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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September 25, 1998
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FLEET FINANCIAL GROUP, INC.
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(Exact name of registrant as specified in its charter)
RHODE ISLAND
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(State or other jurisdiction of incorporation)
1-6366 05-0341324
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(Commission File Number) (IRS Employer Identification No.)
One Federal Street, Boston, Massachusetts 02110
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 617-346-4000
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(Former name or former address, if changed since last report)
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Item 5. Other Materially Important Events.
On September 25, 1998, Registrant authorized the sale of and established
the terms of $2,000,000,000 in aggregate principal amount of its Senior
Medium-Term Notes, Series N and Subordinated Medium-Term Notes, Series O
(the "Notes"), under Registration Statement No. 333-62905. The Notes have
maturities ranging nine months or more and bear interest at fixed or
floating rates. The Notes are to be offered by Registrant's Agents, Fleet
National Bank, Goldman, Sachs & Co., Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities Inc. and
Salomon Smith Barney Inc. Closing documents relating to the Notes were
executed and delivered on September 25, 1998.
Item 7. Financial Statements and Exhibits.
(a) Financial Statements
Not applicable
(b) Pro Forma Financial Statements
Not applicable
(c) Exhibits
The following exhibits are filed as part of this report:
(1)(a) Selling Agency Agreement dated September 25, 1998 between
Registrant, Goldman Sachs & Co., Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities, Inc. and
Salomon Smith Barney Inc.
(1)(b) Distribution Agreement dated September 25, 1998 between Registrant
and Fleet National Bank
(4)(a) Specimen certificate of the Series N Senior Medium-Term Notes
(4)(b) Specimen certificate of the Series O Subordinated Medium-Term Notes
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed in its behalf by the
undersigned hereunto duly authorized.
FLEET FINANCIAL GROUP, INC.
Registrant
By: /s/ William C. Mutterperl
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William C. Mutterperl
Secretary and General Counsel
Date: September 25, 1998
3
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Exhibit 1(a)
Fleet Financial Group, Inc.
U.S.$2,000,000,000
Senior Medium-Term Notes, Series N and
Subordinated Medium-Term Notes, Series O
Due Nine Months or More
from Date of Issue
Selling Agency Agreement
September 25, 1998
New York, New York
Goldman, Sachs & Co.
85 Broad Street
New York, NY 10004
Merrill Lynch & Co.
Merrill Lynch, Pierce,
Fenner & Smith Incorporated
World Financial Center
North Tower, 10th Floor
New York, NY 10281-1310
J.P. Morgan Securities Inc.
60 Wall Street
New York, NY 10260
Salomon Smith Barney Inc.
Seven World Trade Center
New York, NY 10048
Dear Sirs:
Fleet Financial Group, Inc., a Rhode Island corporation (the
"Company"), confirms its agreement with each of you with respect to the
issue and sale by the Company of up to $2,000,000,000 aggregate principal
amount of its Senior Medium-Term Notes, Series N and Subordinated
Medium-Term Notes, Series O (respectively, the "Senior Notes" and the
"Subordinated Notes"), Due Nine Months or More from Date of Issue
(collectively, the "Notes"). The Senior Notes are to be issued under an
indenture dated as of October 1, 1992, between the Company and The First
National Bank of Chicago (the "Senior Trustee" or "First Chicago"), as
trustee (the "Senior Indenture"). The Subordinated Notes are to be issued
under an indenture dated as of October 1, 1992, between the Company and
First Chicago as trustee (the "Subordinated Trustee" and, collectively with
the Senior Trustee, the "Trustee") as supplemented by a first supplemental
indenture dated as of November 30, 1992, between the Company and the
Subordinated Trustee (as so supplemented, the "Subordinated Indenture" and
collectively with the Senior Indenture, the "Indentures"). The Notes will
be issued in minimum denominations of $1,000 and integral multiples
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thereof, will be issued only in fully registered form and will have the
annual interest rates, maturities and, if appropriate, other terms set
forth in a supplement to the Prospectus referred to below. The Notes will
be issued, and the terms thereof established, in accordance with the
applicable Indenture and the Medium-Term Notes Administrative Procedures
attached hereto as Exhibit A (the "Procedures") (unless a Terms Agreement
(as defined in Section 2(b)) modifies or otherwise supersedes such
Procedures with respect to Notes issued pursuant to such Terms Agreement).
The Procedures may only be amended by written agreement of the Company and
you after notice to, and with the approval of, the Trustee. For the
purposes of this Agreement, the term "Agent" shall refer to any of you
acting solely in the capacity as agent for the Company pursuant to Section
2(a) and not as principal (collectively, the "Agents"), the term
"Purchaser" shall refer to one of you acting solely as principal pursuant
to Section 2(b) and not as agent, and the term "you" shall refer to you
collectively whether at any time any of you is acting in both such
capacities or in either such capacity. In acting under this Agreement, in
whatever capacity, each of you is acting individually and not jointly.
1. REPRESENTATIONS AND WARRANTIES. The Company represents and
warrants to, and agrees with, you as set forth below in this Section 1.
Certain terms used in this Section 1 are defined in paragraph (d) hereof.
(a) The Company meets the requirements for use of Form S-3
under the Securities Act of 1933 (the "Act") and has filed with
the Securities and Exchange Commission (the "Commission") a
registration statement on such Form (Registration Number
333-62905), including a basic prospectus, which also constitutes
pursuant to Rule 429 under the Act Post-Effective Amendment No. 1
to registration statement on such Form (Registration Number
333-37231) and to registration statement on such Form
(Registration Statement Number 333-48043) and which has become
effective, for the registration under the Act of securities (the
"Securities"), including the Notes, in an aggregate principal
amount of $2,336,868,750. Such registration statement, as
amended at the date of this Agreement, meets the requirements set
forth in Rule 415(a)(1)(ix) or (x) under the Act and complies in
all other material respects with said Rule. The Company has
included in such registration statement, as amended at the date
of this Agreement, or has filed or will file with the Commission
pursuant to the applicable paragraph of Rule 424(b) under the
Act, a supplement to the form of prospectus included in such
registration statement relating to the Notes and the plan of
distribution thereof (the "Prospectus Supplement"). In
connection with the sale of Notes the Company proposes to file
with the Commission pursuant to the applicable paragraph of Rule
424(b) under the Act further supplements to the Prospectus
Supplement specifying the interest rates, maturity dates and, if
appropriate, other terms of the Notes sold pursuant hereto or the
offering thereof.
(b) As of the Execution Time, on the Effective Date, when
any supplement to the Prospectus is filed with the Commission, as
of the date of any Terms Agreement, on each day of an Offering
Period (referred to below) and at the date of delivery by the
Company of any Notes sold hereunder (a "Closing Date"), (i) the
Registration Statement, as amended as of any such time, and the
Prospectus, as supplemented as of any such time, and each
Indenture will comply in all material respects with the
applicable requirements of the Act, the Trust Indenture Act of
1939 (the "Trust Indenture Act") and the Securities Exchange Act
of 1934 (the "Exchange Act") and the respective rules thereunder;
(ii) the Registration Statement, as amended as of any such time,
did not or will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein not
misleading; and (iii) the Prospectus, as supplemented as of any
such time, will not contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under
which they were made, not misleading; PROVIDED, HOWEVER, that the
Company makes no representations or warranties as to (i) that
part of the Registration Statement which shall constitute the
Statement of Eligibility and Qualification (Form T-1) under the
Trust Indenture Act of the Trustee or (ii) the information
contained in or omitted from the Registration Statement or the
Prospectus (or any supplement thereto) in reliance upon and in
conformity with information furnished in writing to the Company
by any of you
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specifically for inclusion in connection with the preparation of
the Registration Statement or the Prospectus (or any supplement
thereto).
(c) As of the time any Notes are issued and sold hereunder,
each Indenture will constitute a legal, valid and binding
instrument enforceable against the Company in accordance with its
terms and such Notes will have been duly authorized, executed,
authenticated and, when paid for by the purchasers thereof, will
constitute legal, valid and binding obligations of the Company
entitled to the benefits of the applicable Indenture.
(d) The terms which follow, when used in this Agreement,
shall have the meanings indicated. The term "the Effective Date"
shall mean each date that the Registration Statement and any
post-effective amendment or amendments thereto became or become
effective. "Execution Time" shall mean the date and time that
this Agreement is executed and delivered by the parties hereto.
"Basic Prospectus" shall mean the form of basic prospectus
relating to the Securities contained in the Registration
Statement at the Effective Date. "Prospectus" shall mean the
Basic Prospectus as supplemented by the Prospectus Supplement.
"Registration Statement" shall mean the registration statement
referred to in paragraph (a) above, including incorporated
documents, exhibits and financial statements, as amended at the
Execution Time. "Rule 415" and "Rule 424" refer to such rules
under the Act. Any reference herein to the Registration
Statement, the Basic Prospectus, the Prospectus Supplement 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
which were filed under the Exchange Act on or before the
Effective Date of the Registration Statement or the issue date of
the Basic Prospectus, the Prospectus Supplement or the
Prospectus, as the case may be; and any reference herein to the
terms "amend", "amendment" or "supplement" with respect to the
Registration Statement, the Basic Prospectus, the Prospectus
Supplement or the Prospectus shall be deemed to refer to and
include the filing of any document under the Exchange Act after
the Effective Date of the Registration Statement or the issue
date of the Basic Prospectus, the Prospectus Supplement or the
Prospectus, as the case may be, deemed to be incorporated therein
by reference.
2. APPOINTMENT OF AGENTS; SOLICITATION BY THE AGENTS OF OFFERS TO
PURCHASE; SALES OF NOTES TO A PURCHASER. (a) Subject to the terms and
conditions set forth herein, the Company hereby authorizes each of the
Agents to act as its agent to solicit offers for the purchase of all or
part of the Notes from the Company. The Company shall notify the Agents
from time to time as to the commencement of a period during which the Notes
may be offered and sold by the Agents (each period, commencing with such
notification and ending at such time as the authorization for offers and
sales through the Agents shall have been suspended by the Company or the
Agents as provided hereunder, being referred to as an "Offering Period").
On the basis of the representations and warranties, and subject to the
terms and conditions set forth herein, each of the Agents agrees, as agent
of the Company, to use its reasonable efforts to solicit offers to purchase
the Notes during each Offering Period from the Company upon the terms and
conditions set forth in the Prospectus (and any supplement thereto) and in
the Procedures.
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 the Notes. Upon receipt of
instructions from the Company, the Agents will forthwith suspend
solicitation of offers to purchase Notes from the Company until such time
as the Company has advised them that such solicitation may be resumed.
The Company agrees to pay each Agent a commission, on the Closing Date
with respect to each sale of Notes by the Company as a result of a
solicitation made by such Agent as agent, in an amount equal to that
percentage specified in Schedule I hereto of the aggregate principal amount
of the Notes sold by the Company. Such commission shall be payable as
specified in the Procedures.
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Subject to the provisions of this Section and to the Procedures,
offers for the purchase of Notes may be solicited by an Agent as agent for
the Company at such time and in such amounts as such Agent deems advisable.
The Company may from time to time offer Notes for sale otherwise than
through an Agent; PROVIDED, HOWEVER, that so long as this Agreement shall
be in effect, the Company shall not solicit or accept offers to purchase
Notes through any agent other than an Agent or an affiliate of the Company
(including Fleet National Bank, which has entered into a distribution
agreement with the Company providing for the sale of Notes on terms and
conditions substantially similar to those contained herein) unless such
solicitation or acceptance is on terms with respect to commissions
substantially similar to those set forth in Schedule I hereto and the
Company shall give the Agents reasonable notice of the appointment of such
agents for the purpose of soliciting the Notes.
(b) Subject to the terms and conditions stated herein, whenever
the Company and any Agent determine that the Company shall sell Notes
directly to such Agent as principal, each such sale of Notes shall be made
in accordance with the terms of this Agreement and a supplemental agreement
relating to such sale between the Company and the Purchaser. Each such
supplemental agreement (which may be an oral or written agreement) is
herein referred to as a "Terms Agreement". Each Terms Agreement shall
describe (whether orally or in writing) the Notes to be purchased by the
Purchaser pursuant thereto and shall specify the aggregate principal amount
of such Notes, the price to be paid to the Company for such Notes, the
maturity date of such Notes, the rate at which interest will be paid on
such Notes, the dates on which interest will be paid on such Notes and the
record date with respect to each such payment of interest, the Closing Date
for the purchase of such Notes, the place of delivery of the Notes and
payment therefor, the method of payment and any requirements for the
delivery of opinions of counsel, certificates from the Company or its
officers or a letter from the Company's independent public accountants, as
described in Section 6(b). Any such Terms Agreement may also specify the
period of time referred to in Section 4(m). The Purchaser's commitment to
purchase Notes 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 set forth.
Delivery of the certificates for Notes sold to the Purchaser
pursuant to a Terms Agreement shall be made not later than the Closing Date
agreed to in such Terms Agreement, against payment of funds to the Company
in the net amount due to the Company for such Notes by the method and in
the form set forth in the Procedures unless otherwise agreed to between the
Company and the Purchaser in such Terms Agreement.
Unless otherwise agreed to between the Company and the Purchaser
in a Terms Agreement, any Note sold to a Purchaser (i) shall be purchased
by such Purchaser at a price equal to 100% of the principal amount thereof
less a percentage equal to the commission applicable to an agency sale of a
Note of identical maturity and (ii) may be resold by such Agent at varying
prices determined at the time of sale or, if so agreed and set forth in the
applicable Pricing Supplement, at a fixed public offering price, from time
to time. In connection with any resale of Notes purchased, a Purchaser may
use a selling or dealer group and may reallow any portion of the discount
or commission payable pursuant hereto to dealers or purchasers.
3. OFFERING AND SALE OF NOTES. Each Agent and the Company
agree to perform the respective duties and obligations specifically
provided to be performed by them in the Procedures.
4. AGREEMENTS. The Company agrees with you that:
(a) Prior to the termination of the offering of the Notes, the
Company will not file any amendment of the Registration Statement or
supplement to the Prospectus (except for (i) periodic or current
reports filed under the Exchange Act, (ii) a supplement relating to
any offering of Notes providing solely for the specification of or a
change in the maturity dates, interest rates, issuance prices or other
terms of any Notes or (iii) a supplement relating to an offering of
Securities other than the Notes) unless the Company has furnished each
of you a copy for your
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review prior to filing and given each of you a reasonable opportunity
to comment on any such proposed amendment or supplement. Subject to
the foregoing sentence, the Company will cause each supplement to the
Prospectus to be filed with the Commission pursuant to the applicable
paragraph of Rule 424(b) within the time period prescribed and will
provide evidence satisfactory to you of such filing. The Company will
promptly advise each of you (i) when the Prospectus, and any
supplement thereto, shall have been filed with the Commission pursuant
to Rule 424(b), (ii) when, prior to the termination of the offering of
the Notes, any amendment of the Registration Statement shall have been
filed or become effective, (iii) of any request by the Commission for
any amendment of the Registration Statement or supplement to the
Prospectus or for any additional information, (iv) of the issuance by
the Commission of any stop order suspending the effectiveness of the
Registration Statement or the institution or threatening of any
proceeding for that purpose and (v) of the receipt by the Company of
any notification with respect to the suspension of the qualification
of the Notes for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose. The Company will use
its best efforts to prevent the issuance of any such stop order and,
if issued, to obtain as soon as possible the withdrawal thereof.
(b) If, at any time when a prospectus relating to the Notes is
required to be delivered under the Act, any event occurs as a result
of which the Prospectus as then supplemented would include any untrue
statement of a material fact or omit to state any material fact
necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it
shall be necessary to amend the Registration Statement or to
supplement the Prospectus to comply with the Act or the Exchange Act
or the respective rules thereunder, the Company promptly will (i)
notify each of you to suspend solicitation of offers to purchase Notes
(and, if so notified by the Company, each of you shall forthwith
suspend such solicitation and cease using the Prospectus as then
supplemented), (ii) prepare and file with the Commission, subject to
the first sentence of paragraph (a) of this Section 4, an amendment or
supplement which will correct such statement or omission or effect
such compliance and (iii) supply any supplemented Prospectus to each
of you in such quantities as you may reasonably request. If such
amendment or supplement, and any documents, certificates and opinions
furnished to each of you pursuant to paragraph (g) of this Section 4
in connection with the preparation or filing of such amendment or
supplement are satisfactory in all respects to you, each of you will,
upon the filing of such amendment or supplement with the Commission
and upon the effectiveness of an amendment to the Registration
Statement, if such an amendment is required, resume your obligation to
solicit offers to purchase Notes hereunder.
(c) The Company, during the period when a prospectus relating to
the Notes is required to be delivered under the Act, will file
promptly all documents required to be filed with the Commission
pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act and
will furnish to each of you copies of such documents. In addition, on
the date on which the Company makes any announcement to the general
public concerning earnings or concerning any other event which is
required to be described, or which the Company proposes to describe,
in a document filed pursuant to the Exchange Act, the Company will
furnish to each of you the information contained or to be contained in
such announcement. The Company also will furnish to each of you
copies of all other press releases or announcements to the general
public of a financial nature. The Company will immediately notify
each of you of (i) any decrease in the rating of the Notes or any
other debt securities of the Company, by any "nationally recognized
statistical rating organization" (as defined for purposes of Rule
436(g) under the Act) or (ii) any notice given of any intended or
potential decrease in any such rating or of a possible change in any
such rating that does not indicate the direction of the possible
change, as soon as the Company learns of any such decrease or notice.
(d) As soon as practicable, the Company will make generally
available to its security holders and to each of you an earnings
statement or statements of the Company and its
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subsidiaries which will satisfy the provisions of Section 11(a) of the
Act and Rule 158 under the Act.
(e) The Company will furnish to each of you and your counsel,
without charge, copies of the Registration Statement (including
exhibits thereto) and, so long as delivery of a prospectus may be
required by the Act, as many copies of the Prospectus and any
supplement thereto as you may reasonably request.
(f) The Company will arrange for the qualification of the Notes
for sale under the laws of such jurisdictions as any of you may
designate, will maintain such qualifications in effect so long as
required for the distribution of the Notes, and will arrange for the
determination of the legality of the Notes for purchase by
institutional investors.
(g) The Company shall furnish to each of you such information,
documents, certificates of officers of the Company and opinions of
counsel for the Company relating to the business, operations and
affairs of the Company, the Registration Statement, the Prospectus,
and any amendments thereof or supplements thereto, each Indenture, the
Notes, this Agreement, the Procedures and the performance by the
Company and you of its and your respective obligations hereunder and
thereunder as any of you may from time to time and at any time prior
to the termination of this Agreement reasonably request.
(h) The Company shall, whether or not any sale of the Notes is
consummated, (i) pay all expenses incident to the performance of its
obligations under this Agreement, including the fees and disbursements
of its accountants and counsel, the cost of printing or other
production and delivery of the Registration Statement, the Prospectus,
all amendments thereof and supplements thereto, each Indenture, this
Agreement and all other documents relating to the offering, the cost
of preparing, printing, packaging and delivering the Notes, the fees
and disbursements, including fees of counsel, incurred in compliance
with Section 4(f), the fees and disbursements of the Trustee and the
fees of any agency that rates the Notes, (ii) reimburse each of you on
a monthly basis for all out-of-pocket expenses (including without
limitation advertising expenses) incurred by you in connection with
this Agreement and (iii) pay the reasonable fees and expenses of your
counsel incurred in connection with this Agreement.
(i) Each acceptance by the Company of an offer to purchase Notes
will be deemed to be an affirmation that its representations and
warranties contained in this Agreement are true and correct at the
time of such acceptance, as though made at and as of such time, and a
covenant that such representations and warranties will be true and
correct at the time of delivery to the purchaser of the Notes relating
to such acceptance, as though made at and as of such time (it being
understood that for purposes of the foregoing affirmation and covenant
such representations and warranties shall relate to the Registration
Statement and Prospectus as amended or supplemented at each such
time). Each such acceptance by the Company of an offer for the
purchase of Notes shall be deemed to constitute an additional
representation, warranty and agreement by the Company that, as of the
settlement date for the sale of such Notes, after giving effect to the
issuance of such Notes, of any other Notes to be issued on or prior to
such settlement date and of any other Securities to be issued and sold
by the Company on or prior to such settlement date, the aggregate
amount of Securities (including any Notes) which have been issued and
sold by the Company will not exceed the amount of Securities
registered pursuant to the Registration Statement.
(j) Prior to the commencement of the first Offering Period
subsequent to each time, and subsequent to each time during any
Offering Period, that the Registration Statement or the Prospectus is
amended or supplemented (other than by an amendment or supplement
relating to any offering of Securities other than the Notes or
providing solely for the specification of or a change in the maturity
dates, the interest rates, the issuance prices or other similar terms
of any
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Notes sold pursuant hereto), the Company will deliver or cause to be
delivered promptly to each of you a certificate of the Company, signed
by the Chairman of the Board, or the President, or any Executive Vice
President and the principal financial or accounting officer or
Treasurer of the Company, dated the date of the effectiveness of such
amendment or the date of the filing of such supplement, in form
reasonably satisfactory to you, of the same tenor as the certificate
referred to in Section 5(d) but modified to relate to the last day of
the fiscal quarter for which financial statements of the Company were
last filed with the Commission and to the Registration Statement and
the Prospectus as amended and supplemented to the time of the
effectiveness of such amendment or the filing of such supplement.
