that the Principal Balance (or Notional
Amount, as applicable), of each Certificate tendered for exchange be an
integral multiple of a specified amount;
(iv) specified dates on which a Holder may effect such an
exchange (each, an "Optional Exchange Date");
(v) limitations on the right of an exchanging Holder to
receive any benefit upon exchange from any Credit Support or other
non-Securities constituting a part of the Trust Property; and
(vi) a requirement that the exchanging holder obtain the
consent of the Swap Counterparty to such exchange and tender to the
Swap Counterparty a termination payment for termination of the portion
of the Swap Agreement corresponding to the portion of the Securities to
be distributed by the Trustee.
(d) If the Terms Schedule specifies that "Depositor Optional Exchange"
is applicable to the Certificates, any Certificates held by the Depositor or its
Affiliates from time to time shall be subject to a right of exchange by the
Depositor or such Affiliates, but not by other Certificateholders, for a pro
rata portion of the Trust Property of the related Trust, subject to one or more
of the conditions set forth or referred in paragraphs (b) and (c) above and as
specified in the Terms Schedule.
SECTION 5.14. Callable Certificates
(a) If one or more specified Persons has or have the right to purchase
all or a portion of the Certificates (a "Call Right"), the Terms Schedule shall
designate such
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Series as a "Callable Series," and specify the terms and conditions upon which
such right may be exercised. Such terms and conditions may include the
following:
(i) a minimum Principal Balance (or Notional Amount, as
applicable) with respect to each Certificate being purchased;
(ii) a requirement that the Principal Balance (or Notional
Amount, as applicable) of each Certificate being purchased be an
integral multiple of a specified amount;
(iii) specified dates during which such a purchase may be
effected (each, a "Call Date"); and
(iv) the price at which such a purchase may be effected (the
"Call Price").
After receiving notice of the exercise of any Call Right, the Trustee
shall give notice thereof in the manner specified in the Terms Schedule.
(b) Prior to the redemption date specified in the Terms Schedule, the
Person exercising the Call Right shall deposit, or cause to be deposited, with
the Trustee or with a Paying Agent (or, if such Person is acting as its own
Paying Agent, shall segregate and hold in trust), an amount of money to pay the
Call Price of, and (unless the redemption date is an interest payment date)
accrued interest on, all Certificates which are to be purchased on such date.
(c) On the redemption date specified in the Terms Schedule, the
Certificates being purchased shall become due and payable at the Call Price, and
from and after such date (unless the Person exercising the Call Right defaults
in the payment of the Call Price and any accrued interest) such Certificates
shall cease to bear interest. Upon surrender of any such Certificate for
redemption in accordance with the notice given by the Trustee in accordance with
the last sentence of paragraph (a) above, such Certificate shall be paid by the
Person exercising the Call Right at the Call Price, together with accrued
interest to the redemption date; provided that, unless otherwise specified in
the Terms Schedule, installments of interest becoming due and payable on or
prior to the redemption date shall be payable to the holder of such Certificate,
or one or more Predecessor Certificates, registered as such at the close of
business on the relevant Record Date.
ARTICLE VI
The Depositor
SECTION 6.01. Liability of the Depositor
The Depositor shall be liable in accordance with the Trust Agreement
only to the extent of the obligations specifically imposed thereby on the
Depositor.
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SECTION 6.02. Limitation on Liability of the Depositor
(a) Except as may be otherwise expressly specified in the Trust
Agreement, the Depositor shall not be under any obligation to (i) expend or risk
its own funds, except to the extent of its obligation to pay any amount payable
under the Trustee Fee Letter or under Section 10.05(b), or (ii) otherwise incur
financial liability in the performance of its duties thereunder or in the
exercise of any of its rights or powers, in each case of clauses (i) and (ii) to
the extent that reasonable grounds exist for believing that the repayment of
such funds or adequate indemnity against such liability is not reasonably
assured to it.
(b) Neither the Depositor nor any of its directors, officers, employees
or agents shall be under any liability to the Trustee, the Trust or the
Certificateholders for taking any action, or refraining from taking any action,
in good faith pursuant to the Trust Agreement, or for errors in judgment;
provided, however, that this sentence shall not protect any such Person against
any liability (i) related to the inaccuracy or breach of any representation,
warranty or agreement of the Depositor in the Trust Agreement, (ii) specifically
imposed on the Depositor pursuant to the Trust Agreement, or (iii) by reason of
willful misfeasance, bad faith or negligence in the performance of, or reckless
disregard of, obligations specifically set forth in the Trust Agreement.
(c) The Depositor shall not be under any obligation to appear in,
prosecute or defend any Proceeding unless such Proceeding is related to its
obligations under the Trust Agreement and, in its reasonable opinion, does not
involve it in any expense or liability; provided, however, that the Depositor
may in its discretion appear in, prosecute or defend any such Proceeding which
it may deem necessary or desirable with respect to the Trust Agreement and the
rights and duties of the parties thereto and the interests of the
Certificateholders.
SECTION 6.03. Depositor May Purchase Certificates
The Depositor or its Affiliates may at any time purchase Certificates
in the open market or otherwise. Certificates so purchased may, at the
discretion of the Depositor, be held, resold or, to the extent permitted under
the terms thereof, exchanged or called by the Depositor or such Affiliates.
SECTION 6.04. Preparation and Filing of Exchange Act Reports;
Obligations of the Depositor
The Depositor shall:
(a) On behalf of the Trust, prepare, sign and file with the Commission,
with copies to the Trustee, within the applicable time periods set forth below,
such reports as may from time to time be required to be filed by or on behalf of
the Trust with the Commission pursuant to Section 13 or 15(d) of the Exchange
Act (collectively, the "Exchange Act Reports") with respect to the Trust. Such
Exchange Act Reports include:
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(i) Form 8-K, to be filed in such circumstances and within
such time periods prescribed therefor by the Commission under the
Exchange Act; and
(ii) Form 10-K, to be filed within the time period prescribed
therefore by the Commission under the Exchange Act.
(b) Deliver to the Trustee, within 15 days after same are required to
be filed with the Commission, such additional information, documents and reports
with respect to compliance by the Depositor with the conditions and covenants of
the Trust Agreement, if any, as may be required to be filed with the Commission
from time to time; and
(c) Deliver to the Trustee, which shall then transmit by mail to
Certificateholders in accordance with TIA Section 313(c), such summaries of any
information, documents and reports required to be filed by the Depositor and
received pursuant to paragraphs (a) and (b) above, as may be required to be
filed by the rules and regulations prescribed from time to time by the
Commission under the Exchange Act.
SECTION 6.05. Preferential Collection of Claims Against Depositor
Irrespective of whether the TIA shall apply to the Trust Agreement, the
Trustee shall comply with the obligations set forth in TIA Section 311(a),
taking into account the exclusion set forth in TIA Section 311(b). A trustee
that has resigned or has been removed shall be subject to such obligations to
the extent set forth in TIA Section 311(a).
ARTICLE VII
Rights of Certificateholders
SECTION 7.01. Voting Rights with Respect to Securities
(a) Within five Business Days after receipt of notice of any meeting
of, or other occasion for the exercise of voting rights or the giving of
consents by, owners of the Securities, the Trustee shall give notice to the
Certificateholders, which notice shall contain (i) such information as is
contained in such notice to owners of the Securities, (ii) a statement that the
Certificateholders will be entitled, subject to the applicable law and any
applicable provision of the Securities, to instruct the Trustee as to the
exercise of voting rights, if any, pertaining to the Securities and (iii) a
statement as to the manner in which instructions may be given to the Trustee to
give a discretionary proxy to a Person designated in the notice received by the
Trustee. Such notice shall be given by the Trustee to the Certificateholders of
record as soon as practicable after, but in any event within three Business Days
from, the date on which the relevant notice to owners of the Securities is
received by the Trustee.
(b) Unless otherwise specified in the Terms Schedule, the voting rights
allocable to owners of the Securities pursuant to the terms thereof shall be
allocated among the Certificateholders pro rata, in the proportion that the
Principal Balance (or
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Notional Amount, as applicable) of each such holder bears to the aggregate
Principal Balance (or Notional Amount, as applicable) of all such holders; and
upon the written request of each Certificateholder, if received on or before the
date established by the Trustee for such purpose, the Trustee shall endeavor,
insofar as practicable and permitted under applicable law and any applicable
provision of the Securities, to vote in accordance with any nondiscretionary
instruction set forth in such written request; provided that the Trustee shall
not vote except as specifically authorized and directed by written instructions
from each Certificateholder entitled to give such instructions; provided,
further, that if the aggregate Principal Balance (or Notional Amount, as
applicable) held by all Certificateholders instructing the Trustee to vote on a
particular matter in a certain manner does not correspond to an even number of
Securities, the Trustee shall vote the number of Securities most closely
corresponding to such aggregate Principal Balance (or Notional Amount, as
applicable) in such manner, with any portion of the Principal Balance (or
Notional Amount, as applicable) representing less than half of a Security not so
voted and any portion of the Principal Balance (or Notional Amount, as
applicable) representing half or more of a Security so voted.
