<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 14, 1998
REGISTRATION NO. 333-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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CASE CREDIT CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 76-0394710
(STATE OF INCORPORATION) (I.R.S. EMPLOYER IDENTIFICATION NO.)
700 STATE STREET
RACINE, WISCONSIN 53404
(414) 636-6011
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
RICHARD S. BRENNAN
GENERAL COUNSEL AND SECRETARY
CASE CORPORATION
700 STATE STREET, RACINE, WISCONSIN 53404
(414) 636-6011
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE,
OF AGENT FOR SERVICE)
COPIES TO:
ELIZABETH A. RAYMOND GERARD M. MEISTRELL
MAYER, BROWN & PLATT CAHILL GORDON & REINDEL
190 SOUTH LASALLE STREET 80 PINE STREET
CHICAGO, ILLINOIS 60603-3441 NEW YORK, NEW YORK 10005
(312) 782-0600 (212) 701-3000
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time
to time after the effective date of this Registration Statement.
If the only securities being registered on this form are being offered
pursuant to dividend or interest reinvestment plans, please check the
following box. [_]
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or
interest reinvestment plans, check the following box. [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [_]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [_]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [_]
CALCULATION OF REGISTRATION FEE
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<TABLE>
<CAPTION>
AMOUNT PROPOSED MAXIMUM PROPOSED MAXIMUM
TITLE OF EACH CLASS OF TO BE OFFERING PRICE AGGREGATE AMOUNT OF
SECURITIES TO BE REGISTERED REGISTERED(1) PER UNIT(2) OFFERING PRICE(2) REGISTRATION FEE
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<S> <C> <C> <C> <C>
Debt Securities............. $1,000,000,000(3) 100% $1,000,000,000(3) $215,114(3)(4)
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</TABLE>
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(1) If any Debt Securities are issued at an original issue discount, such
greater amount as shall result in an aggregate offering price to the
public which shall not exceed the amount set forth under Proposed Maximum
Aggregate Offering Price, or if Debt Securities are issued in a foreign or
composite currency, an equivalent amount of such foreign or composite
currency.
(2) Estimated solely for the purpose of calculating the registration fee.
(3) Of the $1,000,000,000 of debt securities registered hereby, $270,800,000
aggregate principal amount of such securities was registered pursuant to
Registration No. 333-35815 and are unissued as of the date hereof. A
registration fee of $82,061 was previously paid with respect to such debt
securities and is not included in the amount set forth under Amount of
Registration Fee.
(4) Previously paid.
Pursuant to Rule 429 under the Securities Act of 1933, the Prospectus filed
as part of this Registration Statement relates to the securities registered
hereby, including the remaining unsold $270,800,000 principal amount of debt
securities previously registered by the Registrant under its Registration
Statement on Form S-3 (File No. 333-35815).
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT
SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS
REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH
SECTION 8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT
SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID
SECTION 8(A), MAY DETERMINE.
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<PAGE>
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A +
+REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE +
+SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY +
+OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT +
+BECOMES EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR +
+THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE +
+SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE +
+UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF +
+ANY SUCH STATE. +
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
SUBJECT TO COMPLETION, DATED MAY , 1998
PROSPECTUS
$1,000,000,000
CASE CREDIT CORPORATION
DEBT SECURITIES
-----------
Case Credit Corporation, a Delaware corporation ("Case Credit" or the
"Company"), intends from time to time to issue its unsecured debt securities
(the "Securities") from which the Company will receive up to an aggregate
amount of $1,000,000,000 in proceeds (or its equivalent in foreign currencies
or currency units). The Securities will be offered for sale in amounts, at
prices and on terms to be determined when an agreement to sell is made or at
the time of sale, as the case may be. The Securities may be sold for U.S.
dollars, foreign denominated currency or European Currency Units ("ECUs"), and
principal of and any interest on the Securities may likewise be payable in U.S.
dollars, foreign denominated currency or ECUs. For each issue of Securities in
respect of which this Prospectus is being delivered (the "Offered Securities")
there is an accompanying Prospectus Supplement (the "Prospectus Supplement")
that sets forth the title, designation, aggregate principal amount, designated
currency or currency units, rate (which may be fixed or variable) or method of
calculation of interest and dates for payment thereof, maturity, priority,
premium, if any, authorized denominations, initial price, any redemption or
prepayment rights at the option of the Company or the holder, any terms for
sinking fund payments, any listing on a securities exchange and the initial
public offering price, the form of the Securities (which may be in registered
or permanent global form) and other special terms of the Offered Securities,
together with the terms of the offering of the Offered Securities and the net
proceeds to the Company from the sale thereof.
The Securities will be sold directly, through agents designated from time to
time, through underwriters or dealers, or through a combination of those
methods of sale. If any agents of the Company or any underwriters are involved
in the sale of the Offered Securities in respect of which this Prospectus is
being delivered, the names of such agents or underwriters and any applicable
commissions and discounts are set forth in the Prospectus Supplement with
respect to such Offered Securities.
-----------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
-----------
THE DATE OF THIS PROSPECTUS IS MAY , 1998.
<PAGE>
NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN OR INCORPORATED BY REFERENCE IN
THIS PROSPECTUS OR ANY PROSPECTUS SUPPLEMENT AND, IF GIVEN OR MADE, SUCH
INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED BY THE COMPANY OR ANY UNDERWRITER. NEITHER THIS PROSPECTUS NOR ANY
PROSPECTUS SUPPLEMENT CONSTITUTES AN OFFER TO SELL OR A SOLICITATION OF AN
OFFER TO BUY ANY SECURITIES OTHER THAN THE REGISTERED SECURITIES TO WHICH IT
RELATES OR AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY SUCH
SECURITIES TO ANY PERSON IN ANY JURISDICTION TO WHOM IT IS UNLAWFUL TO MAKE
SUCH OFFER OR SOLICITATION IN SUCH JURISDICTION. NEITHER THE DELIVERY OF THIS
PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL UNDER ANY CIRCUMSTANCES CREATE
ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY
SINCE THE DATE HEREOF OR THAT THE INFORMATION CONTAINED OR INCORPORATED BY
REFERENCE HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE.
AVAILABLE INFORMATION
Case Credit is currently subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in
accordance therewith files reports and other information with the Securities
and Exchange Commission (the "Commission"). Although Case Credit may take
action to suspend its obligation to file such reports and other information
with the Commission if any Offered Securities are held of record by fewer than
300 holders, and subject to satisfaction of certain other conditions, Case
Credit has agreed in the Indenture not to take any such action so long as any
Securities are outstanding. Such reports and other information filed by the
Company can be inspected and copied at the office of the Commission at Room
1024, Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549, as well
as at the Regional Offices of the Commission at Citicorp Center, 500 West
Madison Street, Suite 1400, Chicago, Illinois 60661-2511, and Seven World
Trade Center, Suite 1300, New York, New York 10048. Copies of such information
can be obtained by mail from the Public Reference Section of the Commission at
Room 1024, Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549, at
prescribed rates. Such information may also be accessed electronically by
means of the Commission's home page on the World Wide Web located at
http://www.sec.gov.
This Prospectus constitutes a part of a registration statement (the
"Registration Statement") filed by the Company with the Commission under the
Securities Act of 1933, as amended (the "Securities Act"). This Prospectus
omits certain of the information contained in the Registration Statement, and
reference is hereby made to the Registration Statement and to the exhibits
thereto for further information with respect to the Company and the
Securities.
The Company is not required, nor does it intend, to provide annual or other
reports to holders of the Securities. However, the Company's Annual Report on
Form 10-K will be available to such holders upon request. See "Documents
Incorporated by Reference."
DOCUMENTS INCORPORATED BY REFERENCE
The following documents filed by the Company under the Exchange Act with the
Commission are incorporated herein by reference:
(1) The Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1997; and
(2) The Company's Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 1998.
All documents filed by the Company pursuant to Sections 13(a), 13(c), 14 or
15(d) of the Exchange Act after the date of the initial filing of the
Registration Statement with the Commission and prior to effectiveness of the
Registration Statement or after the date of this Prospectus and prior to the
termination of the offering of the Securities offered hereby, shall be deemed
to be incorporated in this Prospectus by reference and to be a part
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<PAGE>
hereof from the date of filing of such documents. Any statement contained in a
document incorporated or deemed to be incorporated by reference herein shall
be deemed to be modified or superseded for purposes of this Prospectus to the
extent that a statement contained herein or in any other subsequently filed
document which also is or is deemed to be incorporated by reference herein
modifies or supersedes such statement. Any such statement so modified or
superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Prospectus.
The Company will provide, without charge, upon the written or oral request
by any person to whom this Prospectus is delivered, a copy of any or all of
the documents incorporated by reference in this Prospectus, other than
exhibits to such documents (unless such exhibits are specifically incorporated
by reference into such documents). Such requests should be directed to: Kevin
J. Hallagan, Vice President and Secretary, Case Credit Corporation, 700 State
Street, Racine, Wisconsin 53404 (telephone (414) 636-6011).
This Prospectus and the accompanying Prospectus Supplement include forward-
looking statements that involve risks and uncertainties that could cause
actual results to differ materially from those in the forward looking
statements. All statements, other than statements of historical facts,
included or incorporated by reference in this Prospectus and the Prospectus
Supplement that address activities, events or developments that the Company
expects or anticipates will or may occur in the future, including such items
as business strategy and measures to implement strategy, competitive
strengths, goals, expansion and growth of the Company's and its subsidiaries'
business and operations, plans, references to future success as well as other
statements which include words such as "anticipate," "believe," "plan,"
"estimate," "expect" and "intend" and other similar expressions, constitute
forward-looking statements. These statements are based on certain assumptions
and analyses made by the Company in light of its experience and its perception
of historical trends, current conditions and expected future developments as
well as other factors it believes are appropriate in the circumstances.
However, whether actual results and developments will conform with the
Company's expectations and predictions is subject to a number of risks and
uncertainties, including, among others, any special considerations included or
incorporated by reference in this Prospectus and any Prospectus Supplement;
general economic, market or business conditions; conditions in and policies of
the agricultural, construction, housing and credit industries; risks
associated with investments and operations in foreign jurisdictions and any
future international expansion, including those related to economic, political
and regulatory policies of local governments and laws or policies of the
United States and other countries; changes in governmental laws and
regulations affecting lending, borrowing, taxes and other matters impacting
the Company; the potential impacts of increased competition in the markets the
Company operates within; risk factors reported from time to time in the
reports filed by the Company with the Commission and other factors, many of
which are beyond the control of the Company and its subsidiaries.
Consequently, all of the forward-looking statements made in this Prospectus
and any Prospectus Supplement are qualified by these cautionary statements,
and there can be no assurance that the actual results or developments
anticipated by the Company will be realized or, even if substantially
realized, that they will have the expected consequences to or effects on the
Company and its subsidiaries or their business or operations.
THE COMPANY
Case Credit is a wholly owned finance subsidiary of Case Corporation
("Case"). Case Credit, its wholly owned operating subsidiaries, Case Credit
Ltd. (Canada) and Case Credit Australia Pty Ltd, and Case Credit's joint
ventures, Case Credit Europe S.A.S. and UzCaseagroleasing, provide and
administer financing for the retail purchase or lease of new and used Case
agricultural and construction equipment and other new and used agricultural
and construction equipment. Case Credit offers various types of retail
financing to end-use customers to facilitate the sale or lease of Case
products in the United States, Canada, Australia, Europe and Uzbekistan. The
Company's business principally involves purchasing retail installment sales
contracts from Case dealers. In addition, the Company facilitates and finances
the sale of insurance products to retail customers, provides financing for
Case dealers and rental equipment yards, and also provides other retail
financing programs in North America. In North America, Case Credit's private-
label credit card (issued by Nations Bank of Delaware, N.A.) is used by
customers to purchase parts, service, rentals and small wholegoods from Case
dealers. Case Credit
3
<PAGE>
also provides financing options to dealers for a variety of purposes,
including inventory, working capital, real estate acquisitions, construction
and remodeling, business acquisitions, dealer systems and service and
maintenance equipment.
The Company's business is highly dependent on the ability of Case and its
dealers to generate sales and leasing activity, the willingness of customers
to enter into financing transactions with the Company and the availability of
funds to the Company to finance such transactions. The ability of Case and its
dealers to sell agricultural and construction equipment and thereby generate
retail receivables is affected by numerous factors, including the general
level of activity in the agricultural and construction industries, the rate of
North American agricultural production and demand, weather conditions,
commodity prices, consumer confidence, government subsidies for the
agricultural sector, prevailing levels of construction (especially housing
starts), and levels of total industry capacity and equipment inventory. In
addition, the Company's business is affected by changes in market interest
rates, which in turn are related to general economic and capital market
conditions, demand for credit, inflation, governmental policies and other
factors.
The Company obtains funding for its operations primarily from the issuance
of commercial paper, bank revolving credit facilities, medium-term notes and
public debt, the issuance of securities in asset-backed securitization ("ABS")
transactions, earnings retained in the business, and advances and equity
capital from Case. The Company sells substantial amounts of retail receivables
in ABS transactions that typically involve the sale of a pool of retail
installment sales contracts to limited-purpose business trusts or similar
securitization entities. The Company remains as servicer to such receivables,
for which it is typically paid a servicing fee.
The Company continues to expand its financing business by providing retail
and dealer financing in new geographic regions and for a broader range of
equipment, and by offering new financing products to Case dealers, end-use
customers and to others. During 1997, Case Credit established Case Credit
Europe S.A.S., a joint venture with UFB LOCABAIL SA, a subsidiary of Compagnie
Bancaire, to provide financing for Case's European dealers and retail
customers. Also during 1997, through an agreement established with Cummins
Engine Company, Inc. ("Cummins"), Case Credit began to offer financing to
qualified North American retail purchasers, dealers and manufacturers of
industrial equipment powered by Cummins engines. Through UzCaseagroleasing, a
joint venture with The Association of Banks of Uzbekistan, Case Credit
provides financing for the retail acquisition of new and used Case
agricultural equipment in Uzbekistan.
The Company was incorporated in Delaware on January 26, 1993. The principal
offices of the Company are located at 700 State Street, Racine, Wisconsin,
53404, and its telephone number is (414) 636-6011.
CASE CORPORATION
Case is a leading worldwide designer, manufacturer, marketer and distributor
of farm equipment and light- to medium-sized construction equipment. Case's
market position is particularly significant in several product categories
including loader/backhoes, skid steer loaders, large, high-horsepower farm
tractors and self-propelled combines.
Case also manufactures and distributes replacement parts for various models
of its farm and construction equipment, many of which are proprietary, to
support products it has sold. Case distributes these parts to dealers and
distributors through a network of parts depots throughout the world.
RELATIONSHIP WITH CASE CORPORATION
Case provides the Company with certain operational and financial support
which is integral to the conduct of the Company's business. The following is a
description of the support agreement between the Company and Case. Certain
other operational and financial support provided to the Company by Case is
described in certain of the reports filed by the Company with the Commission
pursuant to the Exchange Act.
The Company and Case have entered into a support agreement (the "Support
Agreement") which provides, among other things, that Case will remain,
directly or indirectly, the sole owner of all of the voting stock of the
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Company, and will make quarterly payments to the Company to the extent
necessary to ensure that the Company's consolidated pre-tax earnings (as
defined) available for fixed charges equal at least 1.10 times its fixed
charges (as defined) in all periods composed of four consecutive fiscal
quarters. The Support Agreement provides that Case is not directly or
indirectly guaranteeing any indebtedness, liability or obligation of the
Company. The Support Agreement may be modified or amended by the parties
thereto or terminated by either party upon thirty days' prior written notice
to the other party, with copies of any such amendment or notice being sent to
Moody's Investors Service, Inc. ("Moody's"), Standard & Poor's Ratings Group
("S&P") and any other nationally recognized statistical rating organizations
then rating Case Credit debt, if (i) Moody's and S&P confirm in writing that
their ratings on Case Credit debt then rated or capable of being rated by them
would not be downgraded or withdrawn as a result of such modification,
amendment or termination, or (ii) the modification, amendment or notice of
termination provides that the Support Agreement will continue in effect with
respect to debt of Case Credit outstanding on the effective date of the
modification, amendment or termination, or (iii) the holders of at least a
majority of the aggregate unpaid principal amount of all outstanding debt of
Case Credit with an original maturity in excess of 270 days consent in
writing, so long as the holders of debt of Case Credit having an original
maturity of 270 days or less shall continue to have the benefit of the Support
Agreement until the maturity of such debt. For purposes of the Support
Agreement, no portion of any debt is considered to be "outstanding" if such
debt is deemed to be discharged and not outstanding in accordance with the
indenture or other governing instrument defining the rights of the holders of
such debt.
The calculation of pre-tax earnings available for fixed charges under the
Support Agreement differs from the calculation of the ratio of earnings to
fixed charges in accordance with the rules and regulations of the Commission.
Under the Support Agreement all cash extraordinary non-recurring items of
income or expense (other than cash debt defeasance costs) are included whereas
under the Commission's rules and regulations such items are excluded.
USE OF PROCEEDS
Except as otherwise set forth in the Prospectus Supplement relating to the
Offered Securities, the net proceeds to be received by the Company from the
sale of the Securities will be used to fund the Company's finance programs
(including, without limitation, retail finance programs offered by Case Credit
to end-use customers and dealer rental equipment finance programs offered by
the Company) and for other corporate purposes, including the repayment of
indebtedness. Pending such use, the net proceeds may be temporarily invested
in short-term instruments.
RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges for Case Credit is set forth below
for the periods indicated.
<TABLE>
<CAPTION>
THREE
MONTHS
ENDED YEAR ENDED DECEMBER 31,
MARCH 31, -------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
2.03x 2.23x 2.80x 4.34x 2.57x 1.82x
</TABLE>
For the computation of the ratio of earnings to fixed charges, "earnings"
has been calculated by adding income (loss) before taxes, cumulative effect of
changes in accounting principles and extraordinary loss, interest expense,
fixed charges of unconsolidated subsidiaries, the portion of rentals
representative of an interest factor and amortization of capitalized debt
expense. Fixed charges consist of interest expense, fixed charges of
unconsolidated subsidiaries, the portion of rentals representative of an
interest factor and amortization of capitalized debt expense.
The calculation of pre-tax earnings available for fixed charges under the
Support Agreement differs from the calculation of the ratio of earnings to
fixed charges in accordance with the rules and regulations of the
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<PAGE>
Commission as set forth above. Under the Support Agreement, all cash
extraordinary non-recurring items of income or expense (other than cash debt
defeasance costs) are included, whereas under the Commission's rules and
regulations, such items are excluded.
DESCRIPTION OF SECURITIES
The Securities are to be issued under an Indenture (the "Indenture"),
between the Company and The Bank of New York, as Trustee (the "Trustee"),
dated as of October 1, 1997, a copy of which is incorporated by reference into
the Registration Statement. The following summaries of certain provisions of
the Indenture do not purport to be complete and are subject to, and are
qualified in their entirety by reference to, all the provisions of the
Indenture, including the definitions therein of certain terms. Wherever
particular Sections or defined terms of the Indenture are referred to, such
Sections or defined terms are incorporated herein by reference. As used in
this section or in any description of the Indenture, references to "Case
Credit" or "the Company" refer to Case Credit Corporation and not its
subsidiaries.
The following sets forth certain general terms and provisions of the
Securities offered hereby. The particular terms of the Securities offered by
any Prospectus Supplement (the "Offered Securities") will be described in the
Prospectus Supplement relating to such Offered Securities (the "Applicable
Prospectus Supplement").
GENERAL
The Indenture does not limit the amount of Securities that may be issued
thereunder and Securities may be issued thereunder from time to time in one or
more series. The Securities will be unsecured obligations of the Company and
will rank equally and ratably with other unsecured obligations of the Company.
Unless otherwise indicated in the Applicable Prospectus Supplement,
principal, premium, if any, and interest on the Securities will be payable,
and the transfer of Securities will be registrable, at the office or agency to
be maintained by the Company in New York, New York, and at any other office or
agency maintained by the Company for such purpose. The Securities will be
issued only in fully registered form without coupons and, unless otherwise
indicated in the Applicable Prospectus Supplement, in denominations of $1,000
and integral multiples thereof. No service charge will be made for any
registration of transfer or exchange of the Securities, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge imposed in connection therewith.
The Applicable Prospectus Supplement will describe the following terms of
the Offered Securities: (i) the title of the Offered Securities; (ii) any
limit on the aggregate principal amount of the Offered Securities; (iii) the
Person to whom any interest on the Offered Securities shall be payable, if
other than the person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest; (iv) the date or dates on which the principal of the
Offered Securities is payable; (v) the rate or rates (which may be fixed or
variable) at which the Offered Securities shall bear interest, if any, or the
method by which such rate or rates shall be determined, the date or dates from
which any such interest shall accrue, the Interest Payment Dates on which any
such interest shall be payable and the Regular Record Date for the interest
payable on any Interest Payment Date; (vi) the place or places where the
principal of and any premium and interest on the Offered Securities will be
payable; (vii) the period or periods within which, the price or prices at
which and the terms and conditions upon which the Offered Securities may be
redeemed, in whole or in part, at the option of the Company; (viii) the
obligation, if any, of the Company to redeem, purchase or repay the Offered
Securities pursuant to any sinking fund or analogous provisions or at the
option of a Holder thereof and the period or periods within which, the price
or prices at which and the terms and conditions upon which the Offered
Securities will be redeemed, purchased or repaid, in whole or in part,
pursuant to such obligation; (ix) if other than denominations of $1,000 and
any integral multiple thereof, the denominations in which the Offered
Securities shall be issuable; (x) the currency, currencies or currency units
in which payment of the principal of and any premium and interest on any
Offered Securities will be payable if other than the currency of the United
States of America; (xi) if the amount of payments of principal of or any
premium or
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interest on any Offered Securities may be determined with reference to an
index or formula, the manner in which such amounts will be determined; (xii)
if the principal of or any premium or interest on any Offered Securities is to
be payable, at the election of the Company or a Holder thereof, in one or more
currencies or currency units other than that or those in which the Offered
Securities are stated to be payable, the currency, currencies or currency
units in which payment of the principal of and any premium and interest on the
Offered Securities as to which such election is made will be payable, and the
periods within which and the terms and conditions upon which such election is
to be made; (xiii) the applicability, if any, of the provisions described
under "Defeasance and Covenant Defeasance;" (xiv) whether the Offered
Securities will be issuable, in whole or in part, in the form of one or more
Book-Entry Securities as described under "--Book-Entry Securities," and, in
such case, the depository appointed by the Company with respect to the Offered
Securities and the circumstances under which the Book-Entry Security may be
registered for transfer or exchange or authenticated and delivered in the name
of a Person other than the Depository or its nominee; (xv) if other than the
principal amount thereof, the portion of the principal amount of the Offered
Securities which will be payable upon declaration of acceleration of the
Maturity thereof; and (xvi) any other terms of the Offered Securities.
The Securities may be issued as Original Issue Discount Securities to be
offered and sold at a substantial discount below their stated principal
amount. Federal income tax consequences and other special considerations
applicable to Original Issue Discount Securities and any Securities treated as
having been issued with original issue discount for Federal income tax
purposes will be described in the Applicable Prospectus Supplement. "Original
Issue Discount Securities" means any Security which provides for an amount
less than the principal amount thereof to be due and payable upon the
declaration of acceleration of the Maturity thereof upon the occurrence of an
Event of Default and the continuation thereof.
The Indenture does not contain covenants or other provisions designed to
afford holders of the Securities protection in the event of a highly leveraged
transaction, change in credit rating or other similar occurrence. See
"Relationship With Case Corporation" concerning Case's obligation to retain
ownership of all of the voting stock of the Company and Case's obligation to
make support payments to the Company under certain circumstances.