(k) Prior to the commencement of the first Offering Period
subsequent to each time, and subsequent to each time during any
Offering Period, that the Registration Statement or the Prospectus is
amended or supplemented (other than by an amendment or supplement (i)
relating to any offering of Securities other than the Notes, (ii)
providing solely for the specification of or a change in the maturity
dates, the interest rates, the issuance prices or other similar terms
of any Notes sold pursuant hereto or (iii) setting forth or
incorporating by reference financial statements or other information
as of and for a fiscal quarter, unless, in the case of clause (iii)
above, in the reasonable judgment of any of you, such financial
statements or other information are of such a nature that an opinion
of counsel should be furnished), the Company shall furnish or cause to
be furnished promptly to each of you a written opinion of counsel of
the Company satisfactory to each of you, dated the date of the
effectiveness of such amendment or the date of the filing of such
supplement, in form satisfactory to each of you, of the same tenor as
the opinion referred to in Section 5(b) but modified to relate to the
Registration Statement and the Prospectus as amended and supplemented
to the time of the effectiveness of such amendment or the filing of
such supplement or, in lieu of such opinion, counsel last furnishing
such an opinion to you may furnish each of you with a letter to the
effect that you may rely on such last opinion to the same extent as
though it were dated the date of such letter authorizing reliance
(except that statements in such last opinion will be deemed to relate
to the Registration Statement and the Prospectus as amended and
supplemented to the time of the effectiveness of such amendment or the
filing of such supplement).
(l) Prior to the commencement of the first Offering Period
subsequent to each time that the Registration Statement or the
Prospectus is amended or supplemented to include or incorporate
amended or supplemental financial information, and each time during
any Offering Period that the Registration Statement or Prospectus is
so amended or supplemented, the Company shall cause its independent
public accountants promptly to furnish each of you a letter, dated the
date of the commencement of such Offering Period or the date of the
effectiveness of such amendment or the date of the filing of such
supplement, as the case may be, in form satisfactory to each of you,
of the same tenor as the letter referred to in Section 5(e) with such
changes as may be necessary to reflect the amended and supplemental
financial information included or incorporated by reference in the
Registration Statement and the Prospectus, as amended or supplemented
to the date of such letter; PROVIDED, that in no event will the
Company accept any offer to purchase Notes unless such letter shall
have been delivered; PROVIDED, FURTHER, that, if the Registration
Statement or the Prospectus is amended or supplemented solely to
include or incorporate by reference financial information as of and
for a fiscal quarter, the Company's independent public accountants may
limit the scope of such letter, which shall be satisfactory in form to
each of you, to the unaudited financial statements, the related
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" and any other information of an accounting,
financial or statistical nature included in such amendment or
supplement, unless, in the reasonable judgment of any of you, such
letter should cover other information or changes in specified
financial statement line items.
(m) During the period from the date of any Terms Agreement to
the later of (A) the Closing Date with respect to such Terms Agreement
and (B) the date, if any, specified in such
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Terms Agreement, the Company shall not, without the prior consent of
the Purchaser thereunder, issue or announce the proposed issuance of
any of its debt securities, including Notes (other than the Notes that
are to be sold pursuant to such Terms Agreement), with terms
substantially similar to the Notes being purchased pursuant to such
Terms Agreement, other than borrowings under its revolving credit
agreements and lines of credit and issuances of its commercial paper.
5. CONDITIONS TO THE OBLIGATIONS OF THE AGENTS. The
obligations of each Agent to solicit offers to purchase the Notes shall be
subject to the accuracy of the representations and warranties on the part
of the Company contained herein as of the Execution Time, on the Effective
Date, when any supplement to the Prospectus is filed with the Commission
and as of each Closing Date, to the accuracy of the statements of the
Company made in any certificates pursuant to the provisions hereof, to the
performance by the Company of its obligations hereunder and to the
following additional conditions:
(a) If filing of the Prospectus, or any supplement thereto, is
required pursuant to Rule 424(b), the Prospectus, and any such
supplement, shall have been filed in the manner and within the time
period required by Rule 424(b); and no stop order suspending the
effectiveness of the Registration Statement shall have been issued and
no proceedings for that purpose shall have been instituted or
threatened.
(b) The Company shall have furnished to each Agent the opinion
of Edwards & Angell, LLP, counsel for the Company, dated the Execution
Time, to the effect that:
(i) each of the Company, Fleet National Bank ("Fleet
Bank"), and any other subsidiary or subsidiaries which the Agent
may reasonably request (individually a "Subsidiary" and
collectively the "Subsidiaries") has been duly incorporated and
is validly existing as a corporation or national association in
good standing under the laws of the jurisdiction in which it is
chartered or organized, with full corporate power and authority
to own its properties and conduct its business as described in
the Prospectus; the Company is qualified to do business as a
foreign corporation under the laws of the State of New York and
the Commonwealth of Massachusetts; except as stated above,
neither the Company nor Fleet Bank is required to be qualified to
do business as a foreign corporation under the laws of any other
jurisdiction; and the Company is registered as a bank holding
company under the Bank Holding Company Act of 1956, as amended;
(ii) all the outstanding shares of capital stock of Fleet
Bank and such Subsidiaries have been duly and validly authorized
and issued and are fully paid and (except as provided in 12
U.S.C. Section 55) nonassessable, and, except as otherwise set
forth in the Prospectus, all outstanding shares of capital stock
of Fleet Bank and such Subsidiaries are owned by the Company free
and clear of any perfected security interest and, to the
knowledge of such counsel, after due inquiry, any other security
interests, claims, liens or encumbrances;
(iii) each Indenture has been duly authorized, executed
and delivered by the Company, has been duly qualified under the
Trust Indenture Act, and constitutes a legal, valid and binding
agreement enforceable against the Company in accordance with its
terms (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 to the availability of equitable remedies which are
discretionary with the courts);
(iv) the Notes have been duly authorized as a series of
Debt Securities under the applicable Indenture, are in the forms
provided for by resolutions of the Board of Directors of the
Company adopted pursuant to such Indenture, conform to the
<PAGE>
description thereof contained in the Prospectus, and, when
executed and authenticated in accordance with the provisions of
the applicable Indenture and delivered to and paid for by the
purchasers, will constitute valid and binding obligations of the
Company entitled to the benefits of the applicable Indenture;
(v) to the best knowledge of such counsel, there is no
pending or threatened action, suit or proceeding before any court
or governmental agency, authority or body or any arbitrator
involving the Company or any of its subsidiaries, of a character
required to be disclosed in the Registration Statement which is
not adequately disclosed in the Prospectus, and there is no
franchise, contract or other document of a character required to
be described in the Registration Statement or Prospectus, or to
be filed as an exhibit, which is not described or filed as
required;
(vi) the Registration Statement and any amendments
thereto have become effective under the Act; to the best
knowledge of such counsel, no stop order suspending the
effectiveness of the Registration Statement, as amended, has been
issued, no proceedings for that purpose have been instituted or
threatened, and the Registration Statement, the Prospectus and
each amendment thereof or supplement thereto as of their
respective effective or issue dates (other than the financial
statements and other financial data contained therein as to which
such counsel need express no opinion) comply as to form in all
material respects with the applicable requirements of the Act and
the Exchange Act and the respective rules thereunder; and such
counsel has no reason to believe that the Registration Statement,
or any amendment thereof, at the time it became effective and at
the date of this Agreement (or, in the case of any opinion
delivered pursuant to Section 4(k) or Section 6, the date of such
subsequently delivered opinion), 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 amended or supplemented
to the date of such opinion, includes any untrue statement of a
material fact or omits to state a material fact necessary to make
the statements therein, in light of the circumstances under which
they were made, not misleading;
(vii) this Agreement has been duly authorized, executed
and delivered by the Company;
(viii) no consent, approval, authorization or order of any
court or governmental agency or body is required for the
consummation of the transactions contemplated herein, except such
as have been obtained under the Act and such as may be required
under the blue sky laws of any jurisdiction in connection with
the purchase and distribution of the Notes as contemplated by
this Agreement and such other approvals (specified in such
opinion) as have been obtained;
(ix) neither the issue and sale of the Notes, nor the
consummation of any other of the transactions herein contemplated
nor the fulfillment of the terms hereof will conflict with,
result in a breach of, or constitute a default under the charter
or by-laws of the Company or the terms of any indenture or other
agreement or instrument known to such counsel and to which the
Company or any of its subsidiaries is a party or bound, or any
order or regulation known to such counsel to be applicable to the
Company or any of its subsidiaries of any court, regulatory body,
administrative agency, governmental body or arbitrator having
jurisdiction over the Company or any of its subsidiaries; and
(x) no holders of securities of the Company have rights
to the registration of such securities under the Registration
Statement.
<PAGE>
In rendering such opinion, such counsel may rely (A) as to matters
involving the application of laws of any jurisdiction other than the
State of Rhode Island or the United States, to the extent deemed
proper and specified in such opinion, upon the opinion of other
counsel of good standing believed to be reliable and who are
satisfactory to counsel for the Agents and (B) as to matters of fact,
to the extent deemed proper, on certificates of responsible officers
of the Company and public officials. References to the Prospectus in
this paragraph (b) include any supplements thereto at the date such
opinion is rendered.
(c) Each Agent shall have received from Cravath, Swaine & Moore,
counsel for the Agents, such opinion or opinions, dated the Execution
Time, with respect to the issuance and sale of the Notes, each
Indenture, the Registration Statement, the Prospectus (together with
any supplement thereto) and other related matters as the Agents may
reasonably require, and the Company shall have furnished to such
counsel such documents as they request for the purpose of enabling
them to pass upon such matters.
(d) The Company shall have furnished to each Agent a certificate
of the Company, signed by the Chairman of the Board, or the President,
or any Executive Vice President and the principal financial or
accounting officer or Treasurer of the Company, dated the Execution
Time, to the effect that the signers of such certificate have
carefully examined the Registration Statement, the Prospectus, any
supplement to the Prospectus and this Agreement and that:
(i) the representations and warranties of the Company in
this Agreement are true and correct in all material respects on
and as of the date hereof with the same effect as if made on the
date hereof and the Company has complied with all the agreements
and satisfied all the conditions on its part to be performed or
satisfied as a condition to the obligation of the Agents to
solicit offers to purchase the Notes;
(ii) no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for
that purpose have been instituted or, to the Company's knowledge,
threatened; and
(iii) since the date of the most recent financial
statements included in the Prospectus (exclusive of any
supplement thereto), there has been no material adverse change in
the condition (financial or other), earnings, business or
properties of the Company and its subsidiaries, whether or not
arising from transactions in the ordinary course of business,
except as set forth or contemplated in the Prospectus (exclusive
of any supplement thereto).
(e) At the Execution Time, KPMG Peat Marwick LLP shall have
furnished to each Agent a letter or letters (which may refer to
letters previously delivered to the Agents), dated as of the Execution
Time, in form and substance satisfactory to the Agents, confirming
that they are independent accountants within the meaning of the Act
and the Exchange Act and the respective applicable published rules and
regulations thereunder and stating in effect that:
(i) in their opinion the audited financial statements
included or incorporated in the Registration Statement and the
Prospectus and reported on by them comply as to form in all
material respects with the applicable accounting requirements of
the Act and the Exchange Act and the related published rules and
regulations;
(ii) on the basis of a reading of the latest unaudited
consolidated financial statements made available by the Company;
carrying out certain specified procedures (but not an examination
in accordance with generally accepted auditing standards) which
would not necessarily reveal matters of significance with respect
to the comments set forth in such letter; a reading of the
minutes of the meetings of the stockholders, directors
<PAGE>
and executive and audit committees of the Company; and inquiries
of certain officials of the Company who have responsibility for
financial and accounting matters of the Company and its
subsidiaries as to transactions and events subsequent to the date
of the most recent audited financial statements incorporated in
the Registration Statement and the Prospectus, nothing came to
their attention which caused them to believe that:
(1) the amounts in the unaudited "Summary
Consolidated Financial Data", if any, included in the
Prospectus do not agree with the corresponding amounts in
the audited consolidated financial statements, unaudited
consolidated financial statements or analyses prepared by
the Company from which such amounts were derived; or
(2) any unaudited financial statements included or
incorporated in the Registration Statement and the
Prospectus do not comply as to form in all material respects
with applicable accounting requirements and with the
published rules and regulations of the Commission with
respect to financial statements included or incorporated in
quarterly reports on Form 10-Q under the Exchange Act; and
said unaudited financial statements are not in conformity
with generally accepted accounting principles applied on a
basis substantially consistent with that of the audited
financial statements included or incorporated in the
Registration Statement and the Prospectus; or
(3) with respect to the period subsequent to the
date of the most recent financial statements (other than
capsule information), audited or unaudited, incorporated in
the Registration Statement and the Prospectus, there were
any changes, at a specified date not more than five business
days prior to the date of the letter, in the long-term debt
of the Company and its subsidiaries on a consolidated basis
or capital stock of the Company or decreases in the
stockholders' equity of the Company and its subsidiaries on
a consolidated basis as compared with the amounts shown on
the most recent consolidated balance sheet or capitalization
table included or incorporated in the Registration Statement
and the Prospectus, or for the period from the date of the
most recent financial statements incorporated in the
Registration Statement and the Prospectus to such specified
date there were any decreases, as compared with the
corresponding period in the preceding year, in net interest
income or income before income taxes, or in total or per
share amounts of net income, of the Company and its
subsidiaries on a consolidated basis, except in all
instances for changes or decreases that the Registration
Statement has disclosed have occurred or may occur, in which
case the letter shall be accompanied by an explanation by
the Company as to the significance thereof unless said
explanation is not deemed necessary by the Agents; or
(4) the amounts included in any unaudited "capsule"
information included or incorporated in the Registration
Statement and the Prospectus do not agree with the amounts
set forth in the unaudited financial statements for the same
periods or were not determined on a basis substantially
consistent with that of the corresponding amounts in the
audited financial statements included or incorporated in the
Registration Statement and the Prospectus;
(iii) they have performed certain other specific
procedures as a result of which they determined that certain
information of an accounting, financial or statistical nature
(which is limited to accounting, financial or statistical
information derived from the general accounting records of the
Company) set forth in the Registration Statement, as amended, and
the Prospectus, as amended or supplemented, and in Exhibit 12 to
the
<PAGE>
Registration Statement, the information included or incorporated
in Items 1 (Guide 3 Statistical Disclosure), 6 and 7 of the
Company's annual report on Form 10-K incorporated therein, and in
"Management's Discussion and Analysis of Financial Condition and
Results of operations" included or incorporated in the Company's
quarterly reports on Form 10-Q incorporated therein agrees with
the accounting records of the Company and its subsidiaries on a
consolidated basis, excluding any questions of legal
interpretation; and
(iv) if pro forma financial statements are included or
incorporated in the Registration Statement and the Prospectus, on
the basis of a reading of the unaudited pro forma financial
statements, carrying out certain specified procedures, inquiries
of certain officials of the Company and the acquired company who
have responsibility for financial and accounting matters, and
proving the arithmetic accuracy of the application of the pro
forma adjustments to the historical amounts in the pro forma
financial statements, nothing came to their attention which
caused them to believe that the pro forma financial statements do
not comply in form in all material respects with the applicable
accounting requirements of Rule 11-02 of Regulation S-X or that
the pro forma adjustments have not been properly applied to the
historical amounts in the compilation of such statements.
References to the Prospectus in this paragraph (e) include any
supplement thereto at the date of the letter.
(f) Prior to the Execution Time, the Company shall have
furnished to each Agent such further information, documents,
certificates and opinions of counsel as the Agents may reasonably
request.
The documents required to be delivered by this Section 5 shall be
delivered at the office of Cravath, Swaine & Moore, counsel for the Agents,
at Worldwide Plaza, 825 Eighth Avenue, New York, New York, on the date
hereof.
6. CONDITIONS TO THE OBLIGATIONS OF THE PURCHASER. The
obligations of the Purchaser to purchase any Notes will be subject to the
accuracy of the representations and warranties on the part of the Company
herein as of the date of the related Terms Agreement and as of the Closing
Date for such Notes, to the performance and observance by the Company of
all covenants and agreements herein contained on its part to be performed
and observed and to the following additional conditions precedent:
(a) No stop order suspending the effectiveness of the
Registration Statement shall have been issued and no proceedings for
that purpose shall have been instituted or threatened.
(b) To the extent agreed to in writing between the Company and
the Purchaser in a Terms Agreement, the Purchaser shall have received,
appropriately updated, (i) a certificate of the Company, dated as of
the Closing Date, to the effect set forth in Section 5(d) (except that
references to the Prospectus shall be to the Prospectus as
supplemented as of the date of such Terms Agreement), (ii) the opinion
of Edwards & Angell, counsel for the Company, dated as of the Closing
Date, to the effect set forth in Section 5(b), (iii) the opinion of
Cravath, Swaine & Moore, counsel for the Purchaser, dated as of the
Closing Date, to the effect set forth in Section 5(c), and (iv) a
letter of KPMG Peat Marwick LLP, independent accountants for the
Company, dated as of the Closing Date, to the effect set forth in
Section 5(e).
(c) Prior to the Closing Date, the Company shall have furnished
to the Purchaser such further information, certificates and documents
as the Purchaser may reasonably request.
If any of the conditions specified in this Section 6 shall not have
been fulfilled in all material respects when and as provided in this
Agreement and an applicable Terms Agreement, or if any of the
<PAGE>
opinions and certificates mentioned above or elsewhere in this Agreement or
such Terms Agreement and required to be delivered to the Purchaser pursuant
to the terms hereof and thereof shall not be in all material respects
reasonably satisfactory in form and substance to the Purchaser and its
counsel, such Terms Agreement and all obligations of the Purchaser
thereunder and with respect to the Notes subject there to may be canceled
at, or at any time prior to, the respective Closing Date by the Purchaser.
Notice of such cancelation shall be given to the Company in writing or by
telephone or telegraph confirmed in writing.
7. RIGHT OF PERSON WHO AGREED TO PURCHASE TO REFUSE TO
PURCHASE. (a) The Company agrees that any person who has agreed to purchase
and pay for any Note, including a Purchaser and any person who purchases
pursuant to a solicitation by any of the Agents, shall have the right to
refuse to purchase such Note if (i) at the Closing Date therefor, any
condition set forth in Section 5 (except that references to the Prospectus
shall be to the Prospectus as supplemented at the Closing Date) or 6, as
applicable, shall not be satisfied, (ii) subsequent to the agreement to
purchase such Note, any change, or any development with respect to the
Company involving a prospective change, in or affecting the business or
properties of the Company and its subsidiaries shall have occurred the
effect of which is, in the judgment of the Purchaser or the Agent which
presented the offer to purchase such Note, as applicable, so material and
adverse as to make it impractical or inadvisable to proceed with the
delivery of such Note or (iii) subsequent to the agreement to purchase such
Note, (w) there shall have been any decrease in the ratings of any of the
Company's debt securities by Moody's Investors Service or Standard & Poor's
Corporation (each a "Rating Agency") or any such Rating Agency shall
publicly announce that it has placed any of such debt securities on a
"watchlist" with negative implications, (x) trading in the Company's Common
Stock shall have been suspended by the Commission or the New York Stock
Exchange or trading in securities generally on the New York Stock Exchange
shall have been suspended or limited or minimum prices shall have been
established on such Exchange, (y) a banking moratorium shall have been
declared either by Federal, Rhode Island or New York State authorities, or
(z) there shall have occurred any outbreak or escalation of hostilities or
other calamity or crisis the effect of which on the financial markets or
the United States is such as to make it, in the judgment of the Purchaser
or the Agent which presented the offer to purchase such Note, as
applicable, impracticable to market such Notes (it being understood that
under no circumstance shall any Agent have any duty or obligation to
exercise any judgment permitted to be exercised pursuant to this Section
7(a)).
(b) The Company further agrees to notify each Agent upon the
occurrence of any change, condition or development contemplated by Section
7(a)(ii) or (iii).
8. INDEMNIFICATION AND CONTRIBUTION. (a) The Company agrees to
indemnify and hold harmless each of you and each person who controls each
of you within the meaning of either the Act or the Exchange Act against any
and all losses, claims, damages or liabilities, joint or several, to which
you, they or any of you or them may become subject under the Act, the
Exchange Act or other Federal or state statutory law or regulation, at
common law or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact
contained in the registration statement for the registration of the
Securities as originally filed or in any amendment thereof, or in the
Prospectus or any preliminary Prospectus, or in any amendment thereof or
supplement thereto, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and
agrees to reimburse each such indemnified party, as incurred, for any legal
or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or
action; PROVIDED, HOWEVER, that (i) the Company will not be liable in any
such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or alleged untrue
statement or omission or alleged omission made therein in reliance upon and
in conformity with written information furnished to the Company by any of
you specifically for use in connection with the preparation thereof, and
(ii) such indemnity with respect to the Prospectus or any preliminary
Prospectus shall not inure to the benefit of any of you (or any person
controlling any of you) from whom the person asserting any such loss,
claim, damage or liability purchased
<PAGE>
the Notes which are the subject thereof if it shall be established that
such person did not receive a copy of the Prospectus (or the Prospectus as
supplemented) excluding documents incorporated therein by reference at or
prior to the confirmation of the sale of such Notes to such person in any
case where such delivery is required by the Act if the Company has
previously furnished copies thereof in sufficient quantity and the loss,
claim, damage or liability results from an untrue statement or omission of
a material fact contained in the Prospectus or any preliminary Prospectus
was corrected in the Prospectus (or the Prospectus as supplemented). This
indemnity agreement will be in addition to any liability which the Company
may otherwise have.
(b) Each of you agrees to indemnify and hold harmless the
Company, each of its directors, each of its officers who signs the
Registration Statement and each person who controls the Company within the
meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Company to you, but only with reference to
written information relating to such of you furnished to the Company by
such of you specifically for use in the preparation of the documents
referred to in the foregoing indemnity. This indemnity agreement will be
in addition to any liability which you may otherwise have. The Company
acknowledges that the statement set forth in the last sentence of the
eleventh paragraph under the heading "Plan of Distribution" of the
Prospectus Supplement relating to purchases and sales of Notes in the
secondary market constitute the only information furnished in writing by
any of you for inclusion in the documents referred to in the foregoing
indemnity, and you confirm that such statement is correct.