(c) Notwithstanding paragraph (b) above, the Trustee shall reject any
vote to (i) alter the currency, amount or timing of payment of, or the method or
rate of accruing, any principal or interest on the Securities, (ii) consent to
any redemption or prepayment of the Securities, or (iii) unless otherwise
specified in the Terms Schedule, consent to any exchange of, substitution or
tender for, any Securities pursuant to a plan or refunding of Securities or any
other offer for the Securities, in each case of clauses (i) through (iii) unless
(x) the Trustee is directed by the affirmative vote of all Certificateholders to
accept such amendment or offer, as the case may be and (y) the Trustee receives
advice of nationally recognized independent tax counsel, designated by the
Depositor, that such exercise of voting rights would not result in a "sale or
other disposition" of such Securities within the meaning of Section 1001(a) of
the Code. The Trustee shall not grant any consent (other than a unanimous
consent) solicited from the owners of the Securities with respect to any of the
matters specified in clauses (i) through (iii) above, nor shall it accept or
take any action in respect of any consent, proxy or instructions received from
any Certificateholder in contravention of such provisions unless otherwise
directed by the affirmative vote of all Certificateholders. In addition, if the
Trustee determines (based upon advice of nationally recognized independent tax
counsel, whether obtained at the request of any Certificateholder or otherwise)
that any exercise of voting rights with respect to the Securities could result
in a "sale or other disposition" of such Securities within the meaning of
Section 1001(a) of the Code, the Trustee shall exercise such voting rights in a
manner that would not result in any such "sale or other disposition", unless
otherwise directed by the affirmative vote of all Certificateholders. The
Trustee shall have no responsibility to undertake on its own initiative to
determine that any exercise of voting rights with respect to the Securities
would result in any such sale or other disposition, and in any event need not
undertake to make such determination unless receiving an indemnity reasonably
satisfactory to it against the costs of such determination.
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SECTION 7.02. Amendments and Waivers Under Swap Agreement and Swap
Guarantee
Without the need for consent of any Certificateholder, the Trustee
shall enter into any amendment of the Swap Agreement or any Swap Guarantee
requested by the Swap Counterparty or any Swap Guarantor, respectively, to cure
any ambiguity or manifest error in, or to correct or supplement any provision
of, the Swap Agreement or any Swap Guarantee, provided (i) the Trustee
determines that such amendment would not adversely affect the interests of the
Certificateholders and (ii) the Trustee has received an Opinion of Counsel, at
the expense of the Swap Counterparty or any Swap Guarantor, as applicable, to
the effect that such amendment would not adversely affect the interests of the
Certificateholders and would not alter the classification of the Trust for U.S.
Federal income tax purposes. The Trustee shall not agree to any other request
from the Swap Counterparty or any Swap Guarantor for approval of any consent,
waiver or other modification of the Swap Agreement or any Swap Guarantee,
respectively, without the unanimous consent of the Certificateholders and
compliance with clause (ii) of the immediately preceding sentence.
ARTICLE VIII
Default on Securities, Credit Support, Swap Agreement,
Swap Guarantee or Permitted Investments
SECTION 8.01. Realization Upon Default
(a) The Trustee, on behalf of the Certificateholders, shall assert
claims under the Securities, the Credit Support, the Swap Agreement, any Swap
Guarantee and the Permitted Investments, and shall take such reasonable steps as
may be necessary to receive payment or to permit recovery thereunder in the case
of any Security Default, Credit Support Default, Swap Default or any default
related to the Permitted Investments, as the case may be, subject in all cases
to Article X.
(b) If the Trustee is unable to obtain full recovery in respect of a
Security, Credit Support, Swap Agreement, Swap Guarantee or Permitted Investment
affected by a Security Default, Credit Support Default, Swap Default or default
related to such Permitted Investment, as the case may be, the Trustee shall
follow or cause to be followed such normal practices and procedures as it may
deem necessary or advisable to realize upon such Security, Credit Support, Swap
Agreement, Swap Guarantee or Permitted Investment, as the case may be, subject
in all cases to Article X.
(c) If the Trustee becomes aware of any Security Default, Credit
Support Default, Swap Default or default related to any Permitted Investment, it
shall give notice thereof to the Certificateholders as promptly as practicable
in accordance with Section 12.05, and in the manner and to the extent provided
in TIA Section 313(c) within 90 days after such default occurs.
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ARTICLE IX
Wind-Up and Liquidation of Trust
SECTION 9.01. Trust Wind-Up Events
If any of the following events (each, a "Trust Wind-Up Event") occurs
and is continuing:
(a) any Security Default resulting either (i) in a Security Default
with respect to all Securities held by the Trust or (ii) in a Swap Termination
Event with respect to which all Swap Transactions are Affected Swap
Transactions;
(b) any Security held by the Trust becomes a Disqualified Security and
(i) the Trust holds no other Security that is not a Disqualified Security or
(ii) the Terms Schedule specifies that a Trust Wind-Up Event shall occur upon
such Security becoming a Disqualified Security;
(c) any Credit Support becomes Disqualified Credit Support and the
Terms Schedule specifies that a Trust Wind-Up Event shall occur upon such Credit
Support becoming Disqualified Credit Support;
(d) any Swap Default arising from any action taken or failure to act,
by the Swap Counterparty;
(e) any Swap Termination Event with respect to which the Swap
Counterparty is the sole Affected Party (as defined in the Swap Agreement) and
all Swap Transactions are Affected Swap Transactions, provided at the time of
such occurrence no Swap Settlement Amount (as defined in the Swap Agreement)
would be payable by the Trust to the Swap Counterparty upon designation of an
Early Swap Termination Date by the Trust;
(f) any Swap Transaction becomes a Disqualified Swap Transaction and
(i) the Trust holds no trust property other than Securities related to
Disqualified Transactions or (ii) the Terms Schedule specifies that a Trust
Wind-Up Event shall occur upon such Swap Transaction becoming a Disqualified
Swap Transaction;
(g) the designation of an Early Swap Termination Date by the Swap
Counterparty under the Swap Agreement with respect to all Swap Transactions;
(h) the Depositor owns 100% of the Principal Balance (or Notional
Amount, as applicable) of the Certificates, and the Depositor decides to
terminate the Trust (a "Special Depositor Wind-Up Event");
(i) any Excess Expense Event; or
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(j) any other Trust Wind-Up Event specified in the Terms Schedule;
then, in each such case, the Trustee shall, (x) by notice to the Swap
Counterparty, terminate the Swap Agreement (including all Swap Transactions
thereunder) if such notice is required under the Swap Agreement, (y) sell, or
cause the Selling Agent to sell, the Trust Property in accordance with Section
9.03(b) and (z) distribute to each Certificateholder its pro rata share of the
proceeds from such sale in accordance with Section 9.03(d), whereupon the Trust
shall terminate; provided that, if the Certificateholders exercise their right
under Section 9.03(c) prior to the sale of all the Trust Property by the Trustee
or the Selling Agent, as the case may be, the Trust shall continue
notwithstanding such Trust Wind-Up Event.
SECTION 9.02. Liquidation Events
(a) In the event that (i) a Security Default occurs which under the
terms of the Swap Agreement results in the termination of at least one but less
than all Swap Transactions or (ii) any Security becomes a Disqualified Security,
but the Trust holds one or more other Securities which are not Disqualified
Securities, and in each case of clauses (i) and (ii), a Trust Wind-Up Event has
not otherwise occurred, then the Affected Securities (and, if necessary, other
Trust Property) shall be sold in accordance with Section 9.03(b) to the extent
necessary to make any Termination Payment applicable to the Affected Swap
Transaction, and any balance of the proceeds from such sale shall be distributed
to the Certificateholders in accordance with Section 9.03(d), but the Trust
shall continue.