BOOK-ENTRY SECURITIES
Unless otherwise provided in the Prospectus Supplement, the Securities will
be represented by one or more certificates (the "Global Securities"). The
Global Security representing Securities will be deposited with, or on behalf
of, The Depository Trust Company ("DTC"), or other successor depository
appointed by the Company (DTC or such other depository is herein referred to
as the "Depository") and registered in the name of the Depository or its
nominee. Unless otherwise provided in the Prospectus Supplement, Securities
will not be issued in definitive form. If the aggregate principal amount of
any issue exceeds $200 million, one certificate will be issued with respect to
each $200 million of principal amount and an additional certificate will be
issued with respect to any remaining principal amount of such issue.
DTC is a limited purpose trust company organized under the New York Banking
Law, a "banking organization" within the meaning of the New York Banking Law,
a member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code and a "clearing agency"
registered pursuant to the provisions of Section 17A of the Exchange Act. DTC
holds securities that its participants ("Participants") deposit with DTC. DTC
also facilitates the settlement among Participants of securities transactions,
such as transfers and pledges, in deposited securities through electronic
computerized book-entry changes in Participants' accounts, thereby eliminating
the need for physical movement of securities certificates. Direct Participants
include securities brokers and dealers, banks, trust companies, clearing
corporations and certain other organizations. DTC is owned by a number of its
Direct Participants and by the New York Stock Exchange, Inc., the American
Stock Exchange, Inc., and the National Association of Securities Dealers, Inc.
Access to DTC's book-entry system is also available to others, such as
securities brokers and dealers, banks and trust companies that clear through
or maintain a custodial relationship with a Direct
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Participant, either directly or indirectly ("Indirect Participants"). The
Rules applicable to DTC and its Participants are on file with the Commission.
Upon the issuance by the Company of Securities represented by a Global
Security, purchases of Securities under the DTC system must be made by or
through Direct Participants, which will receive a credit for the Securities on
DTC's records. The ownership interest of each actual purchaser of each
Security ("Beneficial Owner") is in turn to be recorded on the Direct and
Indirect Participants' records. Beneficial Owners will not receive written
confirmation from DTC of their purchase, but Beneficial Owners are expected to
receive written confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or Indirect Participant
through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Securities are to be accomplished by entries made
on the books of Participants acting on behalf of Beneficial Owners. Beneficial
Owners will not receive certificates representing their ownership interests in
Securities, except in the event that use of the book-entry system for the
Securities is discontinued. The laws of some states require that certain
purchasers of securities take physical delivery of such securities in
definitive form. Such limits and such laws may impair the ability to transfer
beneficial interests in the Global Security.
So long as the Depository for the Global Security, or its nominee, is the
registered owner of the Global Security, the Depository or its nominee, as the
case may be, will be considered the sole owner or holder of the Securities
represented by such Global Security for all purposes under the Indenture.
Except as provided below, owners of beneficial interests in Securities
represented by the Global Security will not be entitled to have Securities
represented by such Global Security registered in their names, will not
receive or be entitled to receive physical delivery of Securities in
definitive form and will not be considered the owners or holders thereof under
the Indenture.
To facilitate subsequent transfers, all Securities deposited by Participants
with DTC are registered in the name of DTC's partnership nominee, Cede & Co.
The deposit of Securities with DTC and their registration in the name of Cede
& Co. effect no change in beneficial ownership. DTC has no knowledge of the
actual Beneficial Owners of the Securities; DTC's records reflect only the
identity of the Direct Participants to whose accounts such Securities are
credited, which may or may not be the Beneficial Owners. The Participants will
remain responsible for keeping account of their holdings on behalf of their
customers. Conveyance of notices and other communications by DTC to Direct
Participants, by Direct Participants to Indirect Participants, and by Direct
Participants and Indirect Participants to Beneficial Owners will be governed
by arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time.
Neither DTC nor Cede & Co. will consent or vote with respect to Securities.
Under its usual procedures, DTC mails an Omnibus Proxy to the Company as soon
as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s
consenting or voting rights to those Direct Participants to whose accounts the
Securities are credited on the record date (identified in a listing attached
to the Omnibus Proxy).
Payments of principal, of premium, if any, and interest on the Securities
represented by the Global Security registered in the name of DTC or its
nominee will be made by the Company through the Trustee under the Indenture or
a paying agent (the "Paying Agent"), which may also be the Trustee under the
Indenture, to DTC or its nominee, as the case may be, as the registered owner
of the Global Security. Neither the Company, the Trustee, nor the Paying Agent
will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests of
the Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.
The Company has been advised that DTC, upon receipt of any payment of
principal, premium, if any, and interest in respect of a Global Security, will
credit Direct Participant's accounts payable date in accordance with their
respective holdings shown on DTC's record unless DTC has reason to believe
that it will not receive payment on the payable date. Payments by Participants
to Beneficial Owners will be governed by standing instructions and customary
practices, as is the case with securities held for the accounts of customers
in bearer
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form or registered in "street name," and will be the responsibility of such
Participant and not of DTC, the Paying Agent or the Company, subject to any
statutory or regulatory requirements as may be in effect from time to time.
Payment of principal, premium, if any, and interest to DTC is the
responsibility of the Company or the Paying Agent, disbursement of such
payments to Direct Participants shall be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners shall be the
responsibility of Direct and Indirect Participants.
If the Depository with respect to a Global Security is at any time unwilling
or unable to continue as Depository and a successor Depository is not
appointed by the Company within 90 days, the Company will issue certificated
notes in exchange for the Securities represented by such Global Security.
The information in this section concerning the Depository and the
Depository's book-entry system has been obtained from sources that the Company
believes to be reliable, but the Company takes no responsibility for the
accuracy thereof.
CERTAIN COVENANTS OF THE COMPANY
Limitations on Secured Funded Debt. The Indenture provides that the Company
will not, nor will it permit any Restricted Subsidiary to, incur, issue,
assume, guarantee or create any Secured Funded Debt, without effectively
providing concurrently with the incurrence, issuance, assumption, guaranty or
creation of any such Secured Funded Debt that the Outstanding Securities
(together with, if the Company shall so determine, any other Indebtedness of
the Company or such Restricted Subsidiary then existing or thereafter created
which is not subordinated to the Outstanding Securities) will be secured
equally and ratably with (or prior to) such Secured Funded Debt, so long as
such Secured Funded Debt will be secured by a Lien, unless, after giving
effect thereto, the sum of the aggregate amount of all outstanding Secured
Funded Debt of the Company and Restricted Subsidiaries would not exceed an
amount equal to the sum of (i) $20 million and (ii) 15% of Consolidated Net
Tangible Assets.
The limitation on Secured Funded Debt will not apply to, and there will be
excluded from Secured Funded Debt in any computation under such restriction,
Funded Debt secured by: (i) Liens on real or physical property of any
corporation existing at the time such corporation becomes a Subsidiary; (ii)
Liens on real or physical property existing at the time of acquisition thereof
or incurred within 180 days of the time of acquisition thereof (including,
without limitation, acquisition through merger or consolidation) by the
Company or any Restricted Subsidiary; (iii) Liens on real or physical property
thereafter acquired (or constructed) by the Company or any Restricted
Subsidiary and created prior to, at the time of, or within 270 days after such
acquisition (including, without limitation, acquisition through merger or
consolidation) (or the completion of such construction or commencement of
commercial operation of such property, whichever is later) to secure or
provide for the payment of all or any part of the purchase price (or the
construction price) thereof; (iv) Liens in favor of the Company or any
Restricted Subsidiary; (v) Liens in favor of the United States of America, any
State thereof or the District of Columbia, or any agency, department or other
instrumentality thereof, to secure partial, progress, advance or other
payments pursuant to any contract or provisions of any statute; (vi) Liens
incurred or assumed in connection with the issuance of revenue bonds the
interest on which is exempt from Federal income taxation pursuant to Section
103(b) of the Internal Revenue Code; (vii) Liens securing the performance of
any contract or undertaking not directly or indirectly in connection with the
borrowing of money, the obtaining of advances or credit or the securing of
Funded Debt, if made and continuing in the ordinary course of business; (viii)
Liens incurred (no matter when created) in connection with the Company's or a
Restricted Subsidiary's engaging in leveraged or single-investor lease
transactions; provided, however, that the instrument creating or evidencing
any borrowings secured by such Lien will provide that such borrowings are
payable solely out of the income and proceeds of the property subject to such
Lien and are not a general obligation of the Company or such Restricted
Subsidiary; (ix) Liens under workers' compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection
with bids, tenders, contracts or deposits to secure public or statutory
obligations of the Company or any Restricted Subsidiary, or deposits of cash
or obligations of the United States
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of America to secure surety, replevin and appeal bonds to which the Company or
any Restricted Subsidiary is a party or in lieu of such bonds, or pledges or
deposits for similar purposes in the ordinary course of business, or Liens
imposed by law, such as laborers' or other employees', carriers',
warehousemen's, mechanics', materialmen's and vendors' Liens and Liens arising
out of judgments or awards against the Company or any Restricted Subsidiary
with respect to which the Company or such Restricted Subsidiary at the time
shall be prosecuting an appeal or proceedings for review and with respect to
which it shall have secured a stay of execution pending such appeal or
proceedings for review, or Liens for taxes not yet subject to penalties for
nonpayment or the amount or validity of which is being in good faith contested
by appropriate proceedings by the Company or any Restricted Subsidiary, as the
case may be, or minor survey exceptions, minor encumbrances, easements or
reservations of, or rights of others for, rights-of-way, sewers, electric
lines, telegraph and telephone lines and other similar purposes, or zoning or
other restrictions or Liens as to the use of real properties, which Liens,
exceptions, encumbrances, easements, reservations, rights and restrictions do
not, in the opinion of the Company, in the aggregate materially detract from
the value of said properties or materially impair their use in the operation
of the business of the Company and its Restricted Subsidiaries; (x) Liens
incurred to finance all or any portion of the cost of construction, alteration
or repair of any real or physical property and improvements thereto prior to
or within 270 days after completion of such construction, alteration or
repair; (xi) Liens incurred (no matter when created) in connection with a
Securitization Transaction; (xii) Liens on property (or any Receivable arising
in connection with the lease thereof) acquired by the Company or a Restricted
Subsidiary through repossession, foreclosure or like proceeding and existing
at the time of the repossession, foreclosure, or like proceeding; (xiii) Liens
on deposits of the Company or a Restricted Security with banks (in the
aggregate, not exceeding $50 million), in accordance with customary banking
practice, in connection with the providing by the Company or a Restricted
Subsidiary of financial accommodations to any Person in the ordinary course of
business; (xiv) Liens outstanding on the date of the Indenture; or (xv) any
extension, renewal, refunding or replacement of the foregoing.
"Consolidated Net Tangible Assets" means, at any date, the total assets
appearing on the most recent consolidated balance sheet of the Company and
Restricted Subsidiaries as at the end of the fiscal quarter of the Company
ending not more than 135 days prior to such date, prepared in accordance with
generally accepted accounting principles, less (i) all current liabilities
(due within one year) as shown on such balance sheet, (ii) applicable
reserves, (iii) investments in and advances to Securitization Subsidiaries and
Subsidiaries of Securitization Subsidiaries that are consolidated on the
consolidated balance sheet of the Company and its Subsidiaries, and (iv)
Intangible Assets and liabilities relating thereto.
"Funded Debt" means (i) any indebtedness of the Company or a Restricted
Subsidiary maturing more than 12 months after the time of computation thereof,
(ii) guarantees by the Company or a Restricted Subsidiary of Funded Debt or of
dividends of others (except guarantees in connection with the sale or discount
of accounts receivable, trade acceptances and other paper arising in the
ordinary course of business), (iii) in the case of any Restricted Subsidiary
all preferred stock of such Restricted Subsidiary, and (iv) all Capital Lease
Obligations (as defined in the Indenture) of the Company or a Restricted
Subsidiary.
"Indebtedness" means, at any date, without duplication, (i) all obligations
for borrowed money of the Company or a Restricted Subsidiary or any other
indebtedness of the Company or a Restricted Subsidiary, evidenced by bonds,
debentures, notes or other similar instruments, and (ii) Funded Debt, except
such obligations and other indebtedness of the Company or a Restricted
Subsidiary of the Company and Funded Debt, if any, incurred as a part of a
Securitization Transaction.
"Intangible Assets" means, at any date, the value (net of any applicable
reserves) as shown on or reflected in the most recent consolidated balance
sheet of the Company and the Restricted Subsidiaries as at the end of the
fiscal quarter of the Company ending not more than 135 days prior to such
date, prepared in accordance with generally accepted accounting principles,
of: (i) all trade names, trademarks, licenses, patents, copyrights, service
marks, goodwill and other like intangibles; (ii) organizational and
development costs; (iii) deferred charges (other than prepaid items, such as
insurance, taxes, interest, commissions, rents, deferred interest waiver,
compensation
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and similar items and tangible assets being amortized); and (iv) unamortized
debt discount and expense, less unamortized premium.
"Liens" means pledges, mortgages, security interests and other liens,
including purchase money liens, on any property of the Company or any
Restricted Subsidiary which secure Secured Funded Debt.
"Receivables" means any right of payment from or on behalf of any obligor,
whether constituting an account, chattel paper, instrument, general intangible
or otherwise, arising, either directly or indirectly, from the financing by
the Company or any Subsidiary of the Company of property or services, monies
due thereunder, security interests in the property and services financed
thereby and any and all other related rights.
"Restricted Subsidiary" means each Subsidiary of the Company other than
Securitization Subsidiaries and Subsidiaries of Securitization Subsidiaries.
"Secured Funded Debt" means Funded Debt of the Company which is secured by
any pledge, mortgage, security interest or other lien on any property (whether
owned on the date of the Indenture or thereafter created) of the Company or of
a Restricted Subsidiary.
"Securitization Subsidiary" means a Subsidiary of the Company (i) which is
formed for the purpose of effecting one or more Securitization Transactions
and engaging in other activities reasonably related thereto and (ii) as to
which no portion of the indebtedness or any other obligations of which (a) is
guaranteed by the Company or any Restricted Subsidiary, or (b) subjects any
property or assets of the Company or any Restricted Subsidiary, directly or
indirectly, contingently or otherwise, to any lien, other than pursuant to
representations, warranties and covenants (including those related to
servicing) entered into in the ordinary course of business in connection with
a Securitization Transaction and inter-company notes and other forms of
capital or credit support relating to the transfer or sale of Receivables or
asset-backed securities to such Securitization Subsidiary and customarily
necessary or desirable in connection with such transactions.
"Securitization Transaction" means any transaction or series of transactions
that have been or may be entered into by the Company or any of its
Subsidiaries in connection with or reasonably related to a transaction or
series of transactions in which the Company or any of its Subsidiaries may
sell, convey or otherwise transfer to (i) a Securitization Subsidiary or (ii)
any other Person, or may grant a security interest in, any Receivables or
asset-backed securities or interest therein (whether such Receivables or
securities are then existing or arising in the future) of the Company or any
of its Subsidiaries, and any assets related thereto, including, without
limitation, all security interests in the property or services financed
thereby, the proceeds of such Receivables or asset-backed securities and any
other assets which are sold or in respect of which security interests are
granted in connection with securitization transactions involving such assets.
"Subsidiary" means any corporation of which at least a majority of the
outstanding stock, which under ordinary circumstances (not dependent upon the
happening of a contingency) has voting power to elect a majority of the board
of directors of such corporation (or similar management body), is owned
directly or indirectly by the Company or by one or more Subsidiaries of the
Company, or by the Company and one or more Subsidiaries.
EVENTS OF DEFAULT
Any one of the following events will constitute an Event of Default under
the Indenture with respect to Securities of any series: (i) failure to pay any
interest on any Security of that series when due, continued for 30 days; (ii)
failure to pay principal of or any premium on any Security of that series when
due; (iii) failure to deposit any sinking fund or other payment, when due, in
respect of any Security of that series; (iv) failure to perform, or breach of,
any other covenant or warranty of the Company in the Indenture (other than a
covenant included in the Indenture solely for the benefit of a series of
Securities thereunder other than that series) continued for 60 days after
written notice as provided in the Indenture; (v) certain events in bankruptcy,
insolvency or reorganization of the Company; (vi) a default or defaults under
any mortgage, indenture or
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instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or a Restricted
Subsidiary (including the Indenture), whether such Indebtedness exists at the
date of the Indenture or shall thereafter be created, which default or
defaults shall have resulted in such Indebtedness, in an aggregate principal
amount exceeding $60 million, individually or in the aggregate, having been
declared due and payable prior to the date on which it would otherwise have
become due and payable, without such Indebtedness having been discharged, or
such acceleration having been rescinded or annulled, or there having been
deposited in trust a sum of money sufficient to discharge in full such
Indebtedness, within a period of 30 days after there shall have been given, by
registered mail, to the Company by the Trustee or to the Company and the
Trustee by the Holder or Holders of at least 25% in aggregate principal amount
of the Outstanding Securities of such series a written notice specifying such
default and requiring the Company to cause such Indebtedness to be discharged,
cause to be deposited in trust a sum sufficient to discharge in full such
Indebtedness or cause such acceleration to be rescinded or annulled; or (vii)
any other Event of Default provided with respect to Securities of that series.
If any Event of Default with respect to the Securities of any series at the
time Outstanding occurs and is continuing, either the Trustee or the Holders
of at least 25% in aggregate principal amount of the Outstanding Securities of
that series may declare the principal amount (or, if the Securities of that
series are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms thereof) of all the Securities of that
series to be due and payable immediately. At any time after a declaration of
acceleration with respect to Securities of any series has been made, but
before a judgment or decree based on acceleration has been obtained, the
Holders of a majority in aggregate principal amount of Outstanding Securities
of that series may, under certain circumstances, rescind and annul such
acceleration.
Reference is made to the Applicable Prospectus Supplement relating to any
series of Offered Securities that are Original Issue Discount Securities for
the particular provisions relating to acceleration of the Stated Maturity of a
portion of the principal amount of such series of Original Issue Discount
Securities upon the occurrence of an Event of Default and the continuation
thereof.
The Indenture provides that, subject to the duty of the Trustee during
default to act with the required standard of care, the Trustee will be under
no obligation to exercise any of its rights or powers under the Indenture at
the request or direction of any of the Holders, unless such Holders shall have
offered to the Trustee reasonable indemnity. Subject to such provisions for
the indemnification of the Trustee and to certain other conditions, the
Holders of a majority in aggregate principal amount of the Outstanding
Securities of any series will have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of that series.
No Holder of any series of Securities will have any right to institute any
proceeding with respect to the Indenture or for any remedy thereunder, unless
such Holder shall have previously given to the Trustee written notice of a
continuing Event of Default and unless the Holders of at least 25% in
principal amount of the Outstanding Securities of that series shall have made
written request, and offered reasonable indemnity, to the Trustee to institute
such proceeding as trustee, and the Trustee shall not have received from the
Holders of a majority in aggregate principal amount of the Outstanding
Securities of that series a direction inconsistent with such request and shall
have failed to institute such proceeding within 60 days. However, such
limitations do not apply to a suit instituted by a Holder of a Security for
enforcement of payment of the principal of and premium, if any, or interest on
such Security on or after the respective due dates expressed in such Security.
The Company is required to furnish to the Trustee annually a statement as to
the performance by the Company of certain of its obligations under the
Indenture and as to any default in such performance.
MODIFICATION AND WAIVER
Modifications and amendments of the Indenture may be made by the Company and
the Trustee with the consent of the Holders of not less than the majority in
aggregate principal amount of the Outstanding Securities
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of each series issued under the Indenture and affected by the modification or
amendment; provided, however, that no such modification or amendment may,
without the consent of the Holders of all Securities affected thereby, (i)
change the Stated Maturity of the principal of, or any installment of
principal of or interest on, any Security; (ii) reduce the principal amount
of, or the premium, if any, or (except as otherwise provided in the Applicable
Prospectus Supplement) interest on, any Security (including, in the case of an
Original Issue Discount Security, the amount payable upon acceleration of the
maturity thereof); (iii) change the place or currency of payment of principal
of, premium, if any, or interest on any Security; (iv) impair the right to
institute suit for the enforcement of any payment on any Security on or after
the Stated Maturity thereof (or in the case of redemption, on or after the
Redemption Date); or (v) reduce the percentage in principal amount of
Outstanding Securities of any series, the consent of whose Holders is required
for modification or amendment of the Indenture or for waiver of compliance
with certain provisions of the Indenture or for waiver of certain defaults.
The Holders of at least a majority in aggregate principal amount of the
Outstanding Securities of any series may, on behalf of all Holders of that
series, waive compliance by the Company with certain restrictive provisions of
the Indenture. The Holders of not less than a majority in aggregate principal
amount of the Outstanding Securities of any series may, on behalf of all
Holders of that series, waive any past default under the Indenture, except a
default in the payment of principal, premium or interest and in respect of a
covenant or provision of the Indenture that cannot be modified or amended
without the consent of the Holder of each Outstanding Security of such series
affected thereby.
CONSOLIDATION, MERGER AND SALE OF ASSETS
The Company may not consolidate with or merge into any other Person or
convey, transfer or lease its properties and assets substantially as an
entirety to any Person and may not permit any Person to merge into or
consolidate with the Company or convey, transfer or lease its properties and
assets substantially as an entirety to the Company, unless (i) any successor
or purchaser is a corporation, partnership, or trust organized and validly
existing under the laws of the United States of America, any State or the
District of Columbia, and any such successor or purchaser expressly assumes
the Company's obligations on Outstanding Securities under a supplemental
indenture, (ii) immediately after giving effect to the transaction, no Event
of Default, and no event which, after notice or lapse of time or both, would
become an Event of Default, shall have occurred and be continuing, (iii) if
properties or assets of the Company become subject to a mortgage not permitted
by the Indenture, the Company or such successor Person, as the case may be,
takes such steps as shall be necessary effectively to secure the Securities
equally and ratably with (or prior to) all indebtedness secured thereby, and
(iv) the Company has delivered to the Trustee an Officers' Certificate and an
Opinion of Counsel stating compliance with these provisions.
DEFEASANCE AND COVENANT DEFEASANCE
The Indenture provides that, if such provision is made applicable to the
Securities of any series pursuant to Section 3.1 of the Indenture, the
Company, at the Company's option, (i) will be discharged from any and all
obligations in respect of the Securities of any series (except for certain
obligations to register the transfer of or exchange of Securities of such
series, replace stolen, lost or mutilated Securities of such series, maintain
paying agencies and hold moneys for payment in trust) or (ii) need not comply
with certain restrictive covenants of the Indenture, including those described
under "Certain Covenants of the Company," and the occurrence of an event
described in clause (iv) under "Events of Default" shall no longer be an Event
of Default, in each case, if the Company deposits, in trust, with the Trustee
money or U.S. Government Obligations, which through the payment of interest
thereon and principal thereof in accordance with their terms, will provide
money in an amount sufficient to pay all the principal of, premium if any, and
interest on the Securities of such series on the dates such payments are due
(which may include one or more redemption dates designated by the Company) in
accordance with the terms of the Securities of such series. Such a trust may
be established only if, among other things, (a) no Event of Default or event
which, with the giving of notice or lapse of time, or both, would become an
Event of Default under the Indenture shall have occurred and be continuing on
the date of such deposit or on
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such later date specified in the Indenture in the case of certain events in
bankruptcy, insolvency or reorganization of the Company, (b) such deposit will
not cause the Trustee to have any conflicting interest with respect to other
securities of the Company, (c) such defeasance will not result in a breach or
violation of, or constitute a default under, the Indenture or any other
agreement or instrument to which the Company is a party or by which it is
bound and (d) the Company shall have delivered an Opinion of Counsel to the
effect that the Holders will not recognize income, gain or loss for federal
income tax purposes as a result of such deposit or defeasance and will be
subject to Federal income tax in the same manner as if such defeasance had not
occurred, which Opinion of Counsel, in the case of clause (i) above, must
refer to and be based upon a published ruling of the Internal Revenue Service,
a private ruling of the Internal Revenue Service addressed to the Company, or
otherwise a change in applicable federal income tax law occurring after the
date of the Indenture. In the event the Company omits to comply with its
remaining obligations under the Indenture after a defeasance of the Indenture
with respect to the Securities of any series as described under clause (ii)
above and the Securities of such series are declared due and payable because
of the occurrence of any Event of Default, the amount of money and U.S.