(c) Promptly after receipt by an indemnified party under this
Section 8 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, notify the indemnifying party in
writing of the commencement thereof; but the omission so to notify the
indemnifying party will not relieve it from any liability which it may have
to any indemnified party otherwise than under this Section 8. In case any
such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will
be entitled to participate therein, and to the extent that it may elect by
written notice delivered to the indemnified party promptly after receiving
the aforesaid notice from such indemnified party, to assume the defense
thereof, with counsel satisfactory to such indemnified party; PROVIDED,
HOWEVER, that if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded that there may be legal defenses available
to it and/or other indemnified parties which are different from or
additional to those available to the indemnifying party, the indemnified
party or parties shall have the right to select separate counsel to assert
such legal defenses and to otherwise participate in the defense of such
action on behalf of such indemnified party or parties. Upon receipt of
notice from the indemnifying party to such indemnified party of its
election so to assume the defense of such action and approval by the
indemnified party of counsel, the indemnifying party will not be liable to
such indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the
defense thereof unless (i) the indemnified party shall have employed
separate counsel in connection with the assertion of legal defenses in
accordance with the proviso to the next preceding sentence (it being
understood, however, that the indemnifying party shall not be liable for
the expenses of more than one separate counsel (plus any local counsel),
approved by you in the case of paragraph (a) of this Section 8,
representing the indemnified parties under such paragraph (a) who are
parties to such action), (ii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of commencement of
the action or (iii) the indemnifying party has authorized the employment of
counsel for the indemnified party at the expense of the indemnifying party;
and except that, if clause (i) or (iii) is applicable, such liability shall
be only in respect of the counsel referred to in such clause (i) or (iii).
(d) In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in paragraph (a) of
this Section 8 is due in accordance with its terms but is for any reason
held by a court to be unavailable from the Company on grounds of policy or
otherwise, the Company and each of you shall contribute to the aggregate
losses, claims, damages and liabilities
<PAGE>
(including legal or other expenses reasonably incurred in connection with
investigating or defending same) to which the Company and any of you may be
subject in such proportion so that each of you is responsible for that
portion represented by the percentage that the aggregate commissions
received by such of you pursuant to Section 2 in connection with the Notes
from which such losses, claims, damages and liabilities arise (or, in the
case of Notes sold pursuant to a Terms Agreement, the aggregate commissions
that would have been received by such of you if such commissions had been
payable), bears to the aggregate principal amount of such Notes sold and
the Company is responsible for the balance; PROVIDED, HOWEVER, that (y) in
no case shall any of you be responsible for any amount in excess of the
commissions received by such of you in connection with the Notes from which
such losses, claims, damages and liabilities arise (or, in the case of
Notes sold pursuant to a Terms Agreement, the aggregate commissions that
would have been received by such of you if such commissions had been
payable) and (z) no person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 8, each person who controls any of you within
the meaning of the Act shall have the same rights to contribution as you
and each person who controls the Company within the meaning of either the
Act or the Exchange Act, each officer of the Company who shall have signed
the Registration Statement and each director of the Company shall have the
same rights to contribution as the Company, subject in each case to clauses
(y) and (z) of this paragraph (d).
9. TERMINATION. (a) This Agreement will continue in effect
until terminated as provided in this Section 9. This Agreement may be
terminated by either the Company as to any of you or any of you insofar as
this Agreement relates to such of you, giving written notice of such
termination to such of you or the Company, as the case may be. This
Agreement shall so terminate at the close of business on the first business
day following the receipt of such notice by the party to whom such notice
is given. In the event of such termination, no party shall have any
liability to the other party hereto, except as provided in the fourth
paragraph of Section 2(a), Section 4(b), Section 4(h), Section 8 and
Section 10. The provisions of this Agreement (including without limitation
Section 7 hereof) applicable to any purchase of a Note for which an
agreement to purchase exists prior to the termination hereof shall survive
any termination of this Agreement.
(b) Each Terms Agreement shall be subject to termination in the
absolute discretion of the Purchaser, by notice given to the Company prior
to delivery of any payment for Notes to be purchased thereunder, if prior
to such time (i) trading in the Company's Common Stock shall have been
suspended by the Commission or the New York Stock Exchange or trading in
securities generally on the New York Stock Exchange shall have been
suspended or limited or minimum prices shall have been established on such
Exchange, (ii) a banking moratorium shall have been declared either by
Federal, Rhode Island, Connecticut, Maine, New Hampshire, Massachusetts or
New York State authorities, (iii) there shall have occurred any outbreak or
escalation of hostilities, declaration by the United States of a national
emergency or war or other calamity or crisis the effect of which on the
financial markets is such as to make it, in the judgment of the Purchaser,
impracticable or inadvisable to market such Notes or (iv) there shall have
been any decrease in the ratings of the Company's debt securities by any
Rating Agency or Any such Rating Agency shall publicly announce that it has
placed any of such debt securities on a "watchlist" with negative
implications.
10. REPRESENTATIONS AND INDEMNITIES TO SURVIVE. The respective
agreements, representations, warranties, indemnities and other statements
of the Company or its officers and of you set forth in or made pursuant to
this Agreement will remain in full force and effect, regardless of any
investigation made by or on behalf of you or the Company or any of the
officers, directors or controlling persons referred to in Section 8 hereof,
and will survive delivery of and payment for the Notes. The provisions of
Sections 4(h) and 8 hereof shall survive the termination or cancelation of
this Agreement.
11. NOTICES. All communications hereunder will be in writing and
effective only on receipt, and, if sent to any of you, will be mailed,
delivered or telegraphed and confirmed to such of you, at the address
specified in Schedule I hereto; or, if sent to the Company, will be mailed,
delivered or
<PAGE>
telegraphed and confirmed to it at One Federal Street, Boston,
Massachusetts 02110, attention of the Senior Vice President and General
Counsel.
12. SUCCESSORS. This Agreement will inure to the benefit of and
be binding upon the parties hereto and their respective successors and the
officers and directors and controlling persons referred to in Section 8
hereof, and no other person will have any right or obligation hereunder,
except for the right of a person who has agreed to purchase a Note to
refuse to purchase such Note as provided in Section 7 hereof.
13. APPLICABLE LAW. This Agreement will be governed by and
construed in accordance with the laws of the State of New York.
If the foregoing is in accordance with your understanding of our agreement,
please sign and return to us the enclosed duplicate hereof, whereupon this
letter and your acceptance shall represent a binding agreement among the
Company and you.
Very truly yours,
FLEET FINANCIAL GROUP, INC.
By /s/ Douglas L. Jacobs
---------------------
Name: Douglas L. Jacobs
Title: Treasurer
The foregoing Agreement is
hereby confirmed and accepted
as of the date hereof.
/s/ Goldman, Sachs & Co.
------------------------
(Goldman, Sachs & Co.)
MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE,
FENNER & SMITH INCORPORATED
By /s/ Marion Neustadter
---------------------
Name: Marion Neustadter
Title: Director
J.P. MORGAN SECURITIES INC.
By /s/ Robert D. Post
------------------
Name: Robert D. Post
Title: Managing Director
<PAGE>
SALOMON SMITH BARNEY INC.
By /s/ Martha D. Bailey
--------------------
Name: Martha D. Bailey
Title: Vice President
<PAGE>
SCHEDULE I
COMMISSIONS:
The Company agrees to pay each Agent a commission equal to the following
percentage of the principal amount of each Note sold on an agency basis by such
Agent:
<TABLE>
<CAPTION>
Term Commission Rate
- ---- ---------------
<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%
From 20 years to and including 30 years .750%
Over 30 years to be negotiated
</TABLE>
Unless otherwise specified in the applicable Terms Agreement, the discount
or commission payable to a Purchaser shall be determined on the basis of the
commission schedule set forth above.
ADDRESS FOR NOTICES TO YOU:
Notices to Goldman, Sachs & Co. shall be directed to it at 85 Broad
Street, New York, New York 10004, Attention of Credit Department.
Notices to Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, shall be directed to it at World Financial Center, North Tower -
10th Floor, New York, New York 10281-1310, Attention of MTN Product Management.
Notices to J.P. Morgan Securities Inc. shall be directed to it at 60
Wall Street, New York, New York 10260, Attention of Medium Term Note Desk, Third
Floor.
Notices to Salomon Smith Barney Inc. shall be directed to it at Seven
World Trade Center, New York, New York 10048, Attention of the Medium-Term Note
Department.
<PAGE>
EXHIBIT A
Fleet Financial Group, Inc.
Medium-Term Note Administrative Procedures
September 25, 1998
The Senior Medium-Term Notes, Series N and Subordinated Medium-Term
Notes, Series O (respectively, the "Senior Notes" and the "Subordinated Notes"),
Due Nine Months or More from Date of Issue (collectively, the "Notes") of Fleet
Financial Group, Inc. (the "Company"), are to be offered on a continuing basis.
Fleet National Bank, Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, J.P. Morgan Securities Inc. and Salomon Smith Barney Inc. will be
acting as agents (the "Agents") pursuant to distribution agreements dated as of
the date hereof. The Agents will not be obligated to purchase Notes for their
own account, unless otherwise agreed. The Notes are being sold pursuant to a
selling agency agreement between the Company and the Agent dated the date hereof
(the "Agency Agreement"). The Senior Notes will be issued under an indenture
dated as of October 1, 1992, between the Company and The First National Bank of
Chicago (the "Senior Trustee" or "First Chicago"), as trustee (the "Senior
Indenture"). The Subordinated Notes will be issued under an indenture dated as
of October 1, 1992, between the Company and First Chicago (the "Subordinated
Trustee" and collectively with the Senior Trustee, the "Trustee") as trustee, as
supplemented by a first supplemental indenture dated as of November 30, 1992,
between the Company and the Subordinated Trustee (as so supplemented, the
"Subordinated Indenture" and collectively with the Senior Indenture, the
"Indentures"). The Senior Notes will rank equally with all other unsecured and
unsubordinated debt of the Company. The Subordinated Notes will be subordinate
and junior in right of payment to all Senior Indebtedness and Other Financial
Obligations of the Company, to the extent and in the manner set forth in the
Subordinated Indenture. The Notes have been registered with the Securities and
Exchange Commission (the "Commission").
The Agency Agreement provides that Notes may also be purchased by an
Agent acting solely as principal and not as agent. In the event of any such
purchase, the functions of both the Agent and the beneficial owner under the
administrative procedures set forth below shall be performed by such Agent
acting solely as principal, unless otherwise agreed to between the Company and
such Agent acting as principal.
Each Note will be represented by either a Global Security (as defined
hereinafter) 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"). An owner of a Book-Entry Note will not
be entitled to receive a certificate representing such Note.
The procedures to be followed during, and the specific terms of, the
solicitation of orders by the Agent and the sale as a result thereof by the
Company are explained below. Administrative and record-keeping responsibilities
will be handled for the Company by its Treasury Department. The Company will
advise the Agent and the Trustee in writing of those persons handling
administrative responsibilities with whom the Agent and the Trustee are to
communicate regarding orders to purchase Notes and the details of their
delivery.
Administrative procedures and specific terms of the offering are
explained below. Book-Entry Notes will be issued in accordance with the
administrative procedures set forth in Part I hereof, as adjusted in accordance
with changes in DTC's operating requirements, and Certificated Notes will be
issued in accordance with the administrative procedures set forth in Part II
hereof. Unless otherwise defined herein, terms defined in the applicable
Indenture and the Notes shall be used herein as therein defined. Notes for
which interest is calculated on the basis of a fixed interest rate, which may be
zero, are referred to herein as "Fixed Rate Notes". Notes for which interest is
calculated on the basis of a floating interest rate are referred to herein as
"Floating Rate Notes". To the extent the procedures set forth below conflict
with the provisions of the Notes, the applicable Indenture, DTC's operating
requirements or the Agency Agreement, the relevant provisions of the Notes, the
applicable Indenture, DTC's operating requirements and the Agency Agreement
shall control.
<PAGE>
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 Representations
from the Company and the Trustee to DTC dated as of March 27, 1996, and a
Medium-Term Note Certificate Agreement between the Trustee and DTC dated as of
May 26, 1989, 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
$200,000,000 principal amount(or such other
maximum as may from time to time be agreed to by
DTC) of all such Book-Entry Notes that have the
same rank (senior or subordinated), original issue
date, original issue discount provisions, if any,
Interest Payment Dates, Regular Record Dates,
Interest Payment Period, redemption provisions, if
any, Maturity Date, and, in the case of Fixed Rate
Notes, interest rate, or, in the case of Floating
Rate Notes, initial interest rate, Base Rate,
Index Maturity, Interest Reset Period, Interest
Reset Dates, Spread and/or Spread Multiplier, if
any, minimum interest rate, if any, and maximum
interest rate, if any (collectively, the "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 original issue
date, which will be (i) with respect to an
original Global Security (or any portion thereof),
the original issue date specified in such Global
Security and (ii) following a consolidation of
Global Securities, with respect to the Global
Security resulting from such consolidation, the
most recent Interest Payment Date to which
interest has been paid or duly provided for on the
predecessor Global Securities, regardless of the
date of authentication of such resulting Global
Security. 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 the reservation of two
series of CUSIP numbers, each of which consists of
approximately 900 CUSIP numbers and relates to
Global Securities representing Book-entry Notes
and book-entry medium-term notes issued by the
Company with other series designations. The
Company has obtained from the CUSIP Service Bureau
a written list of such reserved CUSIP numbers,
which the Company shall deliver to the Trustee and
DTC. The Company 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 Company has assigned to Global
Securities. At any time when fewer than 100 of
the reserved CUSIP numbers remain unassigned to
Global Securities for either series, if it deems
necessary, the Company will reserve additional
CUSIP numbers for assignment to Global Securities.
Upon obtaining such additional CUSIP numbers, the
Company shall deliver a list of such additional
CUSIP numbers to the Trustee and DTC.
REGISTRATION: Global Securities will be issued only in fully
registered form without coupons. Each Global
Security will be registered in the name of CEDE &
CO., as nominee for DTC, on the securities
register for the Notes maintained under the
applicable 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 Book-Entry Note, the
"Participants") to act as agent 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
Book-Entry Note in the account of such
Participants. The ownership interest of such
beneficial owner (or such participant) in such
Book-Entry 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
accomplished 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
<PAGE>
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 (a copy of which shall be attached
to the resulting Global Security described below)
specifying (i) the CUSIP numbers of two or more
Outstanding Global Securities that represent (A)
Fixed Rate Book-Entry Notes having the same Terms
and for which interest has been paid to the same
date or (B) Floating Rate 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)
the single CUSIP number to be assigned to such
replacement Global Security (which shall be the
CUSIP number previously assigned to the Global
Security with the earliest date of issuance).
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 such single
CUSIP number and stating that, as of such exchange
date, the CUSIP numbers of the individual Global
Securities not assigned to the replacement Global
Security will no longer be valid. On the
specified exchange date, the Trustee will exchange
such Global Securities for a single Global
Security bearing the single CUSIP number and the
CUSIP numbers of the individual Global Securities
not assigned will, in accordance with CUSIP
Service Bureau procedures, be retired and not
reassigned. Notwithstanding the foregoing, if the
Global Securities to be exchanged exceed
$200,000,000 in aggregate principal amount (or
such other maximum amount as may from time to time
be agreed to by DTC) one Global Security will be
authenticated and issued to represent each
$200,000,000 of principal amount (or such other
maximum amount as may from time to time be agreed
to by DTC) of the exchanged Global Securities 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 nine months or
more from the date of its issue.
DENOMINATIONS: Book-Entry Notes will be issued in principal
amounts of $1,000 or any integral multiple
thereof. Global Securities will be denominated in
principal amounts not in excess of $200,000,000
(or such other maximum amount as may from time to
time be agreed to by DTC) . If one or more
Book-Entry Notes having an aggregate principal
amount in excess of $200,000,000(or such other
maximum amount as may from time to time be agreed
to by DTC) would, but for the preceding sentence,
be represented by a single Global Security, then
one Global Security will be authenticated and
issued to represent each $200,000,000 principal
amount (or such other maximum amount as may from
time to time be agreed to by DTC) of such
Book-Entry Note or Notes and an additional Global
Security will be authenticated and 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, if any, on each Book-Entry Note
will accrue from the original issue date for the
first interest period or the last date to which
interest has been paid, if any, for each
subsequent interest period, on the Global Security
representing such Book-Entry Note, and will be
calculated and paid in the manner described in
such Book-Entry Note and in the Prospectus (as
defined in the Agency Agreement), as supplemented
by the applicable Pricing Supplement. Unless
otherwise specified therein, each payment of
interest on a Book-Entry Note will include
interest accrued to but excluding the Interest
Payment Date or to but excluding Maturity.
Interest payable at the Maturity 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 (daily or
weekly) bond report published by Standard & Poor's
Corporation.
<PAGE>
REGULAR RECORD DATES. The Regular Record Date
with respect to any Interest Payment Date for
Floating Rate Book-Entry Notes shall be the date
fifteen calendar days immediately preceding such
Interest Payment Date, whether or not such date
shall be a Business Day.
INTEREST PAYMENT DATES ON FIXED RATE BOOK-ENTRY
NOTES. Unless otherwise agreed, interest payments
on Fixed Rate Book-Entry Notes will be made
monthly on the 15th day of each month and at
Maturity; PROVIDED, HOWEVER, that in the case of a
Fixed Rate Book-Entry Note issued between a
Regular 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 Regular 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.
INTEREST PAYMENT DATES ON FLOATING RATE BOOK-ENTRY
NOTES. Unless otherwise agreed, interest payments
will be made on Floating Rate Book-Entry Notes
monthly on the 15th of each month; PROVIDED,
HOWEVER, that if an Interest Payment Date for a
Floating Rate Book-Entry Note would otherwise be a
day that is not a Business Day with respect to
such Floating Rate Book-Entry Note, such Interest
Payment Date will be the next succeeding Business
Day with respect to such Floating Rate Book-Entry
Note, except that in the case of a Floating Rate
Book-Entry Note for which the Base Rate is LIBOR,
if such Business Day is in the next succeeding
calendar month, such Interest Payment Date will be
the immediately preceding Business Day; and
PROVIDED FURTHER, that, in the case of a Floating
Rate Book-Entry Note issued between a Regular
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 Regular Record Date.
NOTICE OF FLOATING RATE INTEREST RATES. Promptly
after each Interest Determination Date for
Floating Rate Book-Entry Notes, the Calculation
Agent will notify the Trustee and Standard &
Poor's Corporation of the interest rates
determined on such Interest Determination Date.
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 30-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 Notes. Interest on
Floating Rate Book-Entry Notes, except as
otherwise set forth therein, will be calculated on
the basis of actual days elapsed and a year of 360
days, except that in the case of a Floating Rate
Book-Entry Note for which the Base Rate is the
Treasury Rate or the CMT Rate, interest will be
calculated on the basis of the actual number of
days in the year.
PAYMENTS OF PRINCIPAL AND PAYMENT OF INTEREST ONLY. Promptly after each
INTEREST: Regular Record Date, PROVIDED, with respect to
Floating Rate Notes, that the Calculation Agent
has provided the Trustee with the necessary
information regarding interest rates, the Trustee
will deliver to the Company and DTC a written
notice setting forth, by CUSIP number, the amount
of interest to be paid on each Global Security on
the following Interest Payment Date (other than an
Interest Payment Date coinciding with Maturity)
and the total of such amounts. DTC will confirm
the amount payable on each Global Security on such
Interest Payment Date by reference to the
appropriate (daily or weekly) bond reports
published by Standard & Poor's Corporation. The
Company will pay to the Trustee, as paying agent,
the total amount of interest due on such Interest
Payment Date (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. On or about the last
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 maturing (on a Maturity or Redemption
Date or otherwise) in the following month. The
Trustee,
<PAGE>
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 of such Global
Security. On or before Maturity, the Company will
pay to the Trustee, as paying agent, the principal
amount of such Global Security, together with
interest due at such Maturity. The Trustee will
pay such amount to DTC at the times and in the
manner set forth below under "Manner of Payment".
If any Maturity of a Global Security representing
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 Maturity. Promptly after payment to
DTC of the principal and interest due at Maturity
of such Global Security, the Trustee will cancel
such Global Security in accordance with the
applicable Indenture and so advise the Company.
On the first Business Day of each month, the
Trustee will deliver to the Company a written
statement indicating the total principal amount of
Outstanding Global Securities 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 shall be
paid by the Company to the Trustee in immediately
available funds no later than 9:30 A.M. (New York
City time) on such date. The Company will make
such payment on such Global Securities by
instructing the Trustee to withdraw funds from an
account maintained by the Company at First Chicago
or by wire transfer of funds available for
immediate use to the Trustee. The Company will
confirm any such instructions in writing to the
Trustee. Prior to 10 A.M. (New York City time) on
the date of Maturity or as soon as possible
thereafter, 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
a Global Security on such date. On each Interest
Payment Date (other than at Maturity), interest
payments shall be made to DTC, in funds available
for immediate use by DTC, in accordance with
existing arrangements between the Trustee and DTC.
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 (as issuer
or as paying agent) nor the Trustee shall have any
direct 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 for forwarding payments and materials
directly to the beneficial owner of such Note.
PROCEDURE FOR RATE The Company and the Agent will discuss from time
SETTING AND to time the aggregate principal amount of, the
POSTING: issuance price of, and the interest rates to be
borne by, Book-Entry Notes that may be sold as a
result of the solicitation of orders by the Agent.
If the Company decides to set prices of, and rates
borne by, any Book-Entry Notes in respect of which
the Agent is to solicit orders (the setting of
such prices and rates to be referred to herein as
"posting") or if the Company decides to change
prices or rates previously posted by it, it will
promptly advise the Agent of the prices and rates
to be posted.
ACCEPTANCE AND Unless otherwise instructed by the Company, the
REJECTION OF Agent will advise the Company promptly by
ORDERS: telephone of all orders to purchase Book-Entry
Notes received by such Agent, other than those
rejected by it in whole or in part in the
reasonable exercise of its discretion. The
Company has the right to accept orders to purchase
Book-Entry Notes and may reject any such orders in
whole or in part.
PREPARATION OF If any order to purchase a Book-Entry Note is
PRICING SUPPLEMENT: accepted by or on behalf of the Company, the
Company will prepare a pricing supplement (a
"Pricing Supplement") reflecting the terms of such
<PAGE>
Book-Entry Note and will arrange to have ten
copies thereof filed with the Commission in
accordance with the applicable paragraph of Rule
424(b) under the Act and will supply at least ten
copies thereof (and additional copies if
requested) to the Agent which presented the order
(the "Presenting Agent") at the address set forth
on Schedule I hereto, to be delivered by overnight
courier or telecopy to arrive no later than 11:00
a.m., New York City time, on the Business Day
following the sale date.