(b) In the event that any Swap Transaction becomes a Disqualified Swap
Transaction but the Trust holds one or more other Securities other than the
Affected Securities which are not Disqualified Securities and a Trust Wind-Up
Event has not otherwise occurred, then the Affected Securities (and, if
necessary, other Trust Property) shall be sold in accordance with Section
9.03(b) to the extent necessary to make any Termination Payment applicable to
the Disqualified Swap Transaction, and any balance of the proceeds from such
sale shall be distributed to the Certificateholders in accordance with Section
9.03(d), but the Trust shall continue.
(c) In the event that any Credit Support becomes Disqualified Credit
Support but a Trust Wind-Up Event has not otherwise occurred, then such Credit
Support shall be terminated and any proceeds resulting from such termination
shall be distributed to the Certificateholders in accordance with Section
9.03(d), but the Trust shall continue.
SECTION 9.03. Trust Property Made Available
(a) Subject to Section 9.04, as promptly as possible after the
occurrence of a Trust Wind-Up Event or Liquidation Event, and in any case within
five Business Days after such occurrence, the Trustee shall provide notice to
the Certificateholders and the Rating Agencies of such occurrence, the
termination of the Swap Agreement or the particular Affected Swap Transaction or
Transactions thereunder, the amount of any
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related Swap Termination Payment and the right of the Certificateholders under
paragraph (c) below. In the case of a Trust Wind-Up Event, such notice shall
also state (i) that the Trust will terminate and that Certificateholders should
surrender their Certificates to the Trustee or deliver security or indemnity
reasonably acceptable to the Trustee in exchange for cash, (ii) the cause of
such Trust Wind-Up Event, (iii) the location and business hours of the Corporate
Trust Office at which Certificates should be presented and surrendered and (iv)
that each Certificateholder must supply transfer instructions in writing with
respect to any distributions.
(b) Subject to Section 9.04, upon the occurrence of a Trust Wind-Up
Event or Liquidation Event, the Trustee shall notify the Selling Agent that the
Trust is required to sell Securities or other Trust Property, and the Selling
Agent shall undertake to sell Securities or other Trust Property on behalf of
the Trust, unless and until the Selling Agent receives notice from the Trustee
of an exercise by the Certificateholders of their right under paragraph (c)
below; provided, however, that the Selling Agent may elect not to act as Selling
Agent with respect to all or a part of the Securities or other Trust Property to
be sold by written notice to that effect to the Trustee. The timing, price and
other terms of any sale conducted by the Selling Agent shall be determined by
the Selling Agent in its sole discretion, but all such sales shall be completed
within 30 days or such longer period of time as may be reasonable with respect
to the Securities or other Trust Property to be sold. In the case of a
Liquidation Event, sales made under this paragraph (b) shall be limited to the
Affected Securities, except to the extent that the proceeds from such sales
would be insufficient to make the Termination Payment.
(c) In the circumstances described in paragraph (b) above, the
Certificateholders, acting unanimously, may instruct the Trustee in writing to
discontinue any sale of Trust Property, provided they also pay to the Trustee
the amount of (i) any Termination Payment required to be made by the Trust plus
(ii) in the case of an Excess Expense Event, any Extraordinary Trust Expenses
required to be paid by the Trust pursuant to Section 10.05(c). Promptly upon
receiving notice from the Trustee of the exercise by the Certificateholders of
their right under this paragraph (c), the Selling Agent shall discontinue any
sale of Trust Property; provided that the Selling Agent and the Trustee may
complete the settlement of any sale already agreed. It is expressly understood
and agreed that the Selling Agent and the Trustee are authorized to, and may,
sell Trust Property during the time necessary for the Certificateholders to be
notified of and act upon their right under this paragraph (c).
(d) Subject to the security interest granted in favor of the Swap
Counterparty pursuant to the Swap Agreement and any obligation of the Trust to
pay Extraordinary Trust Expenses pursuant to Section 10.05(c), each
Certificateholder shall be entitled to receive a pro rata portion of the net
proceeds of any sale of Trust Property pursuant to paragraph (b) above, upon
surrender, or delivery of security or indemnity acceptable to the Trustee, by
such holder of its Certificates at the Corporate Trust Office referred to in
paragraph (a) above.
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(e) The only distributions to which the Certificateholders are entitled
are, subject to the security interest granted in favor of the Swap Counterparty
pursuant to the Swap Agreement and any obligation of the Trust to pay
Extraordinary Trust Expenses pursuant to Section 10.05(c), payments on the
Securities (including any payments in connection with any exchange of,
substitution or tender for, or consent solicitation relating to, any
Securities), any and all amounts recovered under the Swap Agreement or any Swap
Guarantee, received by the Trustee after the occurrence of the relevant Trust
Wind-Up Event and any other remaining Trust Property. Such amounts shall be
distributed by the Trustee to the Certificateholders in accordance with Section
4.01 upon satisfaction of the conditions for transfer of Securities referred to
in paragraph (b) above.
(f) Except for the obligation to provide reports and other information
required to be provided to Certificateholders under the Trust Agreement, the
obligations of the Trustee and the Depositor shall terminate upon the
distribution to Certificateholders of all amounts required to be distributed to
them and the disposition of all Securities held by the Trustee, and such
distribution shall constitute full satisfaction of all of the interests of the
Certificateholders in respect of the Trust.
(g) In the event that the Selling Agent resigns or declines to sell any
Securities, the Trustee shall proceed in accordance with Section 10.02(a)(x).
(h) The Selling Agent is an agent of the Trustee only and shall have no
fiduciary or other duties to the Certificateholders, nor shall the Selling Agent
have any liability to the Trust in the absence of the Selling Agent's bad faith
or willful default. The Selling Agent shall be permitted to sell Securities to
its Affiliates. The Selling Agent may resign at any time by written notice to
the Trustee, such resignation to take effect immediately upon notice. Except as
provided in the first sentence of this paragraph (h), each of the protections,
releases, indemnities and other terms applicable to the Trustee under Sections
10.01, 10.02, 10.03 and 10.05 shall apply, mutatis mutandis, to the Selling
Agent in connection with its actions as Selling Agent for the Trust.
(i) No Certificateholder shall have any liability as a seller of Trust
Property in connection with any sale of Trust Property by the Trustee or the
Selling Agent.
SECTION 9.04. Limitation on Notice Requirement
The Trustee shall not be responsible for terminating the Swap Agreement
(or any Swap Transaction thereunder) or giving notice of a Trust Wind-Up Event
unless and until (i) the Trustee does not receive funds due on the Securities or
under the Swap Agreement when due or within any applicable grace period, (ii)
receipt by the Trustee of notice from the Swap Counterparty of the occurrence of
a Swap Default or Swap Termination Event or upon actual knowledge of a Swap
Default or Swap Termination Event by a Responsible Officer of the Trustee or
(iii) receipt by the Trustee of notice from the Security Issuer of the
occurrence of a Security Default.
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SECTION 9.05. Excess Expense Event
(a) Promptly upon the incurrence by the Trustee of Extraordinary Trust
Expenses in an aggregate amount exceeding the Trigger Amount, and in any event
within three Business Days after such incurrence, the Trustee shall provide
notice thereof to each Certificateholder, the Swap Counterparty and the Rating
Agencies. Such notice shall state that an "Excess Expense Event" shall occur on
the seventh calendar day (or, if such day is not a Business Day, on the next
succeeding day that is a Business Day) following the provision of such notice
unless prior to such day either the Certificateholders unanimously agree, or the
Swap Counterparty agrees, to indemnify the Trustee for all Extraordinary Trust
Expenses exceeding the Maximum Reimbursable Amount (or for any other amount
specified by the party agreeing to indemnify the Trustee) and actually incurred
by the Trustee as of the date of such agreement, to the reasonable satisfaction
of the Trustee; provided that in no event shall the Trustee be released from its
obligations under the Trust Agreement until such seventh calendar day (or, if
such day is not a Business Day, the next succeeding day that is a Business Day).
(b) Nothing in this Section 9.05 shall be construed to excuse the
Depositor or the Trust from their respective indemnification obligations under
Section 10.05.
ARTICLE X
Concerning the Trustee
SECTION 10.01. Duties of Trustee
(a) The Trustee undertakes to perform such duties and only such duties
as are specifically set forth in the Trust Agreement. Any permissive right of
the Trustee enumerated in the Trust Agreement shall not be construed as a duty.
(b) The Trustee, upon receipt of any resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of the Trust Agreement, shall examine such instruments to determine
whether they conform to the requirements of the Trust Agreement. If any such
instrument is found not to conform to the requirements of the Trust Agreement,
the Trustee shall take such action as it deems appropriate to have such
instrument corrected, and if such instrument is not corrected to the Trustee's
satisfaction, the Trustee shall provide notice thereof to the Depositor, the
Certificateholders and (if a copy of such instrument was originally furnished to
the Rating Agencies) the Rating Agencies.