Government Obligations on deposit with the Trustee may be insufficient to pay
amounts due on the Securities of such series at the time of the acceleration
resulting from such Event of Default. However, the Company will remain liable
in respect of such payments.
CONCERNING THE TRUSTEE
The Bank of New York is Trustee under the Indenture. The Trustee performs
services for the Company and Case in the ordinary course of business and is a
lender bank under certain of the Company's credit facilities and Case's credit
facilities. The Company has issued $150,000,000 aggregate principal amount of
its 6 3/4% Notes due October 21, 2007 and a total of $279,200,000 of medium-
term notes under the Indenture. The Trustee is also trustee under an
indenture, dated as of February 1, 1996, between the Company, Case and the
Trustee, as trustee. The Company has issued $200,000,000 aggregate principal
amount of its 6 1/8% Notes due February 15, 2003, under such indenture.
PLAN OF DISTRIBUTION
The Company may sell the Securities being offered hereby through agents,
through underwriters and through dealers, and Securities may be sold to other
purchasers directly or through agents or through a combination of any such
methods of sale.
The distribution of the Securities may be effected from time to time in one
or more transactions at a fixed price or prices, which may be changed, or at
market prices prevailing at the time of sale, at prices related to such
prevailing market prices or at negotiated prices.
Offers to purchase Securities may be solicited by agents designated by the
Company from time to time. Any such agent, who may be deemed to be an
underwriter, as that term is defined in the Securities Act, involved in the
offer or sale of the Securities in respect of which this Prospectus is
delivered will be named, and any commissions payable by the Company to such
agent set forth, in the Applicable Prospectus Supplement. Agents may be
entitled under agreements that may be entered into with the Company to
indemnification by the Company against certain liabilities, including
liabilities under the Securities Act, and such agents or their affiliates may
be customers of, extend credit to, engage in transactions with or perform
services for the Company and/or Case in the ordinary course of business.
Unless otherwise indicated in the Prospectus Supplement, any such agent will
be acting on a reasonable efforts basis for the period of its appointment.
If any underwriters are utilized in the sale, the Company will enter into an
underwriting agreement with such underwriters at the time of sale to them and
the names of the underwriters and the terms of the transaction will be set
forth in the Applicable Prospectus Supplement that will be used by the
underwriters to make resales of the Securities in respect of which this
Prospectus is delivered to the public. The underwriters may be entitled under
the relevant underwriting agreement to indemnification by the Company against
certain liabilities, including liabilities under the Securities Act, and such
underwriters or their affiliates may be customers of, extend credit to, engage
in transactions with or perform services for the Company and/or Case in the
ordinary course of business.
14
<PAGE>
If dealers are utilized in the sale of the Securities in respect of which
this Prospectus is delivered, the Company will sell such Securities to such
dealers as principal. The dealers may then resell such Securities to the
public at varying prices to be determined by such dealers at the time of
resale. Dealers may be entitled to indemnification by the Company against
certain liabilities, including liabilities under the Securities Act, and such
dealers or their affiliates may be customers of, extend credit to, engage in
transactions with or perform services for the Company and/or Case in the
ordinary course of business.
Unless otherwise indicated in the Applicable Prospectus Supplement,
Securities are not proposed to be listed on a securities exchange, and any
underwriters or dealers will not be obligated to make a market in Securities.
The Company cannot predict the activity or liquidity of any trading in the
Securities.
If so indicated in an Applicable Prospectus Supplement, the Company will
authorize underwriters or agents to solicit offers by certain institutions to
purchase Offered Securities from the Company pursuant to delayed delivery
contracts ("Contracts") providing for payment and delivery on the date or
dates stated in such Prospectus Supplement. Each Contract will be for an
amount not less than, and the aggregate principal amount of Offered Securities
sold pursuant to Contracts shall be not less nor more than, the respective
amounts stated in such Prospectus Supplement. Institutions with whom
Contracts, when authorized, may be made include commercial and savings banks,
insurance companies, pension funds, investment companies, educational and
charitable institutions and other institutions, but will in all cases be
subject to the approval of the Company. Contracts will not be subject to any
conditions except (i) the purchase by an institution of the Offered Securities
covered by its Contracts shall not at the time of delivery be prohibited under
the laws of any jurisdiction in the United States to which such institution is
subject, and (ii) if the Offered Securities are being sold to underwriters,
the Company shall have sold to such underwriters the total principal amount of
the Offered Securities less the principal amount thereof covered by Contracts.
Agents and underwriters will have no responsibility in respect of the delivery
or performance of Contracts.
LEGAL MATTERS
Unless otherwise indicated in a supplement to this Prospectus, certain legal
matters in connection with the Securities offered hereby will be passed upon
for the Company by Richard S. Brennan, General Counsel and Secretary of Case,
and by Mayer, Brown & Platt, Chicago, Illinois. In addition to his positions
at Case, Mr. Brennan is also a partner at Mayer, Brown & Platt. The Company
has been advised by Mr. Brennan that, at March 31, 1998, he beneficially owned
2,000 shares of common stock of Case and had options to purchase 28,000 shares
of common stock of Case. Unless otherwise indicated in a supplement to this
Prospectus, the legality of the Securities offered hereby will be passed upon
for the underwriters, dealers and agents, if any, by Cahill Gordon & Reindel
(a partnership including a professional corporation), New York, New York.
EXPERTS
The audited financial statements and schedules included or incorporated by
reference in this Prospectus and the Prospectus Supplement and elsewhere in
this Registration Statement have been audited by Arthur Andersen LLP,
independent public accountants, as indicated in their reports with respect
thereto, and are included or incorporated by reference herein in reliance upon
the authority of said firm as experts in giving said reports.
15
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following table sets forth the estimated expenses in connection with the
issuance and distribution of the securities registered hereby, other than
underwriting discounts and commissions:
<TABLE>
<S> <C>
SEC registration fee............................................ $251,449
Blue sky fees and expenses...................................... 10,000
Printing and engraving costs.................................... 300,000
Legal fees and expenses......................................... 150,000
Accounting fees and expenses.................................... 150,000
Trustee fees and expenses....................................... 10,000
Miscellaneous................................................... 28,551
--------
Total....................................................... $900,000
========
</TABLE>
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The By-Laws of the Company include the following provisions:
Article V, Section 16. Indemnification of Directors and Officers. Each
person who is or was a director or officer of the corporation, or who
serves or may have served at the request of the corporation as a director
or officer of another corporation, partnership, joint venture, trust or
other enterprise (including the heirs, executors, administrators or estate
of such person) and who was or is a party or is threatened to be made a
party to any threatened, pending or completed claim, action, suit or
proceeding, whether criminal, civil, administrative or investigative,
including appeals, shall be indemnified by the corporation as a matter of
right to the full extent permitted or authorized by the Corporation Law of
the state of incorporation of the corporation, as it may from time to time
be amended, against any expenses (including attorneys' fees), judgments,
fines and amounts paid in settlement, actually and reasonably incurred by
him in his capacity as a director or officer, or arising out of his status
as a director or officer. Each person who is or was an employee or agent of
the corporation, or who serves or may have served at the request of the
corporation as an employee or agent of another corporation, partnership,
joint venture, trust or other enterprise (including the heirs, executors,
administrators or estate of such person) may, at the discretion of the
Board, be indemnified by the corporation to the same extent as provided
herein with respect to directors and officers of the corporation.
The corporation may, but shall not be obligated to, maintain insurance at
its expense, to protect itself and any person who is or was a director,
officer, employee or agent of the corporation, or is or was serving as a
director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise against any liability asserted
against him and incurred by him in any such capacity, or arising out of his
status as such. The corporation may, but shall not be obligated to, pay
expenses incurred in defending a civil or criminal action, suit or
proceeding in advance of the final disposition of such action, suit or
proceeding.
The indemnification provided by this Section 16 shall not be exclusive of
any other rights to which those seeking indemnification may be entitled as
a matter of law or under any agreement, vote of stockholders or
disinterested directors or otherwise.
Reference is made to Section 6 of the Underwriting Agreement filed as
Exhibit 1(a) hereto and to Section 7 of the Distribution Agreement filed as
Exhibit 1(b) hereto for a description of the indemnification arrangements in
connection with any underwritten offering of securities registered hereby.
II-1
<PAGE>
Case has purchased insurance which purports to insure the officers and
directors of Case, and of its subsidiary companies, which includes Case
Credit, against certain liabilities incurred by them in the discharge of their
function as such officers and directors except for liabilities resulting from
their own malfeasance.
ITEM 16. EXHIBITS.
A list of exhibits filed herewith is contained in the index to exhibits
which is incorporated herein by reference.
ITEM 17. UNDERTAKINGS.
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement:
(i) To include any prospectus required by section 10(a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after
the effective date of the Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the Registration Statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of prospectus filed
with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the
maximum aggregate offering price set forth in the "Calculation of
Registration Fee" table in the effective registration statement; and
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the Registration Statement or
any material change to such information in the Registration Statement;
provided, however, that paragraphs (i) and (ii) do not apply if the
Registration Statement is on Form S-3 or Form S-8 and the information
required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed with or furnished to
the Commission by the registrant pursuant to section 13 or section
15(d) of the Securities Exchange Act of 1934 that are incorporated by
reference in the Registration Statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new Registration Statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
(4) That for purposes of determining any liability under the Securities
Act of 1933, each filing of the registrant's annual report pursuant to
Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that
is incorporated by reference in this Registration Statement shall be deemed
to be a new Registration Statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
(5) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant, pursuant to the provisions described
in Item 15, or otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission, such indemnification is
against public policy as expressed in the Act and is, therefore,
II-2
<PAGE>
unenforceable. In the event that the claim for indemnification against such
liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in
the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion of
its counsel the matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
(6) That for purposes of determining any liability under the Securities
Act of 1933, the information omitted from the form of prospectus filed as
part of this registration statement in reliance upon Rule 430A and
contained in a form of prospectus filed by the registrant pursuant to Rule
424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be
part of this registration statement as of the time it was declared
effective.
(7) That for the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment that contains a form
of prospectus shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.
II-3
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT
CERTIFIES THAT IT HAS REASONABLE GROUNDS TO BELIEVE THAT IT MEETS ALL OF THE
REQUIREMENTS FOR FILING ON FORM S-3 AND HAS DULY CAUSED THIS REGISTRATION
STATEMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED, IN THE CITY OF RACINE, STATE OF WISCONSIN, ON MAY 14, 1998. THE
REGISTRANT ALSO CERTIFIES THAT IT REASONABLY BELIEVES THAT THE SECURITY RATING
REQUIREMENT CONTAINED IN GENERAL INSTRUCTION I.B.2. OF FORM S-3 WILL BE MET BY
THE TIME OF SALE.
Case Credit Corporation
/s/ Kenneth R. Gangl
By: _________________________________
Kenneth R. Gangl
President and Chief Executive
Officer
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints
Theodore R. French, Kenneth R. Gangl and Robert A. Wegner and each of them,
the true and lawful attorneys-in-fact and agents of the undersigned, with full
power of substitution and resubstitution, for and in the name, place and stead
of the undersigned, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this Registration Statement as well
as any related registration statement (or amendment thereto) filed pursuant to
Rule 462(b) promulgated under the Securities Act of 1933, and to file the
same, with all exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, and hereby grants to such
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done,
as fully to all intents and purposes as the undersigned might or could do in
person, hereby ratifying and confirming all that said attorneys-in-fact and
agents, or any of them, or their or his substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THIS
REGISTRATION STATEMENT HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>
/s/ Kenneth R. Gangl President, Chief Executive May 14, 1998
____________________________________ Officer and Director
Kenneth R. Gangl (Principal Executive
Officer)
/s/ Robert A. Wegner Vice President and Chief May 14, 1998
____________________________________ Financial Officer
Robert A. Wegner (Principal Financial
and Accounting Officer)
/s/ Theodore R. French Chairman of the Board and May 14, 1998
____________________________________ Director
Theodore R. French
/s/ Jean-Pierre Rosso Director May 14, 1998
____________________________________
Jean-Pierre Rosso
</TABLE>
II-4
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<C> <S> <C>
1(a) Form of Underwriting Agreement(1)
1(b) Form of Distribution Agreement
4 Indenture between Case Credit Corporation and The Bank of New
York (including form of security)(2)
5 Opinion of Richard S. Brennan, General Counsel and Secretary
of Case Corporation, as to the legality of the securities
being registered
12 Computation of Ratio of Earnings to Fixed Charges
23(a) Consent of Arthur Andersen LLP, Independent Public Accountants
for Case Credit Corporation (Milwaukee, Wisconsin)
23(b) Consent of Richard S. Brennan, General Counsel and Secretary
of Case Corporation (contained in Exhibit 5)
24 Powers of attorney (contained on the signature page to this
Registration Statement)
25 Form T-1 Statement of eligibility under the Trust Indenture
Act of 1939 of The Bank of New York
</TABLE>
- --------
(1) Filed as Exhibit 1(a) to the Company's Registration Statement No. 333-
35815, and incorporated herein by reference.
(2) Filed as Exhibit 4(a) to the Company's Quarterly Report on Form 10-Q for
the quarter ended September 30, 1997, and incorporated herein by reference.
<PAGE>
EXHIBIT 1(b)
CASE CREDIT CORPORATION
$1,000,000,000
Medium-Term Notes, Series B
Due from 9 Months to 30 Years from Date of Issue
DISTRIBUTION AGREEMENT
May _, 1998
J.P. Morgan Securities Inc.
60 Wall Street
New York, New York 10260
Chase Securities Inc.
270 Park Avenue
New York, New York 10017
Citicorp Securities, Inc.
399 Park Avenue
New York, New York 10043
NationsBanc Montgomery Securities LLC
100 North Tryon Street
Charlotte, North Carolina 28255
BancAmerica Robertson Stephens
231 South LaSalle Street
Chicago, Illinois 60697
Ladies and Gentlemen:
CASE CREDIT CORPORATION, a Delaware corporation (the "Company"),
confirms its agreement with each of you with respect to the issue and sale from
time to time by the Company of its Medium-Term Notes, Series B due from 9 months
to 30 years from date of issue (the "Securities") at an aggregate initial
offering price of up to $1,000,000,000, as such amount shall be reduced by the
aggregate initial offering price of any other debt securities issued by the
Company, whether within or without the United States ("Other Securities")
pursuant to the registration statement referred to below, and agrees with each
of you (individually, an "Agent," and collectively, the "Agents," which term
shall include any additional agents appointed pursuant to Section 13 hereof) as
set forth in this Agreement. The Securities will be issued under an indenture
dated as of October 1, 1997 (the "Indenture") between the Company and The Bank
of New York, as Trustee (the "Trustee"). The Securities shall have the
maturities, interest rates, redemption provisions, if any, and other terms set
forth in the Prospectus referred to below as it may be amended or supplemented
from time to time. The Securities will be issued, and the terms and rights
thereof established, from time to time by the Company in accordance with the
Indenture.
<PAGE>
-2-
On the basis of the representations and warranties herein contained,
but subject to the terms and conditions stated herein and to the reservation by
the Company of the right to sell Securities directly to investors (other than
broker-dealers) on its own behalf, the Company hereby (i) appoints the Agents as
the exclusive agents of the Company for the purpose of soliciting and receiving
offers to purchase Securities from the Company by others pursuant to Section
2(a) hereof and (ii) agrees that, except as otherwise contemplated herein,
whenever it determines to sell Securities directly to any Agent as principal, it
will enter into a separate agreement (each such agreement a "Terms Agreement"),
substantially in the form of Exhibit A hereto, relating to such sale in
accordance with Section 2(b) hereof.
The Company has prepared and filed a registration statement on Form
S-3 (No. 333-_____), including a base prospectus, and a registration statement
(No. 333-35815) in respect of the Securities with the Securities and Exchange
Commission (the "Commission") in accordance with the provisions of the
Securities Act of 1933, as amended, and the rules and regulations of the
Commission thereunder (collectively, the "Securities Act"). Such registration
statements, including the exhibits thereto, as amended to the Commencement Date
(as hereinafter defined) are hereinafter referred to as the "Registration
Statement" and the base prospectus in the form in which it appears in the
registration statement No. 333-_____ is hereinafter referred to as the "Basic
Prospectus." The Basic Prospectus as supplemented by the prospectus supplement
or supplements (each a "Prospectus Supplement") specifically relating to the
Securities in the form filed with, or transmitted for filing to, the Commission
pursuant to Rule 424 under the Securities Act is hereinafter referred to as the
"Prospectus." Any reference in this Agreement to the Registration Statement, the
Basic Prospectus, any preliminary form of prospectus (a "preliminary
prospectus") previously filed with the Commission pursuant to Rule 424 or the
Prospectus shall be deemed to refer to and include the documents incorporated by
reference therein pursuant to Item 12 of Form S-3 under the Securities Act which
were filed under the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission thereunder (collectively, the "Exchange Act")
on or before the date of this Agreement or the date of the Basic Prospectus, any
preliminary prospectus or the Prospectus, as the case may be; and any reference
to "amend," "amendment" or "supplement" with respect to the Registration
Statement, the Basic Prospectus, any preliminary prospectus or the Prospectus,
including any supplement to the Prospectus that sets forth only the terms of a
particular issue of the Securities (a "Pricing Supplement"), shall be deemed to
refer to and include any documents filed under the Exchange Act after the date
of this Agreement or the date of the Basic Prospectus, any preliminary
prospectus or the Prospectus, as the case may be, which are deemed to be
incorporated by reference therein.
<PAGE>
-3-
1. REPRESENTATIONS AND WARRANTIES. The Company represents and
warrants to, and agrees with, each Agent as of the Commencement Date (as
hereinafter defined), as of each date on which the Company accepts an offer to
purchase Securities (including any purchase by an Agent as principal pursuant to
a Terms Agreement or otherwise), as of each date the Company issues and sells
Securities and as of each date the Registration Statement or the Basic
Prospectus is amended or supplemented, as follows (it being understood that such
representations and warranties shall be deemed to relate to the Registration
Statement, the Basic Prospectus and the Prospectus, each as amended or
supplemented to each such date):
(a) On the effective date of the Registration Statement relating to
the Securities (the "Effective Date"), such registration statement
conformed as to form in all material respects to the requirements of the
Securities Act, the Trust Indenture Act of 1939, as amended (collectively
with all rules and regulations of the Commission thereunder, "Trust
Indenture Act"), and the other applicable rules and regulations of the
Commission ("Rules and Regulations") and did not include any untrue
statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein not
misleading, and on the date of each Terms Agreement referred to in Section
2, the Prospectus will conform as to form in all material respects to the
requirements of the Securities Act, the Trust Indenture Act and the Rules
and Regulations, and on such date the Prospectus will not include any
untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading,
except that the foregoing does not apply to (a) statements in or omissions
from any of such documents based upon written information furnished to the
Company by any Agent specifically for use therein and (b) that part of the
Registration Statement that constitutes the Statement of Eligibility on
Form T-1 of the Trustee under the Trust Indenture Act filed as an exhibit
to the Registration Statement (the "Form T-1").
(b) (A) No stop order suspending the effectiveness of the
Registration Statement is in effect and, to the knowledge of the Company,
no proceedings for that purpose are pending before or threatened by the
Commission and (B) each document, if any, filed or to be filed pursuant to
the Exchange Act and incorporated by reference in the Prospectus complied
or will comply when so filed as to form in all material respects with the
Exchange Act and did not, or will not when so filed, contain an untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in the light of the circumstances under which
they were made, not misleading, excluding any statement in any such
document that does not constitute part of the Registration Statement or the
Prospectus pursuant to Rule
<PAGE>
-4-
412 under the Act; provided, however, that this representation and warranty
shall not apply to any statements in or omissions from any such documents
based upon written information furnished to the Company by any Agent
specifically for use therein.
(c) The Company has been duly incorporated and is an existing
corporation in good standing under the laws of the State of Delaware, with
corporate power and authority to own its properties and conduct its
business as described in the Prospectus; and the Company is duly qualified
to do business as a foreign corporation in good standing in all other
jurisdictions in which its ownership or leasing of property or the conduct
of its business requires such qualification, other than any failure to be
so qualified or in good standing as would not singly or in the aggregate
with all such other failures reasonably be expected to have a material
adverse effect on the assets, liabilities, results of operations or
financial condition of the Company and its consolidated subsidiaries (as
defined in Rule 1-02(x) of the Commission's Regulation S-X), taken as a
whole (a "Material Adverse Effect").
(d) Each subsidiary (including, if applicable, partnerships of which
the Company is a general partner) of the Company that meets the conditions
for a "significant subsidiary" set forth in Rule 1-02(w) of the
Commission's Regulation S-X (collectively, the "Subsidiaries") is duly
organized and validly existing as a corporation or partnership in good
standing (if applicable) under the laws of the jurisdiction of its
incorporation or formation, has the corporate or other power and authority
to own, lease and operate its properties and to conduct its business as
described in the Prospectus and is duly qualified to transact business as a
foreign corporation or partnership and is in good standing (if applicable)
in each jurisdiction in which the conduct of its business or its ownership,
leasing or operation of property requires such qualification, other than
any failure to be so qualified or in good standing as would not singly or
in the aggregate with all such other failures reasonably be expected to
have a Material Adverse Effect.
(e) The Indenture has been duly authorized, executed and delivered by
the Company and has been duly qualified under the Trust Indenture Act; the
Indenture complies as to form in all material respects with the
requirements of the Trust Indenture Act; the Securities have been duly
authorized by the Company; and when the Securities are issued and delivered
in accordance with the Indenture and delivered to and paid for by the
purchasers thereof in accordance with this Agreement and any applicable
Terms Agreement, such Securities will have been duly executed,
authenticated, issued and delivered by the Company and the Securities of
any particular issuance of Securities will conform in all material respects
to the description thereof contained in the Prospectus as amended or
supplemented to relate to such is-
<PAGE>
-5-
suance of Securites, and the Indenture and such Securities will constitute
valid and legally binding obligations of the Company, entitled to the
benefits of the Indenture and enforceable against the Company in accordance
with their terms, subject, as to enforcement, to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors' rights, to public policy
considerations and to general equity principles.
(f) No consent, approval, authorization, or order of, or filing with,
any governmental agency or body or any court is required for the
consummation of the transactions contemplated by any applicable Terms
Agreement (including the provisions of this Agreement) in connection with
the issuance and sale of the Securities by the Company, except such as are
required under the Securities Act and the Trust Indenture Act and such as
may be required under state securities laws.