The Presenting Agent will cause a Prospectus and
Pricing Supplement to be delivered to the
purchaser of such Book-Entry Note.
In each instance that a Pricing Supplement is
prepared, the Presenting Agent will affix the
Pricing Supplement to Prospectuses prior to their
use. Outdated Pricing Supplements (other than
those retained for files), will be destroyed.
SUSPENSION OF The Company may instruct the Agent to suspend at
SOLICITATION; any time, for any period of time or permanently,
AMENDMENT OR the solicitation of orders to purchase Book-Entry
SUPPLEMENT: Notes. Upon receipt of such instructions, the
Agent will forthwith suspend solicitation until
such time as the Company has advised them that
such solicitation may be resumed. In the event
that at the time the Company suspends solicitation
of purchases there shall be any orders outstanding
for settlement, the Company will promptly advise
the Agent and the Trustee whether such orders may
be settled and whether copies of the Prospectus as
in effect at the time of the suspension, together
with the appropriate Pricing Supplement, may be
delivered in connection with the settlement of
such orders. The Company will have the sole
responsibility for such decision and for any
arrangements that may be made in the event that
the Company determines that such orders may not be
settled or that copies of such Prospectus may not
be so delivered.
If the Company decides to amend or supplement the
Registration Statement (as defined in the Agency
Agreement) or the Prospectus, it will promptly
advise the Agent and furnish the Agent with the
proposed amendment or supplement and with such
certificates and opinions as are required, all to
the extent required by and in accordance with the
terms of the Agency Agreement. Subject to the
provisions contained in Sections 4(a) and 4(b) of
the Agency Agreement, the Company may file with
the Commission any such supplement to the
Prospectus relating to the Notes. The Company
will provide the Agent and the Trustee with copies
of any such supplement, and confirm to the Agent
that such supplement has been filed with the
Commission pursuant to the applicable paragraph of
Rule 424(b).
PROCEDURES FOR When the Company has determined to change the
RATE CHANGES: interest rates of Book-Entry Notes being offered,
it will promptly advise the Agent and the Agent
will forthwith suspend solicitation of orders.
The Agent will telephone the Company with
recommendations as to the changed interest rates.
At such time as the Company has advised the Agent
of the new interest rates, the Agent may resume
solicitation of orders. Until such time only
"indications of interest" may be recorded.
DELIVERY OF A copy of the Prospectus and a Pricing Supplement
PROSPECTUS: relating to a Book-Entry Note must accompany or
precede the earliest of any written offer of such
Book-Entry Note, confirmation of the purchase of
such Book-Entry Note and payment for such
Book-Entry Note by its purchaser. If notice of a
change in the terms of the Book-Entry Notes is
received by the Agent between the time an order
for a Book-Entry Note is placed and the time
written confirmation thereof is sent by the
Presenting Agent to a customer or his agent, such
confirmation shall be accompanied by a Prospectus
and Pricing Supplement setting forth the terms in
effect when the order was placed. Subject to
"Suspension of Solicitation; Amendment or
Supplement" above, the Presenting Agent will
deliver a Prospectus and Pricing Supplement as
herein described with respect to each Book-Entry
Note sold by it. The Company will make such
delivery if such Book-Entry Note is sold directly
by the Company to a purchaser (other than an
Agent).
CONFIRMATION: For each order to purchase a Book-Entry Note
solicited by any Agent and accepted by or on
<PAGE>
behalf of the Company, the Presenting Agent will
issue a confirmation to the purchaser, with a copy
to the Company, setting forth the details set
forth above and delivery and payment instructions.
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 Book-Entry Note shall
constitute "settlement" with respect to such
Book-Entry Note. All orders accepted by the
Company will be settled on the third Business Day
following the date of sale of such Book-Entry Note
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 Business Day following the date
of sale.
SETTLEMENT Settlement Procedures with regard to each Book-
PROCEDURES: Entry Note sold by the Company through any Agent,
as agent, shall be as follows:
A. The Presenting Agent will advise the Company
by telephone of the following settlement
information:
1. Rank (senior or subordinated).
2. Principal amount.
3. Maturity Date.
4. In the case of a Fixed Rate Book-Entry
Note, the interest rate or, in the case
of a Floating Rate Book-Entry Note, the
Base Rate, initial interest rate (if
known at such time), Index Maturity,
Interest Reset Period, Interest Reset
Dates, Interest Determination Dates,
Spread and/or Spread Multiplier (if
any), minimum interest rate (if any) and
maximum interest rate (if any).
5. Interest Payment Dates and the Interest
Payment Period.
6. Redemption or repayment provisions, if
any.
7. Settlement date.
8. Price.
9. The Presenting Agent's DTC participant
account number and commission,
determined as provided in Section 2 of
the Agency Agreement.
10. Whether such Book-Entry Note is issued
at an original issue discount and, if
so, the total amount of OID, the yield
to maturity and the initial accrual
period OID.
B. The Company will assign a CUSIP number to the
Global Security representing such Book-Entry
Note and then advise the Trustee and the
Presenting Agent by telephone (confirmed in
writing at any time on the same date) or
electronic transmission of the information
set forth in Settlement Procedure "A" above,
such CUSIP number and the name of the
Presenting Agent. The Company will also
notify the Presenting Agent by telephone of
such CUSIP number as soon as practicable.
C. The Trustee will enter a pending deposit
message through DTC's Participant Terminal
System providing the settlement information
to DTC specified in the Letter of
Representations from the Company and the
Trustee to DTC dated as of the date hereof.
D. To the extent the Company has not already
done so, the Company will deliver to the
<PAGE>
Trustee a Global Security in a form that has
been approved by the Company, the Agent and
the Trustee.
E. The Trustee will complete such Global
Security, stamp the appropriate legend, as
instructed by DTC, if not already set forth
thereon, and authenticate the Global Security
representing such Book-Entry Note in
accordance with the terms of the written
order of the Company then in effect.
F. DTC will credit such Book-Entry Note to the
Trustee's participant account at DTC.
G. Upon delivery of the pending deposit message
referenced in "C" above, an SDFS deliver
order through DTC's Participant Terminal
System will be created instructing DTC to
debit such Book-Entry Note to the Trustee's
participant account and credit such
Book-Entry Note to the Presenting Agent's
participant account and debit the Presenting
Agent's settlement account and credit the
Trustee's settlement account for an amount
equal to the price of such Book-Entry Note
less the Presenting Agent's commission. The
entry of such a pending deposit message by
First Chicago as Trustee shall constitute a
representation and warranty by First Chicago
to DTC that (i) the Global Security
representing such Book-Entry Note has been
issued and authenticated and (ii) First
Chicago is holding such Global Security
pursuant to the Medium-Term Note Certificate
Agreement between First Chicago and DTC.
H. The Presenting Agent will enter an SDFS
deliver order through DTC's Participant
Terminal System instructing DTC (i) to debit
such Book-Entry Note to the Presenting
Agent's participant account and credit such
Book-Entry Note to the participant accounts
of the Participants with respect to such
Book-Entry Note and (ii) to debit the
settlement accounts of such Participants and
credit the settlement account of the
Presenting Agent for an amount equal to the
price of such Book-Entry Note.
I. Transfers of funds in accordance with SDFS
deliver orders described in Settlement
Procedures "G" and "H" will be settled in
accordance with SDFS operating procedures in
effect on the settlement date.
J. The Trustee will, upon receipt of funds from
the Agent in accordance with Settlement
Procedure "G", credit to an account of the
Company maintained at First Chicago funds
available for immediate use in the amount
transferred to the Trustee in accordance with
Settlement Procedure "G". However, the
Trustee shall not credit the account of the
Company unless and until the Trustee has
confirmed receipt of the funds in the
appropriate amount transferred in accordance
with Settlement Procedure "G".
K. The Presenting Agent will confirm the
purchase of such Book-Entry Note to the
purchaser either by transmitting to the
Participants with respect to such Book-Entry
Note a confirmation order or orders through
DTC's institutional delivery system or by
mailing a written confirmation to such
purchaser.
SETTLEMENT For orders of Book-Entry Notes solicited by any
PROCEDURES Agent and accepted by the Company for settlement
TIMETABLE: on the Business Day after the sale date,
Settlement Procedures "A" through "K" 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
<PAGE>
C 2:00 P.M. on the sale date
D 3:00 P.M. on the day before
settlement
E 9:00 A.M. on settlement date
F 10:00 A.M. on settlement date
G-H 2:00 P.M. on settlement date
I 4:30 P.M. on settlement date
J-K 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. and 12:00
Noon on the first Business Day after the sale date
and no later than 2:00 P.M. on the Business Day
before the settlement date, respectively. 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 12:00 Noon and 2:00 P.M.,
respectively, on the second Business Day before
the settlement date. Settlement Procedure "I" is
subject to extension in accordance with any
extension of Fedwire closing deadlines and in the
other events specified in SDFS operating
procedures in effect on the settlement date.
If settlement of a Book-Entry Note is rescheduled
or canceled, the Trustee will deliver to DTC,
through DTC's Participant Terminal System, a
cancelation message to such effect by no later
than 2:00 P.M. on the Business Day immediately
preceding the scheduled settlement date.
FAILURE TO SETTLE: If the Trustee has not entered an SDFS deliver
order with respect to a Book-Entry Note pursuant
to Settlement Procedure "G", then, upon written
request (which may be by telecopy) of the Company,
the Trustee shall deliver to DTC, through DTC's
Participant Terminal System, as soon as
practicable, a withdrawal message instructing DTC
to debit such Book-Entry Note to the Trustee's
participant account. DTC will process the
withdrawal message, PROVIDED that the Trustee's
participant account contains a principal amount of
the Global Security representing such Book-Entry
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
cancel such Global Security in accordance with the
applicable Indenture and so advise the Company,
and will make appropriate entries in its records.
The CUSIP number assigned to such Global Security
shall, in accordance with CUSIP Service Bureau
procedures, be canceled 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 Book-Entry Note for
two Global Securities, one of which shall
represent such Book-Entry Notes and shall be
canceled immediately after issuance and the other
of which shall represent the other 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 Presenting Agent
may enter SDFS deliver orders through DTC's
Participant Terminal System debiting such Note to
such Agent's participant account and crediting
such Note free to the participant account of the
Trustee and shall notify the Trustee and the
Company thereof. Thereafter, the Trustee (i) will
immediately notify the Company thereof, once the
Trustee has confirmed that such Note has been
credited to its participant account, and the
Company shall immediately transfer by Fedwire
<PAGE>
(immediately available funds) to such Agent an
amount equal to the price of such Note which was
previously credited to the account of the Company
maintained at First Chicago or wire transferred at
the Company's direction in accordance with
Settlement Procedure J and (ii) the Trustee will
deliver the withdrawal message and take the
related actions described in the preceding
paragraph. If such failure shall have occurred
for any reason other than a default by the
Presenting Agent in the performance of its
obligations hereunder and under the Agency
Agreement, then the Company will reimburse the
Presenting Agent or the Trustee, as applicable, on
an equitable basis for the loss of the use of the
funds during the period when they were credited to
the account of the Company.
Notwithstanding the foregoing, upon any failure to
settle with respect to a Book-Entry Note, DTC may
take any actions 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
Procedure "E", for the authentication and issuance
of a Global Security representing the other
Book-Entry Notes to have been represented by such
Global Security and will make appropriate entries
in its records.
TRUSTEE AND FIRST Nothing herein shall be deemed to require the
CHICAGO NOT TO RISK Trustee or First Chicago to risk or expend its own
FUNDS: funds in connection with any payment to the
Company, DTC, the Agent or the purchaser, it being
understood by all parties that payments made by
the Trustee or First Chicago to the Company, DTC,
the Agent or the purchaser shall be made only to
the extent that funds are provided to the Trustee
or First Chicago for such purpose.
AUTHENTICITY OF The Company will cause the Trustee to furnish the
SIGNATURES: Agent from time to time with the specimen
signatures of each of the Trustee's officers,
employees or agents who has been authorized by the
Trustee to authenticate Book-Entry Notes, but no
Agent will have any obligation or liability to the
Company or the Trustee in respect of the
authenticity of the signature of any officer,
employee or agent of the Company or the Trustee on
any Book-Entry Note.
PAYMENT OF The Agent shall forward to the Company, on a
EXPENSES: monthly basis, a statement of the out-of-pocket
expenses incurred by such Agent during that month
that are reimbursable to it pursuant to the terms
of the Agency Agreement. The Company will remit
payment to the Agent currently on a monthly basis.
ADVERTISING The Company will determine with the Agent the
COSTS: amount of advertising that may be appropriate in
soliciting offers to purchase the Book-Entry
Notes. Advertising expenses will be paid by the
Company.
PERIODIC STATEMENTS Periodically, upon written request, the Trustee
FROM THE TRUSTEE: will send to the Company a statement setting forth
the principal amount of Book-Entry Notes
Outstanding as of that date and setting forth a
brief description of any sales of Book-Entry Notes
which the Company has advised the Trustee but
which have not yet been settled.
PART II
ADMINISTRATIVE PROCEDURES FOR CERTIFICATED NOTES
The Trustee will serve as registrar and transfer agent and
authenticating and paying agent 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 portion thereof) issued
<PAGE>
subsequently upon transfer or exchange of a
Certificated Note or in lieu of a destroyed, lost
or stolen Certificated Note, the Original Issue
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 A Certificated Note may be presented for transfer
EXCHANGES: or exchange at the office of the Trustee at 14
Wall Street (8th Floor), New York, N.Y. 10005,
Attention: Corporate Trust Services. 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 nine months or
more from its date of issue.
DENOMINATIONS: The denomination of any Certificated Note
denominated in U.S. dollars will be a minimum of
$100,000 or any amount in excess thereof that is
an integral multiple of $1,000. The authorized
denominations of Certificated Notes denominated in
any other currency will be specified pursuant to
"Settlement Procedures" below.
INTEREST: GENERAL. Interest, if any, on each Certificated
Note will accrue from the original issue date for
the first interest period or the last date to
which interest has been paid, if any, for each
subsequent interest period, and will be calculated
and paid in the manner described in such Note and
in the Prospectus, as supplemented by the
applicable Pricing Supplement. Unless otherwise
specified therein, each payment of interest on a
Certificated Note will include interest accrued to
but excluding the Interest Payment Date or to but
excluding Maturity.
REGULAR RECORD DATES. The Regular Record Dates
with respect to any Interest Payment Date for
Floating Rate Certificated Notes shall be the date
fifteen calendar days immediately preceding such
interest Payment Date, and for Fixed Rate
Certificated Notes shall be the April 15 or
October 15 next preceding such Interest Payment
Date, whether or not such date shall be a Business
Day.
FIXED RATE CERTIFICATED NOTES. Unless otherwise
specified pursuant to Settlement Procedure "A"
below, interest payments on Fixed Rate
Certificated Notes will be made semiannually on
May 1 and November 1 of each year and at Maturity;
PROVIDED, HOWEVER, that in the case of a Fixed
Rate Certificated Note issued between a Regular
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 Regular Record Date.
If any Interest Payment Date for or the Maturity
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
or Maturity, as the case may be.
FLOATING RATE CERTIFICATED NOTES. Interest
payments will be made on Floating Rate
Certificated Notes monthly, quarterly,
semi-annually or annually. Interest will be
payable, in the case of Floating Rate Certificated
Notes with a monthly Interest Payment Period, on
the third Wednesday of each month; with a
quarterly interest Payment Period, on the third
Wednesday of March, June, September and December
of each year; with a semi-annual Interest Payment
Period, on the third Wednesday of the two months
specified pursuant to Settlement Procedure "A"
below; and with an annual Interest Payment Period,
on the third Wednesday of the month specified
pursuant to Settlement Procedure "A" below;
PROVIDED, HOWEVER, that if an Interest Payment
Date for a Floating Rate Certificated Note would
otherwise be a day that is not a Business Day with
respect to such Floating Rate Certificated Note,
such Interest Payment Date will be the next
succeeding Business Day with respect to such
Floating Rate Certificated Note, except in the
case of a Floating Rate Certificated Note for
which the Base Rate is LIBOR, if such Business Day
is in the next succeeding calendar month, such
Interest Payment Date will be the immediately
preceding Business Day; and PROVIDED FURTHER, that
in the case of a Floating Rate Certificated Note
issued between a Regular Record Date and an
Interest Payment Date or on an Interest Payment
Date, the
<PAGE>
first interest payment will be made on the
Interest Payment Date following the next
succeeding Regular Record Date.
CALCULATION OF FIXED RATE CERTIFICATED NOTE. Interest on Fixed
INTEREST: Rate Certificated Notes (including interest for
partial periods) will be calculated on the basis
of a 360-day year of twelve 30-day months.
FLOATING RATE CERTIFICATED NOTES. Interest rates
on Floating Rate Certificated Notes will be
determined as set forth in the form of Notes.
Interest on Floating Rate Certificated Notes,
except as otherwise set forth therein, will be
calculated on the basis of actual days elapsed and
a year of 360 days, except that in the case of a
Floating Rate Certificated Note for which the Base
Rate is the Treasury Rate or the CMT Rate,
interest will be calculated on the basis of the
actual number of days in the year.
PAYMENTS OF On or before the due date for any payment of
PRINCIPAL AND principal or interest on each Certificated Note,
INTEREST: the Company will pay to the Trustee, as paying
agent, the amount of principal and/or interest
then due. The Trustee will pay the principal
amount of each Certificated Note at Maturity upon
presentation of such Certificated Note to the
Trustee. Such payment, together with payment of
interest due at Maturity of such Certificated
Note, will be made in funds available for
immediate use by the Trustee and in turn by the
Holder of such Certificated Note. Certificated
Notes presented to the Trustee at Maturity for
payment will be canceled by the Trustee in
accordance with the applicable Indenture. All
interest payments on a Certificated Note (other
than interest due at Maturity) will be made by
check drawn on the Trustee or another Person
appointed by the Trustee mailed by the Trustee to
the Person entitled thereto as provided in such
Note and the applicable Indenture; PROVIDED,
HOWEVER, that the holder of $10,000,000 (or the
equivalent thereof in other currencies) or more of
Certificated Notes with similar tenor and terms
will be entitled to receive payment by wire
transfer in U.S. dollars upon receipt of written
instructions by the Trustee. Following each
Regular Record Date and Special Record Date, the
Trustee will furnish the Company with a list of
interest payments to be made on the following
Interest Payment Date for each group of
Certificated Notes bearing interest at a
particular rate and in total for all Certificated
Notes. Interest at Maturity will be payable to
the Person to whom the payment of principal is
payable. The Trustee will provide, on or about
the last Business Day of each month, to the
Company lists of principal and interest, to the
extent ascertainable, to be paid on Certificated
Notes maturing (on a Maturity or Redemption Date
or otherwise) in the next two months.
First Chicago will be responsible for withholding
taxes on interest paid on Certificated Notes as
required by applicable law.
PROCEDURE FOR RATE The Company and the Agents will discuss from time
SETTING AND POSTING: to time the aggregate principal amount of, the
issuance price of, and the interest rates to be
borne by, Notes that may be sold as a result of
the solicitation of orders by the Agents. If the
Company decides to set prices of, and rates borne
by, any Notes in respect of which the Agents are
to solicit orders (the setting of such prices and
rates to be referred to herein as "posting") or if
the Company decides to change prices or rates
previously posted by it, it will promptly advise
the Agents of the prices and rates to be posted.
ACCEPTANCE AND Unless otherwise instructed by the Company, each
REJECTION OF ORDERS: Agent will advise the Company promptly by
telephone of all orders to purchase Certificated
Notes received by such Agent, other than those
rejected by it in whole or in part in the
reasonable exercise of its discretion. Unless
otherwise agreed by the Company and the Agents,
the Company has the sole right to accept orders to
purchase Certificated Notes and may reject any
such orders in whole or in part.
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 Certificated Note and
<PAGE>
will arrange to have ten copies thereof filed with
the Commission in accordance with the applicable
paragraph of Rule 424(b) under the Act and will
supply at least ten copies thereof (and additional
copies if requested) to the Presenting Agent at
the address set forth on Schedule I hereto, to be
delivered by overnight courier or telecopy to
arrive no later than 11:00 a.m., New York City
time, on the Business Day following the sale date.
The Presenting Agent will cause a Prospectus and
Pricing Supplement to be delivered to the
purchaser of such Certificated Note.
In each instance that a Pricing Supplement is
prepared, the Presenting Agent will affix the
Pricing Supplement to Prospectuses prior to their
use. Outdated Pricing Supplements (other than
those retained for files), will be destroyed.
SUSPENSION OF Subject to the Company's representations,
SOLICITATION; warranties and covenants contained in the Agency
AMENDMENT Agreement, the Company may instruct the Agents to
OR SUPPLEMENT: suspend at any time for any period of time or
permanently, the solicitation of orders to
purchase Certificated Notes. Upon receipt of such
instructions, the Agents will forthwith suspend
solicitation until such time as the Company has
advised them that such solicitation may be
resumed.
In the event that at the time the Company suspends
solicitation of purchases there shall be any
orders outstanding for settlement, the Company
will promptly advise the Agents and the Trustee
whether such orders may be settled and whether
copies of the Prospectus as in effect at the time
of the suspension, together with the appropriate
Pricing Supplement, may be delivered in connection
with the settlement of such orders. The Company
will have the sole responsibility for such
decision and for any arrangements that may be made
in the event that the Company determines that such
orders may not be settled or that copies of such
Prospectus may not be so delivered.