(c) Upon a Security Default, a Credit Support Default, a default by the
Swap Counterparty in making any payment due under the Swap Agreement or a
default by the Swap Guarantor after the Trustee makes a demand under any Swap
Guarantee, the Trustee shall exercise such rights and powers vested in it by the
Trust Agreement, and
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shall use the same degree of care and skill in such exercise as a prudent Person
would use under the circumstances in the conduct of such Person's own affairs.
(d) In the event that the Authentication Agent, the Paying Agent or the
Certificate Registrar fails to perform any obligation, duty or agreement in the
manner in which or on the day on which such obligation, duty or agreement is
required to be performed by it under the Trust Agreement, the Trustee shall be
obligated promptly upon its knowledge thereof to perform such obligation, duty
or agreement in the manner so required.
(e) No provision of the Trust Agreement shall be construed to relieve
the Trustee from liability for its own negligent actions, its own negligent
failure to act or its own misconduct; provided, however, that:
(i) the duties and obligations of the Trustee shall be
determined solely by the express terms of the Trust Agreement, the
Trustee shall not be liable except for the performance of such duties
and obligations as are specifically set forth in the Trust Agreement,
no implied covenants or obligations (except for a fiduciary duty to the
beneficiaries of the Trust) shall be read into the Trust Agreement
against the Trustee and, in the absence of negligence, bad faith or
willful misconduct on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or
opinions furnished to the Trustee that conform to the requirements of
the Trust Agreement;
(ii) the Trustee shall not be personally liable for any error
of judgment made in good faith by a Responsible Officer or Responsible
Officers of the Trustee; and
(iii) except with respect to actions or duties required to be
taken or performed, as applicable, by the Trustee under the express
terms of the Trust Agreement, the Trustee shall not be required to
expend or risk its own funds or otherwise incur financial liability in
the performance of any of its duties or in the exercise of any of its
rights or powers under the Trust Agreement if there is reasonable
ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to
it.
SECTION 10.02. Certain Matters Affecting the Trustee
(a) Except as otherwise provided in Section 10.01:
(i) the Trustee may request and rely upon and shall be
protected in acting or refraining from acting upon any resolution,
Officers' Certificate, certificate of auditors or any other
certificate, statement, instrument, opinion, report, notice, request,
consent, order, appraisal, bond or other paper or document reasonably
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believed by it to be genuine and to have been signed by the proper
party or parties;
(ii) the Trustee may consult with counsel and any advice or
Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted by it
under the Trust Agreement in good faith and in accordance with such
advice or Opinion of Counsel;
(iii) except for the duties and obligations of the Trustee
expressly created by the Trust Agreement, the Trustee shall be under no
obligation to exercise any of the trusts or powers vested in it by the
Trust Agreement or to institute, conduct or defend any litigation
thereunder or in relation thereto, at the request, order or direction
of any of the Certificateholders, pursuant to the terms of the Trust
Agreement, unless such Certificateholders or the Depositor have, to the
reasonable satisfaction of the Trustee, offered to the Trustee security
or indemnity against the costs, expenses and liabilities which may be
incurred in connection therewith;
(iv) the Trustee shall not be personally liable for any action
taken, suffered or omitted by it in good faith and believed by it to be
authorized or within the discretion or rights or powers conferred upon
it by the Trust Agreement;
(v) the Trustee shall not be bound to make any investigation
into the facts of matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent,
order, appraisal, approval, bond or other paper or document reasonably
believed by it to be genuine;
(vi) the Trustee may execute any of the trusts or powers or
perform any duties under the Trust Agreement either directly or by or
through agents or attorneys or a custodian or administrative agent;
(vii) the Trustee shall not be personally liable for any loss
resulting from the investment of funds held in the Certificate Account
in accordance with Section 3.05;
(viii) the Trustee shall not be deemed to have notice or
knowledge of any matter unless a Responsible Officer has actual
knowledge thereof or unless written notice thereof is received by the
Trustee at the Corporate Trust Office and such notice references the
Certificates or the Trust Agreement;
(ix) the Trustee shall have the power to reimburse itself for
any unpaid Extraordinary Trust Expenses actually incurred in accordance
with the terms and conditions of the Trust Agreement prior to the
distribution of funds or Trust Property to Certificateholders; and
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(x) the Trustee shall have the power to sell Securities or
other Trust Property, in accordance with Articles IX and XI, through
the Selling Agent or, if the Selling Agent has resigned or declined to
sell some or all of the Securities, any broker selected by the Trustee
(with the consent of the Depositor) with reasonable care, in an amount
sufficient to pay any amount due to the Swap Counterparty under the
Swap Agreement or reimbursable to itself in respect of unpaid
Extraordinary Trust Expenses, in each case prior to the distribution of
funds or Trust Property to Certificateholders. The Selling Agent or
such broker shall be instructed by the Trustee to sell Trust Property
in a reasonable manner designed to maximize the sale proceeds.
(b) All rights of action under the Trust Agreement or the Certificates
that are enforceable by the Trustee may be enforced by it without the possession
of any of the Certificates, or the production thereof at any Proceeding relating
thereto, and any Proceeding instituted by the Trustee shall be brought in its
name for the benefit of all the Certificateholders, subject to the terms of the
Trust Agreement.
SECTION 10.03. Limitation on Liability of Trustee
The Trustee assumes no responsibility for the correctness of the
recitals or any other factual statements contained in the Trust Agreement, the
Certificates, the Swap Agreement and any Swap Guarantee, or in any document
issued in connection with the sale of the Certificates. The sole obligor (i)
with respect to the Securities, shall be the Security Issuer, (ii) with respect
to the Swap Agreement, shall be the Swap Counterparty and (iii) with respect to
any Swap Guarantee, shall be any Swap Guarantor. Except as set forth in Section
10.11, the Trustee makes no representations or warranties as to the validity or
sufficiency of the Trust Agreement, the Certificates (other than with respect to
the signature and authentication thereof), the Securities, the Swap Agreement,
any Swap Guarantee or of any related document. The Trustee shall not be
accountable for the use or application by the Depositor of any of the
Certificates or of the proceeds of the Certificates, or for the use or
application of any funds paid to the Depositor or the Swap Counterparty in
respect of the Securities. The Certificates do not represent interests in or
obligations of the Trustee and the Trustee shall not be responsible or
accountable for any tax, accounting or other treatment proposed to be applied to
the Certificates or any interest therein, except as expressly provided in the
Trust Agreement.
SECTION 10.04. Trustee May Own Certificates
The Trustee in its individual capacity or any other capacity may become
the owner or pledgee of Certificates with the same rights as it would have if it
were not the Trustee.
SECTION 10.05. Trustee Fees and Expenses; Limited Indemnification
(a) As compensation for its regular and customary services and in
payment of its regular and customary expenses under the Trust Agreement
(including the reasonable
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compensation, expenses and disbursements of its counsel for regular and
customary services hereunder) the Trustee shall be entitled to the Trustee Fees
(which shall not be limited by any provision of law in regard to compensation or
payment of a trustee of an express trust). The Depositor agrees to pay the
Trustee Fees when due in accordance with the Trustee Fee Letter; provided,
however, that, subject to paragraph (b) below, the Depositor shall be under no
obligation to make any other payment for any other services and expenses,
disbursements and advances of the Trustee.
The Trustee and any director, officer, employee or agent of the Trustee
shall be indemnified for, and held harmless against, by the Depositor, any loss,
liability or expense incurred in connection with any Proceeding relating to the
Trust Agreement, the Swap Agreement or the Certificates or the performance of
any of the Trustee's duties under the Trust Agreement, other than any loss,
liability or expense (i) that constitutes a specific liability of the Trustee
under the Trust Agreement or (ii) incurred by reason of willful misfeasance, bad
faith or negligence in the performance, or reckless disregard of, the Trustee's
obligations thereunder (such loss, liability or expense, other than as described
in clauses (i) and (ii) of this sentence, an "Extraordinary Trust Expense");
provided, however, that with respect to any such Proceeding: (x) the Trustee
shall have given the Depositor notice thereof promptly upon obtaining knowledge
thereof; (y) while maintaining control over its own defense in any such
Proceeding, the Trustee shall consult with the Depositor in preparing such
defense; and (z) the Depositor shall in no event be obligated to indemnify the
Trustee for any Extraordinary Trust Expenses to the extent that such
Extraordinary Trust Expenses, when aggregated with all Extraordinary Trust
Expenses previously indemnified, exceeds the Maximum Reimbursable Amount.