(g) The execution, delivery and performance of the Indenture, any
applicable Terms Agreement (including the provisions of this Agreement) and
the issuance and sale of the Securities and compliance with the terms and
provisions thereof do not and will not (i) contravene any provision of the
certificate of incorporation, by-laws or other organizational documents of
the Company or of any of the Subsidiaries, or (ii) conflict with or result
in a breach or violation of any of the terms and provisions of, or
constitute a default under (including, without limitation, any event which
with notice or lapse of time, or both, would constitute a default under),
or result in the creation or imposition of any lien, charge or encumbrance
upon any assets or properties of the Company or of any of the Subsidiaries
under, any statute, rule, regulation, order or decree of any governmental
agency or body or any court having jurisdiction over any of them or any of
their respective properties, assets or operations, or any indenture,
mortgage, loan agreement, note or other agreement or instrument for
borrowed money, any guarantee of any agreement or instrument for borrowed
money or any lease, permit, license or other agreement or instrument to
which the Company or any of the Subsidiaries is a party or by which the
Company or any of the Subsidiaries is bound or to which any of the
properties, assets or operations of any of them is subject, other than any
such breach, violation, default, lien, charge or encumbrance as would not
singly or in the aggregate with all such other breaches, violations,
defaults, liens, charges or encumbrances reasonably be expected to have a
Material Adverse Effect.
(h) This Agreement and any applicable Terms Agreement have been duly
authorized, executed and delivered by the Company.
(i) The Company and the Subsidiaries have such certificates, permits,
licenses, franchises, consents, approvals, orders, authorizations and
clearances from
<PAGE>
-6-
appropriate governmental agencies and bodies ("Licenses") as are necessary
to own, lease or operate their properties and to conduct their businesses
in the manner described in the Prospectus, and all such Licenses are valid
and in full force and effect, other than any failure to have any such
License or any failure of any such License to be valid and in full force
and effect as would not singly or in the aggregate with all such other
failures have a Material Adverse Effect.
(j) Except as set forth in the Registration Statement and the
Prospectus, the properties, assets and operations of the Company and the
Subsidiaries are in compliance in all material respects with all applicable
Federal, state, local and foreign laws, rules and regulations, orders,
decrees, judgments, permits and licenses relating to public and worker
health and safety and to the protection and clean-up of the natural
environment and activities or conditions related thereto, including,
without limitation, those relating to the generation, handling, disposal,
transportation or release of hazardous materials (collectively,
"Environmental Laws"), other than any such failure to be in compliance as
would not singly or in the aggregate with all such other failures known to
the Company reasonably be expected to have a Material Adverse Effect. With
respect to such properties, assets and operations, including any previously
owned, leased or operated properties, assets or operations, to the best
knowledge of the Company and except as set forth in the Registration
Statement and the Prospectus, there are no past, present or reasonably
anticipated future events, conditions, circumstances, activities,
practices, incidents, actions or plans of the Company or any of the
Subsidiaries that may interfere with or prevent compliance or continued
compliance in all material respects with applicable Environmental Laws,
other than any such interference or prevention as would not singly or in
the aggregate with any such other interference or prevention known to the
Company reasonably be expected to have a Material Adverse Effect.
(k) Except as set forth in the Registration Statement and the
Prospectus, there are no pending actions, suits, proceedings or
investigations against or affecting the Company or any of the Subsidiaries,
or with respect to which the Company or any of the Subsidiaries is
responsible by way of indemnity or otherwise, that would singly or in the
aggregate with all such other actions, suits, investigations or proceedings
reasonably be expected to have a Material Adverse Effect, or reasonably be
expected to have a material adverse effect on the ability of the Company to
perform its obligations under this Agreement, the Indenture, the Securities
or any applicable Terms Agreement; and, to the best knowledge of the
Company, except as set forth in the Registration Statement and the
Prospectus, no such actions, suits, proceedings or investigations are
threatened.
<PAGE>
-7-
(l) Since the date of the latest audited financial statements of the
Company included or incorporated by reference in the Prospectus, except as
disclosed in or contemplated by the Prospectus: (A) Neither the Company nor
any Subsidiary has sustained any material loss or interference with its
consolidated business or properties from fire, flood, windstorm, accident
or other calamity (whether or not covered by insurance); (B) There has been
no material increase in the long-term indebtedness of the Company, no
material change in the capital stock of the Company and no dividend or
distribution of any kind declared, paid or made by the Company on any class
of its capital stock not consistent with past practice; and (C) There has
not been or become known any Material Adverse Effect, or any development
that could singly or in the aggregate with all other developments
reasonably be expected to result in a Material Adverse Effect.
(m) The Company is not and, after giving effect to the offering and
sale of the Securities and the application of the proceeds thereof as
described in the Prospectus, will not be an "investment company" as defined
in the Investment Company Act of 1940.
(n) Neither the Company nor any of its affiliates does business with
the government of Cuba or with any person or affiliate located in Cuba
within the meaning of Section 517.075, Florida Statutes and the Company
agrees to comply with such Section if prior to the completion of the
distribution of the Securities it commences doing such business.
(o) Except as set forth in the Registration Statement and the
Prospectus, no labor disturbance by the employees of the Company or any of
the Subsidiaries exists or, to the best knowledge of the Company, is
threatened, that would singly or in the aggregate with all such other labor
disturbances reasonably be expected to have a Material Adverse Effect.
(p) The audited consolidated financial statements of the Company and
related schedules, if any, and notes included or incorporated by reference
in the Registration Statement and the Prospectus comply in all material
respects with the requirements of the Exchange Act and the Rules and
Regulations, were prepared in accordance with generally accepted accounting
principles consistently applied throughout the periods involved (except as
otherwise stated therein) and fairly present the consolidated financial
condition, results of operations, cash flows, changes in stockholders'
equity of the Company
<PAGE>
-8-
on a consolidated basis, at the dates and for the periods presented. The
unaudited consolidated financial statements of the Company and the related
notes included or incorporated by reference in the Registration Statement
and the Prospectus present fairly the consolidated financial condition,
results of operations, cash flows, changes in stockholders' equity of the
Company at the dates and for the periods to which they relate, subject to
year-end audit adjustments, have been prepared in accordance with generally
accepted accounting principles applied on a consistent basis (except as
otherwise stated therein) and have been prepared on a basis substantially
consistent with that of the audited financial statements referred to above,
except as otherwise stated therein. If pro forma financial statements with
respect to the Company are included or incorporated by reference in the
Registration Statement and the Prospectus, such pro forma financial
statements and other pro forma financial information included in the
Prospectus present fairly the information shown therein, have been prepared
in all material respects in accordance with the Commission's rules and
guidelines with respect to pro forma financial statements, have been
properly compiled on the pro forma basis described therein and, in the
opinion of the Company, the assumptions used in the preparation thereof are
reasonable and the adjustments used therein are appropriate to give effect
to the transactions or circumstances referred to therein. No pro forma
financial statements or other pro forma financial information with respect
to the Company is required to be included or incorporated by reference in
the Registration Statement and the Prospectus other than those included or
incorporated by reference therein. The Company's ratios of earnings to
fixed charges (actual and, if any, pro forma) included in the Prospectus
under the caption "Ratio of Earnings to Fixed Charges" or incorporated by
reference into the Registration Statement and in Exhibit 12 to the
Registration Statement have been calculated in compliance with Item 503(d)
of Regulation S-K of the Commission and the supporting schedules included
in the Registration Statement present fairly the information required to be
stated therein.
<PAGE>
-9-
(q) Immediately after any sale of Securities by the Company hereunder
or under any applicable Terms Agreement, the aggregate amount of Securities
which shall have been issued and sold by the Company hereunder or under any
Terms Agreement and of any debt securities of the Company (other than the
Securities) that shall have been issued and sold pursuant to the
Registration Statement will not exceed the amount of debt securities
registered under the Registration Statement.
2. SOLICITATIONS AS AGENT; PURCHASES AS PRINCIPAL. (a)
Solicitations as Agent. On the basis of the representations and warranties
herein contained, but subject to the terms and conditions herein set forth, each
of the Agents hereby severally and not jointly agrees, as agent of the Company,
to use its reasonable efforts to solicit offers to purchase the Securities from
the Company upon the terms and conditions set forth in the Prospectus as amended
or supplemented from time to time. So long as this Agreement shall remain in
effect with respect to any Agent, the Company shall not, without the consent of
such Agent, solicit or accept offers to purchase, or sell in the United States
Securities or any other substantially similar debt securities with a maturity at
the time of original issuance of 9 months to 30 years except (i) pursuant to
this Agreement and any Terms Agreement, (ii) pursuant to a private placement not
constituting a public offering under the Securities Act, (iii) in connection
with a firm commitment underwriting pursuant to an underwriting agreement that
does not provide for a continuous public offering of medium-term debt
securities, or (iv) in connection with the continuous offering of asset-backed
medium-term debt securities rated "AA" (or an equivalent rating) or higher by a
nationally recognized statistical rating organization (as defined for purposes
of Rule 436(g) under the Securities Act) (a "Rating Organization"). However,
the Company reserves the right to sell, and may solicit and accept offers to
purchase, Securities directly on its own behalf to investors (other than broker-
dealers).
The Company reserves the right, in its sole discretion, to instruct
the Agents to suspend at any time, for any period of time or permanently, the
solicitation of offers to purchase Securities. Upon receipt of at least one
business day's prior notice from the Company, each Agent will suspend
solicitation of offers to purchase Securities from the Company until such time
as the Company has advised such Agent or Agents that such solicitation may be
resumed. During the period of time that such solicitation is suspended, the
Company shall not be required to deliver any opinions, letters or certificates
in accordance with Sections 4(i), 4(j) and 4(k); provided that if the
Registration Statement or Prospectus is amended or supplemented during the
period of suspension (other than by an amendment or supplement providing solely
for a change in the interest rates, redemption provisions, amortization
schedules or maturities offered for the Securities or for a change that the
Agents deem to be immaterial), no Agent shall be required to resume soliciting
of-
<PAGE>
-10-
fers to purchase Securities until the Company has delivered such opinions,
letters and certificates as such Agent may reasonably request.
The Company agrees to pay each Agent, as consideration for the sale of
each Security resulting from a solicitation made or an offer to purchase
received by such Agent, a commission in the form of a discount from the purchase
price of such Security in an amount equal to the following applicable percentage
of the principal amount of such Security sold:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
COMMISSION PERCENTAGE OF
AGGREGATE PRINCIPAL AMOUNT
RANGE OF MATURITIES OF SECURITIES SOLD
- -------------------------------------------------------------------------------------------------------------
<S> <C>
From 9 months to less than 1 year............................................ .125%
- -------------------------------------------------------------------------------------------------------------
From 1 year to less than 18 months........................................... .150%
- -------------------------------------------------------------------------------------------------------------
From 18 months to less than 2 years.......................................... .200%
- -------------------------------------------------------------------------------------------------------------
From 2 years to less than 3 years............................................ .250%
- -------------------------------------------------------------------------------------------------------------
From 3 years to less than 4 years............................................ .350%
- -------------------------------------------------------------------------------------------------------------
From 4 years to less than 5 years............................................ .450%
- -------------------------------------------------------------------------------------------------------------
From 5 years to less than 6 years............................................ .500%
- -------------------------------------------------------------------------------------------------------------
From 6 years to less than 7 years............................................ .550%
- -------------------------------------------------------------------------------------------------------------
From 7 years to less than 10 years........................................... .600%
- -------------------------------------------------------------------------------------------------------------
From 10 years to less than 15 years.......................................... .625%
- -------------------------------------------------------------------------------------------------------------
From 15 years to less than 20 years.......................................... .700%
- -------------------------------------------------------------------------------------------------------------
20 years to and including 30 years........................................... .750%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
The Agents are authorized to solicit offers to purchase Securities
only in the principal amount of $1,000 or any amount in excess thereof which is
an integral multiple of $1,000. Each Agent shall communicate to the Company,
orally or in writing, each offer to purchase Securities received by such Agent
as agent that in its judgment should be considered by the Company. The Company
shall have the sole right to accept offers to purchase the Securities and may
reject any such offer in whole or in part. Each Agent shall have the right, in
its sole discretion, to reject any offer to purchase Securities, as a whole or
in part, that it considers to be unacceptable and any such rejection shall not
be deemed a breach of its agreements herein contained. The procedural details
relating to the issue and delivery of Securities sold by an Agent as agent and
the payment therefor are set forth in the Administrative Procedures (as
hereinafter defined).
(b) Purchases as Principal. Each sale of Securities to any Agent as
principal shall be made in accordance with the terms of this Agreement and
(unless such Agent shall otherwise agree) a Terms Agreement which will provide
for the sale of such Securities to, and the purchase thereof by, such Agent. A
Terms Agreement will be substantially in
<PAGE>
-11-
the form of Exhibit A hereto but may take the form of an exchange of any
standard form of written telecommunication between an Agent and the Company and
may also specify certain provisions relating to the reoffering of such
Securities by such Agent. The commitment of any Agent to purchase Securities as
principal, whether pursuant to any Terms Agreement or otherwise, shall be deemed
to have been made on the basis of the representations and warranties of the
Company herein contained and shall be subject to the terms and conditions herein
and in the applicable Terms Agreement set forth. Each agreement by an Agent to
purchase Securities as principal (pursuant to a Terms Agreement or otherwise)
shall specify the principal amount of Securities to be purchased by such Agent
pursuant thereto, the price to be paid to the Company for such Securities, the
maturity date of such Securities, the interest rate or interest rate basis, if
any, applicable to such Securities, any other terms of such Securities, the time
and date and place of delivery of and payment for such Securities (the time and
date of any and each such delivery and payment, the "Time of Delivery") and any
provisions relating to rights of, and default by, underwriters acting together
with such Agent in the reoffering of Securities, and shall also specify any
requirements for opinions of counsel, accountants' letters and officers'
certificates pursuant to Section 4 hereof. Unless otherwise specified in a Terms
Agreement, the procedural details relating to the issue and delivery of
Securities purchased by an Agent as principal and the payment therefor shall be
as set forth in the Administrative Procedures.
(c) Obligations Several. The Company acknowledges that the
obligations of the Agents are several and not joint and, subject to the
provisions of this Section 2, each Agent shall have complete discretion as to
the manner in which it solicits purchasers for the Securities and as to the
identity thereof.
(d) Administrative Procedures. The Agents and the Company agree to
perform their respective duties and obligations specifically provided to be
performed in the Medium-Term Notes Administrative Procedures (the
"Administrative Procedures") attached hereto as Exhibit B, as the same may be
amended from time to time. The Administrative Procedures may be amended only by
written agreement of the Company and each of the Agents.
3. COMMENCEMENT DATE. The documents required to be delivered
pursuant to Section 6 hereof on the Commencement Date (as defined below) shall
be delivered to the Agents at the offices of Mayer, Brown & Platt, Chicago,
Illinois, at 9:00 a.m., Chicago time, on the date of this Agreement, which date
and time of such delivery may be postponed by agreement between the Agents and
the Company but in no event shall be later than the day prior to the date on
which solicitation of offers to purchase Securities is commenced or the first
date on which the Company accepts an offer by any Agent to purchase Securities
as principal (such time and date being referred to herein as the "Commencement
Date").
<PAGE>
-12-
4. COVENANTS OF THE COMPANY. The Company covenants and agrees with
each Agent:
(a) (i) To make no amendment or supplement (other than a Pricing
Supplement with respect to any Securities not to be sold to or through an
Agent) to the Registration Statement or the Prospectus prior to the
termination of the offering of the Securities pursuant to this Agreement or
any Terms Agreement which shall be reasonably disapproved by any Agent
after reasonable opportunity to comment thereon, unless in the opinion of
counsel for the Company such amendment or supplement is required by law;
provided, however, that the foregoing shall not apply to any of the
Company's periodic filings with the Commission described in subsection
(iii) below, copies of which filings the Company will cause to be delivered
to the Agents promptly after their transmission to the Commission for
filing; (ii) subject to the foregoing clause (i), promptly to cause each
Prospectus Supplement to be filed with or transmitted for filing to the
Commission in accordance with Rule 424(b) under the Securities Act and to
prepare, with respect to any Securities to be sold through or to such Agent
pursuant to this Agreement, a Pricing Supplement with respect to such
Securities in a form previously approved by such Agent and to file such
Pricing Supplement in accordance with Rule 424(b) under the Securities Act;
and (iii) promptly to file all reports and any definitive proxy or
information statements required to be filed by the Company with the
Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange
Act for so long as the delivery of a prospectus is required in connection
with the offering or sale of the Securities. The Company will promptly
advise each Agent (i) of the filing of any amendment or supplement to the
Basic Prospectus or any amendment to the Registration Statement and of the
effectiveness of any such amendment to the Registration Statement; (ii) of
the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or any order preventing or
suspending the use of any prospectus relating to the Securities or the
initiation or threatening of any proceeding for that purpose, or of any
request by the Commission for any amendment or supplement to the
Registration Statement or Prospectus or for additional information; and
(iii) of the receipt by the Company of any notification with respect to any
suspension of the qualification of the Securities for offering or sale in
any jurisdiction or the initiation or threatening of any proceeding for any
such purpose. The Company agrees to use its best efforts to prevent the
issuance of any such stop order or of any such order preventing or
suspending the use of any such prospectus or of any notification suspending
any such qualification and, if issued, to use promptly its best efforts to
obtain withdrawal thereof as soon as possible. If the Basic Prospectus is
amended or supplemented as a result of the filing under the Exchange Act of
any document incorporated by reference in the Prospectus, no Agent shall be
obligated
<PAGE>
-13-
to solicit offers to purchase Securities so long as it is not reasonably
satisfied with such document.
(b) To endeavor to qualify the Securities for offer and sale under
the securities or Blue Sky laws of such jurisdictions as the Agents shall
reasonably request and to continue such qualification in effect so long as
reasonably required in connection with the distribution of the Securities
provided that the Company shall not be required to qualify as a foreign
corporation or to file a general consent to service of process in any
jurisdiction.
(c) To furnish each Agent and counsel to the Agents, at the expense
of the Company, a signed copy of the Registration Statement (as originally
filed) and each amendment thereto, in each case including exhibits and
documents incorporated by reference therein, and, during the period
mentioned in paragraph (d) below, to furnish each Agent as many copies of
the Prospectus (including all amendments and supplements thereto) and
documents incorporated by reference therein as such Agent may reasonably
request.
(d) If at any time when a prospectus relating to the Securities is
required to be delivered under the Securities Act, any event shall occur as
a result of which the Prospectus, as then amended or supplemented, would
include an untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading, or
if, in the opinion of the Agents or the Company, it is necessary at any
time to amend or supplement the Prospectus to comply with law, to
immediately notify the Agents by telephone (with confirmation in writing)
and request each Agent (i) in its capacity as agent of the Company, to
suspend solicitation of offers to purchase Securities from the Company
(and, if so notified, such Agent shall cease such solicitations and cease
using the Prospectus as soon as practicable, but in any event not later
than one business day later); and (ii) to cease sales of any Securities
such Agent may then own as principal. If, as a result of the occurrence of
any event described in the first sentence of this Section 4(d), the Company
shall decide to amend or supplement the Registration Statement or the
Prospectus, as then amended or supplemented, it shall so advise each Agent
promptly by telephone (with confirmation in writing) and, at its expense,
shall prepare and cause to be filed promptly with the Commission an
amendment or supplement to the Registration Statement or the Prospectus, as
then amended or supplemented, that will correct such statement or omission
or effect such compliance and will supply such amended or supplemented
Prospectus to the Agents in such quantities as they may reasonably request.
If any such amendment or supplement and any documents, opinions, letters
and certificates furnished to the Agents pursuant to Sections 4(e), 4(i),
4(j) and 4(k)
<PAGE>
-14-
in connection with the preparation and filing of such amendment or
supplement are reasonably satisfactory in all respects to the Agents, upon
the filing with the Commission of such amendment or supplement to the
Prospectus or upon the effectiveness of an amendment to the Registration
Statement, the Agents will resume the solicitation of offers to purchase
Securities hereunder. Notwithstanding any other provision of this Section
4(d), until the distribution of any Securities any Agent may own as
principal has been completed or in the event such Agent, in the opinion of
its counsel, is otherwise required to deliver a prospectus in respect of a
transaction in the Securities, if any event described in the first sentence
of this Section 4(d) occurs, the Company will (i), at its own expense,
promptly prepare and file with the Commission an amendment or supplement to
the Registration Statement or Prospectus, reasonably satisfactory in all
respects to such Agent, that will correct such statement or omission or
effect such compliance, (ii) supply such amended or supplemented Prospectus
to such Agent in such quantities as such Agent may reasonably request and
(iii) furnish to such Agent pursuant to Sections 4(e), 4(i), 4(j) and 4(k)
such documents, certificates, opinions and letters as it may request in
connection with the preparation and filing of such amendment or supplement.
(e) To furnish to the Agents during the term of this Agreement such
relevant documents and certificates of officers of the Company relating to
the business, operations and affairs of the Company, the Registration
Statement, the Basic Prospectus, any amendments or supplements thereto, the
Indenture, the Securities, this Agreement, the Administrative Procedures,
any applicable Terms Agreement and the performance by the Company of its
obligations hereunder or thereunder as the Agents may from time to time
reasonably request and shall notify the Agents promptly in writing of any
downgrading, or on its receipt of any notice of (i) any intended or
potential downgrading or (ii) any review or possible change that indicates
a downgrading or possible downgrading in the rating accorded any securities
of, or guaranteed by, the Company by any Rating Organization.
(f) To make generally available to its security holders and to such
Agent as soon as practicable earnings statements which shall satisfy the
provisions of Section 11(a) of the Securities Act and Rule 158 of the
Commission promulgated thereunder covering periods of at least twelve
months beginning in each case with the first fiscal quarter of the Company
occurring after the "effective date" (as defined in Rule 158) of the
Registration Statement with respect to each sale of Securities.
(g) To furnish to the Agent, during the term of this Agreement,
copies of all reports or other communications (financial or other)
furnished to holders of Securities and copies of any reports and financial
statements furnished to or filed with the
<PAGE>
-15-
Commission or any national securities exchange on which any class of
securities of the Company is listed.
(h) From the date of any applicable Terms Agreement with such Agent
or other agreement by such Agent to purchase Securities as principal and
continuing to and including the business day following the related Time of
Delivery, not to offer, sell, contract to sell or otherwise dispose of in
the United States any debt securities of or guaranteed by the Company which
are substantially similar to the Securities, without the prior written
consent of such Agent except (i) pursuant to this Agreement and any Terms
Agreement, (ii) pursuant to a private placement not constituting a public
offering under the Securities Act, (iii) in connection with a firm
commitment underwriting pursuant to an underwriting agreement that does not
provide for a continuous offering of medium-term debt securities, or (iv)
in connection with the continuous public offering of asset-backed medium-
term debt securities rated "AA" (or an equivalent rating) or higher by a
Rating Organization.
(i) That each time the Registration Statement or the Prospectus shall
be amended or supplemented (other than by a Pricing Supplement or an
amendment or supplement providing solely for a change in the interest
rates, redemption provisions, amortization schedules or maturities offered
on the Securities or for a change the Agents deem to be immaterial) and
each time the Company sells Securities to such Agent as principal pursuant
to a Terms Agreement or other agreement and such Terms Agreement or other
agreement specifies the delivery of an opinion under this Section 4(i) as a
condition to the purchase of Securities pursuant to such Terms Agreement or
other agreement, the Company shall furnish or cause to be furnished
forthwith to such Agent a written opinion of Mayer, Brown & Platt, or other
counsel for the Company reasonably satisfactory to such Agent, dated the
date of such amendment or supplement, or the related Time of Delivery
relating to such sale, as the case may be, in form reasonably satisfactory
to such Agent, of the same tenor as the opinion referred to in Section 6(b)
hereof but modified to relate to the Registration Statement and the
Prospectus as amended and supplemented to the date of such opinion, or, in
lieu of such opinion, counsel last furnishing such an opinion may furnish
to such Agent a letter to the effect that such Agent may rely on the
opinion of such counsel which was last furnished to such Agent to the same
extent as though it were dated the date of such letter (except that the
statements in such last opinion shall be deemed to relate to the
Registration Statement and the Prospectus as amended or supplemented to the
date of delivery of such letter).