If the Company decides to amend or supplement the
Registration Statement or the Prospectus, it will
promptly advise the Agents and furnish the Agents
with the proposed amendment or supplement and with
such certificates and opinions as are required,
all to the extent required by and in accordance
with the terms of the Agency Agreement. Subject
to the provisions of the Agency Agreement, the
Company may file with the Commission any
supplement to the Prospectus relating to the
Notes. The Company will provide the Agents and
the Trustee with copies of any such supplement,
and confirm to the Agents that such supplement has
been filed with the Commission pursuant to the
applicable paragraph of Rule 424(b).
PROCEDURE FOR When the Company has determined to change the
RATE CHANGES: interest rates of Certificated Notes being
offered, it will promptly advise the Agents and
the Agents will forthwith suspend solicitation of
orders. The Agents will telephone the Company
with recommendations as to the changed interest
rates. At such time as the Company has advised
the Agents of the new interest rates, the Agents
may resume solicitation of orders. Until such
time only "indications of interest" may be
recorded.
DELIVERY OF A copy of the Prospectus and a Pricing Supplement
PROSPECTUS: relating to a Certificated Note must accompany or
precede the earliest of any written offer of such
Certificated Note, confirmation of the purchase of
such Certificated Note and payment for such
Certificated Note by its purchaser. If notice of
a change in the terms of the Certificated Notes is
received by the Agents between the time an order
for a Certificated Note is placed and the time
written confirmation thereof is sent by the
Presenting Agent to a customer or his agent, such
confirmation shall be accompanied by a Prospectus
and Pricing Supplement setting forth the terms in
effect when the order was placed. Subject to
"Suspension of Solicitation; Amendment or
Supplement" above, the Presenting Agent will
deliver a Prospectus and Pricing Supplement as
herein described with respect to each Certificated
Note sold by it. The Company will make such
delivery if such Certificated Note is sold
directly by the Company to a purchaser (other than
any Agent).
CONFIRMATION: For each order to purchase a Certificated Note
solicited by any Agent and accepted by or on
behalf of the Company, the Presenting Agent will
issue a confirmation to the purchaser, with a copy
to the Company, setting forth the details set
forth above and delivery and payment instructions.
<PAGE>
SETTLEMENT: The receipt by the Company of immediately
available funds in exchange for an authenticated
Certificated Note delivered to the Presenting
Agent and the Presenting Agent's delivery of such
Certificated Note against receipt of immediately
available funds shall, with respect to such
Certificated Note, constitute "settlement". All
orders accepted by the Company will be settled on
the third Business Day following the date of sale
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 following the
date of sale.
SETTLEMENT Settlement Procedures with regard to each
PROCEDURES: Certificated Note sold by the Company through any
Agent, as agent, shall be as follows:
A. The Presenting Agent will advise the Company
by telephone of the following settlement
information:
1. Name in which such Certificated 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. Rank (senior or subordinated).
5. Principal amount.
6. Maturity Date.
7. In the case of a Fixed Rate Certificated
Note, the interest rate or, in the case
of a Floating Rate Certificated Note,
the initial interest rate (if known at
such time), Base Rate, Index Maturity,
Interest Reset Period, Interest Reset
Dates, Interest Determination Dates,
Spread and/or Spread Multiplier (if
any), minimum interest rate (if any) and
maximum interest rate (if any).
8. Interest Payment Dates and the Interest
Payment Period.
9. Specified Currency and whether the
option to elect payment in a Specified
Currency applies and if the Specified
Currency is not U.S. dollars, the
authorized denominations.
10. Redemption or repayment provisions, if
any.
11. Settlement date.
12. Price (including currency).
13. Presenting Agent's commission,
determined as provided in Section 2 of
the Agency Agreement.
14. Whether such Certificated Note is issued
at an original issue discount, and, if
so, the total amount of OID, the yield
to maturity and the initial accrual
period OID.
B. The Company will advise the Trustee by
telephone (confirmed in writing at any time
on the sale date) or electronic transmission
of the information set forth in Settlement
Procedure "A" above and the name of the
Presenting Agent.
<PAGE>
C. The Company will deliver to the Trustee an
original Certificated Note with customer
confirmation in triplicate in forms that have
been approved by Company, the Agents and the
Trustee.
D. The Trustee will complete such Certificated
Note and will authenticate such Certificated
Note and deliver it (with the confirmation)
and two copies thereof (clearly marked as
such) to the Presenting Agent, and the
Presenting Agent will acknowledge receipt of
the Note by stamping or otherwise marking the
first copy and returning it to the Trustee.
Such delivery will be made only against such
acknowledgment of receipt. In the event that
the instructions given by the Presenting
Agent for payment to the account of the
Company are revoked, the Company will as
promptly as possible wire transfer to the
account of the Presenting Agent an amount of
immediately available funds equal to the
amount of such payment made.
E. The Presenting Agent will deliver such
Certificated Note (with the confirmation) to
the customer against payment in immediately
payable funds. The Presenting Agent will
obtain the acknowledgment of receipt of such
Certificated Note by retaining the second
copy thereof.
F. The Trustee will send a third copy of the
Certificated Note (clearly marked as such) to
the Company by first-class mail.
SETTLEMENT For orders of Certificated Notes solicited by any
PROCEDURES Agent, as agent, and accepted by the Company,
TIMETABLE: 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 the day before
settlement
B-C 3:00 P.M. on the day before
settlement
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 If a purchaser fails to accept delivery of and
SETTLE: make payment for any Certificated Note, the
Presenting Agent will notify the Company and the
Trustee by telephone and return such Certificated
Note to the Trustee. Upon receipt of such notice,
the Company will immediately wire transfer to the
account of the Presenting Agent an amount equal to
the amount previously credited to the account of
Company in respect of such Certificated 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 the Presenting Agent in
the performance of its obligations hereunder and
under the Agency Agreement, then the Company will
reimburse the Presenting Agent 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. Immediately upon receipt of the
Certificated Note in respect of which such failure
occurred, the Trustee will cancel such
Certificated Note in accordance with the
applicable Indenture and so advise the Company and
will make appropriate entries in its records.
TRUSTEE NOT TO RISK Nothing herein shall be deemed to require the
FUNDS: Trustee or First Chicago to risk or expend its own
funds in connection with any payment to the
Company, the Agents or the purchaser, it being
<PAGE>
understood by all parties that payments made by
the Trustee to the Company, the Agents or the
purchaser shall be made only to the extent that
funds are provided to the Trustee for such
purpose.
AUTHENTICITY OF The Company will cause the Trustee to furnish the
SIGNATURES: Agents from time to time with the specimen
signatures of each of the Trustee's officers,
employees or agents who has been authorized by the
Trustee to authenticate Certificated Notes, but no
Agent will have any obligation or liability to the
Company or the Trustee in respect of the
authenticity of the signature of any officer,
employee or agent of the Company or the Trustee on
any Certificated Note.
PAYMENT OF Each Agent shall forward to the Company, on a
EXPENSES: monthly basis, a statement of the out-of-pocket
expenses incurred by such Agent during that month
that are reimbursable to it pursuant to the terms
of the Agency Agreement. The Company will remit
payment to the Agents currently on a monthly
basis.
ADVERTISING COSTS: The Company will determine with the Agents the
amount of advertising that may be appropriate in
soliciting orders to purchase the Certificated
Notes. Advertising expenses will be paid by the
Company.
PERIODIC STATEMENTS Periodically, upon written request, the Trustee
FROM THE TRUSTEE: will send to the Company a statement setting forth
the principal amount of Certificated Notes
Outstanding as of that date and setting forth a
brief description of any sales of Certificated
Notes of which the Company has advised the Trustee
but which have not yet been settled.
<PAGE>
Exhibit 1(b)
Fleet Financial Group, Inc.
$2,000,000,000
Senior Medium-Term Notes, Series N
Subordinated Medium-Term Notes, Series O
Due Nine Months or More
from Date of Issue
Distribution Agreement
September 25, 1998
New York, New York
Fleet National Bank
75 State Street
Boston, MA 02109
Ladies and Gentlemen:
Fleet Financial Group, Inc., a Rhode Island corporation (the "Company"),
confirms its agreement with you with respect to the issue and sale by the
Company of up to $2,000,000,000 aggregate principal amount of its Senior
Medium-Term Notes, Series N and Subordinated Medium-Term Notes, Series O
(respectively, the "Senior Notes" and the "Subordinated Notes"), Due Nine Months
or More from Date of Issue (collectively, the "Notes"). The Senior Notes are to
be issued under an indenture dated as of October 1, 1992 (the "Indenture"),
between the Company and The First National Bank of Chicago, as trustee (the
"Senior Trustee" or "First Chicago"). The Subordinated Notes are to be issued
under an indenture dated as of October 1, 1992, between the Company and First
Chicago as trustee (the "Subordinated Trustee" and, collectively with the Senior
Trustee, the "Trustee"), as supplemented by a first supplemental indenture dated
as of November 30, 1992, between the Company and the Subordinated Trustee (as so
supplemented, the "Subordinated Indenture" and collectively with the Senior
Indenture, the "Indentures"). The Notes to be sold by you will be issued in
minimum denominations of $150,000 or any amount in excess thereof which is an
integral multiple of $1,000, will be issued only in fully registered form and
will have the annual interest rates, maturities and, if appropriate, other terms
set forth in a supplement to the Prospectus referred to below. The Notes will
be issued, and the terms thereof established, in accordance with the applicable
Indenture and the Medium-Term Notes Administrative Procedures attached hereto as
Exhibit A (the "Procedures"). The Procedures may only be amended by written
agreement of the Company and you after notice to, and with the approval of, the
Trustee.
1. REPRESENTATIONS AND WARRANTIES. The Company represents and warrants
to, and agrees with, you as set forth below in this Section 1. Certain terms
used in this Section 1 are defined in paragraph (d) hereof.
(a) The Company meets the requirements for use of Form S-3 under the
Securities Act of 1933 (the "Act") and has filed with the Securities and
Exchange Commission (the "Commission") a registration statement on such Form
(Registration Number: 333-62905), including a base prospectus, which also
constitutes pursuant to Rule 429 under the Act Post-Effective Amendment No. 1 to
registration statement on such Form (Registration Number: 333-37231) and to
registration statement on such Form (Registration Number: 333-48043) and which
become effective, for the registration under the Act of securities (the
"Securities"), including the Notes, in an aggregate principal amount of
$2,336,868,750. Such registration statements, as amended at the date of this
Agreement, meet
<PAGE>
the requirements set forth in Rule 415(a)(1)(ix) or (x) under the Act and comply
in all other material respects with said Rule. The Company has included in such
registration statements, as amended at the date of this Agreement, or has filed
or will file with the Commission pursuant to the applicable paragraph of Rule
424(b) under the Act, a supplement to the form of prospectus included in such
registration statement relating to the Notes and the plan of distribution
thereof (the "Prospectus Supplement"). In connection with the sale of Notes the
Company proposes to file with the Commission pursuant to the applicable
paragraph of Rule 424(b) under the Act further supplements to the Prospectus
Supplement specifying the interest rates, maturity dates and, if appropriate,
other terms of the Notes sold pursuant hereto or the offering thereof.
(b) As of the Execution Time, on the Effective Date, when any
supplement to the Prospectus is filed with the Commission, on each day of an
Offering Period (referred to below) and at the date of delivery by the Company
of any Notes sold hereunder (a "Closing Date"), (i) the Registration Statement,
as amended as of any such time, and the Prospectus, as supplemented as of any
such time, and each Indenture will comply in all material respects with the
applicable requirements of the Act, the Trust Indenture Act of 1939 (the "Trust
Indenture Act") and the Securities Exchange Act of 1934 (the "Exchange Act") and
the respective rules thereunder; (ii) the Registration Statement, as amended as
of any such time, did not or will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements therein not misleading; and (iii) the
Prospectus, as supplemented as of any such time, will not contain any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided, however, that the Company makes no
representations or warranties as to (i) that part of the Registration Statement
which shall constitute the Statement of Eligibility and Qualification (Form T-1)
under the Trust Indenture Act of the Trustee or (ii) the information contained
in or omitted from the Registration Statement or the Prospectus (or any
supplement thereto) in reliance upon and in conformity with information
furnished in writing to the Company by you specifically for inclusion in
connection with the preparation of the Registration Statement or the Prospectus
(or any supplement thereto).
(c) As of the time any Notes are issued and sold hereunder, each
Indenture will constitute a legal, valid and binding instrument enforceable
against the Company in accordance with its terms and such Notes will have been
duly authorized, executed, authenticated and, when paid for by the purchasers
thereof, will constitute legal, valid and binding obligations of the Company
entitled to the benefits of the applicable Indenture.
(d) The terms which follow, when used in this Agreement, shall have
the meanings indicated. The term "the Effective Date" shall mean each date that
the Registration Statement and any post-effective amendment or amendments
thereto became or become effective. "Execution Time" shall mean the date and
time that this Agreement is executed and delivered by the parties hereto. "Base
prospectus" shall mean the form of base prospectus relating to the Securities
contained in the Registration Statement at the Effective Date. "Prospectus"
shall mean the Base prospectus as supplemented by the Prospectus Supplement.
"Registration Statement" shall mean the registration statements referred to in
paragraph (a) above, including incorporated documents, exhibits and financial
statements, as amended at the Execution Time. "Rule 415" and "Rule 424" refer
to such rules under the Act. Any reference herein to the Registration
Statement, the Base prospectus, the Prospectus Supplement 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 which were filed under the Exchange Act
on or before the Effective Date of the Registration Statement or the issue date
of the Base prospectus, the Prospectus Supplement or the Prospectus, as the case
may be; and any reference herein to the terms "amend", "amendment" or
"supplement" with respect to the Registration Statement, the Base prospectus,
the Prospectus Supplement or the Prospectus shall be deemed to refer to and
include the filing of any document under the Exchange Act after the Effective
Date of the Registration Statement or the issue date of the Base prospectus, the
Prospectus Supplement or the Prospectus, as the case may be, deemed to be
incorporated therein by reference.
2. APPOINTMENT OF AGENT; SOLICITATION BY THE AGENT OF OFFERS TO PURCHASE.
Subject to the terms and conditions set forth herein, the Company hereby
authorizes the Agent to act as its agent to solicit offers for the purchase of
all or part of the Notes from the Company. The Company shall notify the Agent
from time to time as to the commencement of a period during which the Notes may
be offered and sold by the Agent (each period,
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commencing with such notification and ending at such time as the authorization
for offers and sales through the Agent shall have been suspended by the Company
or the Agent as provided hereunder, being referred to as an "Offering Period").
On the basis of the representations and warranties, and subject to the
terms and conditions set forth herein, the Agent agrees, solely as agent of the
Company, to use its reasonable efforts to solicit offers to purchase the Notes
during each Offering Period from the Company upon the terms and conditions set
forth in the Prospectus (and any supplement thereto) and in the Procedures.
Under no circumstances will the Agent be obligated to purchase any Notes for its
own account.
The Company shall have the sole right to accept offers to purchase the
Notes and may reject any such offer in whole or in part. The Agent shall have
the right to reject, in its discretion reasonably exercised, any offer received
by it to purchase the Notes in whole or in part, and any such rejection shall
not be deemed a breach of its agreements contained herein.
The Company reserves the right, in its sole discretion, to instruct the
Agent to suspend at any time, for any period of time or permanently, the
solicitation of offers to purchase the Notes. Upon receipt of instructions from
the Company, the Agent will forthwith suspend solicitation of offers to purchase
Notes from the Company until such time as the Company has advised them that such
solicitation may be resumed.
The Company agrees to pay the Agent a commission, on the Closing Date with
respect to each sale of Notes by the Company as a result of a solicitation made
by the Agent, in an amount equal to that percentage specified in Schedule I
hereto of the aggregate principal amount of the Notes sold by the Company. Such
commission shall be payable as specified in the Procedures.
Subject to the provisions of this Section and to the Procedures, offers for
the purchase of Notes may be solicited by the Agent for the Company at such time
and in such amounts as the Agent deems advisable. The Company may from time to
time offer Notes for sale otherwise than through the Agent; provided, however,
that so long as this Agreement shall be in effect, the Company shall not solicit
or accept offers to purchase Notes through the agent other than the Agent, an
affiliate of the Company, or any of Salomon Smith Barney Inc., Merrill Lynch &
Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Goldman, Sachs & Co.
and J.P. Morgan Securities Inc., which have entered into a Selling Agency
Agreement with the Company providing for the sale of Notes on terms and
conditions substantially similar to those contained herein, unless such
solicitation or acceptance is on terms with respect to commissions substantially
similar to those set forth in Schedule I hereto and the Company shall give the
Agent reasonable notice of the appointment of such agent for the purpose of
soliciting the Notes.
3. OFFERING AND SALE OF NOTES. The Agent and the Company agree to
perform the respective duties and obligations specifically provided to be
performed by them in the Procedures.
4. AGREEMENTS. The Company agrees with you that:
(a) Prior to the termination of the offering of the Notes, the
Company will not file any amendment of the Registration Statement or supplement
to the Prospectus (except for (i) periodic or current reports filed under the
Exchange Act, (ii) a supplement relating to any offering of Notes providing
solely for the specification of or a change in the maturity dates, interest
rates, issuance prices or other terms of any Notes or (iii) a supplement
relating to an offering of Securities other than the Notes) unless the Company
has furnished you a copy for your review prior to filing and given you a
reasonable opportunity to comment on any such proposed amendment or supplement.
Subject to the foregoing sentence, the Company will cause each supplement to the
Prospectus to be filed with the Commission pursuant to the applicable paragraph
of Rule 424(b) within the time period prescribed and will provide evidence
satisfactory to you of such filing. The Company will promptly advise you (i)
when the Prospectus, and any supplement thereto, shall have been filed with the
Commission pursuant to Rule 424(b), (ii) when, prior to the termination of the
offering of the Notes, any amendment of the Registration Statement shall have
been filed or become effective, (iii) of any request by the Commission for any
amendment of the Registration Statement or supplement to the Prospectus or for
any additional information, (iv) of the issuance by the Commission of any stop
<PAGE>
order suspending the effectiveness of the Registration Statement or the
institution or threatening of any proceeding for that purpose and (v) of the
receipt by the Company of any notification with respect to the suspension of the
qualification of the Notes for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose. The Company will use its best
efforts to prevent the issuance of any such stop order and, if issued, to obtain
as soon as possible the withdrawal thereof.
(b) If, at any time when a prospectus relating to the Notes is
required to be delivered under the Act, any event occurs as a result of which
the Prospectus as then supplemented would include any untrue statement of a
material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, or if it shall be necessary to amend the Registration
Statement or to supplement the Prospectus to comply with the Act or the Exchange
Act or the respective rules thereunder, the Company promptly will (i) notify you
to suspend solicitation of offers to purchase Notes (and, if so notified by the
Company, you shall forthwith suspend such solicitation and cease using the
Prospectus as then supplemented), (ii) prepare and file with the Commission,
subject to the first sentence of paragraph (a) of this Section 4, an amendment
or supplement which will correct such statement or omission or effect such
compliance and (iii) supply any supplemented Prospectus to you in such
quantities as you may reasonably request. If such amendment or supplement, and
any documents, certificates and opinions furnished to you pursuant to paragraph
(g) of this Section 4 in connection with the preparation or filing of such
amendment or supplement are satisfactory in all respects to you, you will, upon
the filing of such amendment or supplement with the Commission and upon the
effectiveness of an amendment to the Registration Statement, if such an
amendment is required, resume your obligation to solicit offers to purchase
Notes hereunder.
(c) The Company, during the period when a prospectus relating to the
Notes is required to be delivered under the Act, will file promptly all
documents required to be filed with the Commission pursuant to Section 13(a),
13(c), 14 or 15(d) of the Exchange Act and will furnish to you copies of such
documents. In addition, on the date on which the Company makes any announcement
to the general public concerning earnings or concerning any other event which is
required to be described, or which the Company proposes to describe, in a
document filed pursuant to the Exchange Act, the Company will furnish to you the
information contained or to be contained in such announcement. The Company also
will furnish to you copies of all other press releases or announcements to the
general public of a financial nature. The Company will immediately notify you
of (i) any downgrading in the rating of the Notes or any other debt securities
of the Company, or the announcement that the Notes or any other debt securities
of the Company have been placed on a "watchlist" with negative implications, by
any "nationally recognized statistical rating organization" (as defined for
purposes of Rule 436(g) under the Act) or (ii) any notice given of any intended
or potential decrease in any such rating or of a possible change in any such
rating that does not indicate the direction of the possible change, as soon as
the Company learns of any such decrease or notice, as soon as the Company learns
of any such downgrading or announcement.
(d) As soon as practicable, the Company will make generally available
to its security holders and to you an earnings statement or statements of the
Company and its subsidiaries which will satisfy the provisions of Section 11(a)
of the Act and Rule 158 under the Act.
(e) The Company will furnish to you and your counsel, without charge,
copies of the Registration Statement (including exhibits thereto) and, so long
as delivery of a prospectus may be required by the Act, as many copies of the
Prospectus and any supplement thereto as you may reasonably request.
(f) The Company will arrange for the qualification of the Notes for
sale under the laws of such jurisdictions as you may designate, will maintain
such qualifications in effect so long as required for the distribution of the
Notes, and will arrange for the determination of the legality of the Notes for
purchase by institutional investors.
(g) The Company shall furnish to you such information, documents,
certificates of officers of the Company and opinions of counsel for the Company
relating to the business, operations and affairs of the Company, the
Registration Statement, the Prospectus, and any amendments thereof or
supplements thereto, the Indentures, the Notes, this Agreement, the Procedures
and the performance by the Company and you of its and your respective
<PAGE>
obligations hereunder and thereunder as you may from time to time and at any
time prior to the termination of this Agreement reasonably request.
(h) The Company shall, whether or not any sale of the Notes is
consummated, (i) pay all expenses incident to the performance of its obligations
under this Agreement, including the fees and disbursements of its accountants
and counsel, the cost of printing or other production and delivery of the
Registration Statement, the Prospectus, all amendments thereof and supplements
thereto, each Indenture, this Agreement and all other documents relating to the
offering, the cost of preparing, printing, packaging and delivering the Notes,
the fees and disbursements, including fees of counsel, incurred in compliance
with Section 4(f), the fees and disbursements of the Trustee and the fees of any
agency that rates the Notes, (ii) reimburse you on a monthly basis for all
out-of-pocket expenses incurred by you in connection with this Agreement and
(iii) pay the reasonable fees and expenses of your counsel incurred in
connection with this Agreement.