Subject to clause (z) of the proviso to the immediately preceding sentence, the
indemnity for Extraordinary Trust Expenses shall survive the termination of the
Trust Agreement and any resignation or removal of the Trustee. In the event that
the Trustee is not indemnified by the Depositor, whether due to the Depositor's
bankruptcy or insolvency or for any other reason, pursuant to the first sentence
of this paragraph (b), the Trustee shall nevertheless remain obligated to
perform its duties under the Trust Agreement.
SECTION 10.06. Eligibility Requirements for Trustee
(a) The Trustee shall at all times satisfy the requirements of TIA
Section 310(a) and Section (a)(4)(i) of Rule 3a-7 under the Investment Company
Act. The Trustee shall at all times be a corporation which is not an Affiliate
of the Depositor (but may have normal banking relationships with the Depositor
or any obligor and their respective Affiliates with respect to the Securities)
organized and doing business under the laws of any State or the United States,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $50,000,000 and subject to supervision or
examination by Federal or State authorities, and the long-term debt obligations
of which are rated in one of the four highest categories assigned long-term debt
obligations by each of the Rating Agencies. If such corporation or association
publishes reports of conditions at least annually, pursuant to law or to the
requirements of any supervising or examining authority, then the combined
capital and surplus of such
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corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of conditions so published. In
the event that at any time the Trustee shall cease to be eligible in accordance
with the terms of this Section 10.06, the Trustee shall resign immediately in
the manner and with the effect specified in Section 10.07.
(b) The Trustee shall comply with Section 310(b) of the TIA.
SECTION 10.07. Resignation or Removal of the Trustee
(a) Subject to the last sentence of this paragraph (a), the Trustee may
at any time resign and be discharged from the Trust by giving written notice
thereof to the Depositor, the Swap Counterparty, the Swap Guarantor and all
Certificateholders. Upon receiving such notice of resignation, the Depositor,
with the consent of the Swap Counterparty and the Swap Guarantor (which consent
shall not be unreasonably withheld), shall as promptly as possible (and in any
event within 30 days after the date of such notice of resignation) appoint a
successor trustee by written instrument, in duplicate, which instrument shall be
delivered to the resigning Trustee and to the successor trustee. A copy of such
instrument shall be delivered to the Certificateholders, the Swap Counterparty
and the Swap Guarantor by the Depositor. If no successor Trustee has been so
appointed and has accepted appointment within such 30-day period, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor trustee. Upon any appointment of a successor trustee pursuant to
this paragraph (a), the resigning Trustee shall be solely liable for (i) the
payment of such successor trustee's fees and expenses and (ii) provision of
adequate indemnities satisfactory to such successor trustee (it being understood
that the indemnification obligations of the Depositor pursuant to Section
10.05(b) shall inure to the benefit of such successor trustee, but that any
Extraordinary Trust Expense previously indemnified by the Depositor shall reduce
the Maximum Reimbursable Amount with respect to such Successor trustee on a
Dollar-for-Dollar basis). In the event that the Trustee fails to satisfy the
conditions contained in clauses (i) and (ii) above, the Trustee may not resign
pursuant to this paragraph (a).
(b) If at any time the Trustee ceases to be eligible under Section
10.06 and fails to resign after a written request therefor by the Depositor, or
if at any time the Trustee becomes incapable of acting, or is adjudged bankrupt
or insolvent, or a receiver of the Trustee or of its property is appointed, or
any public officer takes charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor may, with the consent of the Swap Counterparty and the Swap Guarantor
(which consent shall not be unreasonably withheld), remove the Trustee and
appoint a successor trustee by written instrument, in duplicate, which
instrument shall be delivered to the Trustee so removed and to the successor
trustee. A copy of such instrument shall be delivered to the Certificateholders,
the Swap Counterparty and the Swap Guarantor by the Depositor.
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(c) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the terms of this Section 10.07 shall not
become effective until acceptance of appointment by the successor trustee as
provided in Section 10.08.
SECTION 10.08. Successor Trustee
(a) Any successor trustee appointed as provided in Section 10.07 shall
execute, acknowledge and deliver to the Depositor and the predecessor trustee an
instrument accepting such appointment under the Trust Agreement, and thereupon
the resignation or removal of the predecessor trustee shall become effective and
such successor trustee, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor under the Trust Agreement, with like effect as if originally named
as trustee in the Trust Agreement. The predecessor trustee shall deliver to the
successor trustee all documents and statements held by it under the Trust
Agreement, and the Depositor and the predecessor trustee shall execute and
deliver such instruments and do such other things as may reasonably be required
for more fully and certainly vesting and confirming in the successor trustee all
such rights, powers, duties and obligations. No successor trustee shall accept
appointment as provided in this Section 10.8 unless at the time of such
acceptance it is eligible to serve as a trustee hereunder pursuant to Section
10.06.
(b) Upon acceptance of appointment by a successor trustee as provided
in this Section 10.08, the Depositor shall transmit notice of the succession of
such trustee under the Trust Agreement to all Certificateholders in the manner
set forth in Section 12.05.
SECTION 10.09. Merger or Consolidation of Trustee
Any corporation or association into which the Trustee may be merged or
converted or with which it may be consolidated or any corporation or association
resulting from any merger, conversion or consolidation to which the Trustee may
be a party, or any corporation or association succeeding to the business of the
Trustee, shall be the successor of the Trustee under the Trust Agreement,
provided such corporation or association is eligible to serve as a trustee
pursuant to Section 10.06, without the execution or filing of any paper or any
further act on the part of any of the parties to the Trust Agreement, anything
in the Trust Agreement to the contrary notwithstanding.
SECTION 10.10. Appointment of Co-Trustee
(a) Notwithstanding any other terms of the Trust Agreement, at any
time, for the purpose of meeting any legal requirements of any jurisdiction in
which any party of the Trust Property may at the time be located, the Depositor
and the Trustee acting jointly shall have the power and shall execute and
deliver all instruments to appoint one or more Persons approved by the Trustee
to act as co-trustee or co-trustees, jointly with the Trustee, of all or any
part of the Trust Property, and to vest in such Person or Persons, in such
capacity, such title to the Trust Property, or any part thereof, and, subject to
the other terms of this Section 10.10, such powers, duties, obligations, rights
and trusts as the
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Depositor and the Trustee may consider necessary or desirable. If the Depositor
does not join in such appointment within 15 days after receiving a request so to
do, the Trustee alone shall have the power to make such appointment. No
co-trustee under the Trust Agreement shall be required to be eligible to serve
as a trustee pursuant to Section 10.06 and no notice to Certificateholders of
the appointment of a co-trustee or co-trustees shall be required under this
Section 10.10.
(b) In the case of any appointment of a co-trustee pursuant to this
Section 10.10, all rights, powers, duties and obligations conferred or imposed
upon the Trustee shall be conferred or imposed upon and exercised or performed
by the Trustee and such co-trustee jointly, except to the extent that under any
law of any jurisdiction in which any particular act or acts are to be performed
by the Trustee, the Trustee shall be incompetent or unqualified to perform such
act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to such Trust Property or any portion thereof in
any such jurisdiction) shall be exercised and performed by such co-trustee at
the direction of the Trustee.
(c) Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the co-trustees, as effectively as if given
to each of them. Every instrument appointing any co-trustee shall refer to the
Trust Agreement and the conditions of this Article X. Each co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, jointly with the Trustee subject to
all the terms of the Trust Agreement, specifically including every provision of
the Trust Agreement relating to the conduct of, affecting the liability of, or
affording protection to, the Trustee. Each such instrument shall be filed with
the Trustee.
(d) Any co-trustee may at any time constitute the Trustee, its agent or
attorney-in-fact, with full power and authority, to the extent not prohibited by
applicable law, to engage in any lawful act under or in respect of the Trust
Agreement on its behalf and in its name. If any co-trustee shall die, become
incapable of acting, resign or be removed, all its estates, properties, rights,
remedies and trusts shall vest in and be exercised by the Trustee, to the extent
permitted by applicable law, without the appointment of a new or successor
co-trustee.