(j) That each time the Registration Statement or the Prospectus shall
be amended or supplemented to include or incorporate amended or
supplemented financial information and each time the Company sells
Securities to such Agent as princi-
<PAGE>
-16-
pal pursuant to a Terms Agreement or other agreement and such Terms
Agreement or other agreement specifies the delivery of a letter under this
Section 4(j) as a condition to the purchase of Securities pursuant to such
Terms Agreement or other agreement, the Company shall cause the independent
certified public accountants who have certified the financial statements of
the Company and its subsidiaries included or incorporated by reference in
the Registration Statement forthwith to furnish such Agent a letter, dated
the date of such amendment or supplement or the related Time of Delivery
relating to such sale, as the case may be, in form reasonably satisfactory
to such Agent, of the same tenor as the letter referred to in Section 6(e)
hereof but modified to relate to the Registration Statement and the
Prospectus as amended or supplemented to the date of such letter with such
changes as may be necessary to reflect such amended or supplemented
financial information included or incorporated by reference in the
Registration Statement or the Prospectus as amended or supplemented,
provided, however, that, with respect to any financial information or other
matter, such letter may reconfirm as true and correct at such date, as
though made at and as of such date, rather than repeat, statements with
respect to such financial information or other matter made in the letter
referred to in Section 6(e) hereof which was last furnished to such Agent.
(k) That each time the Registration Statement or the Prospectus shall
be amended or supplemented (other than by a Pricing Supplement or an
amendment or supplement providing solely for a change in the interest
rates, redemption provisions, amortization schedules or maturities offered
on the Securities or for a change the Agents deem to be immaterial), and
each time the Company sells Securities to such Agent as principal and the
applicable Terms Agreement or other agreement specifies the delivery of a
certificate under this Section 4(k) as a condition to the purchase of
Securities pursuant to such Terms Agreement or other agreement, the Company
shall furnish or cause to be furnished forthwith to such Agent a
certificate signed by an executive officer of the Company, dated the date
of such amendment or supplement or the related Time of Delivery relating to
such sale, as the case may be, in form reasonably satisfactory to such
Agent, of the same tenor as the certificates referred to in Section 6(e)
but modified to relate to the Registration Statement and the Prospectus as
amended and supplemented to the date of delivery of such certificate or to
the effect that the statements contained in the certificate referred to in
Section 6(e) hereof which was last furnished to such Agent are true and
correct at such date as though made at and as of such date (except that
such statements shall be deemed to relate to the Registration Statement and
the Prospectus as amended or supplemented to such date).
<PAGE>
-17-
5. COSTS AND EXPENSES. The Company covenants and agrees with each
Agent that the Company will, whether or not any sale of Securities is
consummated, pay all costs and expenses incident to the performance of its
obligations hereunder and under any applicable Terms Agreement, including
without limiting the generality of the foregoing, all costs and expenses: (i)
incident to the preparation, issuance, execution, authentication and delivery of
the Securities, including any expenses of the Trustee, (ii) incident to the
preparation, printing and filing under the Securities Act of the Registration
Statement, the Prospectus and any preliminary prospectus (including in each case
all exhibits, amendments and supplements thereto), (iii) incurred in connection
with the registration or qualification and determination of eligibility for
investment of the Securities under the laws of such jurisdictions as the Agents
(or in connection with any Terms Agreement, the applicable Agent) may reasonably
request pursuant to Section 4(b) (including reasonable related fees of counsel
for the Agents (or such Agent) and their reasonable related disbursements), (iv)
in connection with the listing of the Securities on any stock exchange,
(v)related to any filing with National Association of Securities Dealers, Inc.
("NASD"), (vi) in connection with the printing (including word processing and
duplication costs) and delivery of this Agreement, the Indenture, any Blue Sky
Memoranda and any Legal Investment Survey and the furnishing to the Agents and
dealers of copies of the Registration Statement and the Prospectus, including
mailing and shipping, as herein provided, (vii) payable to rating agencies in
connection with the rating of the Securities, (viii) incurred in connection with
the engagement of any qualified independent underwriter as may be required by
rules and regulations of NASD,(ix) the reasonable fees and disbursements of
counsel for the Agents incurred in connection with the offering and sale of the
Securities, including any opinions to be rendered by such counsel hereunder and
(x) any advertising and out-of-pocket expenses reasonably incurred by the Agents
in connection with the performance of their obligations hereunder.
6. CONDITIONS. The obligation of any Agent, as agent of the Company,
at any time ("Solicitation Time") to solicit offers to purchase the Securities,
the obligation of any Agent to purchase Securities as principal pursuant to any
Terms Agreement or otherwise, and the obligation of any other purchaser to
purchase Securities shall in each case be subject (1) to the condition that all
representations and warranties of the Company herein and all statements of
officers of the Company made in any certificate furnished pursuant to the
provisions hereof are true and correct (i) in the case of an Agent's obligation
to solicit offers to purchase Securities, at and as of such Solicitation Time
and (ii) in the case of any Agent's or any other purchaser's obligation to
purchase Securities, at and as of the time the Company accepts the offer to
purchase such Securities and, as the case may be, at and as of the related Time
of Delivery or time of purchase; (2) to the condition that at or prior to such
Solicitation Time, time of acceptance, Time of Delivery or time of purchase, as
the case may be, the Company shall have complied with all its agreements and all
conditions on
<PAGE>
-18-
its part to be performed or satisfied hereunder prior to such relevant time; and
(3) to the following additional conditions when and as specified:
(a) Prior to such Solicitation Time or corresponding Time of Delivery
or time of purchase, as the case may be:
(i) if any amendment to the Registration Statement filed prior to
the Commencement Date has not been declared effective as of the
Commencement Date, such amendment shall have been declared effective
not later than 5:30 p.m. (New York City time) on the Commencement
Date; if applicable, the Prospectus as amended or supplemented
(including, if applicable, the Pricing Supplement) with respect to
such Securities shall have been filed with the Commission pursuant to
Rule 424(b) under the Securities Act within the applicable time period
prescribed for such filing by the rules and regulations under the
Securities Act; no stop order suspending the effectiveness of the
Registration Statement shall be in effect and no proceeding for that
purpose shall have been initiated or threatened by the Commission
which has not been resolved in the reasonable satisfaction of such
Agent; and all requests for additional information on the part of the
Commission shall have been complied with to the reasonable
satisfaction of such Agent;
(ii) subsequent to the date of this Agreement, there shall not
have occurred any downgrading, nor shall any notice have been given of
(A) any intended or potential downgrading or (B) any review or
possible change that indicates a downgrading or possible downgrading
in the rating accorded any securities of or guaranteed by the Company
by any Rating Organization;
(iii) subsequent to the date of this Agreement, there shall not
have been any material adverse change in the financial condition or
results of operations of the Company and its subsidiaries, taken as a
whole, otherwise than as set forth or contemplated in the Prospectus,
as amended or supplemented to such Solicitation Time or at the time
such offer to purchase was made, the effect of which in the judgment
of the applicable Agent makes it impracticable or inadvisable to
market the Securities on the terms and in the manner contemplated in
the Prospectus, as so amended or supplemented; and
(iv) subsequent to the date of this Agreement, there shall not
have occurred (a) any suspension or limitation of trading in
securities generally on the New York Stock Exchange, or any setting of
minimum prices for trading on such exchange, or any suspension of
trading of any securities of the Company on any exchange or in the
over-the-counter market; (b) any
<PAGE>
-19-
banking moratorium declared by U.S. Federal or New York authorities;
or (c) any outbreak or escalation of major hostilities in which the
United States is involved, any declaration of war by Congress or any
other substantial national or international calamity or emergency if,
in the judgment of a majority in interest of the involved Agents, the
effect of any such outbreak, escalation, declaration, calamity or
emergency makes it impractical or inadvisable to proceed with
completion of the sale of and payment for the Securities.
(b) On the Commencement Date and in the case of a purchase of
Securities by an Agent as principal pursuant to a Terms Agreement or
otherwise, if called for by the applicable Terms Agreement or other
agreement, at the corresponding Time of Delivery, Mayer, Brown & Platt,
special counsel for the Company, or other counsel for the Company
reasonably satisfactory to such Agent or Agents, shall have furnished to
the relevant Agent or Agents their written opinion, dated the Commencement
Date or Time of Delivery, as the case may be, in form and substance
satisfactory to such Agent or Agents, to the effect that:
(i) The Company is an existing corporation in good standing under
the laws of the State of Delaware, with corporate power and authority
to own its properties and conduct its business as described in the
Prospectus; and the Company is duly qualified to do business as a
foreign corporation in good standing in all other jurisdictions within
the United States of America in which its ownership or leasing of
property or the conduct of its business requires such qualification
and where the failure to be so qualified or in good standing would
have a material adverse effect upon its operations or financial
condition;
(ii) The Indenture has been duly authorized, executed and
delivered by the Company, has been duly qualified under the Trust
Indenture Act and constitutes a valid and legally binding obligation
of the Company enforceable against the Company in accordance with its
terms, subject, as to enforcement, to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors' rights, to
public policy considerations and to general equity principles; the
Indenture complies as to form in all material respects with the
requirements of the Trust Indenture Act; the Securities have been duly
authorized by the Company and, when the terms thereof have been
established and when the Securities have been executed, authenticated,
issued and delivered in the manner provided in the Indenture and sold
through an Agent as agent or to any Agent as principal pursuant to a
Terms Agreement, will constitute, valid and legally binding
obligations of the Company enforceable against the Company in
accordance with their terms, subject, as to enforcement, to bank-
<PAGE>
-20-
ruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting
creditors' rights, to public policy considerations and to general
equity principles;
(iii) To the best of the knowledge of such counsel without
independent inquiry, no consent, approval, authorization or order of,
or filing with, any governmental agency or body or any court is
required for the consummation of the transactions contemplated by this
Agreement and any applicable Terms Agreement in connection with the
issuance or sale of the Securities by the Company, except such as are
required and have been obtained and made under the Securities Act and
the Trust Indenture Act and such as may be required under state
securities laws (it being understood that such opinion may be limited
to such consents, approvals, authorizations, orders and filings which,
in such counsel's experience, are customarily applicable to
transactions of the type contemplated by this Agreement, any
applicable Terms Agreement and the Indenture);
(iv) The execution, delivery and performance of the Indenture,
this Agreement and any applicable Terms Agreement and the issuance and
sale of the Securities and compliance with the terms and provisions of
the Indenture, this Agreement and the terms of the Securities
described in the Prospectus will not result in a breach or violation
of any of the terms and provisions of, or constitute a default under,
any material statute, rule, regulation or order of any governmental
agency or body or any court having jurisdiction over the Company, any
Subsidiary incorporated in the United States of America or any of
their respective properties known to such counsel, or the charter or
by-laws of the Company, or any such Subsidiary; and the Company has
full power and authority to authorize, issue and sell the Securities
as contemplated by this Agreement and any applicable Terms Agreement;
(v) The Registration Statement has become effective under the
Securities Act and, to the best of the knowledge of such counsel, no
stop order suspending the effectiveness of the Registration Statement
or any part thereof has been issued and no proceedings for that
purpose have been instituted or are pending or contemplated under the
Act, and the registration statement relating to the Securities, as of
its effective date and the Prospectus, as of the date of the
applicable Terms Agreement, and any amendment or supplement thereto,
as of its date, complied as to form in all material respects with the
requirements of the Act, the Trust Indenture Act and the Rules and
Regulations; such counsel have no reason to believe that such
registration statement, as of its effective date, or any amendment
thereto, as of its date, contained
<PAGE>
-21-
any untrue statement of a material fact or omitted to state any
material fact required to be stated therein or necessary to make the
statements therein not misleading or that the Prospectus, as of the
date of the applicable Terms Agreement or as of such Commencement
Date, or any amendment or supplement thereto, as of its date,
contained any untrue statement of a material fact or omitted to state
any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not
misleading; it being understood that such counsel need express no
opinion as to the financial statements or other financial and
statistical data contained in the Registration Statement or the
Prospectus;
(vi) This Agreement has been duly authorized, executed and
delivered by the Company; and
(vii) Each document filed pursuant to the Exchange Act (other
than the financial statements, schedules and other financial and
statistical data included therein, as to which such counsel need
express no opinion) and incorporated or deemed to be incorporated by
reference in the Prospectus complied as to form in all material
respects with the applicable requirements of the Exchange Act when so
filed.
Such counsel in rendering such opinion may rely as to certain matters
of fact on certificates of officers of the Company and of public officials;
provided, however, that such certificates shall have been delivered to the
Representatives on or prior to the Commencement Date or Time of Delivery,
as the case may be.
(c) On the Commencement Date and in the case of a purchase of
Securities by an Agent as principal pursuant to a Terms Agreement or
otherwise, if called for by the applicable Terms Agreement or other
agreement, at the corresponding Time of Delivery, Richard S. Brennan,
General Counsel and Secretary of Case Corporation, shall have furnished to
the relevant Agent or Agents his written opinion, dated the Commencement
Date or Time of Delivery, as the case may be, in form and substance
satisfactory to such Agent or Agents, to the effect that:
(i) To the best of his knowledge, no consent, approval or
authorization of any third party is required for the consummation of
the transactions contemplated by this Agreement and any applicable
Terms Agreement in connection with the issuance or sale of the
Securities by the Company, except such as have been obtained and made
and are in full force and effect and such as may be required under
state securities laws;
<PAGE>
-22-
(ii) The execution, delivery and performance of the Indenture and
the applicable Terms Agreement (including the provisions of this
Agreement) and the issuance and sale of the Securities and compliance
with the terms and provisions thereof will not result in a breach or
violation of any of the terms and provisions of, or constitute a
default under (including, without limitation, any event or condition
which, with notice or lapse of time, or both, would constitute a
default under), any material agreement or instrument known to such
counsel to which the Company or any Subsidiary is a party or by which
the Company or any Subsidiary is bound or to which any of the
properties of the Company or any Subsidiary is subject;
(iii) Except as set forth in the Prospectus, there are no
material pending legal proceedings known to such counsel to which the
Company or any Subsidiary is a party or of which the property of the
Company or any Subsidiary is the subject, and to the best knowledge of
such counsel no such proceeding is contemplated; and
(iv) Such counsel has no reason to believe that the registration
statement relating to the Securities, as of its effective date, or any
amendment thereto, as of its date, contained any untrue statement of a
material fact or omitted to state any material fact required to be
stated therein or necessary to make the statements therein not
misleading or that the Prospectus, as of the date of the Terms
Agreement or as of the Commencement Date, or any amendment or
supplement thereto, as of its date or as of the Commencement Date,
contained or contains any untrue statement of a material fact or
omitted or omits to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which
they were made, not misleading; it being understood that such counsel
need express no opinion as to the financial statements or other
financial or statistical data contained in the Registration Statement
or the Prospectus.
Such counsel in rendering such opinion may rely as to certain matters
of fact on certificates of officers of the Company and of public officials;
provided, however, that such certificates shall have been delivered to the
Agents on or prior to the Commencement Date or Time of Delivery, as the
case may be.
(d) On the Commencement Date and in the case of a purchase of
Securities by an Agent as principal pursuant to a Terms Agreement or
otherwise, if called for by the applicable Terms Agreement or other
agreement, at the corresponding Time of Delivery, Cahill Gordon & Reindel,
counsel to the Agents, or other counsel for the Agents reasonably
satisfactory to the Agents and the Company, shall have furnished to the
relevant Agent or Agents such opinion or opinions, dated the Com-
<PAGE>
-23-
mencement Date or Time of Delivery, as the case may be, with respect to the
validity of the Indenture, the Securities, the Registration Statement, the
Prospectus as amended or supplemented and other related matters as such
Agent or Agents may reasonably request, and in each case such counsel shall
have received such papers and information as they may reasonably request to
enable them to pass upon such matters.
(e) On the Commencement Date and in the case of a purchase of
Securities by an Agent as principal pursuant to a Terms Agreement or
otherwise, if called for by the applicable Terms Agreement or other
agreement, at the corresponding Time of Delivery, the Company's independent
certified public accountants who have certified the financial statements of
the Company and its subsidiaries included or incorporated by reference in
the Registration Statement and Prospectus, as then amended or supplemented,
shall have furnished to the relevant Agent or Agents a letter, dated the
Commencement Date or Time of Delivery, as the case may be, in form and
substance satisfactory to such Agent or Agents, containing statements and
information of the type ordinarily included in accountants' "comfort
letters" to underwriters with respect to the financial statements and
certain financial information relating to the Company contained in or
incorporated by reference in the Registration Statement and the Prospectus,
as then amended or supplemented.
(f) On the Commencement Date and in the case of a purchase of
Securities by an Agent as principal pursuant to a Terms Agreement or
otherwise, if called for by the applicable Terms Agreement or other
agreement, at the corresponding Time of Delivery, the relevant Agent or
Agents shall have received a certificate or certificates signed by an
executive officer of the Company, dated the Commencement Date or Time of
Delivery, as the case may be, in which such officer, to the best of his
knowledge after reasonable investigation, shall state that (1) the
representations and warranties of the Company contained herein are true and
correct in all material respects on and as of the Commencement Date or Time
of Delivery, as the case may be, as if made on and as of such date, (2) the
Company has complied in all material respects with all agreements and
satisfied in all material respects all conditions on its part to be
performed or satisfied hereunder or under the applicable Terms Agreement or
other agreement at or prior to the Commencement Date or Time of Delivery,
as the case may be, (3) no stop order suspending the effectiveness of the
Registration Statement or of any part thereof has been issued and is in
effect as of the Commencement Date or Time of Delivery, as the case may be,
and, to such officer's knowledge, no proceedings for that purpose have been
instituted or are contemplated by the Commission and (4) subsequent to the
date of the most recent financial statements in the Prospectus, there has
not occurred any material ad-
<PAGE>
-24-
verse change in the financial condition or results of operations of the
Company and its subsidiaries taken as a whole except as set forth in or
contemplated by the Registration Statement or the Prospectus or as
described in such certificate and reasonably acceptable to such Agent or
Agents.
(g) On the Commencement Date and at each Time of Delivery, the Company
shall have furnished to the relevant Agent or Agents such further relevant
certificates, information and documents as such Agent or Agents may
reasonably request.
7. INDEMNIFICATION AND CONTRIBUTION.
(a) The Company agrees to indemnify and hold harmless each Agent and
each person, if any, who controls such Agent within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any and all losses, claims, damages and liabilities (including without
limitation the legal fees and other expenses incurred in connection with any
suit, action or proceeding or any claim asserted) caused by any untrue statement
or alleged untrue statement of a material fact contained in the Registration
Statement or any amendment thereof or the Prospectus (as amended or supplemented
if the Company shall have furnished any amendments or supplements thereto) or
any preliminary prospectus or caused by any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, except insofar as such losses, claims,
damages or liabilities are caused by any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with
information furnished to the Company in writing by such Agent expressly for use
therein; provided, however, that the foregoing indemnity with respect to any
untrue statement in or omission from any preliminary prospectus or preliminary
prospectus supplement shall not inure to the benefit of any Agent (or to the
benefit of any person controlling such Agent) from whom the person asserting any
such losses, claims, damages or liabilities purchased the Securities if (i) the
Company has complied with Section 4(a), (c) and (d) of this Agreement, and (ii)
a copy of the Prospectus had not been sent or given to such person at or prior
to the written confirmation of the sale of such Securities to such person if
required by the Securities Act and the Prospectus would have cured the defect
giving rise to such loss, claim, damage or liability. For purposes of the
proviso to the immediately preceding sentence, the term "Prospectus" shall not
be deemed to include the documents incorporated therein by reference, and no
Agent shall be obligated to send or give any supplement or amendment to any
document incorporated by reference in any preliminary prospectus or the
Prospectus to any person.
(b) Each Agent agrees, severally and not jointly, to indemnify and
hold harmless the Company, its directors, its officers who sign the Registration
Statement and
<PAGE>
-25-
each person who controls the Company within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act, to the same extent as the
foregoing indemnity from the Company to each Agent, but only with reference to
information furnished to the Company in writing by such Agent expressly for use
in the Registration Statement, the Prospectus, any amendment or supplement
thereto, or any preliminary prospectus.
(c) If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any person in respect of which indemnity may be sought pursuant to either of the
two preceding paragraphs, such person (the "Indemnified Person") shall promptly
notify the person against whom such indemnity may be sought (the "Indemnifying
Person") in writing, and the Indemnifying Person, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others the
Indemnifying Person may designate in such proceeding and shall pay the fees and
expenses of such counsel related to such proceeding. In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Person
unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed to the contrary, (ii) the Indemnifying Person has failed within
a reasonable time to retain counsel reasonably satisfactory to the Indemnified
Person or (iii) the named parties in any such proceeding (including any
impleaded parties) include both the Indemnifying Person and the Indemnified
Person and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is
understood that the Indemnifying Person shall not, in connection with any
proceeding or related proceeding in the same jurisdiction, be liable for the
fees and expenses of more than one separate firm (in addition to any local
counsel) for all Indemnified Persons, and that all such fees and expenses shall
be reimbursed as they are incurred. Any such separate firm for the Agents and
such control persons of the Agents shall be designated in writing by J.P. Morgan
Securities Inc. or, if J.P. Morgan Securities Inc. is not an Indemnified Person
by the Agents that are Indemnified Parties and any such separate firm for the
Company, its directors, its officers who sign the Registration Statement and
such control persons of the Company shall be designated in writing by the
Company. The Indemnifying Person shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, the Indemnifying
Person agrees to indemnify any Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. If at any time an
Indemnified Person shall have requested an Indemnifying Person to reimburse the
Indemnified Person for fees and expenses of counsel as contemplated by the third
sentence of this paragraph, such Indemnifying Person agrees that it shall be
liable for any settlement of any proceeding of the nature contemplated by
Sections 7(a) or 7(b) effected without its written consent if (i) such
settlement is entered into more than 45
<PAGE>
-26-
days after receipt by such Indemnifying Person of the aforesaid request, (ii)
such Indemnifying Person shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into and
(iii) such Indemnifying Person shall not have reimbursed such Indemnified Person
in accordance with such request prior to the date of such settlement.
Notwithstanding the immediately preceding sentence, if at any time an
Indemnified Person shall have requested an Indemnifying Person to reimburse the
Indemnified Person for fees and expenses of counsel, an Indemnifying Person
shall not be liable for any settlement of any proceeding of the nature
contemplated by Sections 7(a) or 7(b) effected without its consent if such
Indemnifying Person (i) reimburses such Indemnified Person in accordance with
such request to the extent it reasonably considers such request to be reasonable
and (ii) provides written notice to the Indemnified Person substantiating the
unpaid balance as unreasonable, in each case prior to the date of such
settlement. No Indemnifying Person shall, without the prior written consent of
the Indemnified Person, effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Person is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Person,
unless such settlement includes an unconditional release of such Indemnified
Person from all liability on claims that are the subject matter of such
proceeding.