(i) Each acceptance by the Company of an offer to purchase Notes will
be deemed to be an affirmation that its representations and warranties contained
in this Agreement are true and correct at the time of such acceptance, as though
made at and as of such time, and a covenant that such representations and
warranties will be true and correct at the time of delivery to the purchaser of
the Notes relating to such acceptance, as though made at and as of such time (it
being understood that for purposes of the foregoing affirmation and covenant
such representations and warranties shall relate to the Registration Statement
and Prospectus as amended or supplemented at each such time). Each such
acceptance by the Company of an offer for the purchase of Notes shall be deemed
to constitute an additional representation, warranty and agreement by the
Company that, as of the settlement date for the sale of such Notes, after giving
effect to the issuance of such Notes, of any other Notes to be issued on or
prior to such settlement date and of any other Securities to be issued and sold
by the Company on or prior to such settlement date, the aggregate amount of
Securities (including any Notes) which have been issued and sold by the Company
will not exceed the amount of Securities registered pursuant to the Registration
Statement.
(j) Prior to the commencement of the first Offering Period subsequent
to each time, and subsequent to each time during any Offering Period, that the
Registration Statement or the Prospectus is amended or supplemented (other than
by an amendment or supplement relating to any offering of Securities other than
the Notes or providing solely for the specification of or a change in the
maturity dates, the interest rates, the issuance prices or other similar terms
of any Notes sold pursuant hereto), the Company will deliver or cause to be
delivered promptly to you a certificate of the Company, signed by the Chairman
of the Board, or the President, or any Executive Vice President and the
principal financial or accounting officer or Treasurer of the Company, dated the
date of the effectiveness of such amendment or the date of the filing of such
supplement, in form reasonably satisfactory to you, of the same tenor as the
certificate referred to in Section 5(d) but modified to relate to the last day
of the fiscal quarter for which financial statements of the Company were last
filed with the Commission and to the Registration Statement and the Prospectus
as amended and supplemented to the time of the effectiveness of such amendment
or the filing of such supplement.
(k) Prior to the commencement of the first Offering Period subsequent
to each time, and subsequent to each time during any Offering Period, each time
that the Registration Statement or the Prospectus is amended or supplemented
(other than by an amendment or supplement (i) relating to any offering of
Securities other than the Notes, (ii) providing solely for the specification of
or a change in the maturity dates, the interest rates, the issuance prices or
other similar terms of any Notes sold pursuant hereto or (iii) setting forth or
incorporating by reference financial statements or other information as of and
for a fiscal quarter, unless, in the case of clause (iii) above, in your
reasonable judgment, such financial statements or other information are of such
a nature that an opinion of counsel should be furnished), the Company shall
furnish or cause to be furnished promptly to you a written opinion of counsel of
the Company satisfactory to you, dated the date of the effectiveness of such
amendment or the date of the filing of such supplement, in form satisfactory to
you, of the same tenor as the opinion referred to in Section 5(b) but modified
to relate to the Registration Statement and the Prospectus as amended and
supplemented to the time of the effectiveness of such amendment or the filing of
such supplement or, in lieu of such opinion, counsel last furnishing such an
opinion to you may furnish you with a letter to the effect that you may rely on
such last opinion to the same extent as though it were dated the date of such
letter authorizing reliance (except that statements in such last opinion will be
deemed to relate to the Registration Statement and the Prospectus as amended and
supplemented
<PAGE>
to the time of the effectiveness of such amendment or the filing of such
supplement).
(l) Prior to the commencement of the first Offering Period subsequent
to each time that the Registration Statement or the Prospectus is amended or
supplemented to include or incorporate amended or supplemental financial
information, and each time during any Offering Period that the Registration
Statement or Prospectus is so amended or supplemented, the Company shall cause
its independent public accountants promptly to furnish you a letter, dated the
date of the commencement of such Offering Period or the date of the
effectiveness of such amendment or the date of the filing of such supplement, as
the case may be, in form satisfactory to you, of the same tenor as the letter
referred to in Section 5(e) with such changes as may be necessary to reflect the
amended and supplemental financial information included or incorporated by
reference in the Registration Statement and the Prospectus, as amended or
supplemented to the date of such letter; provided, that in no event will the
Company accept any offer to purchase Notes unless such letter shall have been
delivered; provided, further, that, if the Registration Statement or the
Prospectus is amended or supplemented solely to include or incorporate by
reference financial information as of and for a fiscal quarter, the Company's
independent public accountants may limit the scope of such letter, which shall
be satisfactory in form to you, to the unaudited financial statements, the
related "Management's Discussion and Analysis of Financial Condition and Results
of Operations" and any other information of an accounting, financial or
statistical nature included in such amendment or supplement, unless, in your
reasonable judgment, such letter should cover other information or changes in
specified financial statement line items.
(m) The Company confirms as of the date hereof that it has complied
with all provisions of Section 1 of Laws of Florida, Chapter 92-198, An Act
Relating to Disclosure of Doing Business with Cuba, and the Company further
agrees that if it commences engaging in business with the government of Cuba or
with any person or affiliate located in Cuba after the date the Registration
Statement becomes or has become effective with the Securities and Exchange
Commission or with the Florida Department of Banking and Finance (the
"Department"), whichever date is later, or if the information reported in the
Prospectus, if any, concerning the Company's business with Cuba or with any
person or affiliate located in Cuba changes in any material way, the Company
will provide the Department notice of such business or change, as appropriate,
in a form acceptable to the Department.
5. CONDITIONS TO THE OBLIGATIONS OF THE AGENT. The obligations of the
Agent to solicit offers to purchase the Notes shall be subject to the accuracy
of the representations and warranties on the part of the Company contained
herein as of the Execution Time, on the Effective Date, when any supplement to
the Prospectus is filed with the Commission and as of each Closing Date, to the
accuracy of the statements of the Company made in any certificates pursuant to
the provisions hereof, to the performance by the Company of its obligations
hereunder and to the following additional conditions:
(a) If filing of the Prospectus, or any supplement thereto, is
required pursuant to Rule 424(b), the Prospectus, and any such supplement, shall
have been filed in the manner and within the time period required by Rule
424(b); and no stop order suspending the effectiveness of the Registration
Statement shall have been issued and no proceedings for that purpose shall have
been instituted or threatened.
(b) The Company shall have furnished to the Agent the opinion of
Edwards & Angell, LLP, counsel for the Company, dated the Execution Time, to the
effect that:
(i) each of the Company and Fleet National Bank (the "Bank") and
any other subsidiary or subsidiaries which the Agent may reasonably
request (individually a "Subsidiary" and collectively the
"Subsidiaries") has been duly incorporated and is validly existing as
a corporation or national association in good standing under the laws
of the jurisdiction in which it is chartered or organized, with full
corporate power and authority to own its properties and conduct its
business as described in the Prospectus; the Company is qualified to
do business as a foreign corporation under the laws of the State of
New York; except as stated above, none of the Company or the Bank is
required to be qualified to do business as a foreign corporation under
the laws of any other jurisdiction; and the Company is registered as a
bank holding company under the Bank Holding Company Act of 1956, as
amended;
<PAGE>
(ii) all the outstanding shares of capital stock of the Bank and
such Subsidiaries have been duly and validly authorized and issued and
are fully paid and (except as provided in 12 U.S.C. Section 55)
nonassessable, and, except as otherwise set forth in the Prospectus,
all outstanding shares of capital stock of the Bank and such
Subsidiaries are owned by the Company either directly or through
wholly owned subsidiaries free and clear of any perfected security
interest and, to the knowledge of such counsel, after due inquiry, any
other security interests, claims, liens or encumbrances;
(iii) each Indenture has been duly authorized, executed and
delivered by the Company, has been duly qualified under the Trust
Indenture Act, and constitutes a legal, valid and binding agreement
enforceable against the Company in accordance with its terms (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 to the
availability of equitable remedies which are discretionary with the
courts);
(iv) the Notes have been duly authorized as a series of Debt
Securities under the applicable Indenture, are in the forms provided
for by resolutions of the Board of Directors of the Company adopted
pursuant to such Indenture, conform to the description thereof
contained in the Prospectus, and, when executed and authenticated in
accordance with the provisions of the applicable Indenture and
delivered to and paid for by the purchasers, will constitute valid and
binding obligations of the Company entitled to the benefits of the
applicable Indenture;
(v) to the best knowledge of such counsel, there is no pending
or threatened action, suit or proceeding before any court or
governmental agency, authority or body or any arbitrator involving the
Company or any of its subsidiaries, of a character required to be
disclosed in the Registration Statement which is not adequately
disclosed in the Prospectus, and there is no franchise, contract or
other document of a character required to be described in the
Registration Statement or Prospectus, or to be filed as an exhibit,
which is not described or filed as required;
(vi) the Registration Statement and any amendments thereto have
become effective under the Act; to the best knowledge of such counsel,
no stop order suspending the effectiveness of the Registration
Statement, as amended, has been issued, no proceedings for that
purpose have been instituted or threatened, and the Registration
Statement, the Prospectus and each amendment thereof or supplement
thereto as of their respective effective or issue dates (other than
the financial statements and other financial data contained therein as
to which such counsel need express no opinion) comply as to form in
all material respects with the applicable requirements of the Act and
the Exchange Act and the respective rules thereunder; and such counsel
has no reason to believe that the Registration Statement, or any
amendment thereof, at the time it became effective and at the date of
this Agreement (or, in the case of any opinion delivered pursuant to
Section 4(k) or Section 6, the date of such subsequently delivered
opinion), 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 amended or supplemented to the date of such opinion, includes any
untrue statement of a material fact or omits to state a material fact
necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;
(vii) this Agreement has been duly authorized, executed and
delivered by the Company;
(viii) no consent, approval, authorization or order of any court
or governmental agency or body is required for the consummation of the
transactions contemplated herein, except such as have been obtained
under the Act and such as may be required under the blue sky laws of
any jurisdiction in connection with the purchase and distribution of
the Notes as contemplated by this Agreement and such other approvals
(specified in such opinion) as have been obtained;
<PAGE>
(ix) neither the issue and sale of the Notes, nor the
consummation of any other of the transactions herein contemplated nor
the fulfillment of the terms hereof will conflict with, result in a
breach of, or constitute a default under the charter or by-laws of the
Company or the terms of any indenture or other agreement or instrument
known to such counsel and to which the Company or any of its
subsidiaries is a party or bound, or any order or regulation known to
such counsel to be applicable to the Company or any of its
subsidiaries of any court, regulatory body, administrative agency,
governmental body or arbitrator having jurisdiction over the Company
or any of its subsidiaries; and
(x) no holders of securities of the Company have rights to the
registration of such securities under the Registration Statement.
In rendering such opinion, such counsel may rely (A) as to matters
involving the application of laws of any jurisdiction other than the State of
Rhode Island or the United States, to the extent deemed proper and specified in
such opinion, upon the opinion of other counsel of good standing believed to be
reliable and who are satisfactory to counsel for the Agent and (B) as to matters
of fact, to the extent deemed proper, on certificates of responsible officers of
the Company and public officials. References to the Prospectus in this
paragraph (b) include any supplements thereto at the date such opinion is
rendered.
(c) [Intentionally omitted]
(d) The Company shall have furnished to the Agent a certificate of
the Company, signed by the Chairman of the Board, or the President, or any
Executive Vice President and the principal financial or accounting officer or
Treasurer of the Company, dated the Execution Time, to the effect that the
signers of such certificate have carefully examined the Registration Statement,
the Prospectus, any supplement to the Prospectus and this Agreement and that:
(i) the representations and warranties of the Company in this
Agreement are true and correct in all material respects on and as of
the date hereof with the same effect as if made on the date hereof and
the Company has complied with all the agreements and satisfied all the
conditions on its part to be performed or satisfied as a condition to
the obligation of the Agent to solicit offers to purchase the Notes;
(ii) no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that
purpose have been instituted or, to the Company's knowledge,
threatened; and
(iii) since the date of the most recent financial statements
included in the Prospectus (exclusive of any supplement thereto),
there has been no material adverse change in the condition (financial
or other), earnings, business or properties of the Company and its
subsidiaries, whether or not arising from transactions in the ordinary
course of business, except as set forth in or contemplated in the
Prospectus (exclusive of any supplement thereto).
(e) Prior to the Execution Time, the Company shall have furnished to
the Agent such further information, documents, certificates and opinions of
counsel as the Agent may reasonably request.
The documents required to be delivered by this Section 5 shall be delivered
at the office of Edwards & Angell, LLP, One BankBoston Plaza, Providence, Rhode
Island 02903, on the date hereof.
6. RIGHT OF PERSON WHO AGREED TO PURCHASE TO REFUSE TO PURCHASE. (a)
The Company agrees that any person who has agreed to purchase and pay for any
Note, shall have the right to refuse to purchase such Note if (i) at the Closing
Date therefor, any condition set forth in Section 5 (except that references to
the Prospectus shall be to the Prospectus as supplemented at the Closing Date)
shall not be satisfied, (ii) subsequent to the agreement to purchase such Note,
any change, or any development with respect to the Company involving a
prospective change,
<PAGE>
in or affecting the business or properties of the Company and its subsidiaries
shall have occurred the effect of which is, in the judgment of the Agent, so
material and adverse as to make it impractical or inadvisable to proceed with
the delivery of such Note or (iii) subsequent to the agreement to purchase such
Note, (w) there shall have been any decrease in the ratings of any of the
Company's debt securities by Moody's Investors Service or Standard & Poor's
Corporation (each a "Rating Agency") or any such Rating Agency shall publicly
announce that it has placed any of such debt securities on a "watchlist" with
negative implications, (x) trading in the Company's Common Stock shall have been
suspended by the Commission or the New York Stock Exchange or trading in
securities generally on the New York Stock Exchange shall have been suspended or
limited or minimum prices shall have been established on such Exchange, (y) a
banking moratorium shall have been declared either by Federal, Rhode Island or
New York State authorities, or (z) there shall have occurred any outbreak or
escalation of hostilities or other calamity or crisis the effect of which on the
financial markets or the United States is such as to make it, in the judgment of
the Agent, impracticable to market such Notes (it being understood that under no
circumstance shall the Agent have any duty or obligation to exercise any
judgment permitted to be exercised pursuant to this Section 6(a)).
(b) The Company further agrees to notify the Agent upon the
occurrence of any change, condition or development contemplated by Section
6(a)(ii) or (iii).
7. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless you and each person who controls you within the
meaning of either the Act or the Exchange Act against any and all losses,
claims, damages or liabilities, joint or several, to which you, they or any of
them may become subject under the Act, the Exchange Act or other Federal or
state statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the registration statement for the registration of
the Securities as originally filed or in any amendment thereof, or in the
Prospectus or any preliminary Prospectus, or in any amendment thereof or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and agrees to reimburse
each such indemnified party, as incurred, for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that (i) the
Company will not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information furnished to
the Company by you specifically for use in connection with the preparation
thereof, and (ii) such indemnity with respect to the Prospectus or any
preliminary Prospectus shall not inure to the benefit of you (or any person
controlling you) from whom the person asserting any such loss, claim, damage or
liability purchased the Notes which are the subject thereof if such person did
not receive a copy of the Prospectus (or the Prospectus as supplemented)
excluding documents incorporated therein by reference at or prior to the
confirmation of the sale of such Notes to such person in any case where such
delivery is required by the Act and the untrue statement or omission of a
material fact contained in the Prospectus or any preliminary Prospectus was
corrected in the Prospectus (or the Prospectus as supplemented). This indemnity
agreement will be in addition to any liability which the Company may otherwise
have.
(b) You agree to indemnify and hold harmless the Company, each of its
directors, each of its officers who signs the Registration Statement and each
person who controls the Company within the meaning of either the Act or the
Exchange Act, to the same extent as the foregoing indemnity from the Company to
you, but only with reference to written information relating to you furnished to
the Company by you specifically for use in the preparation of the documents
referred to in the foregoing indemnity. This indemnity agreement will be in
addition to any liability which you may otherwise have. The Company
acknowledges that the statements set forth in the last sentence of the eleventh
paragraph under the heading "Plan of Distribution" of the Prospectus Supplement
relating to purchases and sales of Notes in the secondary market constitute the
only information furnished in writing by you for inclusion in the documents
referred to in the foregoing indemnity, and you confirm that such statements are
correct.
(c) Promptly after receipt by an indemnified party under this Section
7 of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the
<PAGE>
indemnifying party under this Section 7, notify the indemnifying party in
writing of the commencement thereof; but the omission, without prejudice, so to
notify the indemnifying party will not relieve it from any liability which it
may have to any indemnified party otherwise than under this Section 7. In case
any such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein, and to the extent that it may elect by written
notice delivered to the indemnified party promptly after receiving the aforesaid
notice from such indemnified party, to assume the defense thereof, with counsel
satisfactory to such indemnified party; provided, however, that if the
defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to
select separate counsel to assert such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party or
parties. Upon receipt of notice from the indemnifying party to such indemnified
party of its election so to assume the defense of such action and approval by
the indemnified party of counsel, the indemnifying party will not be liable to
such indemnified party under this Section 7 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof unless (i) the indemnified party shall have employed separate counsel in
connection with the assertion of legal defenses in accordance with the proviso
to the next preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel (plus any local counsel), approved by you in the case of
paragraph (a) of this Section 7, representing the indemnified parties under such
paragraph (a) who are parties to such action), (ii) the indemnifying party shall
not have employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of commencement of the
action or (iii) the indemnifying party has authorized the employment of counsel
for the indemnified party at the expense of the indemnifying party; and except
that, if clause (i) or (iii) is applicable, such liability shall be only in
respect of the counsel referred to in such clause (i) or (iii).
(d) If for any reason the indemnification provided for in paragraph
(a) of this Section 7 is due in accordance with its terms but is held by a court
to be unavailable from the Company on grounds of policy or otherwise, you shall
contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with investigating or
defending same) to which the Company and you may be subject in an amount not in
excess of the commissions received by you in connection with the Notes from
which such losses, claims, damages and liabilities arise unless you were guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Act). For purposes of this Section 7, each person who controls you within the
meaning of the Act shall have the same rights to contribution as you and each
person who controls the Company within the meaning of either the Act or the
Exchange Act, each officer of the Company who shall have signed the Registration
Statement and each director of the Company shall have the same rights to
contribution as the Company, subject in each case to clauses (y) and (z) of this
paragraph (d).
8. TERMINATION. This Agreement will continue in effect until terminated
as provided in this Section 8. This Agreement may be terminated by either the
Company or you, giving written notice to the other party of such termination.
This Agreement shall so terminate at the close of business on the first business
day following the receipt of such notice by the party to whom such notice is
given. In the event of such termination, no party shall have any liability to
the other party hereto, except as provided in the fourth paragraph of Section
2(a), Section 4(b), Section 4(h), Section 7 and Section 9. The provisions of
this Agreement (including without limitation Section 6 hereof) applicable to any
purchase of a Note for which an agreement to purchase exists prior to the
termination hereof shall survive any termination of this Agreement.
9. REPRESENTATIONS AND INDEMNITIES TO SURVIVE. The respective
agreements, representations, warranties, indemnities and other statements of the
Company or its officers and of you set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation
made by or on behalf of you or the Company or any of the officers, directors or
controlling persons referred to in Section 7 hereof, and will survive delivery
of and payment for the Notes. The provisions of Sections 4(h) and 7 hereof
shall survive the termination or cancellation of this Agreement.
10. NOTICES. All communications hereunder will be in writing and
effective only on receipt, and, if sent to
<PAGE>
you, will be mailed, delivered or telegraphed and confirmed to you, at the
address set forth above, attention of Carl F. Woodbury, Senior Vice President;
or, if sent to the Company, will be mailed, delivered or telegraphed and
confirmed to it at One Federal Street, Boston, Massachusetts 02211, attention of
the Secretary and General Counsel.
11. SUCCESSORS. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the officers
and directors and controlling persons referred to in Section 7 hereof, and no
other person will have any right or obligation hereunder, except for the right
of a person who has agreed to purchase a Note to refuse to purchase such Note as
provided in Section 6 hereof.
12. APPLICABLE LAW. This Agreement will be governed by and construed in
accordance with the laws of the State of New York.
If the foregoing is in accordance with your understanding of our agreement,
please sign and return to us the enclosed duplicate hereof, whereupon this
letter and your acceptance shall represent a binding agreement among the Company
and you.
Very truly yours,
FLEET FINANCIAL GROUP, INC.
By: /s/ Douglas L. Jacobs
------------------------
Douglas L. Jacobs
Treasurer
The foregoing Agreement is
hereby confirmed and accepted
as of the date hereof.
FLEET NATIONAL BANK
By: /s/ Carl F. Woodbury
--------------------
Carl F. Woodbury
Senior Vice President
<PAGE>
SCHEDULE I
Commission:
The Company agrees to pay each Agent a commission equal to the following
percentage of the principal amount of each Note sold on an agency basis by such
Agent:
<TABLE>
<CAPTION>
Term Commission Rate
- ---- ---------------
<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%
From 20 years to and including 30 years .750%
Over 30 years to be negotiated
</TABLE>
<PAGE>
EXHIBIT A
Fleet Financial Group, Inc.
Medium-Term Note Administrative Procedures
September 25, 1998
The Senior Medium-Term Notes, Series N and Subordinated Medium-Term
Notes, Series O (respectively, the "Senior Notes" and the "Subordinated Notes"),
Due Nine Months or More from Date of Issue (collectively, the "Notes") of Fleet
Financial Group, Inc. (the "Company"), are to be offered on a continuing basis.