SECTION 10.11. Representations and Warranties of Trustee
(a) The Trustee represents and warrants, for the benefit of the
Depositor and the Certificateholders, that, as of the Closing Date or as of such
other date specified in the Trust Agreement:
(i) the Trustee is a corporation duly organized, validly
existing and in good standing under the laws of its jurisdiction of
incorporation or association;
(ii) the Trustee has full power, authority and right to
execute, deliver and perform its duties and obligations under the Trust
Agreement, the Certificates and
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the Swap Agreement and has taken all necessary action to authorize the
execution, delivery and performance by it (or, with respect to the
Certificates, by an Authenticating Agent on its behalf, if applicable)
of the Trust Agreement, the Certificates and the Swap Agreement;
(iii) each of the Trust Agreement, the Certificates and the
Swap Agreement has been duly executed and delivered by the Trustee (or,
with respect to the Certificates, by an Authenticating Agent on its
behalf, if applicable) and each of the Trust Agreement, the
Certificates and the Swap Agreement constitutes the legal, valid and
binding obligation of the Trustee, enforceable in accordance with the
terms thereof, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or similar laws of general applicability
relating to or affecting creditors' rights and to general equity
principles;
(iv) the execution and delivery of the Trust Agreement, the
Certificates and the Swap Agreement by the Trustee and its performance
of and compliance with the terms of the Trust Agreement, the
Certificates and the Swap Agreement will not violate the Trustee's
articles of incorporation, association or other constitutive documents
or by-laws or constitute a default under, or result in the breach or
acceleration of, any material contract, agreement or other instrument
to which the Trustee is a party or by which the Trustee is bound or to
which the Trustee or any of its assets is subject;
(v) the Trustee is not in violation, and the execution and
delivery of the Trust Agreement, the Certificates and the Swap
Agreement by the Trustee and its performance and compliance with the
terms of the Trust Agreement, the Certificates and the Swap Agreement
will not constitute a violation, of any order or decree of any court or
any order or regulation of any Federal, State, municipal or
governmental agency having jurisdiction over the Trustee or its
properties, which violation would reasonably be expected to have a
material adverse effect on the condition (financial or otherwise) or
operations of the Trustee or its properties or on the performance of
its duties thereunder;
(vi) there are no actions or proceedings against, or
investigations of, the Trustee pending, or, to the knowledge of the
Trustee, threatened, before any court, administrative agency or other
tribunal (A) that could reasonably be expected to prohibit its entering
into the Trust Agreement or the Swap Agreement or to render the
Certificates invalid, (B) seeking to prevent the issuance of the
Certificates or the consummation of any of the transactions
contemplated by the Trust Agreement or the Swap Agreement or (C) that
could reasonably be expected to prohibit or materially and adversely
affect the performance by the Trustee of its obligations under, or the
validity or enforceability of, the Trust Agreement, the Certificates
and the Swap Agreement; and
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(vii) no consent, approval, authorization or order of any
court or governmental agency or body is required for the execution,
delivery and performance by the Trustee of, or compliance by the
Trustee with, the Trust Agreement, the Certificates and the Swap
Agreement, or for the consummation of the transactions contemplated by
the Trust Agreement or the Swap Agreement, except for such consents,
approvals, authorizations and orders, if any, that have been obtained
prior to the Closing Date.
(b) Within 30 days of discovery or receipt of notice by the Trustee
that any of its representations and warranties in paragraph (a) above is
inaccurate in any material respect, the Trustee shall take such steps as may be
required to ensure that the relevant representation and warranty becomes
accurate within two Business Days from the earlier of discovery or receipt of
notice by it of such inaccuracy. The Trustee shall promptly cure such breach in
all material respects.
SECTION 10.12. Non-Petition
Prior to the date that is one year and one day after all distributions
in respect of the Certificates have been made, neither the Trustee nor the
Depositor shall take any action or institute any proceeding against the other
under the U.S. Bankruptcy Code or any other liquidation, insolvency, bankruptcy,
moratorium, reorganization or similar law applicable to either of them, now or
hereafter in effect, or which would be reasonably likely to cause the other to
be subject to, or seek the protection of, any such law.
ARTICLE XI
Termination
SECTION 11.01. Termination of the Trust
(a) Except as otherwise provided in Article IX, the respective
obligations and responsibilities of the Depositor and the Trustee under the
Trust Agreement (other than the obligations imposed by Section 10.05(b) and the
obligations of the Trustee to provide reports and other information under the
Trust Agreement and to make distributions to the Certificateholders in
accordance with paragraph (c) below) shall terminate upon the distribution to
the Certificateholders of all amounts held in the Certificate Account and
required to be paid to the Certificateholders pursuant to the Trust Agreement;
provided, however, that in no event shall the Trust continue beyond the
expiration of 21 years from the death of the last survivor of the descendants of
Queen ▇▇▇▇▇▇▇▇▇ ▇▇ of England, living on the date of the Trust Agreement.
(b) Written notice of termination shall be provided to each
Certificateholder, the Depositor, the Swap Counterparty, the Swap Guarantor and
the Rating Agencies within 10 Business Days from such termination, unless such
termination occurs on the Scheduled Final Distribution Date.
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(c) On the Scheduled Final Distribution Date, the Trustee shall
distribute to each holder presenting and surrendering its Certificates (or
delivering such security or indemnity to the Trustee as the Trustee may require
to save the Trustee and hold the Trustee harmless) the amount distributable on
such date pursuant to Section 4.01. Any funds not distributed on such date shall
be set aside and held in trust for the benefit of Certificateholders either (i)
not presenting and surrendering their Certificates in the aforesaid manner or
(ii) not delivering such security or indemnity to the Trustee, and shall be
disposed of in accordance with this Section 11.01(c) and Section 4.01.
Immediately following the deposit of such funds, the Trust shall terminate.
ARTICLE XII
Miscellaneous Terms
SECTION 12.01. Amendment of Trust Agreement
(a) The Trust Agreement may be amended from time to time by the
Depositor and the Trustee without the consent of any of the Certificateholders,
upon delivery by the Depositor of an Opinion of Counsel acceptable to the
Trustee to the effect that such amendment will not adversely affect in any
material respect the interests of any Certificateholder, for any of the
following purposes: (i) to cure any ambiguity; (ii) to correct or supplement any
provision which may be inconsistent with any other provision or with the Terms
Schedule; (iii) to add or supplement Credit Support for the benefit of
Certificateholders; (iv) to add to the covenants, restrictions or obligations of
the Depositor or the Trustee for the benefit of any Certificateholders; (v) to
add, change or eliminate any other provisions so long as (A) any such addition,
change or elimination would not, as evidenced by an Opinion of Counsel, affect
the tax status of the trust or result in a sale or exchange of any Certificate
for tax purposes and (B) the Trustee has received written confirmation from each
Rating Agency that such addition, change or elimination will not cause such
Rating Agency to qualify, reduce or withdraw its then current rating of the
Certificates; (vi) to comply with any requirements imposed by the Code or other
applicable law; (vii) to amend the definitions of Trigger Amount and Maximum
Reimbursable Amount so as to increase, but not decrease, the respective amounts
contained in such definitions or to otherwise amend or waive the terms of
Section 10.05(b) in any manner which shall not adversely affect the
Certificateholders in any material respect; (viii) to evidence and provide for
the acceptance of appointment under the Trust Agreement by a successor Trustee;
or (ix) to add or change any of the terms of the Trust Agreement as may be
necessary to provide for or facilitate the administration of the Trust;
provided, however, that in the case of any amendment pursuant to any of clauses
(i) through (viii) above, the Rating Agency Condition shall be satisfied with
respect to such amendment.
(b) In addition to the foregoing, the Trust Agreement may also be
modified or amended from time to time by the Depositor and the Trustee, with the
consent of Certificateholders representing more than 50% of the Principal
Balance (or Notional
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Amount, as applicable), for the purpose of adding, changing or eliminating any
provision or modifying the rights of Certificateholders.
(c) Certificateholders representing more than 50% of the Principal
Balance (or Notional Amount, as applicable), may, on behalf of all
Certificateholders (i) waive compliance by the Depositor or the Trustee with any
restrictive provisions of the Trust Agreement before the time for such
compliance or (ii) waive any past default under the Trust Agreement, except for
(A) any such default resulting from any failure to distribute amounts received
as principal of (and premium, if any) or any interest on any Certificate and (B)
any such default in respect of any covenant or provision the modification or
amendment of which would require the consent of the holder of each outstanding
Certificate affected by the default.
(d) Promptly after the execution of any amendment, modification or
waiver made in accordance with paragraph (a), (b) or (c) above, the Trustee
shall furnish a copy of such amendment, modification or waiver to each
Certificateholder.
(e) Notwithstanding the foregoing, no amendment or modification to the
Trust Agreement shall be permitted unless the Trustee first receives an Opinion
of Counsel that such amendment or modification will not alter the classification
of the Trust for U.S. federal income tax purposes.