(d) If the indemnification provided for in paragraph (a) or (b) of
this Section 7 is unavailable to an Indemnified Person or insufficient in
respect of any losses, claims, damages or liabilities referred to herein in
connection with any offering of Securities, then each Indemnifying Person under
such paragraph, in lieu of indemnifying such Indemnified Person thereunder,
shall contribute to the amount paid or payable by such Indemnified Person as a
result of such losses, claims, damages or liabilities (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company on the
one hand and each Agent on the other from the offering of the Securities or (ii)
if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the
Company on the one hand and each Agent on the other in connection with the
statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and each Agent on the
other in connection with the offering of such Securities shall be deemed to be
in the same respective proportion as the net proceeds from the offering of such
Securities (before deducting expenses) received by the Company and the total
discounts and commissions received by each Agent in respect thereof bear to the
aggregate offering price of such Securities. The relative fault of the Company
on the one hand and of each Agent on the other shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company on
<PAGE>
-27-
the one hand or by such Agent on the other and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.
The Company and each Agent agree that it would not be just and
equitable if contribution pursuant to this subsection (d) were determined by pro
rata allocation (even if all Agents were treated as one entity for such purpose)
or by any other method of allocation that does not take account of the equitable
considerations referred to above in this subsection (d). The amount paid or
payable by an Indemnified Person as a result of the losses, claims, damages and
liabilities referred to above in this Section 7 shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such Indemnified Person in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this
Section 7, in no event shall an Agent be required to contribute any amount in
excess of the amount by which the total price at which the Securities referred
to in Section 7(d) that were sold by or through such Agent exceeds the amount of
any damages that such Agent has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The obligation of each Agent
to contribute pursuant to this subsection (d) is several (in the proportion to
the principal amount of the Securities the sale of which by or through such
Agent gave rise to such losses, claims, damages or liabilities bears to the
aggregate principal amount of the Securities the sale of which by or through any
Agent gave rise to such losses, claims, damages or liabilities) and is not
joint.
(e) The indemnity and contribution agreements contained in this
Section 7 are in addition to any liability which the Indemnifying Persons may
otherwise have to the Indemnified Persons referred to above.
8. TERMINATION.
(a) This Agreement may be terminated at any time (i) by the Company
with respect to any or all of the Agents or (ii) by any Agent with respect to
itself only, in each case upon the giving of written notice of such termination
to each other party hereto. Any Terms Agreement shall be subject to termination
in the absolute discretion of the Agent or Agents that are parties thereto on
the terms set forth or incorporated by reference therein. The termination of
this Agreement shall not require termination of any agreement by an Agent to
purchase Securities as principal (whether pursuant to a Terms Agreement or
otherwise) and the termination of such an agreement shall not require
termination of this Agreement. In the event this Agreement is terminated with
respect to any Agent, (x) this Agreement shall remain in full force and effect
with respect to any Agent as to which such termination has not occurred, (y)
this Agreement shall remain in full force and effect with
<PAGE>
-28-
respect to the rights and obligations of any party which have previously accrued
or which relate to Securities which are already issued, agreed to be issued or
the subject of a pending offer at the time of such termination and (z) in any
event, the provisions of the fourth paragraph of Section 2(a), Section 2(c), the
last sentence of Section 4(d) and Sections 4(f), 4(g), 5, 7, 9, 10, 12 and 15
shall survive; provided that if at the time of termination an offer to purchase
Securities has been accepted by the Company but the time of delivery to the
purchaser or its agent of such Securities has not yet occurred, the provisions
of Sections 2(b), 2(d), 4(a) through 4(e), 4(h) through 4(k) and 6 shall also
survive. If any Terms Agreement is terminated, the provisions of the last
sentence of Section 4(d) and Sections 2(b), 2(d), 4(a), 4(b), 4(e), 4(g) through
4(k), 5, 6, 7, 9, 10, 12 and 15 (which shall have been incorporated by reference
in such Terms Agreement) shall survive.
(b) If this Agreement or any Terms Agreement shall be terminated by an
Agent or Agents because of any failure or refusal on the part of the Company to
comply with the terms or to fulfill any of the conditions of this Agreement or
any Terms Agreement or if for any reason the Company shall be unable to perform
its obligations under this Agreement or any Terms Agreement or any condition of
any Agent's obligations cannot be fulfilled, the Company agrees to reimburse
each Agent or such Agents as have so terminated this Agreement with respect to
themselves, severally, for all out-of-pocket expenses (including the reasonable
fees and expenses of their counsel) reasonably incurred by such Agent or Agents
in connection with this Agreement or the offering of Securities.
9. POSITION OF THE AGENTS. Each Agent, in soliciting offers to
purchase Securities from the Company and in performing the other obligations of
such Agent hereunder (other than in respect of any purchase by an Agent as
principal, pursuant to a Terms Agreement or otherwise), is acting solely as
agent for the Company and not as principal and does not assume any obligation
towards or relationship of agency or trust with any purchaser of Securities.
Each Agent will make reasonable efforts to assist the Company in obtaining
performance by each purchaser whose offer to purchase Securities from the
Company was solicited by such Agent and has been accepted by the Company, but
such Agent shall not have any liability to the Company in the event such
purchase is not consummated for any reason. If the Company shall default on its
obligation to deliver Securities to a purchaser whose offer it has accepted, the
Company shall (i) hold the relevant Agent harmless against any loss, claim,
damage or liability arising from or as a result of such default by the Company
and (ii) notwithstanding such default, pay to the Agent that solicited such
offer any commission to which it would be entitled in connection with such sale.
10. REPRESENTATIONS AND INDEMNITIES TO SURVIVE. The respective
indemnities and contribution agreements, representations, warranties and other
statements of the Company, its officers and the Agents set forth in or made
pursuant to this Agreement or any agreement by an Agent to purchase Securities
as principal shall remain in full force and
<PAGE>
-29-
effect regardless of any termination of this Agreement or any such agreement,
any investigation made by or on behalf of any Agent or any controlling person of
any Agent, or the Company, or any officer or director or any controlling person
of the Company, and shall survive each delivery of and payment for any of the
Securities.
11. NOTICES. Except as otherwise specifically provided herein or in
the Administrative Procedures, all statements, requests, notices and advices
hereunder shall be in writing, and effective only on receipt and will be
delivered by hand, by mail (postage prepaid), by telegram (charges prepaid) or
by telex. Communications to the Agents will be sent: in the case of J.P. Morgan
Securities Inc., to 60 Wall Street, New York, New York 10260 (Telecopy: (212)
648-5151), Attention: Transaction Execution Group; in the case of Chase
Securities Inc., to 270 Park Avenue, New York, New York 10017 (Telecopy: (212)
834-6081), Attention: Medium-Term Note Desk; in the case of Citicorp Securities,
Inc., to 399 Park Avenue, 7th Floor, New York, New York 10043 (Telecopy: (212)
291-3910), Attention: Medium-Term Note Desk; in the case of NationsBanc
Montgomery Securities LLC to 100 North Tryon Street, Charlotte, North Carolina
28255 (Telecopy: (704) 388-9939), Attention: Medium-Term Note Desk; in the case
of BancAmerica Robertson Stephens, to 231 South LaSalle Street, Chicago,
Illinois 60697 (Telecopy: (312) 974-8936), Attention: Medium-Term Note Desk.
Communications to the Company will be sent, to it at 233 Lake Avenue, Racine,
Wisconsin 53403 (Telecopy: (414) 636-6466), Attention: Treasurer, with a copy to
Case Corporation, 700 State Street, Racine, Wisconsin 53404 (Telecopy:
(414) 636-6590), Attention: Treasurer.
12. SUCCESSORS. This Agreement and any Terms Agreement shall be
binding upon, and inure solely to the benefit of, each Agent and the Company,
their respective successors, the officers, directors and controlling
persons referred to in Section 7 and (to the extent expressly provided in
Section 6) the purchasers of Securities, and no other person shall acquire or
have any right or obligation under or by virtue of this Agreement or any Terms
Agreement.
13. AMENDMENTS. This Agreement may be amended or supplemented if,
but only if, such amendment or supplement is in writing and is signed by the
Company and each Agent; provided that the Company may from time to time, on 7
days prior written notice to the Agents but without the consent of any Agent,
amend this Agreement to add as a party hereto one or more additional firms
registered under the Exchange Act, whereupon each such firm shall become an
Agent hereunder on the same terms and conditions as the other Agents that are
parties hereto. The Agents shall sign any amendment or supplement giving effect
to the addition of any such firm as an Agent under this Agreement.
14. BUSINESS DAY. Time shall be of the essence in this Agreement and
any Terms Agreement. As used herein, the term "business day" shall mean any day
which is not a Saturday or Sunday or legal holiday or a day on which banks in
New York City are required or authorized by law or executive order to close.
<PAGE>
-30-
15. APPLICABLE LAW. This Agreement and any Terms Agreement shall be
governed by, and construed in accordance with, the laws of the State of New
York, without giving effect to the conflict of laws provisions thereof.
16. COUNTERPARTS. This Agreement and any Terms Agreement may be
signed in counterparts, each of which shall be an original, and all of which
together shall constitute one and the same instrument.
17. HEADINGS. The headings of the sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed a part
of this Agreement.
<PAGE>
-31-
If the foregoing is in accordance with your understanding, please sign
and return to us counterparts hereof, whereupon this letter and the acceptance
by each of you thereof shall constitute a binding agreement between the Company
and each of you in accordance with its terms.
Very truly yours,
CASE CREDIT CORPORATION
By:
-------------------------------
Name:
Title:
Accepted in New York, New York,
as of the date first above written:
J.P. Morgan Securities Inc.
By:
----------------------------
Name:
Title:
Chase Securities Inc.
By:
----------------------------
Name:
Title:
Citicorp Securities, Inc.
By:
----------------------------
Name:
Title:
NationsBanc Montgomery Securities LLC
By:
----------------------------
Name:
Title:
BancAmerica Robertson Stephens
By:
----------------------------
Name:
Title:
<PAGE>
Exhibit A
CASE CREDIT CORPORATION
MEDIUM TERM NOTES, SERIES B
TERMS AGREEMENT
___________, 199__
CASE CREDIT CORPORATION
233 Lake Avenue
Racine, Wisconsin 53403
Attention: Treasurer
Re: Distribution Agreement dated as of
May __, 1998 (the "Distribution Agreement")
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The undersigned agrees to purchase your Medium-Term Notes, Series B having the
following terms:
Principal Amount:____________________________________________________
Original Issue Date:_________________________________________________
Settlement Date, Time and Place:_____________________________________
Maturity Date:_______________________________________________________
Purchase Price: __% of Principal Amount, plus accrued interest, if any,
from Settlement Date
Price to Public: __% of Principal Amount, plus accrued interest, if any,
from Settlement Date
Redemption Date (Dates): ________, commencing __________
Initial Redemption Price:
Annual Redemption Price decrease:
Repayment Date (Dates):
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Repayment Price:
Initial accrual period OID:
Original Yield to Maturity:
Regular Record Dates:
(For Fixed Rate Notes)
Interest Rate:________________________________________________________
Applicability of modified payment upon acceleration:
If yes, state issue price:
Amortization schedule:
(For Floating Rate Notes)
Initial Interest Rate:________________________________________________
Interest Rate Basis (Commercial Paper, Prime, LIBOR, Treasury, CD, Federal
Funds, CMT, Other):______________________________________________
Index Maturity (30, 60, 90 days, 6 months, 1 year, other):____________
Interest Reset Period (daily, weekly, monthly, quarterly, semiannually,
annually):
Interest Payment Period (monthly, quarterly, semiannually, annually):
Spread: _______ basis points (+/-)
Spread Multiplier:______%
Maximum Interest Rate:______%
Minimum Interest Rate:______%
Initial Interest Reset Date: _________________________________________
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Interest Reset Dates:_________________________________________________
Interest Determination Dates:_________________________________________
Interest Payment Dates:_______________________________________________
Calculation Agent:
Calculation Date:
Other terms of Securities:
Provisions relating to underwriter default, if any:
The provisions of Sections 1, 2(b) and 2(d) and 4 through 7, 10, 11,
12 and 15 of the Distribution Agreement and the related definitions are
incorporated by reference herein and shall be deemed to have the same force and
effect as if set forth in full herein.
This Agreement is subject to termination in our absolute discretion on
the terms incorporated by reference herein. If this Agreement is so terminated,
the provisions set forth in the last sentence of Section 8 of the Distribution
Agreement shall survive for the purposes of this Agreement.
The certificate referred to in Section 4(k) of the Distribution
Agreement, the opinion referred to in Section 4(i) of the Distribution Agreement
and the accountants' letter referred to in Section 4(j) of the Distribution
Agreement will be required.
[Agent]
By:
---------------------------------------
(Title)
Accepted:
CASE CREDIT CORPORATION
By:
-------------------------
(Title)
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Exhibit B
CASE CREDIT CORPORATION
MEDIUM-TERM NOTES, SERIES B
ADMINISTRATIVE PROCEDURES
______________________
The Medium-Term Notes, Series B (the "Notes"), are to be offered on a
continuous basis by Case Credit Corporation (the "Company"). Each of J.P. Morgan
Securities Inc., Chase Securities Inc., Citicorp Securities, Inc., NationsBanc
Montgomery Securities LLC and BancAmerica Robertson Stephens (each, an "Agent")
has agreed to solicit offers to purchase the Notes in registered form. The Notes
are being sold pursuant to a Distribution Agreement dated as of May __, 1998
(the "Agreement") between the Company and the Agents. In the Agreement, each
Agent has agreed to use reasonable efforts to solicit purchases of the Notes.
Each Agent, as principal, may purchase Notes for its own account and, if such
Agent so elects, the Company and such Agent will enter into a Terms Agreement,
as contemplated by the Agreement. The Company may also solicit offers to
purchase and may sell Notes directly on its own behalf to investors (other than
broker-dealers).
The Notes will be issued under an Indenture dated as of October 1,
1997 (as supplemented or amended from time to time, the "Indenture") between the
Company and The Bank of New York, as trustee (the "Trustee"). The Trustee will
be the Registrar, Calculation Agent, Authenticating Agent and Paying Agent for
the Notes, and will perform the duties specified herein. Notes will bear
interest at a fixed rate (the "Fixed Rate Notes"), which may be zero in the case
of certain original issue discount notes (the "OID Notes"), or at floating rates
(the "Floating Rate Notes"). Fixed Rate Notes may pay a level amount in respect
of both interest and principal amortized over the life of the Notes ("Amortizing
Notes"). Each Note will be represented by either a Global Security (as defined
below) delivered to the Trustee, as agent for The Depository Trust Company
("DTC"), and recorded in the book-entry system maintained by DTC (a "Book-Entry
Note") or a certificate delivered to the holder thereof or a person designated
by such holder (a "Certificated Note"). Except in limited circumstances, an
owner of a Book-Entry Note will not be entitled to receive a Certificated Note.
Book-Entry Notes, which may be payable solely in U.S. dollars, will be
issued in accordance with the administrative procedures set forth in Part I
hereof as they may subsequently be amended as the result of changes in DTC's
operating procedures, and Certificated Notes will be issued in accordance with
the administrative procedures set forth in
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Part II hereof. Unless otherwise defined herein, terms defined in the Indenture
or the Notes shall be used herein as therein defined.
PART I: ADMINISTRATIVE PROCEDURES FOR BOOK-ENTRY NOTES
In connection with the qualification of the Book-Entry Notes for
eligibility in the book-entry system maintained by DTC, the Trustee will perform
the custodial, document control and administrative functions described below, in
accordance with its respective obligations under a Letter of Representation from
the Company and the Trustee to DTC, dated as of the date hereof (the "Letter of
Representation"), and a Medium-Term Note Certificate Agreement between the
Trustee and DTC, dated as of August 19, 1987, and its obligations as a
participant in DTC, including DTC's Same-Day Funds Settlement System ("SDFS").
Issuance: On any date of settlement (as defined under
"Settlement" below) for one or more Book-Entry Notes,
the Company will issue a single global security in
fully registered form without coupons (a "Global
Security") representing up to U.S. $200,000,000
principal amount of all such Notes that have the same
Maturity Date, redemption or repayment provisions,
Interest Payment Dates, Original Issue Date, original
issue discount provisions (if any), and, in the case of
Fixed Rate Notes, Interest Rate, modified payment upon
acceleration (if any), amortization schedule (if any)
or, in the case of Floating Rate Notes, Initial
Interest Rate, Interest Payment Dates, Interest Payment
Period, Calculation Agent, Base Rate, Index Maturity,
Interest Reset Period, Interest Reset Dates, Spread or
Spread Multiplier (if any), Minimum Interest Rate (if
any) and Maximum Interest Rate (if any) and, in each
case, any other relevant terms (collectively, "Terms").
Each Global Security will be dated and issued as of the
date of its authentication by the Trustee. Each Global
Security will bear an "Interest Accrual Date," which
will be (i) with respect to an original Global Security
(or any portion thereof), its original issuance date
and (ii) with respect to any Global Security (or any
portion thereof) issued subsequently upon exchange of a
Global Security, or in lieu of a destroyed, lost or
stolen Global Security, the most recent Interest
Payment Date to
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which interest has been paid or duly provided for on
the predecessor Global Security or Securities (or if no
such payment or provision has been made, the original
issuance date of the predecessor Global Security),
regardless of the date of authentication of such
subsequently issued Global Security. Book-Entry Notes
may only be denominated and payable in U.S. dollars. No
Global Security will represent (i) both Fixed Rate and
Floating Rate Book-Entry Notes or (ii) any Certificated
Note.
Identification Numbers: The Company has arranged with the CUSIP Service Bureau
of Standard & Poor's Corporation (the "CUSIP Service
Bureau") for Securities representing the Book-Entry
Notes. The Company has obtained from the CUSIP Service
Bureau a written list of such series of reserved CUSIP
numbers and has delivered to the Trustee and DTC the
written list of 900 CUSIP numbers of such series. The
Trustee will assign CUSIP numbers to Global Securities
as described below under Settlement Procedure "B." DTC
will notify the CUSIP Service Bureau periodically of
the CUSIP numbers that the Trustee has assigned to
Global Securities. At any time when fewer than 100 of
the reserved CUSIP numbers remain unassigned to Global
Securities, the Trustee shall so advise the Company
and, if it deems necessary, the Company will reserve
additional CUSIP numbers for assignment to Global
Securities representing Book-Entry Notes. Upon
obtaining such additional CUSIP numbers, the Company
shall deliver a list of such additional CUSIP numbers
to the Trustee and DTC.
Registration: Each Global Security will be registered in the name of
Cede & Co., as nominee for DTC, on the security
register maintained under the Indenture. The beneficial
owner of a Book-Entry Note (or one or more indirect
participants in DTC designated by such owner) will
designate one or more participants in DTC with respect
to such Note (the "Participants") to act as agent
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or agents for such owner in connection with the book-
entry system maintained by DTC and DTC will record in
book-entry form, in accordance with instructions
provided by such Participants, a credit balance with
respect to such beneficial owner in such Note in the
account of such Participants. The ownership interest of
such beneficial owner in such Note will be recorded
through the records of such Participants or through the
separate records of such Participants and one or more
indirect participants in DTC.
Transfers: Transfers of a Book-Entry Note will be accompanied by
book entries made by DTC and, in turn, by Participants
(and in certain cases, one or more indirect
participants in DTC) acting on behalf of beneficial
transferors and transferees of such Note.
Exchanges: The Trustee may deliver to DTC and the CUSIP Service
Bureau at any time a written notice of consolidation
specifying (i) the CUSIP numbers of two or more
Outstanding Global Securities that represent Book-Entry
Notes having the same Terms and for which interest has
been paid to the same date, (ii) a date, occurring at
least thirty days after such written notice is
delivered and at least thirty days before the next
Interest Payment Date for such Book-Entry Notes, on
which such Global Securities shall be exchanged for a
single replacement Global Security and (iii) a new
CUSIP number to be assigned to such replacement Global
Security. Upon receipt of such a notice, DTC will send
to its Participants (including the Trustee) a written
reorganization notice to the effect that such exchange
will occur on such date. Prior to the specified
exchange date, the Trustee will deliver to the CUSIP
Service Bureau a written notice setting forth such
exchange date and the new CUSIP number and stating
that, as of such exchange date, the CUSIP numbers of
the Global Securities to be exchanged will no longer be
valid. On the specified exchange date, the Trustee will
exchange such Global Securities for a single Global
Security
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bearing the new CUSIP number and a new Interest Accrual
Date, and the CUSIP numbers of the exchanged Global
Securities will, in accordance with CUSIP Service
Bureau procedures, be cancelled and not immediately
reassigned. Notwithstanding the foregoing, if the
Global Securities to be exchanged exceed $200,000,000
in aggregate principal amount, one Global Security will
be authenticated and issued to represent each
$200,000,000 principal amount of the exchanged Global
Security and an additional Global Security will be
authenticated and issued to represent any remaining
principal amount of such Global Securities (see
"Denominations" below).
Maturities: Each Book-Entry Note will mature on a date from nine
months to 30 years from its date of issue.
Notice of Redemption The Trustee will give notice to DTC prior to each
and Repayment Dates: Redemption Date or Repayment Date (as specified in the
Note), if any, at the time and in the manner
set forth in the Letter of Representation.
Denominations: Book-Entry Notes will be issued in principal amounts of
$1,000 and integral multiples thereof. Global
Securities will be denominated in principal amounts not
in excess of $200,000,000. If one or more Book-Entry
Notes having an aggregate principal amount in excess of
$200,000,000 would, but for the preceding sentence, be
represented by a single Global Security, then one
Global Security will be issued to represent each
$200,000,000 principal amount of such Book-Entry Note
or Notes and an additional Global Security will be
issued to represent any remaining principal amount of
such Book-Entry Note or Notes. In such a case, each of
the Global Securities representing such Book-Entry Note
or Notes shall be assigned the same CUSIP number.
Interest: GENERAL. Interest on each Book-Entry Note will accrue
from the Interest Accrual Date of the Global Security
representing such Note. Unless otherwise specified
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therein, each payment of interest on a Book-Entry Note
will include interest accrued to but excluding the
Interest Payment Date; provided that in the case of
Floating Rate Notes with respect to which the Interest
Reset Period is daily or weekly, interest payable on
any Interest Payment Date (other than interest payable
on any date on which principal thereof is payable, and,
if the Note is a Book-Entry Gap Note (as defined
below), other than interest payable on the first
Interest Payment Date after the Original Issue Date
thereof) will include interest accrued through and
including the Record Date immediately preceding the
Interest Payment Date, except that at maturity or
earlier redemption or repayment, the interest payable
will include interest accrued to, but excluding, the
Maturity Date or the date of redemption or repayment,
as the case may be. Interest payable at the maturity or
upon redemption or repayment of a Book-Entry Note will
be payable to the person to whom the principal of such
Note is payable. Standard & Poor's Corporation will use
the information received in the pending deposit message
described under Settlement Procedure "C" below in order
to include the amount of any interest payable and
certain other information regarding the related Global
Security in the appropriate weekly bond report
published by Standard & Poor's Corporation.
RECORD DATES. The Record Date with respect to any
Interest Payment Date shall be the date fifteen
calendar days immediately preceding such Interest
Payment Date.
FIXED RATE BOOK-ENTRY NOTES. Unless otherwise specified
pursuant to Settlement Procedure "A" below, interest
payments on Fixed Rate Book-Entry Notes, other than
Amortizing Notes, will be made semiannually on April
1 and October 1 of each year, and at maturity or upon
any earlier redemption or repayment and principal and
interest payments on Book-Entry Amortizing Notes will
be made semiannually on April
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1 and October 1 of each year or quarterly on January 1,
April 1, July 1 and October 1 of each year, and at
maturity (or any redemption or repayment date)
provided, however, that in the case of a Fixed Rate
Book-Entry Note issued between a Record Date and an
Interest Payment Date or on an Interest Payment Date,
the first interest payment will be made on the Interest
Payment Date following the next succeeding Record Date.