Fleet National Bank, Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, J.P. Morgan Securities Inc. and Salomon Smith Barney Inc. will be
acting as agents (the "Agents") pursuant to distribution agreements dated as of
the date hereof. The Agents will not be obligated to purchase Notes for their
own account, unless otherwise agreed. The Notes are being sold pursuant to a
selling agency agreement between the Company and the Agent dated the date hereof
(the "Agency Agreement"). The Senior Notes will be issued under an indenture
dated as of October 1, 1992, between the Company and The First National Bank of
Chicago (the "Senior Trustee" or "First Chicago"), as trustee (the "Senior
Indenture"). The Subordinated Notes will be issued under an indenture dated as
of October 1, 1992, between the Company and First Chicago (the "Subordinated
Trustee" and collectively with the Senior Trustee, the "Trustee") as trustee, as
supplemented by a first supplemental indenture dated as of November 30, 1992,
between the Company and the Subordinated Trustee (as so supplemented, the
"Subordinated Indenture" and collectively with the Senior Indenture, the
"Indentures"). The Senior Notes will rank equally with all other unsecured and
unsubordinated debt of the Company. The Subordinated Notes will be subordinate
and junior in right of payment to all Senior Indebtedness and Other Financial
Obligations of the Company, to the extent and in the manner set forth in the
Subordinated Indenture. The Notes have been registered with the Securities and
Exchange Commission (the "Commission").
The Agency Agreement provides that Notes may also be purchased by an
Agent acting solely as principal and not as agent. In the event of any such
purchase, the functions of both the Agent and the beneficial owner under the
administrative procedures set forth below shall be performed by such Agent
acting solely as principal, unless otherwise agreed to between the Company and
such Agent acting as principal.
Each Note will be represented by either a Global Security (as defined
hereinafter) 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"). An owner of a Book-Entry Note will not
be entitled to receive a certificate representing such Note.
The procedures to be followed during, and the specific terms of, the
solicitation of orders by the Agent and the sale as a result thereof by the
Company are explained below. Administrative and record-keeping responsibilities
will be handled for the Company by its Treasury Department. The Company will
advise the Agent and the Trustee in writing of those persons handling
administrative responsibilities with whom the Agent and the Trustee are to
communicate regarding orders to purchase Notes and the details of their
delivery.
Administrative procedures and specific terms of the offering are
explained below. Book-Entry Notes will be issued in accordance with the
administrative procedures set forth in Part I hereof, as adjusted in accordance
with changes in DTC's operating requirements, and Certificated Notes will be
issued in accordance with the administrative procedures set forth in Part II
hereof. Unless otherwise defined herein, terms defined in the applicable
Indenture and the Notes shall be used herein as therein defined. Notes for
which interest is calculated on the basis of a fixed interest rate, which may be
zero, are referred to herein as "Fixed Rate Notes". Notes for which interest is
calculated on the basis of a floating interest rate are referred to herein as
"Floating Rate Notes". To the extent the procedures set forth below conflict
with the provisions of the Notes, the applicable Indenture, DTC's operating
requirements or the Agency Agreement, the relevant provisions of the Notes, the
applicable Indenture, DTC's operating requirements and the Agency Agreement
shall control.
<PAGE>
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 Representations
from the Company and the Trustee to DTC dated as of March 27, 1996, and a
Medium-Term Note Certificate Agreement between the Trustee and DTC dated as of
May 26, 1989, 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
$200,000,000 principal amount(or such other
maximum as may from time to time be agreed to by
DTC) of all such Book-Entry Notes that have the
same rank (senior or subordinated), original issue
date, original issue discount provisions, if any,
Interest Payment Dates, Regular Record Dates,
Interest Payment Period, redemption provisions, if
any, Maturity Date, and, in the case of Fixed Rate
Notes, interest rate, or, in the case of Floating
Rate Notes, initial interest rate, Base Rate,
Index Maturity, Interest Reset Period, Interest
Reset Dates, Spread and/or Spread Multiplier, if
any, minimum interest rate, if any, and maximum
interest rate, if any (collectively, the "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 original issue
date, which will be (i) with respect to an
original Global Security (or any portion thereof),
the original issue date specified in such Global
Security and (ii) following a consolidation of
Global Securities, with respect to the Global
Security resulting from such consolidation, the
most recent Interest Payment Date to which
interest has been paid or duly provided for on the
predecessor Global Securities, regardless of the
date of authentication of such resulting Global
Security. 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 the reservation of two
series of CUSIP numbers, each of which consists of
approximately 900 CUSIP numbers and relates to
Global Securities representing Book-entry Notes
and book-entry medium-term notes issued by the
Company with other series designations. The
Company has obtained from the CUSIP Service Bureau
a written list of such reserved CUSIP numbers,
which the Company shall deliver to the Trustee and
DTC. The Company 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 Company has assigned to Global
Securities. At any time when fewer than 100 of
the reserved CUSIP numbers remain unassigned to
Global Securities for either series, if it deems
necessary, the Company will reserve additional
CUSIP numbers for assignment to Global Securities.
Upon obtaining such additional CUSIP numbers, the
Company shall deliver a list of such additional
CUSIP numbers to the Trustee and DTC.
REGISTRATION: Global Securities will be issued only in fully
registered form without coupons. Each Global
Security will be registered in the name of CEDE &
CO., as nominee for DTC, on the securities
register for the Notes maintained under the
applicable 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 Book-Entry Note, the
"Participants") to act as agent 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
Book-Entry Note in the account of such
Participants. The ownership interest of such
beneficial owner (or such participant) in such
Book-Entry 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.
<PAGE>
TRANSFERS: Transfers of a Book-Entry Note will be
accomplished 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 (a copy of which shall be attached
to the resulting Global Security described below)
specifying (i) the CUSIP numbers of two or more
Outstanding Global Securities that represent (A)
Fixed Rate Book-Entry Notes having the same Terms
and for which interest has been paid to the same
date or (B) Floating Rate 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)
the single CUSIP number to be assigned to such
replacement Global Security (which shall be the
CUSIP number previously assigned to the Global
Security with the earliest date of issuance).
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 such single
CUSIP number and stating that, as of such exchange
date, the CUSIP numbers of the individual Global
Securities not assigned to the replacement Global
Security will no longer be valid. On the
specified exchange date, the Trustee will exchange
such Global Securities for a single Global
Security bearing the single CUSIP number and the
CUSIP numbers of the individual Global Securities
not assigned will, in accordance with CUSIP
Service Bureau procedures, be retired and not
reassigned. Notwithstanding the foregoing, if the
Global Securities to be exchanged exceed
$200,000,000 in aggregate principal amount (or
such other maximum amount as may from time to time
be agreed to by DTC) one Global Security will be
authenticated and issued to represent each
$200,000,000 of principal amount (or such other
maximum amount as may from time to time be agreed
to by DTC) of the exchanged Global Securities 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 nine months or
more from the date of its issue.
DENOMINATIONS: Book-Entry Notes will be issued in principal
amounts of $1,000 or any integral multiple
thereof. Global Securities will be denominated in
principal amounts not in excess of $200,000,000
(or such other maximum amount as may from time to
time be agreed to by DTC) . If one or more
Book-Entry Notes having an aggregate principal
amount in excess of $200,000,000(or such other
maximum amount as may from time to time be agreed
to by DTC) would, but for the preceding sentence,
be represented by a single Global Security, then
one Global Security will be authenticated and
issued to represent each $200,000,000 principal
amount (or such other maximum amount as may from
time to time be agreed to by DTC) of such
Book-Entry Note or Notes and an additional Global
Security will be authenticated and 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, if any, on each Book-Entry Note
will accrue from the original issue date for the
first interest period or the last date to which
interest has been paid, if any, for each
subsequent interest period, on the Global Security
representing such Book-Entry Note, and will be
calculated and paid in the manner described in
such Book-Entry Note and in the Prospectus (as
defined in the Agency Agreement), as supplemented
by the applicable Pricing Supplement. Unless
otherwise specified therein, each payment of
interest on a Book-Entry Note will include
interest accrued to but excluding the Interest
Payment Date or to but excluding Maturity.
Interest payable at the Maturity 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
<PAGE>
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 (daily or weekly) bond report
published by Standard & Poor's Corporation.
REGULAR RECORD DATES. The Regular Record Date
with respect to any Interest Payment Date for
Floating Rate Book-Entry Notes shall be the date
fifteen calendar days immediately preceding such
Interest Payment Date, whether or not such date
shall be a Business Day.
INTEREST PAYMENT DATES ON FIXED RATE BOOK-ENTRY
NOTES. Unless otherwise agreed, interest payments
on Fixed Rate Book-Entry Notes will be made
monthly on the 15th day of each month and at
Maturity; PROVIDED, HOWEVER, that in the case of a
Fixed Rate Book-Entry Note issued between a
Regular 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 Regular 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.
INTEREST PAYMENT DATES ON FLOATING RATE BOOK-ENTRY
NOTES. Unless otherwise agreed, interest payments
will be made on Floating Rate Book-Entry Notes
monthly on the 15th of each month; PROVIDED,
HOWEVER, that if an Interest Payment Date for a
Floating Rate Book-Entry Note would otherwise be a
day that is not a Business Day with respect to
such Floating Rate Book-Entry Note, such Interest
Payment Date will be the next succeeding Business
Day with respect to such Floating Rate Book-Entry
Note, except that in the case of a Floating Rate
Book-Entry Note for which the Base Rate is LIBOR,
if such Business Day is in the next succeeding
calendar month, such Interest Payment Date will be
the immediately preceding Business Day; and
PROVIDED FURTHER, that, in the case of a Floating
Rate Book-Entry Note issued between a Regular
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 Regular Record Date.
NOTICE OF FLOATING RATE INTEREST RATES. Promptly
after each Interest Determination Date for
Floating Rate Book-Entry Notes, the Calculation
Agent will notify the Trustee and Standard &
Poor's Corporation of the interest rates
determined on such Interest Determination Date.
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 30-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 Notes. Interest on
Floating Rate Book-Entry Notes, except as
otherwise set forth therein, will be calculated on
the basis of actual days elapsed and a year of 360
days, except that in the case of a Floating Rate
Book-Entry Note for which the Base Rate is the
Treasury Rate or the CMT Rate, interest will be
calculated on the basis of the actual number of
days in the year.
PAYMENTS OF PRINCIPAL AND PAYMENT OF INTEREST ONLY. Promptly after each
INTEREST: Regular Record Date, PROVIDED, with respect to
Floating Rate Notes, that the Calculation Agent
has provided the Trustee with the necessary
information regarding interest rates, the Trustee
will deliver to the Company and DTC a written
notice setting forth, by CUSIP number, the amount
of interest to be paid on each Global Security on
the following Interest Payment Date (other than an
Interest Payment Date coinciding with Maturity)
and the total of such amounts. DTC will confirm
the amount payable on each Global Security on such
Interest Payment Date by reference to the
appropriate (daily or weekly) bond reports
published by Standard & Poor's Corporation. The
Company will pay to the Trustee, as paying agent,
the total amount of interest due on such Interest
Payment Date (other than at
<PAGE>
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. On or about the last
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 maturing (on a Maturity or Redemption
Date or otherwise) in the following month. The
Trustee, 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 of such Global Security. On or before
Maturity, the Company will pay to the Trustee, as
paying agent, the principal amount of such Global
Security, together with interest due at such
Maturity. The Trustee will pay such amount to DTC
at the times and in the manner set forth below
under "Manner of Payment". If any Maturity of a
Global Security representing 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 Maturity. Promptly
after payment to DTC of the principal and interest
due at Maturity of such Global Security, the
Trustee will cancel such Global Security in
accordance with the applicable Indenture and so
advise the Company. On the first Business Day of
each month, the Trustee will deliver to the
Company a written statement indicating the total
principal amount of Outstanding Global Securities
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 shall be
paid by the Company to the Trustee in immediately
available funds no later than 9:30 A.M. (New York
City time) on such date. The Company will make
such payment on such Global Securities by
instructing the Trustee to withdraw funds from an
account maintained by the Company at First Chicago
or by wire transfer of funds available for
immediate use to the Trustee. The Company will
confirm any such instructions in writing to the
Trustee. Prior to 10 A.M. (New York City time) on
the date of Maturity or as soon as possible
thereafter, 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
a Global Security on such date. On each Interest
Payment Date (other than at Maturity), interest
payments shall be made to DTC, in funds available
for immediate use by DTC, in accordance with
existing arrangements between the Trustee and DTC.
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 (as issuer
or as paying agent) nor the Trustee shall have any
direct 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 for forwarding payments and materials
directly to the beneficial owner of such Note.
PROCEDURE FOR RATE The Company and the Agent will discuss from time
SETTING AND to time the aggregate principal amount of, the
POSTING: issuance price of, and the interest rates to be
borne by, Book-Entry Notes that may be sold as a
result of the solicitation of orders by the Agent.
If the Company decides to set prices of, and rates
borne by, any Book-Entry Notes in respect of which
the Agent is to solicit orders (the setting of
such prices and rates to be referred to herein as
"posting") or if the Company decides to change
prices or rates previously posted by it, it will
promptly advise the Agent of the prices and rates
to be posted.
<PAGE>
ACCEPTANCE AND Unless otherwise instructed by the Company, the
REJECTION OF Agent will advise the Company promptly by
ORDERS: telephone of all orders to purchase Book-Entry
Notes received by such Agent, other than those
rejected by it in whole or in part in the
reasonable exercise of its discretion. The
Company has the right to accept orders to purchase
Book-Entry Notes and may reject any such orders in
whole or in part.
PREPARATION OF If any order to purchase a Book-Entry Note is
PRICING SUPPLEMENT: accepted by or on behalf of the Company, the
Company will prepare a pricing supplement (a
"Pricing Supplement") reflecting the terms of such
Book-Entry Note and will arrange to have ten
copies thereof filed with the Commission in
accordance with the applicable paragraph of Rule
424(b) under the Act and will supply at least ten
copies thereof (and additional copies if
requested) to the Agent which presented the order
(the "Presenting Agent") at the address set forth
on Schedule I hereto, to be delivered by overnight
courier or telecopy to arrive no later than 11:00
a.m., New York City time, on the Business Day
following the sale date.
The Presenting Agent will cause a Prospectus and
Pricing Supplement to be delivered to the
purchaser of such Book-Entry Note.
In each instance that a Pricing Supplement is
prepared, the Presenting Agent will affix the
Pricing Supplement to Prospectuses prior to their
use. Outdated Pricing Supplements (other than
those retained for files), will be destroyed.
SUSPENSION OF The Company may instruct the Agent to suspend at
SOLICITATION; any time, for any period of time or permanently,
AMENDMENT OR the solicitation of orders to purchase Book-Entry
SUPPLEMENT: Notes. Upon receipt of such instructions, the
Agent will forthwith suspend solicitation until
such time as the Company has advised them that
such solicitation may be resumed. In the event
that at the time the Company suspends solicitation
of purchases there shall be any orders outstanding
for settlement, the Company will promptly advise
the Agent and the Trustee whether such orders may
be settled and whether copies of the Prospectus as
in effect at the time of the suspension, together
with the appropriate Pricing Supplement, may be
delivered in connection with the settlement of
such orders. The Company will have the sole
responsibility for such decision and for any
arrangements that may be made in the event that
the Company determines that such orders may not be
settled or that copies of such Prospectus may not
be so delivered.
If the Company decides to amend or supplement the
Registration Statement (as defined in the Agency
Agreement) or the Prospectus, it will promptly
advise the Agent and furnish the Agent with the
proposed amendment or supplement and with such
certificates and opinions as are required, all to
the extent required by and in accordance with the
terms of the Agency Agreement. Subject to the
provisions contained in Sections 4(a) and 4(b) of
the Agency Agreement, the Company may file with
the Commission any such supplement to the
Prospectus relating to the Notes. The Company
will provide the Agent and the Trustee with copies
of any such supplement, and confirm to the Agent
that such supplement has been filed with the
Commission pursuant to the applicable paragraph of
Rule 424(b).
PROCEDURES FOR When the Company has determined to change the
RATE CHANGES: interest rates of Book-Entry Notes being offered,
it will promptly advise the Agent and the Agent
will forthwith suspend solicitation of orders.
The Agent will telephone the Company with
recommendations as to the changed interest rates.
At such time as the Company has advised the Agent
of the new interest rates, the Agent may resume
solicitation of orders. Until such time only
"indications of interest" may be recorded.
DELIVERY OF A copy of the Prospectus and a Pricing Supplement
PROSPECTUS: relating to a Book-Entry Note must accompany or
precede the earliest of any written offer of such
Book-Entry Note, confirmation of the purchase of
such Book-Entry Note and payment for such
Book-Entry Note by its purchaser. If
<PAGE>
notice of a change in the terms of the Book-Entry
Notes is received by the Agent between the time an
order for a Book-Entry Note is placed and the time
written confirmation thereof is sent by the
Presenting Agent to a customer or his agent, such
confirmation shall be accompanied by a Prospectus
and Pricing Supplement setting forth the terms in
effect when the order was placed. Subject to
"Suspension of Solicitation; Amendment or
Supplement" above, the Presenting Agent will
deliver a Prospectus and Pricing Supplement as
herein described with respect to each Book-Entry
Note sold by it. The Company will make such
delivery if such Book-Entry Note is sold directly
by the Company to a purchaser (other than an
Agent).
CONFIRMATION: For each order to purchase a Book-Entry Note
solicited by any Agent and accepted by or on
behalf of the Company, the Presenting Agent will
issue a confirmation to the purchaser, with a copy
to the Company, setting forth the details set
forth above and delivery and payment instructions.
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 Book-Entry Note shall
constitute "settlement" with respect to such
Book-Entry Note. All orders accepted by the
Company will be settled on the third Business Day
following the date of sale of such Book-Entry Note
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 Business Day following the date
of sale.
SETTLEMENT Settlement Procedures with regard to each Book-
PROCEDURES: Entry Note sold by the Company through any Agent,
as agent, shall be as follows:
A. The Presenting Agent will advise the Company
by telephone of the following settlement
information:
1. Rank (senior or subordinated).
2. Principal amount.
3. Maturity Date.
4. In the case of a Fixed Rate Book-Entry
Note, the interest rate or, in the case
of a Floating Rate Book-Entry Note, the
Base Rate, initial interest rate (if
known at such time), Index Maturity,
Interest Reset Period, Interest Reset
Dates, Interest Determination Dates,
Spread and/or Spread Multiplier (if
any), minimum interest rate (if any) and
maximum interest rate (if any).
5. Interest Payment Dates and the Interest
Payment Period.
6. Redemption or repayment provisions, if
any.
7. Settlement date.
8. Price.
9. The Presenting Agent's DTC participant
account number and commission,
determined as provided in Section 2 of
the Agency Agreement.
10. Whether such Book-Entry Note is issued
at an original issue discount and, if
so, the total amount of OID, the yield
to maturity and the initial accrual
period OID.
<PAGE>
B. The Company will assign a CUSIP number to the
Global Security representing such Book-Entry
Note and then advise the Trustee and the
Presenting Agent by telephone (confirmed in
writing at any time on the same date) or
electronic transmission of the information
set forth in Settlement Procedure "A" above,
such CUSIP number and the name of the
Presenting Agent. The Company will also
notify the Presenting Agent by telephone of
such CUSIP number as soon as practicable.
C. The Trustee will enter a pending deposit
message through DTC's Participant Terminal
System providing the settlement information
to DTC specified in the Letter of
Representations from the Company and the
Trustee to DTC dated as of the date hereof.
D. To the extent the Company has not already
done so, the Company will deliver to the
Trustee a Global Security in a form that has
been approved by the Company, the Agent and
the Trustee.
E. The Trustee will complete such Global
Security, stamp the appropriate legend, as
instructed by DTC, if not already set forth
thereon, and authenticate the Global Security
representing such Book-Entry Note in
accordance with the terms of the written
order of the Company then in effect.
F. DTC will credit such Book-Entry Note to the
Trustee's participant account at DTC.
G. Upon delivery of the pending deposit message
referenced in "C" above, an SDFS deliver
order through DTC's Participant Terminal
System will be created instructing DTC to
debit such Book-Entry Note to the Trustee's
participant account and credit such
Book-Entry Note to the Presenting Agent's
participant account and debit the Presenting
Agent's settlement account and credit the
Trustee's settlement account for an amount
equal to the price of such Book-Entry Note
less the Presenting Agent's commission. The
entry of such a pending deposit message by
First Chicago as Trustee shall constitute a
representation and warranty by First Chicago
to DTC that (i) the Global Security
representing such Book-Entry Note has been
issued and authenticated and (ii) First
Chicago is holding such Global Security
pursuant to the Medium-Term Note Certificate
Agreement between First Chicago and DTC.
H. The Presenting Agent will enter an SDFS
deliver order through DTC's Participant
Terminal System instructing DTC (i) to debit
such Book-Entry Note to the Presenting
Agent's participant account and credit such
Book-Entry Note to the participant accounts
of the Participants with respect to such
Book-Entry Note and (ii) to debit the
settlement accounts of such Participants and
credit the settlement account of the
Presenting Agent for an amount equal to the
price of such Book-Entry Note.
I. Transfers of funds in accordance with SDFS
deliver orders described in Settlement
Procedures "G" and "H" will be settled in
accordance with SDFS operating procedures in
effect on the settlement date.
J. The Trustee will, upon receipt of funds from
the Agent in accordance with Settlement
Procedure "G", credit to an account of the
Company maintained at First Chicago funds
available for immediate use in the amount
transferred to the Trustee in accordance with
Settlement Procedure "G". However, the
Trustee shall not credit the account of the
Company unless and until the Trustee has
confirmed receipt of the funds in the
appropriate amount transferred in accordance
with Settlement Procedure "G".
K. The Presenting Agent will confirm the
purchase of such Book-Entry Note to the
purchaser either by transmitting to the
Participants with respect to such Book-Entry
Note
<PAGE>
a confirmation order or orders through DTC's
institutional delivery system or by mailing a
written confirmation to such purchaser.