SECTION 12.02. Counterparts
The Trust Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed to be an original, and all of which
together shall constitute but one and the same instrument.
SECTION 12.03. Limitation on Rights of Certificateholders
(a) The death or incapacity of any Certificateholder shall not operate
to terminate the Trust Agreement or the Trust, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of the
Trust, nor otherwise affect the rights, obligations and liabilities of the
parties thereto or any of them.
(b) Except as otherwise expressly provided herein, no Certificateholder
shall have any right to control the operation and management of any Trust
Property, or the obligations of the parties with respect thereto, nor shall
anything set forth in the Trust Agreement, or contained in the terms of the
Certificates, be construed so as to constitute the Certificateholders from time
to time as partners or members of an association; nor shall any
Certificateholder be under any liability to any third person by reason of any
action taken by the parties to the Trust Agreement pursuant to any provision
thereof.
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(c) No Certificateholder shall have any right by virtue of any
provision of the Trust Agreement to institute any Proceeding under or with
respect to the Trust Agreement.
SECTION 12.04. Governing Law; Jurisdiction
The Trust Agreement and each Certificate issued thereunder shall be
governed by, and construed in accordance with, the laws of the State of New
York.
The Federal and State courts in the Borough of Manhattan in The City of
New York shall have non-exclusive jurisdiction in respect of any Proceeding
arising out of or relating to the Trust Agreement or any Certificate.
SECTION 12.05. Notices
All directions, demands and notices under the Trust Agreement shall be
in writing and shall be delivered to the offices of the Trustee or the
Depositor, as the case may be, specified in the offering documents for the
Certificates. Unless otherwise specified in the Terms Schedule, any notice
required to be furnished to a holder of a Registered Certificate shall be (i)
sent by facsimile to such number as may be specified therefor by such holder to
the Trustee or (ii) mailed to the address of such holder set forth in the
applicable Certificate Register. Any notices so sent by facsimile shall be
effective upon confirmation (including electronic confirmation) of effective
transmission. Any notice so mailed within the time prescribed in the Trust
Agreement shall be presumed to have been given when mailed, whether or not the
Certificateholder actually receives such notice.
Notice shall be presumed to be furnished to holders of Bearer
Certificates (i) if published in a leading daily newspaper of general
circulation in such city or cities as may be specified in such Certificates on a
Business Day and (ii) in the case of a Global Certificate, if also delivered to
Euroclear or Clearstream, as applicable, for communication by them to the
persons shown in their respective records as having interests therein. If it
becomes impracticable to publish any notice to holders of Bearer Certificates as
provided above, then such notice shall be given in such manner as may be
approved by the Trustee and the Depositor.
SECTION 12.06. Severability of Terms
If any one or more of the covenants, agreements or terms of the Trust
Agreement for any reason whatsoever is held invalid or unenforceable, then such
covenants, agreements or terms shall be deemed severable from the remaining
covenants, agreements or terms of the Trust Agreement and such invalidity or
unenforceability shall in no way affect the validity or enforceability of the
other terms of the Trust Agreement or of the Certificates or the rights of the
holders thereof.
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SECTION 12.07. Perfection of Swap Counterparty Security Interest
At the request of the Swap Counterparty, the Trustee shall assist the
Swap Counterparty in the perfection of the security interest in the Trust
Property described in Section 3.07 and granted by the Trust to the Counterparty
under the Swap Agreement.
SECTION 12.08. No Recourse
Each Certificateholder by accepting a Certificate acknowledges that
such Certificateholder's Certificates represent beneficial interests in the
Trust only and do not represent interests in or obligations of the Depositor,
the Trustee, the Swap Counterparty, the Swap Guarantor or any Affiliate of the
foregoing Persons, and there shall be no recourse against any such Persons or
their respective assets, except as may be expressly set forth in the Trust
Agreement, the Swap Agreement or the Certificates.
SECTION 12.09. Conflict With Trust Indenture Act
(a) The Trust Agreement shall be subject to the provisions of the TIA
that are required to be a part of the Trust Agreement and shall, to the extent
applicable, be governed by those provisions. If any provision of the Trust
Agreement limits, qualifies or conflicts with a provision of the TIA which is
required under the TIA to be a part of and govern the Trust Agreement, the
latter provision shall control. If any provision of the Trust Agreement modifies
or excludes any provision of the TIA which may be so modified or excluded, the
latter provision shall be deemed to apply to the Trust Agreement as so modified
or to be excluded, as the case may be.
(b) Without limiting the generality of paragraph (a) above, the
provisions of TIA Sections 310 through 317 that impose duties on any Person
(including the provisions automatically deemed to be included therein unless
expressly excluded by the Trust Agreement) are a part of and govern the Trust
Agreement, whether or not physically contained therein.
(c) Except as expressly provided in the Trust Agreement, all provisions
therein specifically referencing the TIA shall be inapplicable until such time
as the Trust Agreement is qualified under the TIA.
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EXHIBIT A
FORM OF TRUST AGREEMENT
TRUST AGREEMENT made as of the __ day of _______, 20__, by and between
Credit And Repackaging Vehicle Corporation, as depositor (the "Depositor"), and
▇▇▇▇▇ Fargo Bank Minnesota, National Association, as trustee (the "Trustee"),
consisting of this agreement and Schedules I, II and III attached hereto, which
Schedules are made a part hereof and are hereinafter referred to collectively as
the "Terms Schedule". The terms of the Standard Terms for Trust Agreements,
dated July --, 2001 (the "Standard Terms"), agreed between the Depositor and the
Trustee are, except to the extent otherwise expressly specified herein, hereby
incorporated by reference herein in their entirety with the same force and
effect as though set forth herein. Capitalized terms used and not otherwise
defined herein shall have the meanings assigned to them in the Standard Terms.
The words "herein", "hereof", "hereunder", "this Trust Agreement" and other
words of similar import refer to this agreement including the Terms Schedule and
the Standard Terms so incorporated by reference.
WHEREAS, the Depositor and the Trustee desire to establish the trust
identified in Schedule I attached hereto (the "Trust") for the primary purposes
of (i) holding the Securities, (ii) entering into the Swap Agreement with the
Swap Counterparty and (iii) issuing the Certificates;
WHEREAS, the Depositor desires that the beneficial interests in the
Trust be divided into transferable fractional shares, such shares to be
represented by the Certificates;
WHEREAS, the Depositor desires to appoint the Trustee as trustee of the
Trust and the Trustee desires to accept such appointment;
WHEREAS, the Depositor desires to transfer to the Trust, without
recourse, and the Trust desires to acquire, all of the Depositor's right, title
and interest in, to and under the Securities and other property identified in
Schedule II to the Trust Agreement (the "Trust Property"); and
WHEREAS, the Trust desires to acquire the Trust Property specified
herein in consideration for issuing Certificates having an initial Principal
Balance (or Notional Amount, as applicable) identified in Schedule I attached
hereto, subject to the terms and conditions specified in the Trust Agreement;
NOW, THEREFORE, In consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), the parties hereto hereby agree
as follows:
1. The Depositor hereby appoints the Trustee as trustee of the Trust and
requests the Trustee to receive (i) the Securities and any related documents,
(ii) the Swap Agreement,
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(iii) any Swap Guarantee and (iv) the documents specified in the Swap Agreement
(in Part 3 of the Schedule to the ISDA Master Agreement).
2. The Trustee hereby accepts the appointment referred to in Section 1 and
declares that it will hold the assets referred to in Section 1 and all other
assets comprising the Trust Property in trust, for the exclusive use and benefit
of all present and future Certificateholders and for the purposes and subject to
the terms and conditions set forth in the Trust Agreement.
3. It is intended that the Trust be classified as a [grantor trust] for
U.S. federal income tax purposes and the Trustee hereby agrees, and each
Certificateholder by acquiring one or more Certificates agrees, to take no
action or reporting position that is inconsistent with such classification.
4. This agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.
5. This agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed to be an original, and all of which
together shall constitute but one and the same instrument.
IN WITNESS WHEREOF, each of the Depositor and the Trustee has caused
this instrument to be executed by its duly authorized officer as of the date
first written above.