If any Interest Payment Date for a Fixed Rate Book-
Entry Note is not a Business Day, the payment due on
such day shall be made on the next succeeding Business
Day and no interest shall accrue on such payment for
the period from and after such Interest Payment Date.
FLOATING RATE BOOK-ENTRY NOTES. Interest payments will
be made on Floating Rate Book-Entry Notes monthly,
quarterly, semiannually or annually. Unless otherwise
specified pursuant to Settlement Procedure "A" below,
interest will be payable, in the case of Floating Rate
Book-Entry Notes with a daily, weekly or quarterly
Interest Reset Date, on the third Wednesday of March,
June, September and December, as specified pursuant to
Settlement Procedure "A" below; in the case of Floating
Rate Book-Entry Notes with a monthly Interest Reset
Date, on the third Wednesday of each month or on the
third Wednesday of March, June, September and December,
as specified pursuant to Settlement Procedure "A"
below; in the case of Floating Rate Book-Entry Notes
with a semiannual Interest Reset Date, on the third
Wednesday of the two months specified pursuant to
Settlement Procedure "A" below; and in the case of
Floating Rate Book-Entry Notes with an annual Interest
Reset Date, on the third Wednesday of the month
specified pursuant to Settlement Procedure "A" below;
provided however, that if an Interest Payment Date for
Floating Rate Book-Entry Notes would otherwise be a day
that is not a Market Day with respect to such Floating
Rate Book-Entry Notes, such Interest Payment Date will
be the next
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succeeding Market Day with respect to such Floating
Rate Book-Entry Notes, except in the case of a LIBOR
Note if such Market Day is in the next succeeding
calendar month, such Interest Payment Date will be the
immediately preceding Market Day; and provided,
further, that in the case of a Floating Rate Book-Entry
Note issued between a Record Date and the related
Interest Payment Date (a "Book-Entry Gap Note"), the
first interest payment will be made on the Interest
Payment Date following the next succeeding Record Date,
and in such case, notwithstanding the fact that an
Interest Reset Date may occur prior to such Interest
Payment Date, the Initial Interest Rate shall remain in
effect until the first Interest Reset Date occurring on
or subsequent to such Interest Payment Date.
NOTICE OF INTEREST PAYMENT AND RECORD DATES. Prior to
the first Business Day of March, June, September and
December of each year, the Trustee will deliver to the
Company and DTC a written list of Record Dates and
Interest Payment Dates that will occur with respect to
Book-Entry Notes during the six-month period beginning
on such first Business Day. Promptly after each date
upon which interest is determined for Floating Rate
Notes issued in book-entry form, the Calculation Agent
will notify the Company, the Trustee and Standard &
Poor's Corporation of the interest rates determined on
such dates.
Calculation of Interest: FIXED RATE BOOK-ENTRY NOTES. Interest on Fixed Rate
Book-Entry Notes (including interest for partial
periods) will be calculated on the basis of a 360-day
year of twelve thirty-day months.
FLOATING RATE BOOK-ENTRY NOTES. Interest rates on
Floating Rate Book-Entry Notes will be determined as
set forth in the form of such Notes. Interest on
Floating Rate Book-Entry Notes will be calculated on
the basis of actual days elapsed and a year of 360
days, except that, in the case of Treasury Rate Notes
and
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CMT Rate Notes, interest will be calculated
on the basis of the actual number of days in
the year.
Payments of Principal and Interest: PAYMENTS OF INTEREST ONLY. Promptly before
each Record Date, the Trustee will deliver
to the Company and DTC a written notice
specifying by CUSIP number the amount of
interest to be paid on each Global Security
other than an Amortizing Note on the
following Interest Payment Date (other than
an Interest Payment Date coinciding with
maturity or any earlier redemption or
repayment date) and the total of such
amounts. DTC will confirm the amount payable
on each such Global Security on such
Interest Payment Date by reference to the
daily bond reports published by Standard &
Poor's Corporation. In the case of
Amortizing Notes, the Trustee will provide
separate written notice to the Company and
to DTC prior to each Interest Payment Date
at the time and in the manner set forth in
the Letter of Representation. The Company
will pay to the Trustee, as paying agent,
the total amount of interest due on such
Interest Payment Date (and, in the case of
an Amortizing Note, principal and interest)
(other than at maturity), and the Trustee
will pay such amount to DTC at the times and
in the manner set forth below under "Manner
of Payment."
PAYMENTS AT MATURITY OR UPON REDEMPTION OR
REPAYMENT. Prior to the first Business Day
of each month, the Trustee will deliver to
the Company and DTC a written list of
principal and interest to be paid on each
Global Security other than an Amortizing
Note maturing either at maturity or on a
redemption or repayment date in the
following month. The Company and DTC will
confirm the amounts of such principal and
interest payments with respect to each such
Global Security on or about the fifth
Business Day preceding the Maturity Date or
redemption or repayment date of such Global
Security. In the case of Amortizing Notes,
the Trustee will provide separate written
notice to the Company and to DTC prior to
the Maturity Date and
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any redemption or repayment date, as the
case may be, at the times and in the manner
set forth in the Letter of Representation.
The Company will pay to the Trustee, as the
paying agent, the principal amount of such
Global Security, together with interest due
at such Maturity Date or redemption or
repayment date. The Trustee will pay such
amounts to DTC at the times and in the
manner set forth below under "Manner of
Payment."
PAYMENTS NOT ON BUSINESS DAYS. If any
Interest Payment Date or the Maturity Date
or redemption or repayment date of a Global
Security representing Fixed Rate Book-Entry
Notes is not a Business Day, the payment due
on such day shall be made on the next
succeeding Business Day and no interest
shall accrue on such payment for the period
from and after such Interest Payment Date,
Maturity Date or redemption or repayment
date, as the case may be. If any Interest
Payment Date or the Maturity Date or
redemption or repayment date of a Global
Security representing a Floating Rate Book-
Entry Note would otherwise fall on a day
that is not a Market Day, the payment due on
such day shall be made on the next
succeeding day that is a Market Day with
respect to such Notes with the same effect
as if such Market Day were the Interest
Payment Date, Maturity Date or date of
redemption or repayment, as the case may be,
except that, in the case of Book-Entry LIBOR
Notes, if such Market Day is in the next
succeeding calendar month, such Interest
Payment Date, Maturity Date or redemption or
repayment date shall be the immediately
preceding day that is a Market Day with
respect to such Book-Entry LIBOR Notes.
Promptly after payment to DTC of the
principal and interest due on the Maturity
Date or redemption or repayment date of such
Global Security, the Trustee will cancel
such Global Security in accordance with the
terms of the Indenture and deliver it to the
Company with a certificate of cancellation.
On the first Business Day of each month, the
Trustee will de-
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liver to the Company a written statement indicating the
total principal amount of outstanding Book-Entry Notes
as of the immediately preceding Business Day.
MANNER OF PAYMENT. The total amount of any principal
and interest due on Global Securities on any Interest
Payment Date or at maturity or upon redemption or
repayment shall be paid by the Company to the Trustee
in funds available for immediate use by the Trustee as
of 9:30 a.m. (New York City time) on such date. The
Company will make such payment on such Global
Securities by wire transfer to the Trustee or by
instructing the Trustee to withdraw funds from an
account maintained by the Company at the Trustee. The
Company will confirm such instructions in writing to
the Trustee. Prior to 10 a.m. (New York City time) on
each Maturity Date or redemption or repayment date or,
if either such date is not a Business Day, as soon as
possible thereafter, following receipt of such funds
from the Company the Trustee will pay by separate wire
transfer (using Fedwire message entry instructions in a
form previously specified by DTC) to an account at the
Federal Reserve Bank of New York previously specified
by DTC, in funds available for immediate use by DTC,
each payment of principal (together with interest
thereon) due on Global Securities on any Maturity Date
or redemption or repayment date. On each Interest
Payment Date or, if any such date is not a Business
Day, as soon as possible thereafter, interest payments
and, in the case of Amortizing Notes, interest and
principal payments shall be made to DTC in same day
funds in accordance with existing arrangements between
the Trustee and DTC. Thereafter on each such date, DTC
will pay, in accordance with its SDFS operating
procedures then in effect, such amounts in funds
available for immediate use to the respective
Participants in whose names the Book-Entry Notes
represented by such Global Securities are recorded in
the book-entry system maintained by DTC. Neither the
Company nor the Trustee shall have any
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responsibility or liability for the payment by DTC to
such Participants of the principal of and interest on
the Book-Entry Notes.
WITHHOLDING TAXES. The amount of any taxes required
under applicable law to be withheld from any interest
payment on a Book-Entry Note will be determined and
withheld by the Participant, indirect participant in
DTC or other person responsible or forwarding payments
directly to the beneficial owner of such Note.
Preparation of Pricing
Supplement: If any order to purchase a Certificated Note is
accepted by or on behalf of the Company, the Company
will prepare a pricing supplement reflecting the terms
of such Note and will arrange to file such Pricing
Supplement with the Commission in accordance with the
applicable paragraph of Rule 424(b) under the Act and
will deliver the number of copies of such Pricing
Supplement to the relevant Agent as such Agent shall
reasonably request by the close of business on the
following Business Day. The relevant Agent will cause
such Pricing Supplement to be delivered to the
purchaser of the Note.
In each instance that a Pricing Supplement is prepared,
the Agent receiving such Pricing Supplement will affix
the Pricing Supplement to Prospectuses prior to their
use. Outdated Pricing Supplements, and the Prospectuses
to which they are attached (other than those retained
for files), will be destroyed.
Settlement: The receipt by the Company of immediately available
funds in payment for a Book-Entry Note and the
authentication and issuance of the Global Security
representing such Note shall constitute "settlement"
with respect to such Note. All orders accepted by the
Company will be settled on the third Business Day
following such acceptance pursuant to the timetable for
settlement set forth below unless the Company and the
purchaser agree to settlement on another day, which
shall be no earlier than the next Business Day.
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Settlement Procedures: Settlement Procedures with regard to each Book-Entry
Note sold by the Company to or through an Agent shall
be as follows (unless otherwise specified pursuant to a
Terms Agreement, as defined in the Agreement):
A. The relevant Agent will advise the Company by
facsimile transmission or other acceptable means
that such Note is a Book-Entry Note and of the
following settlement information:
1. Principal amount.
2. Maturity Date.
3. In the case of a Fixed Rate Book-Entry Note,
the Interest Rate, and whether such Note is an
Amortizing Note and, if so, the Amortization
Schedule, or, in the case of a Floating Rate
Book-Entry Note, the Initial Interest Rate (if
known at such time), Interest Payment Date(s),
including the Initial Interest Payment Date,
Interest Payment Period, Calculation Agent,
Base Rate, Index Maturity, Interest Reset
Period, Initial Interest Reset Date, Interest
Reset Dates, Spread or Spread Multiplier (if
any), Minimum Interest Rate (if any) and
Maximum Interest Rate (if any).
4. Redemption or repayment provisions, if any.
5. Settlement date and time.
6. Price.
7. Agent's commission, if any, determined as
provided in the Agreement.
8. Net proceeds to the Company.
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9. Whether the Note is an OID Note, and if it is
an OID Note, the total amount of OID, the yield
to maturity, the initial accrual period OID and
the applicability of Modified Payment upon
Acceleration (and, if so, the Issue Price).
10. Any other applicable Terms.
B. The Company will advise the Trustee by facsimile
transmission or other acceptable means of the
information set forth in Settlement Procedure "A"
above. The Trustee will then assign a CUSIP number
to the Global Security representing such Note and
will notify the Trustee and the Agent of such CUSIP
number by telephone or electronic transmission
(confirmed in writing) as soon as practicable.
C. The Trustee will enter a pending deposit message
through DTC's Participant Terminal System, providing
the following settlement information to DTC, the
relevant Agent and Standard & Poor's Corporation:
1. The information set forth in Settlement
Procedure "A."
2. The Initial Interest Payment Date for such
Note, the number of days by which such date
succeeds the related DTC Record Date (which in
the case of Floating Rate Notes which reset
daily or weekly, shall be the date five
calendar days immediately preceding the
applicable Interest Payment Date and, in the
case of all other Notes, shall be the Record
Date as defined in the Note) and, if known, the
amount of interest payable on such Initial
Interest Payment Date.
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3. The CUSIP number of the Global Security
representing such Note.
4. Whether such Global Security will represent any
other Book-Entry Note (to the extent known at
such time) and whether such Note is an
Amortizing Note (by an appropriate notation in
the comments field of DTC's Participant
Terminal System).
5. The DTC participant number of the institution
through which the Company will hold the Book-
Entry Note.
D. The Trustee will complete and authenticate the
Global Security representing such Note in accordance
with the terms of the written order of the Company
then in effect.
E. DTC will credit such Note to the Trustee's
participant account at DTC.
F. The Trustee will enter an SDFS deliver order through
DTC's Participant Terminal System instructing DTC to
(1) debit such Note to the Trustee's participant
account and credit such Note to the relevant Agent's
participant account and (ii) debit such Agent's
settlement account and credit the Trustee's
settlement account for an amount equal to the price
of such Note less such Agent's commission, if any.
The entry of such a deliver order shall constitute a
representation and warranty by the Trustee to DTC
that (a) the Global Security representing such Book-
Entry Note has been issued and authenticated and (b)
the Trustee is holding such Global Security pursuant
to the Medium-Term Note Certificate Agreement
between the Trustee and DTC.
G. Unless the relevant Agent purchased such Note as
principal, such Agent will enter an SDFS deliver
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order through DTC's Participant Terminal System
instructing DTC (i) to debit such Note to such
Agent's participant account and credit such Note to
the participant accounts of the Participants with
respect to such Note and (ii) to debit the
settlement account of such Participants and credit
the settlement account of such Agent for an amount
equal to the price of such Note.
H. Transfers of funds in accordance with SDFS deliver
orders described in Settlement Procedures "F" and
"G" will be settled in accordance with SDFS
operating procedures in effect on the settlement
date.
I. The Trustee, upon confirming receipt of such funds,
will credit to the U.S. dollar account of the
Company maintained at a bank in New York City,
notified to the Trustee from time to time, in funds
available for immediate use in the amount
transferred to the Trustee, in accordance with
Settlement Procedure "F."
J. Unless the relevant Agent purchased such Note as
principal, such Agent will confirm the purchase of
such Note to the purchaser either by transmitting to
the Participants with respect to such Note a
confirmation order or orders through DTC's
institutional delivery system or by mailing a
written confirmation to such purchaser.
K. Monthly, the Trustee will send to the Company a
statement setting forth the principal amount of
Notes Outstanding as of that date under the
Indenture and setting forth a brief description of
any sales of which the Company has advised the
Trustee but which have not yet been settled.
Settlement: For sales by the Company of Book-Entry Notes to or
through an Agent unless otherwise specified pursuant to
a Terms Agreement for settlement on the first Busi-
16
<PAGE>
ness Day after the sale date, Settlement Procedures "A"
through "J" set forth above shall be completed as soon
as possible but not later than the respective times
(New York City time) set forth below:
Settlement
Procedure Time
--------- ----
A 11:00 a.m. on the sale date
B 12:00 noon on the sale date
C 2:00 p.m. on the sale date
D 9:00 a.m. on settlement date
E 10:00 a.m. on settlement date
F-G 2:00 p.m. on settlement date
H 4:45 p.m. on settlement date
I-J 5:00 p.m. on settlement date
If a sale is to be settled more than one Business Day
after the sale date, Settlement Procedures "A," "B" and
"C" shall be completed as soon as practicable but no
later than 11:00 a.m. 12 noon and 2:00 p.m.,
respectively, on the first Business Day after the sale
date. If the Initial Interest Rate for a Floating Rate
Book-Entry Note has not been determined at the time
that Settlement Procedure "A" is completed, Settlement
Procedures "B" and "C" shall be completed as soon as
such rate has been determined but no later than 12 noon
and 2:00 p.m., respectively, on the second Business Day
before the settlement date. Settlement Procedure "H" is
subject to extension in accordance with any extension
of Fedwire closing deadlines and in the other events
specified in the SDFS operating procedures in effect on
the settlement date. If settlement of a Book-Entry Note
is rescheduled or cancelled, the Trustee, after
receiving notice from the Company or the Agent, will
deliver to DTC, through DTC's Participant Terminal
System, a cancellation message to such effect by no
later than 2:00 p.m. on the Business Day immediately
preceding the scheduled settlement date.
17
<PAGE>
Failure to Settle: If the Trustee fails to enter an SDFS deliver order
with respect to a Book-Entry Note pursuant to
Settlement Procedure "F," the Trustee may deliver to
DTC, through DTC's Participant Terminal System, as soon
as practicable a withdrawal message instructing DTC to
debit such Note to the Trustee's participant account,
provided that the Trustee's participant account
contains a principal amount of the Global Security
representing such Note that is at least equal to the
principal amount to be debited. If a withdrawal message
is processed with respect to all the Book Entry Notes
represented by a Global Security, the Trustee will mark
such Global Security "cancelled," make appropriate
entries in the Trustee's records and send such
cancelled Global Security to the Company. The CUSIP
number assigned to such Global Security shall, in
accordance with CUSIP Service Bureau procedures, be
cancelled and not immediately reassigned. If a
withdrawal message is processed with respect to one or
more, but not all, of the Book-Entry Notes represented
by a Global Security, the Trustee will exchange such
Global Security for two Global Securities, one of which
shall represent such Book-Entry Note or Notes and shall
be cancelled immediately after issuance and the other
of which shall represent the remaining Book-Entry Notes
previously represented by the surrendered Global
Security and shall bear the CUSIP number of the
surrendered Global Security.
If the purchase price for any Book-Entry Note is not
timely paid to the Participants with respect to such
Note by the beneficial purchaser thereof (or a person,
including an indirect participant in DTC, acting on
behalf of such purchaser), such Participants and, in
turn, the relevant Agent may enter SDFS deliver orders
through DTC's Participant Terminal System reversing the
orders entered pursuant to Settlement Procedures "F"
and "G," respectively. Thereafter, the Trustee will
deliver the withdrawal message and take the related
actions described in the preceding paragraph.
18
<PAGE>
Notwithstanding the foregoing, upon any failure to
settle with respect to a Book-Entry Note, DTC may
take any action in accordance with its SDFS
operating procedures then in effect. In the event of
a failure to settle with respect to one or more, but
not all, of the Book-Entry Notes to have been
represented by a Global Security, the Trustee will
provide, in accordance with Settlement Procedures
"D" and "F," for the authentication and issuance of
a Global Security representing the Book-Entry Notes
to be represented by such Global Security and will
make appropriate entries in its records.
Posting Rates by Company: The Company and the Agents will from time to time
post the rates of interest per annum to be borne by
and the maturity of Securities that may be sold as a
result of the solicitation of offers by an Agent.
The Company may establish a fixed set of interest
rates and maturities for an offering period
("posting"). If the Company decides to change
already posted rates, it will promptly advise the
Agents to suspend solicitation of offers until the
new posted rates have been established with the
Agent.
Trustee Not To Risk Funds: Nothing herein shall be deemed to require the
Trustee to risk or expend its own funds in
connection with any payments to the Company, the
Agents, DTC or any holders of Notes, it being
understood by all parties that payments made by the
Trustee to the Company, the Agents, DTC or any
holders of Notes shall be made only to the extent
that funds are provided to the Trustee for such
purpose.
19
<PAGE>
PART 11: ADMINISTRATIVE PROCEDURES FOR CERTIFICATED NOTES
The Trustee will serve as registrar in connection with the Certificated Notes.
Issuance: Each Certificated Note will be dated and issued as
of the date of its authentication by the Trustee.
Each Certificated Note will bear an Original Issue
Date, which will be (i) with respect to an original
Certificated Note (or any portion thereof), its
original issuance date (which will be the settlement
date) and (ii) with respect to any Certificated Note
(or any portion thereof) issued subsequently upon
exchange of a Certificated Note, or in lieu of a
destroyed, lost or stolen Certificated Note, the
original issuance date of the predecessor
Certificated Note, regardless of the date of
authentication of such subsequently issued
Certificated Note.
Registration: Certificated Notes will be issued only in fully
registered form without coupons.
Transfers and Exchanges: A Certificated Note may be presented for transfer or
exchange at the principal corporate trust office of
the Trustee. Certificated Notes will be exchangeable
for other Certificated Notes having identical terms
but different authorized denominations without
service charge. Certificated Notes will not be
exchangeable for Book-Entry Notes.
Maturities: Each Certificated Note will mature on a date from
nine months to 30 years from its date of issue.
Currency: The currency denomination with respect to any
Certificated Note and the currency of payment of
interest and principal with respect to any such
Certificated Note shall be U.S. dollars.
Denominations: Unless otherwise provided in a Prospectus
Supplement, the denomination of any Certificated
Note will be a minimum of $1,000 or any amount in
excess thereof that is an integral multiple of
$1,000.
20
<PAGE>
GENERAL. Interest on each Certificated Note will
accrue from the Original Issue Date of such Note for
the first interest period and from the most recent
date to which interest has been paid for all
subsequent interest periods. Unless otherwise
specified therein, each payment of interest on a
Certificated Note will include interest accrued to
but excluding the Interest Payment Date; provided
that in the case of Floating Rate Notes with respect
to which the Interest Reset Period is daily or
weekly, interest payable on any Interest Payment
Date (other than interest payable on any date on
which principal thereof is payable, and, if the Note
is a Certificated Gap Note (as defined below), other
than interest payable on the first Interest Payment
Date after the Original Issue Date thereof) will
include interest accrued through and including the
Record Date immediately preceding the Interest
Payment Date, except that at maturity or earlier
redemption or repayment, the interest payable will
include interest accrued to, but excluding, the
Maturity Date or the date of redemption or
repayment, as the case may be.
RECORD DATES. The Record Date with respect to any
Interest Payment Date in respect of a Certificated
Note shall be the date fifteen calendar days
immediately preceding such Interest Payment Date.
FIXED RATE CERTIFICATED NOTES. Unless otherwise
specified pursuant to Settlement Procedure "A"
below, interest payments on Fixed Rate Certificated
Notes, other than Amortizing Notes, will be made
semiannually April 1 and October 1 of each year and
at maturity or upon any earlier redemption or
repayment and principal and interest payments on
Certificated Amortizing Notes will be made
semiannually on April 1 and October 1 of each year
or quarterly on January 1, April 1, July 1 and
October 1 of each year, and at maturity (or any
redemption or repayment date); provided, however
that in the case of a Fixed Rate Certificated Note
issued between a Record Date and an Inter-
21
<PAGE>
est Payment Date or on an Interest Payment Date, the
first interest payment will be made on the Interest
Payment Date following the next succeeding Record
Date. If any Interest Payment Date for a Fixed Rate
Certificated Note is not a Business Day, the payment
due on such day shall be made on the next succeeding
Business Day and no interest shall accrue on such
payment for the period from and after such Interest
Payment Date.