CREDIT AND REPACKAGING VEHICLE
CORPORATION
By:________________________________________
Name:
Title:
▇▇▇▇▇ FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION, as Trustee on
behalf of the Trust identified in
Schedule I hereto, and not in its
individual capacity
By: _______________________________________
Name:
Title:
Attachments: Terms Schedule (consisting of Schedules I, II and III)
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SCHEDULE I
(Terms of Trust and Certificates)
Trust: Public Credit and Repackaged Securities(SM)
(PCARS)(SM) Trust Series -
Class of Certificates:
Date of Trust Agreement:
Trustee:
Notional Amount:
Issue Price:
Closing Date:
Specified Currency: [if not United States dollars]
Exchange Rate Agent: [if not ▇▇▇▇▇▇▇ ▇▇▇▇▇]
Business Day:
Interest Rate: [Swap Rate] [other]
Calculation Agent: [Swap Calculation Agent] [other]
Rating:
Rating Agencies:
Method of Distribution:
Scheduled Final Distribution Date:
Distribution Date:
Record Date:
Allocation of Voting Rights: [if not pro rata]
Form of Certificate: [Global/Definitive] [Registered/Bearer]
Depositary: [if not DTC]
Alternative ERISA Restrictions: [Apply] [Do Not Apply]
Deemed Representations: [Apply] [Do Not Apply]
Additional Trust Wind-Up Event:
Trigger Amount:
Maximum Reimbursable Amount:
Exchangeable Series Terms:
Depositor Optional Exchange:
Terms of Retained Interest:
Callable Series:
Call Right Terms and Notice: [if other than as specified in
Section 12.05]
Notice Mechanics:
Additional Reports: [Accountants' Statement]
[Statement of Officers of the Trustee]
Other Terms:
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SCHEDULE II
(Terms of Trust Property)
Concentrated Securities:
Other Securities:
Security Issuer:
Principal Amount:
Security Rate:
Credit Ratings:
Listing:
Security Issuance Agreement:
Events of Security Default:
Form of Security:
Currency of Denomination:
Acquisition Price by Trust: Certificates having an initial
[Principal Balance] [Notional
Amount] of [$______].
Security Payment Date:
Original Issue Date:
Maturity Date:
Sinking Fund Terms:
Redemption Terms:
CUSIP No./ISIN No.:
Security Trustee:
Available Information Regarding the [[name of issuer of Securities] is
Security Issuer: subject to the informational
requirements of the Securities
Exchange Act of 1934, as amended, and
in accordance therewith files, reports
and other information with the
Securities and Exchange Commission
(the "Commission"). Such reports and
other information can be inspected and
copied at the public reference
facilities maintained by the
Commission at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇.▇.,
▇▇▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇▇▇ and at the
Regional Offices of the Commission, at
▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇
▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ and Northwest
Atrium Center, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
Copies of such materials can be
obtained from the Public Reference
Section of the Commission at ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇▇▇
at prescribed rates.] [In addition,
[attached to the Prospectus is a copy
of] [name of issuer of Securities] has
also filed with the Commission] a
Prospectus, dated ________ __, ____,
relating to the original offering of
the Securities.]
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Cut-Off Date:
Selling Agent: [if not ▇▇▇▇▇▇▇ Sachs]
Credit Support:
Credit Support Default:
Other Trust Property:
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SCHEDULE III
(Swap Agreement)
Swap Agreement:
Swap Counterparty: Party A to the Swap Agreement
Swap Guarantee (if any):
Swap Notional Amount:
Swap Payment Date: [Each Payment Date specified for Party
A]
Swap Rate: [The [Fixed][Floating] Rate for the
applicable Calculation Period under
the Swap Agreement, plus or minus the
specified spread].
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EXHIBIT B-2
FORM OF CERTIFICATE
[In the case of a Global Certificate representing Registered Certificates,
insert the following - THIS CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE
MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS CERTIFICATE MAY NOT BE EXCHANGED
IN WHOLE OR IN PART FOR A CERTIFICATE REGISTERED, AND NO TRANSFER OF THIS
CERTIFICATE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT.]
[In addition, in the case of a Global Certificate for which DTC is acting as
Depositary, insert the following - UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), TO THE TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO A PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]
[In the case of a Bearer Certificate, insert the following - ANY U.S. PERSON WHO
HOLDS THIS OBLIGATION SHALL BE SUBJECT TO LIMITATIONS UNDER U.S. INCOME TAX
LAWS, INCLUDING THE LIMITATIONS PROVIDED IN SECTIONS 165(J) AND 1287(A) OF THE
INTERNAL REVENUE CODE.]
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Certificate Number - Number of Trust Certificates -
Fractional Share -
CUSIP NO. [__]
Certificate Evidencing
Public Credit and Repackaged Securities(SM) (PCARS)(SM) Trust Certificates
Series -
This certifies that [in the case of a Registered Certificate, insert
the following - - (the "Holder") is the registered] [in the case of a Bearer
Certificate, insert the following - the bearer hereof (the "Bearer") is the]
owner of - Certificates of Public Credit and Repackaged Securities(SM)
(PCARS)(SM) Trust Series - (the "Trust") representing an undivided fractional
interest in the Trust Property (the "Certificates").
The designations, rights, privileges, restrictions, preferences and
other terms and provisions of the Certificates evidenced hereby are set forth
in, and this certificate and such Certificates are issued and shall in all
respects be subject to the terms and provisions of, the Trust Agreement of the
Trust, dated as of --, by and between Credit and Repackaging Vehicle
Corporation, as depositor, and ▇▇▇▇▇ Fargo Bank Minnesota, National Association,
as trustee (the "Trustee"), as the same may be amended or supplemented from time
to time (the "Trust Agreement"). The Trustee will furnish a copy of the Trust
Agreement to the [Holder] [Bearer] without charge upon written request to the
Trustee at its principal place of business or registered office. All capitalized
terms used and not otherwise defined herein shall have the respective meanings
assigned to them in the Trust Agreement.
The amount due on the Certificates evidenced hereby on any Distribution
Date shall be determined by multiplying the Fractional Share stated on this
certificate by the amount of the Available Funds to be distributed on such
Distribution Date.
[If applicable, specify principal terms of any Call Right or right of
optional exchange.]
Upon execution of the certificate of authentication hereon by a
Responsible Officer of the Trustee or an authorized officer of the
Authenticating Agent and receipt of this certificate by the [Holder] [Bearer],
the [Holder] [Bearer] shall be bound by the Trust Agreement and entitled to the
benefits thereunder.
[In the case of a Registered Certificate, insert the following - The
Certificates evidenced hereby are transferable on the books and records of the
Trust, in person or by a duly authorized attorney, upon surrender of this
certificate duly endorsed or accompanied by a written instrument of transfer in
proper form, in accordance with Section 5.04 of the Trust Agreement.]
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This certificate and the Certificates evidenced hereby shall be
governed by, and construed in accordance with, the laws of the State of New
York.
IN WITNESS WHEREOF, the Trustee, on behalf of the Trust, and not in its
individual capacity, has caused this certificate to be duly executed.
PUBLIC CREDIT AND REPACKAGED
SECURITIES(SM) (PCARS)(SM) TRUST SERIES -
By: ▇▇▇▇▇ Fargo Bank Minnesota, National
Association, as Trustee
By: ______________________________
Authorized Signatory
DATED:
[SEAL]
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CERTIFICATE OF AUTHENTICATION
This is one of the Certificate Documents referred to in the
within-mentioned Trust Agreement.
[________________________], [Authenticating
Agent for the] [as] Trustee
By: ______________________________
Authorized Signatory
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[OPTION TO ELECT EXCHANGE
The undersigned hereby irrevocably requests and instructs the Trustee
to exchange the Certificates represented by the attached certificate (or such
portion of the Certificates specified below) for the Trust Property in which the
Certificates evidence (or such portion thereof evidences) a beneficial interest,
pursuant to their terms and in accordance with the Trust Agreement, to be
delivered to the undersigned, at
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name and address of the undersigned.)
If less than all of the Certificates represented by the attached
certificate are to be exchanged, specify below the portion thereof to be
exchanged and the denomination (which must be an authorized denomination) of
each certificate to be issued for the portion not being exchanged. (In the
absence of any such specification, one certificate will be issued for any
portion not being exchanged).
Portion to be exchanged (expressed as a number of Certificates): _______
Denomination(s) of certificates to be issued for portion not being exchanged:
_______
Date:_____________
____________________________
[Signature]]
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned assigns and transfers the
Certificates to:
_______________________________________________________________________________
(Insert assignee's social security or tax identification number)
_______________________________________________________________________________
_______________________________________________________________________________
(Insert address and zip code of assignee)
and irrevocably appoints ___________________________________________________
_______________________________________________________________________________
agent to transfer the Certificates on the books of the Trust. The agent may
substitute another individual to act for him or her.
Date: __________________
Signature:_______________________________________________________________
(Sign exactly as your name appears on the other side of this certificate)
The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.
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