FLOATING RATE CERTIFICATED NOTES. Interest payments
will be made on Floating Rate Certificated Notes
monthly, quarterly, semiannually or annually. Unless
otherwise specified pursuant to Settlement Procedure
"A" below, interest will be payable, in the case of
Floating Rate Certificated Notes with a daily,
weekly or quarterly Interest Reset Date, on the
third Wednesday of March, June, September and
December, as specified pursuant to Settlement
Procedure "A" below; in the case of Floating Rate
Certificated Notes with a monthly Interest Reset
Date, on the third Wednesday of each month or on the
third Wednesday of March, June, September and
December, as specified pursuant to Settlement
Procedure "A" below; in the case of Floating Rate
Certificated Notes with a semiannual Interest Reset
Date, on the third Wednesday of the two months
specified pursuant to Settlement Procedure "A"
below; and in the case of Floating Rate Certificated
Notes with an annual Interest Reset Date, on the
third Wednesday of the month specified pursuant to
Settlement Procedure "A" below; provided however,
that if an Interest Payment Date for Floating Rate
Certificated Notes would otherwise be a day that is
not a Market Day with respect to such Floating Rate
Certificated Notes, such Interest Payment Date will
be the next succeeding Market Day with respect to
such Floating Rate Certificated Notes, except in the
case of a LIBOR Note if such Market Day is in the
next succeeding calendar month, such Interest
Payment Date will be the immediately preceding
Market Day; and provided,
22
<PAGE>
further, that in the case of a Floating Rate
Certificated Note issued between a Record Date and
the related Interest Payment Date (a "Certificated
Gap Note"), the first interest payment will be made
on the Interest Payment Date following the next
succeeding Record Date, and in such case,
notwithstanding the fact that an Interest Reset Date
may occur prior to such Interest Payment Date, the
Initial Interest Rate shall remain in effect until
the first Interest Reset Date occurring on or
subsequent to such Interest Payment Date.
NOTICE OF INTEREST PAYMENT AND RECORD DATES. Prior
to the first Business Day of March, June, September
and December of each year, the Trustee will deliver
to the Company a written list of Record Dates and
Interest Payment Dates that will occur with respect
to Certificated Notes during the six-month period
beginning on such first Business Day. Promptly after
each date upon which interest is determined for
Floating Rate Notes issued in certificated form, the
Calculation Agent will notify the Company and the
Trustee of the interest rates determined on such
dates.
Calculation of Interest: FIXED RATE CERTIFICATED NOTES. Interest on Fixed
Rate Certificated Notes (including interest for
partial periods) will be calculated on the basis of
a 360-day year of twelve thirty-day months.
FLOATING RATE CERTIFICATED NOTES. Interest rates on
Floating Rate Certificated Notes will be determined
as set forth in the form of such Notes. Interest on
Floating Rate Certificated Notes will be calculated
on the basis of actual days elapsed and a year of
360 days, except that, in the case of Treasury Rate
Notes and CMT Rate Notes, interest will be
calculated on the basis of the actual number of days
in the year.
Payments of Principal The Company will pay the Trustee, as Paying Agent,
and Interest: the principal amount of each Certificated Note
(other than a Certificated Amortizing Note),
together with interest due thereon, at its Maturity
Date or upon re-
23
<PAGE>
demption or repayment of such note in funds
available for immediate use by the Trustee. In the
case of a Certificated Amortizing Note, the Company
will pay the Trustee, as Paying Agent, the principal
amount due on such Note on such date, together with
interest due thereon, at its Maturity Date or upon
redemption or repayment of such Note on such date,
together with interest due thereon, at its Maturity
Date or upon redemption or repayment of such Note in
funds available for immediate use by the Trustee.
The Trustee will pay such amount to the holder of
such Note at its Maturity Date or upon redemption or
repayment of such Note upon presentation and
surrender of such Note to the Trustee. Such payment,
together with payment of interest due at maturity or
upon redemption or repayment, will be made in funds
available for immediate use by the holder of such
Note. Promptly after such presentation and
surrender, the Trustee will cancel such Certificated
Note in accordance with the terms of the Indenture
and deliver it to the Company with a certificate of
cancellation. Unless otherwise specified in the
applicable Pricing Supplement, all interest payments
on a Certificated Note or, in the case of a
Certificated Amortizing Note, payments of principal
and interest (other than interest (or interest and
principal) due at maturity or upon redemption or
repayment) will be made by check drawn on the
Trustee (or another person appointed by the Trustee)
and mailed by the Trustee to the person entitled
thereto as provided in such Note and the Indenture;
provided, however, that the holder of $1,000,000 or
more of Notes having the same Interest Payment Date
will be entitled to receive payment by wire transfer
of immediately available funds and the holder of
such Notes will provide the Trustee with appropriate
and timely wire transfer instructions.
Promptly after each Record Date, the Trustee will
deliver to the Company a written notice specifying
the amount of interest to be paid on each
Certificated Note
24
<PAGE>
other than an Amortizing Note on the following
Interest Payment Date (other than an Interest
Payment Date coinciding with maturity or any earlier
redemption or repayment date) and the total of such
amounts. In the case of Amortizing Notes, the
Trustee will provide separate written notice to the
Company specifying the amount of interest and
principal to be paid on each Amortizing Note on the
following Interest Payment Date (other than an
Interest Payment Date coinciding with maturity or
any earlier redemption or repayment date) and the
total of such amounts. Interest at maturity or upon
redemption or repayment will be payable to the
person to whom the payment of principal is payable.
On or about the first Business Day of each month,
the Trustee will deliver to the Company a written
list of principal and interest, to the extent
ascertainable, to be paid on each Certificated Note
including Amortizing Notes maturing or to be
redeemed or repaid in the following month, if any.
The Trustee will be responsible for withholding
taxes on interest paid on Certificated Notes as
required by applicable law.
If any Interest Payment Date or the Maturity Date or
redemption or repayment date of a Fixed Rate
Certificated Note is not a Business Day, the payment
due on such day shall be made on the next succeeding
Business Day and no interest shall accrue on such
payment for the period from and after such Interest
Payment Date, Maturity Date or redemption or
repayment date, as the case may be. If any Interest
Payment Date or the Maturity Date or redemption or
repayment date of a Floating Rate Certificated Note
would otherwise fall on a day that is not a Market
Day with respect to such Note, the payment due on
such day shall be made on the next succeeding day
that is a Market Day with respect to such Note with
the same effect as if such Market Day were the
stated Interest Payment Date, Maturity Date or date
of redemption or repayment, as the case may be,
except that, in the case of Certificated
25
<PAGE>
LIBOR Notes, if such Market Day is in the next
succeeding calendar month, such Interest Payment
Date, Maturity Date or redemption or repayment date
shall be the immediately preceding day that is a
Market Day with respect to such Certificated LIBOR
Notes.
Preparation of If any order to purchase a Certificated Note is
Pricing Supplement: accepted by or on behalf of the Company, the Company
will prepare a Pricing Supplement reflecting the
terms of such Note and will arrange to file the
Pricing Supplement with the Commission in accordance
with the applicable paragraph of Rule 424(b) under
the Act and will deliver the number of copies of
such Pricing Supplement to the relevant Agent as
such Agent shall reasonably request by the close of
business on the following Business Day. The relevant
Agent will cause such Pricing Supplement to be
delivered to the purchaser of the Note.
In each instance that a Pricing Supplement is
prepared, the Agent receiving such Pricing
Supplement will affix the Pricing Supplement to
Prospectuses prior to their use. Outdated Pricing
Supplements, and the Prospectuses to which they are
attached (other than those retained for files), will
be destroyed.
Settlement: The receipt by the Company of immediately available
funds in payment for an authenticated Certificated
Note delivered to the relevant Agent and such
Agent's delivery of such Note against receipt of
immediately available funds shall constitute
"settlement" with respect to such Note. All orders
accepted by the Company will be settled on the third
Business Day following such acceptance pursuant to
the timetable for settlement set forth below unless
the Company and the purchaser agree to settlement on
another day, which shall be no earlier than the next
Business Day.
Settlement Settlement Procedures with regard to each
Certificated
26
<PAGE>
Procedures: Note sold by the Company to or through an Agent
shall be as follows (unless otherwise specified
pursuant to a Terms Agreement):
A. The relevant Agent will advise the Company by
facsimile transmission or other acceptable means
that such Note is a Certificated Note and of the
following settlement information:
1. Name in which such Note is to be registered
("Registered Owner").
2. Address of the Registered Owner and address
for payment of principal and interest.
3. Taxpayer identification number of the
Registered Owner (if available).
4. Maturity Date.
5. In the case of a Fixed Rate Certificated
Note, the Interest Rate, and whether such
Note is an Amortizing Note and, if so, the
Amortization Schedule or, in the case of a
Floating Rate Certificated Note, the Initial
Interest Rate (if known at such time),
Interest Payment Date(s), Interest Payment
Period, Calculation Agent, Base Rate, Index
Maturity, Interest Reset Period, Initial
Interest Reset Date, Interest Reset Dates,
Spread or Spread Multiplier (if any), Minimum
Interest Rate (if any), and Maximum Interest
Rate (if any).
6. Redemption or repayment provisions, if any.
7. Settlement date and time.
8. Price.
27
<PAGE>
9. Agent's commission, if any, determined as
provided in the Agreement.
10. Denominations.
11. Net proceeds to the Company.
12. Whether the Note is an OID Note, and if it
is an OID Note, the total amount of OID, the
yield to maturity, the initial accrual
period OID and the applicability of Modified
Payment upon Acceleration (and, if so, the
Issue Price).
13. Any other applicable Terms.
B. The Company will advise the Trustee by facsimile
transmission or other acceptable means of the
information set forth in Settlement Procedure "A"
above.
C. The Company will have delivered to the Trustee a
preprinted four-ply packet for such Note, which
packet will contain the following documents in
forms that have been approved by the Company, the
relevant Agent and the Trustee:
1. Note with customer confirmation.
2. Stub One - For the Trustee.
3. Stub Two - For the relevant Agent.
4. Stub Three - For the Company.
D. The Trustee will complete such Note and
authenticate such Note and deliver it (with the
confirmation) and Stubs One and Two to the
relevant Agent, and such Agent will acknowledge
receipt of the Note by stamping or otherwise
marking Stub One and returning it to the Trustee.
Such delivery will be made only against such
acknowl
28
<PAGE>
edgment of receipt and evidence that instructions
have been given by such Agent for payment to the
account of the Company maintained at the Trustee,
New York, New York in funds available for immediate
use, of an amount equal to the price of such Note
less such Agent's commission, if any. In the event
that the instructions given by such Agent for
payment to the account of the Company are revoked,
the Company will as promptly as possible wire
transfer to the account of such Agent an amount of
immediately available funds equal to the amount of
such payment made.
E. Unless the relevant Agent purchased such Note as
principal, such Agent will deliver such Note (with
confirmation) to the customer against payment in
immediately available funds. Such Agent will obtain
the acknowledgment of receipt of such Note by
retaining Stub Two.
F. The Trustee will send Stub Three to the Company by
first-class mail. Periodically, the Trustee will
also send to the Company a statement setting forth
the principal amount of the Notes outstanding as of
that date under the Indenture and setting forth a
brief description of any sales of which the Company
has advised the Trustee but which have not yet been
settled.
Settlement Procedures For sales by the Company of Certificated Notes to or
Timetables: through an Agent (unless otherwise specified pursuant
to a Terms Agreement), Settlement Procedures "A"
through "F" set forth above shall be completed on or
before the respective times (New York City time) set
forth below:
Settlement
Procedure Time
---------- ----
A 2:00 p.m. on day before settlement date
B 3:00 p.m. on day before settlement date
29
<PAGE>
C-D 2:15 p.m. on settlement date
E 3:00 p.m. on settlement date
F 5:00 p.m. on settlement date
Failure to Settle: If a purchaser fails to accept delivery of and make
payment for any Certificated Note, the relevant Agent
will notify the Company and the Trustee by telephone
and return such Note to the Trustee. Upon receipt of
such notice, the Company will immediately wire transfer
to the account of such Agent an amount equal to the
amount previously credited thereto in respect of such
Note. Such wire transfer will be made on the settlement
date, if possible, and in any event not later than the
Business Day following the settlement date. If the
failure shall have occurred for any reason other than a
default by such Agent in the performance of its
obligations hereunder and under the Agreement, then the
Company will reimburse such Agent or the Trustee, as
appropriate, on an equitable basis for its loss of the
use of the funds during the period when they were
credited to the account of the Company (such
reimbursement for loss of the use of such funds to be
based on the federal funds effective rate then in
effect). Immediately upon receipt of the Certificated
Note in respect of which such failure occurred, the
Trustee will mark such Note "cancelled," make
appropriate entries in the Trustee's records and send
such Note to the Company.
Posting Rates The Company and the Agents will from time to time post
by Company: the rates of interest per annum to be borne by and the
maturity of Securities that may be sold as a result of
the solicitation of offers by an Agent. The Company
may establish a fixed set of interest rates and
maturities for an offering period ("posting"). If the
Company decides to change already posted rates, it will
promptly advise the Agents to suspend solicitation of
offers until the new posted rates have been established
with the Agent.
Trustee Not to Nothing herein shall be deemed to require the Trustee
30
<PAGE>
Risk Funds: to risk or expend its own funds in connection with any
payments to the Company, the Agents or any holders of
Notes, it being understood by all parties that payments
made by the Trustee to the Company, the Agents or any
holders of Notes shall be made only to the extent that
funds are provided to the Trustee for such purpose.
31
<PAGE>
[LOGO OF CASE CORPORATION]
Exhibit 5
RICHARD S. BRENNAN CASE CORPORATION
GENERAL COUNSEL AND 700 STATE STREET
SECRETARY RACINE, WI 53404 USA
TEL: (414) 636-0940
FAX: (414) 636-0913
May 14, 1998
Case Credit Corporation
700 State Street
Racine, Wisconsin 53404
Ladies and Gentlemen:
I am the General Counsel and Secretary of Case Corporation, a Delaware
corporation, the parent company and sole stockholder of Case Credit Corporation,
a Delaware corporation ("Case Credit"), and have advised Case Credit in
connection with the proposed sale of up to $1,000,000,000 principal amount of
Case Credit's Debt Securities (the "Securities"). The Securities are to be
issued under an Indenture (the "Indenture") between Case Credit and The Bank of
New York, as Trustee, dated as of October 1, 1997, with certain terms of the
Securities to be established by certain officers of Case Credit who have been
authorized by its Board of Directors to do so, as part of the corporate action
taken and to be taken (the "Corporate Proceedings") relating to the issuance of
the Securities.
I, or members of my staff, have examined or are otherwise familiar with the
Certificate of Incorporation of Case Credit, the By-Laws of Case Credit, the
Registration Statement on Form S-3 (the "Registration Statement") being filed by
Case Credit pursuant to which the Securities are to be registered under the
Securities Act of 1933, as amended, the Corporate Proceedings and such other
documents, records, and instruments as I have deemed necessary for the purposes
of this opinion.
Based on the foregoing, I am of the opinion that the Indenture is a valid and
binding instrument and that, upon the completion of the Corporate Proceedings
and the authentication, issuance, sale and delivery of the Securities, the
Securities shall be legal, valid and binding obligations of Case Credit,
entitled to
<PAGE>
the benefits of the Indenture, including such terms as are established pursuant
to the Corporate Proceedings, in accordance with the respective terms thereof
(subject, as to enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium or other laws affecting creditors' rights
generally from time to time in effect and the general principles of equity).
I hereby consent to the filing of this opinion as an Exhibit to the Registration
Statement and to being named in the related prospectus and any related
prospectus supplement under the caption "Legal Matters" with respect to the
matters stated therein. Further, I hereby consent to the incorporation by
reference of this opinion and consent in any abbreviated registration
statement(s) registering up to an additional 20% aggregate principal amount of
Securities filed subsequent to the date hereof.
Sincerely,
/s/ Richard S. Brennan
Richard S. Brennan
<PAGE>
EXHIBIT 12
CASE CREDIT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED YEARS ENDED DECEMBER 31,
MARCH 31, -------------------------------
1998 1997 1996 1995 1994 1993
------------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Income.......................................... $ 19 $ 82 $ 85 $ 94 $ 81 $111
Add:
Interest expense.................................. 29 98 72 42 88 227
Amortization of capitalized debt expense.......... -- 1 2 2 1 1
Portion of rentals representative
of interest factor............................... -- -- -- -- -- --
Income tax expense and other taxes on income...... 11 40 45 53 55 75
Cumulative effect of change in
accounting principles............................ -- -- -- -- -- 6
Fixed charges of unconsolidated
subsidiaries..................................... -- -- -- -- -- --
Extraordinary loss................................ -- -- 3 -- 4 --
---- ---- ---- ---- ---- ----
Earnings as defined............................. $ 59 $221 $207 $191 $229 $414
==== ==== ==== ==== ==== ====
Interest expense.................................... $ 29 $ 98 $ 72 $ 42 $ 88 $227
Amortization of capitalized debt
expense............................................ -- 1 2 2 1 1
Portion of rentals representative
of interest factor................................. -- -- -- -- -- --
Fixed charges of unconsolidated subsidiaries........ -- -- -- -- -- --
---- ---- ---- ---- ---- ----
Fixed charges as defined........................ $ 29 $ 99 $ 74 $ 44 $ 89 $228
==== ==== ==== ==== ==== ====
Ratio of earnings to fixed charges.................. 2.03x 2.23x 2.80x 4.34x 2.57x 1.82x
==== ==== ==== ==== ==== ====
</TABLE>
<PAGE>
EXHIBIT 23(A)
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the use of our
report dated January 20, 1998 (except with respect to the matters discussed
in Note 12, as to which the date is February 24, 1998) on the Case Credit
Corporation and subsidiaries financial statements (and to all references to
our Firm) included in this registration statement.
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin
May 13, 1998
<PAGE>
EXHIBIT 25
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FORM T-1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF 1939 OF A
CORPORATION DESIGNATED TO ACT AS TRUSTEE
CHECK IF AN APPLICATION TO DETERMINE
ELIGIBILITY OF A TRUSTEE PURSUANT TO
SECTION 305(b)(2) |__|
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THE BANK OF NEW YORK
(Exact name of trustee as specified in its charter)
New York 13-5160382
(State of incorporation (I.R.S. employer
if not a U.S. national bank) identification no.)
48 Wall Street, New York, N.Y. 10286
(Address of principal executive offices) (Zip code)
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CASE CREDIT CORPORATION
(Exact name of obligor as specified in its charter)
Delaware 76-0394710
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
700 State Street
Racine, Wisconsin 53404
(Address of principal executive offices) (Zip code)
______________________
Debt Securities
(Title of the indenture securities)
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1. General information. Furnish the following information as to the Trustee:
(a) Name and address of each examining or supervising authority to which
it is subject.
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Name Address
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<S> <C>
Superintendent of Banks of the State of 2 Rector Street, New York,
New York N.Y. 10006, and Albany, N.Y. 12203
Federal Reserve Bank of New York 33 Liberty Plaza, New York,
N.Y. 10045
Federal Deposit Insurance Corporation Washington, D.C. 20429
New York Clearing House Association New York, New York 10005
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(b) Whether it is authorized to exercise corporate trust powers.
Yes.
2. Affiliations with Obligor.
If the obligor is an affiliate of the trustee, describe each such
affiliation.
None.
16. List of Exhibits.
Exhibits identified in parentheses below, on file with the Commission, are
incorporated herein by reference as an exhibit hereto, pursuant to Rule 7a-
29 under the Trust Indenture Act of 1939 (the "Act") and 17 C.F.R.
229.10(d).
1. A copy of the Organization Certificate of The Bank of New York
(formerly Irving Trust Company) as now in effect, which contains the
authority to commence business and a grant of powers to exercise
corporate trust powers. (Exhibit 1 to Amendment No. 1 to Form T-1
filed with Registration Statement No. 33-6215, Exhibits 1a and 1b to
Form T-1 filed with Registration Statement No. 33-21672 and Exhibit 1
to Form T-1 filed with Registration Statement No. 33-29637.)
4. A copy of the existing By-laws of the Trustee. (Exhibit 4 to Form T-1
filed with Registration Statement No. 33-31019.)
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6. The consent of the Trustee required by Section 321(b) of the Act.
(Exhibit 6 to Form T-1 filed with Registration Statement No. 33-
44051.)
7. A copy of the latest report of condition of the Trustee published
pursuant to law or to the requirements of its supervising or examining
authority.
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SIGNATURE
Pursuant to the requirements of the Act, the Trustee, The Bank of New York,
a corporation organized and existing under the laws of the State of New York,
has duly caused this statement of eligibility to be signed on its behalf by the
undersigned, thereunto duly authorized, all in The City of New York, and State
of New York, on the 12th day of May, 1998.
THE BANK OF NEW YORK
By: /s/ WALTER N. GITLIN
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Name: WALTER N. GITLIN
Title: VICE PRESIDENT
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EXHIBIT 7
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Consolidated Report of Condition of
THE BANK OF NEW YORK
of 48 Wall Street, New York, NY.10266
And Foreign and Domestic Subsidiaries, a member of the Federal Reserve
System, at the close of business December 31, 1997, published in accordance with
a call made by the Federal Reserve Bank of this District pursuant to the
provisions of the Federal Reserve Act.
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Dollar Amounts
ASSETS in Thousands
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Cash and balances due from depository institutions:
Noninterest-bearing balances and currency and coin.......... $ 5,742,986
Interest-bearing balances................................... 1,342,769
Securities:
Held-to-maturity securities................................. 1,099,736
Available-for-sale securities............................... 3,882,586
Federal funds sold and Securities purchased under
agreements to resell........................................ 2,568,530
Loans and lease financing receivables:
Loans and leases, net of unearned
income............................. 35,019,608
LESS: Allowance for loan and lease
losses............................. 627,350
LESS: Allocated transfer risk
reserve............................. 0
Loans and leases, net of unearned income,
allowable, and reserve.................................... 34,392,258
Assets held in trading accounts............................... 2,521,451
Premises and fixed assets (including capitalized
leases)..................................................... 659,209
Other real estate owned....................................... 11,992
Investments in unconsolidated subsidiaries and
associate companies..................................... 236,263
Customers liability to this bank on acceptances
outstanding................................................. 1,187,449
Intangibles assets............................................ 781,684
Other assets.................................................. 1,736,574
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Total assets.................................................. $ 56,153,537
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LIABILITIES
Deposits:
In cosmetic offices......................................... $ 27,031,362
Noninterest-bearing.................. 11,899,507
Interest-bearing..................... 15,131,855
In foreign offices. Edge and Agreement
subsidiaries, and IBFs.................................... 13,794,449
Noninterest-bearing.................. 590,999
Interest-bearing..................... 13,203,450
Federal funds purchased and Securities sold under
agreements to repurchase.................................... 2,238,881
Demand notes issued to the U.S. Treasury...................... 173,851
Trading liabilities........................................... 1,635,216
Other borrowed money:
With remaining maturity of one year or less................. 1,905,330
With remaining maturity of more than one year
through three years....................................... 0
With remaining maturity of more than three
years..................................................... 25,664
Banks liability on acceptances executed and
outstanding................................................. 1,195,923
Subordinated notes and debentures............................. 1,012,940
Other liabilities............................................. 2,018,960
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Total liabilities............................................. 51,192,576
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EQUITY CAPITAL
Common stock.................................................. 1,135,284
Surplus....................................................... 731,319
Undivided profits and capital reserves........................ 3,093,726
Net unrealized holding gains (losses) on
available-for-sale securities............................... 36,866
Cumulative foreign currency transaction
adjustments................................................. ( 36,184)
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Total equity capital.......................................... 4,951,011
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Total liabilities and equity capital.......................... $ 56,153,587
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I, Robert E. Keilman, Senior Vice President and Comptroller of the
above-named bank do hereby declare that this Report of Condition has been
prepared in conformance with the instructions issued by the Board of Governors
of the Federal Reserve System and is true to the best of my knowledge and
belief.
Robert E. Keilman
We, the undersigned directors, attest to the correctness of this Report of
Condition and declare that it has been examined by us and to the best of our
knowledge and belief has been prepared in conformance with the instructions
issued by the Board of Governors of the Federal Reserve Systems and is true and
correct.
Thomas a. Renyl)
Alan R. Griffin) Directors
J. Carter Bacot)