SETTLEMENT For orders of Book-Entry Notes solicited by any
PROCEDURES Agent and accepted by the Company for settlement
TIMETABLE: on the Business Day after the sale date,
Settlement Procedures "A" through "K" 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 3:00 P.M. on the day before
settlement
E 9:00 A.M. on settlement date
F 10:00 A.M. on settlement date
G-H 2:00 P.M. on settlement date
I 4:30 P.M. on settlement date
J-K 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. and 12:00
Noon on the first Business Day after the sale date
and no later than 2:00 P.M. on the Business Day
before the settlement date, respectively. 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 12:00 Noon and 2:00 P.M.,
respectively, on the second Business Day before
the settlement date. Settlement Procedure "I" is
subject to extension in accordance with any
extension of Fedwire closing deadlines and in the
other events specified in SDFS operating
procedures in effect on the settlement date.
If settlement of a Book-Entry Note is rescheduled
or canceled, the Trustee will deliver to DTC,
through DTC's Participant Terminal System, a
cancelation message to such effect by no later
than 2:00 P.M. on the Business Day immediately
preceding the scheduled settlement date.
FAILURE TO SETTLE: If the Trustee has not entered an SDFS deliver
order with respect to a Book-Entry Note pursuant
to Settlement Procedure "G", then, upon written
request (which may be by telecopy) of the Company,
the Trustee shall deliver to DTC, through DTC's
Participant Terminal System, as soon as
practicable, a withdrawal message instructing DTC
to debit such Book-Entry Note to the Trustee's
participant account. DTC will process the
withdrawal message, PROVIDED that the Trustee's
participant account contains a principal amount of
the Global Security representing such Book-Entry
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
cancel such Global Security in accordance with the
applicable Indenture and so advise the Company,
and will make appropriate entries in its records.
The CUSIP number
<PAGE>
assigned to such Global Security shall, in
accordance with CUSIP Service Bureau procedures,
be canceled 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 Book-Entry Note for two Global
Securities, one of which shall represent such
Book-Entry Notes and shall be canceled immediately
after issuance and the other of which shall
represent the other 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 Presenting Agent
may enter SDFS deliver orders through DTC's
Participant Terminal System debiting such Note to
such Agent's participant account and crediting
such Note free to the participant account of the
Trustee and shall notify the Trustee and the
Company thereof. Thereafter, the Trustee (i) will
immediately notify the Company thereof, once the
Trustee has confirmed that such Note has been
credited to its participant account, and the
Company shall immediately transfer by Fedwire
(immediately available funds) to such Agent an
amount equal to the price of such Note which was
previously credited to the account of the Company
maintained at First Chicago or wire transferred at
the Company's direction in accordance with
Settlement Procedure J and (ii) the Trustee will
deliver the withdrawal message and take the
related actions described in the preceding
paragraph. If such failure shall have occurred
for any reason other than a default by the
Presenting Agent in the performance of its
obligations hereunder and under the Agency
Agreement, then the Company will reimburse the
Presenting Agent or the Trustee, as applicable, on
an equitable basis for the loss of the use of the
funds during the period when they were credited to
the account of the Company.
Notwithstanding the foregoing, upon any failure to
settle with respect to a Book-Entry Note, DTC may
take any actions 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
Procedure "E", for the authentication and issuance
of a Global Security representing the other
Book-Entry Notes to have been represented by such
Global Security and will make appropriate entries
in its records.
TRUSTEE AND FIRST Nothing herein shall be deemed to require the
CHICAGO NOT TO RISK Trustee or First Chicago to risk or expend its own
FUNDS: funds in connection with any payment to the
Company, DTC, the Agent or the purchaser, it being
understood by all parties that payments made by
the Trustee or First Chicago to the Company, DTC,
the Agent or the purchaser shall be made only to
the extent that funds are provided to the Trustee
or First Chicago for such purpose.
AUTHENTICITY OF The Company will cause the Trustee to furnish the
SIGNATURES: Agent from time to time with the specimen
signatures of each of the Trustee's officers,
employees or agents who has been authorized by the
Trustee to authenticate Book-Entry Notes, but no
Agent will have any obligation or liability to the
Company or the Trustee in respect of the
authenticity of the signature of any officer,
employee or agent of the Company or the Trustee on
any Book-Entry Note.
PAYMENT OF The Agent shall forward to the Company, on a
EXPENSES: monthly basis, a statement of the out-of-pocket
expenses incurred by such Agent during that month
that are reimbursable to it pursuant to the terms
of the Agency Agreement. The Company will remit
payment to the Agent currently on a monthly basis.
ADVERTISING The Company will determine with the Agent the
COSTS: amount of advertising that may be appropriate in
soliciting offers to purchase the Book-Entry
Notes. Advertising expenses will be paid by the
Company.
<PAGE>
PERIODIC STATEMENTS Periodically, upon written request, the Trustee
FROM THE TRUSTEE: will send to the Company a statement setting forth
the principal amount of Book-Entry Notes
Outstanding as of that date and setting forth a
brief description of any sales of Book-Entry Notes
which the Company has advised the Trustee but
which have not yet been settled.
PART II
ADMINISTRATIVE PROCEDURES FOR CERTIFICATED NOTES
The Trustee will serve as registrar and transfer agent and
authenticating and paying agent 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 portion thereof) issued
subsequently upon transfer or exchange of a
Certificated Note or in lieu of a destroyed, lost
or stolen Certificated Note, the Original Issue
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 A Certificated Note may be presented for transfer
EXCHANGES: or exchange at the office of the Trustee at 14
Wall Street (8th Floor), New York, N.Y. 10005,
Attention: Corporate Trust Services. 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 nine months or
more from its date of issue.
DENOMINATIONS: The denomination of any Certificated Note
denominated in U.S. dollars will be a minimum of
$100,000 or any amount in excess thereof that is
an integral multiple of $1,000. The authorized
denominations of Certificated Notes denominated in
any other currency will be specified pursuant to
"Settlement Procedures" below.
INTEREST: GENERAL. Interest, if any, on each Certificated
Note will accrue from the original issue date for
the first interest period or the last date to
which interest has been paid, if any, for each
subsequent interest period, and will be calculated
and paid in the manner described in such Note and
in the Prospectus, as supplemented by the
applicable Pricing Supplement. Unless otherwise
specified therein, each payment of interest on a
Certificated Note will include interest accrued to
but excluding the Interest Payment Date or to but
excluding Maturity.
REGULAR RECORD DATES. The Regular Record Dates
with respect to any Interest Payment Date for
Floating Rate Certificated Notes shall be the date
fifteen calendar days immediately preceding such
interest Payment Date, and for Fixed Rate
Certificated Notes shall be the April 15 or
October 15 next preceding such Interest Payment
Date, whether or not such date shall be a Business
Day.
FIXED RATE CERTIFICATED NOTES. Unless otherwise
specified pursuant to Settlement Procedure "A"
below, interest payments on Fixed Rate
Certificated Notes will be made semiannually on
May 1 and November 1 of each year and at Maturity;
PROVIDED, HOWEVER, that in the case of a Fixed
Rate Certificated Note issued between a Regular
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
<PAGE>
following the next succeeding Regular Record Date.
If any Interest Payment Date for or the Maturity
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
or Maturity, as the case may be.
FLOATING RATE CERTIFICATED NOTES. Interest
payments will be made on Floating Rate
Certificated Notes monthly, quarterly,
semi-annually or annually. Interest will be
payable, in the case of Floating Rate Certificated
Notes with a monthly Interest Payment Period, on
the third Wednesday of each month; with a
quarterly interest Payment Period, on the third
Wednesday of March, June, September and December
of each year; with a semi-annual Interest Payment
Period, on the third Wednesday of the two months
specified pursuant to Settlement Procedure "A"
below; and with an annual Interest Payment Period,
on the third Wednesday of the month specified
pursuant to Settlement Procedure "A" below;
PROVIDED, HOWEVER, that if an Interest Payment
Date for a Floating Rate Certificated Note would
otherwise be a day that is not a Business Day with
respect to such Floating Rate Certificated Note,
such Interest Payment Date will be the next
succeeding Business Day with respect to such
Floating Rate Certificated Note, except in the
case of a Floating Rate Certificated Note for
which the Base Rate is LIBOR, if such Business Day
is in the next succeeding calendar month, such
Interest Payment Date will be the immediately
preceding Business Day; and PROVIDED FURTHER, that
in the case of a Floating Rate Certificated Note
issued between a Regular 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 Regular Record Date.
CALCULATION OF FIXED RATE CERTIFICATED NOTE. Interest on Fixed
INTEREST: Rate Certificated Notes (including interest for
partial periods) will be calculated on the basis
of a 360-day year of twelve 30-day months.
FLOATING RATE CERTIFICATED NOTES. Interest rates
on Floating Rate Certificated Notes will be
determined as set forth in the form of Notes.
Interest on Floating Rate Certificated Notes,
except as otherwise set forth therein, will be
calculated on the basis of actual days elapsed and
a year of 360 days, except that in the case of a
Floating Rate Certificated Note for which the Base
Rate is the Treasury Rate or the CMT Rate,
interest will be calculated on the basis of the
actual number of days in the year.
PAYMENTS OF On or before the due date for any payment of
PRINCIPAL AND principal or interest on each Certificated Note,
INTEREST: the Company will pay to the Trustee, as paying
agent, the amount of principal and/or interest
then due. The Trustee will pay the principal
amount of each Certificated Note at Maturity upon
presentation of such Certificated Note to the
Trustee. Such payment, together with payment of
interest due at Maturity of such Certificated
Note, will be made in funds available for
immediate use by the Trustee and in turn by the
Holder of such Certificated Note. Certificated
Notes presented to the Trustee at Maturity for
payment will be canceled by the Trustee in
accordance with the applicable Indenture. All
interest payments on a Certificated Note (other
than interest due at Maturity) will be made by
check drawn on the Trustee or another Person
appointed by the Trustee mailed by the Trustee to
the Person entitled thereto as provided in such
Note and the applicable Indenture; PROVIDED,
HOWEVER, that the holder of $10,000,000 (or the
equivalent thereof in other currencies) or more of
Certificated Notes with similar tenor and terms
will be entitled to receive payment by wire
transfer in U.S. dollars upon receipt of written
instructions by the Trustee. Following each
Regular Record Date and Special Record Date, the
Trustee will furnish the Company with a list of
interest payments to be made on the following
Interest Payment Date for each group of
Certificated Notes bearing interest at a
particular rate and in total for all Certificated
Notes. Interest at Maturity will be payable to
the Person to whom the payment of principal is
payable. The Trustee will provide, on or about
the last Business Day of each month, to the
Company lists of principal and interest, to the
extent ascertainable, to be paid on Certificated
Notes maturing (on a Maturity or Redemption Date
or otherwise) in the next two
<PAGE>
months.
First Chicago will be responsible for withholding
taxes on interest paid on Certificated Notes as
required by applicable law.
PROCEDURE FOR RATE The Company and the Agents will discuss from time
SETTING AND POSTING: to time the aggregate principal amount of, the
issuance price of, and the interest rates to be
borne by, Notes that may be sold as a result of
the solicitation of orders by the Agents. If the
Company decides to set prices of, and rates borne
by, any Notes in respect of which the Agents are
to solicit orders (the setting of such prices and
rates to be referred to herein as "posting") or if
the Company decides to change prices or rates
previously posted by it, it will promptly advise
the Agents of the prices and rates to be posted.
ACCEPTANCE AND Unless otherwise instructed by the Company, each
REJECTION OF ORDERS: Agent will advise the Company promptly by
telephone of all orders to purchase Certificated
Notes received by such Agent, other than those
rejected by it in whole or in part in the
reasonable exercise of its discretion. Unless
otherwise agreed by the Company and the Agents,
the Company has the sole right to accept orders to
purchase Certificated Notes and may reject any
such orders in whole or in part.
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 Certificated Note and
will arrange to have ten copies thereof filed with
the Commission in accordance with the applicable
paragraph of Rule 424(b) under the Act and will
supply at least ten copies thereof (and additional
copies if requested) to the Presenting Agent at
the address set forth on Schedule I hereto, to be
delivered by overnight courier or telecopy to
arrive no later than 11:00 a.m., New York City
time, on the Business Day following the sale date.
The Presenting Agent will cause a Prospectus and
Pricing Supplement to be delivered to the
purchaser of such Certificated Note.
In each instance that a Pricing Supplement is
prepared, the Presenting Agent will affix the
Pricing Supplement to Prospectuses prior to their
use. Outdated Pricing Supplements (other than
those retained for files), will be destroyed.
SUSPENSION OF Subject to the Company's representations,
SOLICITATION; warranties and covenants contained in the Agency
AMENDMENT Agreement, the Company may instruct the Agents to
OR SUPPLEMENT: suspend at any time for any period of time or
permanently, the solicitation of orders to
purchase Certificated Notes. Upon receipt of such
instructions, the Agents will forthwith suspend
solicitation until such time as the Company has
advised them that such solicitation may be
resumed.
In the event that at the time the Company suspends
solicitation of purchases there shall be any
orders outstanding for settlement, the Company
will promptly advise the Agents and the Trustee
whether such orders may be settled and whether
copies of the Prospectus as in effect at the time
of the suspension, together with the appropriate
Pricing Supplement, may be delivered in connection
with the settlement of such orders. The Company
will have the sole responsibility for such
decision and for any arrangements that may be made
in the event that the Company determines that such
orders may not be settled or that copies of such
Prospectus may not be so delivered.
If the Company decides to amend or supplement the
Registration Statement or the Prospectus, it will
promptly advise the Agents and furnish the Agents
with the proposed amendment or supplement and with
such certificates and opinions as are required,
all to the extent required by and in accordance
with the terms of the Agency Agreement. Subject
to the provisions of the Agency Agreement, the
Company may file with the Commission any
supplement to the Prospectus relating to the
Notes. The Company will provide the Agents and
the Trustee with copies of any such supplement,
and confirm to the Agents that such supplement has
been filed
<PAGE>
with the Commission pursuant to the applicable
paragraph of Rule 424(b).
PROCEDURE FOR When the Company has determined to change the
RATE CHANGES: interest rates of Certificated Notes being
offered, it will promptly advise the Agents and
the Agents will forthwith suspend solicitation of
orders. The Agents will telephone the Company
with recommendations as to the changed interest
rates. At such time as the Company has advised
the Agents of the new interest rates, the Agents
may resume solicitation of orders. Until such
time only "indications of interest" may be
recorded.
DELIVERY OF A copy of the Prospectus and a Pricing Supplement
PROSPECTUS: relating to a Certificated Note must accompany or
precede the earliest of any written offer of such
Certificated Note, confirmation of the purchase of
such Certificated Note and payment for such
Certificated Note by its purchaser. If notice of
a change in the terms of the Certificated Notes is
received by the Agents between the time an order
for a Certificated Note is placed and the time
written confirmation thereof is sent by the
Presenting Agent to a customer or his agent, such
confirmation shall be accompanied by a Prospectus
and Pricing Supplement setting forth the terms in
effect when the order was placed. Subject to
"Suspension of Solicitation; Amendment or
Supplement" above, the Presenting Agent will
deliver a Prospectus and Pricing Supplement as
herein described with respect to each Certificated
Note sold by it. The Company will make such
delivery if such Certificated Note is sold
directly by the Company to a purchaser (other than
any Agent).
CONFIRMATION: For each order to purchase a Certificated Note
solicited by any Agent and accepted by or on
behalf of the Company, the Presenting Agent will
issue a confirmation to the purchaser, with a copy
to the Company, setting forth the details set
forth above and delivery and payment instructions.
SETTLEMENT: The receipt by the Company of immediately
available funds in exchange for an authenticated
Certificated Note delivered to the Presenting
Agent and the Presenting Agent's delivery of such
Certificated Note against receipt of immediately
available funds shall, with respect to such
Certificated Note, constitute "settlement". All
orders accepted by the Company will be settled on
the third Business Day following the date of sale
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 following the
date of sale.
SETTLEMENT Settlement Procedures with regard to each
PROCEDURES: Certificated Note sold by the Company through any
Agent, as agent, shall be as follows:
A. The Presenting Agent will advise the Company
by telephone of the following settlement
information:
1. Name in which such Certificated 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. Rank (senior or subordinated).
5. Principal amount.
6. Maturity Date.
7. In the case of a Fixed Rate Certificated
Note, the interest rate or, in the case
of a Floating Rate Certificated Note,
the initial interest rate (if known at
such time),
<PAGE>
Base Rate, Index Maturity, Interest
Reset Period, Interest Reset Dates,
Interest Determination Dates, Spread
and/or Spread Multiplier (if any),
minimum interest rate (if any) and
maximum interest rate (if any).
8. Interest Payment Dates and the Interest
Payment Period.
9. Specified Currency and whether the
option to elect payment in a Specified
Currency applies and if the Specified
Currency is not U.S. dollars, the
authorized denominations.
10. Redemption or repayment provisions, if
any.
11. Settlement date.
12. Price (including currency).
13. Presenting Agent's commission,
determined as provided in Section 2 of
the Agency Agreement.
14. Whether such Certificated Note is issued
at an original issue discount, and, if
so, the total amount of OID, the yield
to maturity and the initial accrual
period OID.
B. The Company will advise the Trustee by
telephone (confirmed in writing at any time
on the sale date) or electronic transmission
of the information set forth in Settlement
Procedure "A" above and the name of the
Presenting Agent.
C. The Company will deliver to the Trustee an
original Certificated Note with customer
confirmation in triplicate in forms that have
been approved by Company, the Agents and the
Trustee.
D. The Trustee will complete such Certificated
Note and will authenticate such Certificated
Note and deliver it (with the confirmation)
and two copies thereof (clearly marked as
such) to the Presenting Agent, and the
Presenting Agent will acknowledge receipt of
the Note by stamping or otherwise marking the
first copy and returning it to the Trustee.
Such delivery will be made only against such
acknowledgment of receipt. In the event that
the instructions given by the Presenting
Agent for payment to the account of the
Company are revoked, the Company will as
promptly as possible wire transfer to the
account of the Presenting Agent an amount of
immediately available funds equal to the
amount of such payment made.
E. The Presenting Agent will deliver such
Certificated Note (with the confirmation) to
the customer against payment in immediately
payable funds. The Presenting Agent will
obtain the acknowledgment of receipt of such
Certificated Note by retaining the second
copy thereof.
F. The Trustee will send a third copy of the
Certificated Note (clearly marked as such) to
the Company by first-class mail.
SETTLEMENT For orders of Certificated Notes solicited by any
PROCEDURES Agent, as agent, and accepted by the Company,
TIMETABLE: 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
<PAGE>
Procedure Time
A 2:00 P.M. on the day before
settlement
B-C 3:00 P.M. on the day before
settlement
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 If a purchaser fails to accept delivery of and
SETTLE: make payment for any Certificated Note, the
Presenting Agent will notify the Company and the
Trustee by telephone and return such Certificated
Note to the Trustee. Upon receipt of such notice,
the Company will immediately wire transfer to the
account of the Presenting Agent an amount equal to
the amount previously credited to the account of
Company in respect of such Certificated 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 the Presenting Agent in
the performance of its obligations hereunder and
under the Agency Agreement, then the Company will
reimburse the Presenting Agent 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. Immediately upon receipt of the
Certificated Note in respect of which such failure
occurred, the Trustee will cancel such
Certificated Note in accordance with the
applicable Indenture and so advise the Company and
will make appropriate entries in its records.
TRUSTEE NOT TO RISK Nothing herein shall be deemed to require the
FUNDS: Trustee or First Chicago to risk or expend its own
funds in connection with any payment to the
Company, the Agents or the purchaser, it being
understood by all parties that payments made by
the Trustee to the Company, the Agents or the
purchaser shall be made only to the extent that
funds are provided to the Trustee for such
purpose.
AUTHENTICITY OF The Company will cause the Trustee to furnish the
SIGNATURES: Agents from time to time with the specimen
signatures of each of the Trustee's officers,
employees or agents who has been authorized by the
Trustee to authenticate Certificated Notes, but no
Agent will have any obligation or liability to the
Company or the Trustee in respect of the
authenticity of the signature of any officer,
employee or agent of the Company or the Trustee on
any Certificated Note.
PAYMENT OF Each Agent shall forward to the Company, on a
EXPENSES: monthly basis, a statement of the out-of-pocket
expenses incurred by such Agent during that month
that are reimbursable to it pursuant to the terms
of the Agency Agreement. The Company will remit
payment to the Agents currently on a monthly
basis.
ADVERTISING COSTS: The Company will determine with the Agents the
amount of advertising that may be appropriate in
soliciting orders to purchase the Certificated
Notes. Advertising expenses will be paid by the
Company.
PERIODIC STATEMENTS Periodically, upon written request, the Trustee
FROM THE TRUSTEE: will send to the Company a statement setting forth
the principal amount of Certificated Notes
Outstanding as of that date and setting forth a
brief description of any sales of Certificated
Notes of which the Company has advised the Trustee
but which have not yet been settled.
<PAGE>
Exhibit 4(a)
REGISTERED REGISTERED
IF APPLICABLE, THE "TOTAL AMOUNT OF OID, "YIELD TO MATURITY" AND "INITIAL
ACCRUAL PERIOD OID" (COMPUTED UNDER THE APPROXIMATE METHOD) BELOW WILL BE
COMPLETED SOLELY FOR THE PURPOSES OF APPLYING THE FEDERAL INCOME TAX ORIGINAL
ISSUE DISCOUNT ("OID") RULES.
THIS NOTE IS NOT A SAVINGS ACCOUNT, DEPOSIT OR OTHER OBLIGATION OF ANY BANK OR
NONBANK SUBSIDIARY OF FLEET FINANCIAL GROUP, INC. AND IS NOT INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, BANK INSURANCE FUND OR ANY OTHER
GOVERNMENT AGENCY.
CUSIP PRINCIPAL AMOUNT:
NO. N - SPECIMEN
FLEET FINANCIAL GROUP, INC.
MEDIUM-TERM NOTE, SERIES N
SENIOR
Issue Price: % Maturity Date:
Original Issue Date: Index Maturity:
Fixed Rate - Interest Rate: % Total Amount of OID:
Floating Rate -
Initial Interest Rate: % Yield to Maturity: %
Base Rate: Initial Accrual Period OID:
Specified Currency (if other than U.S. dollars):
CMT Rate:
Designated CMT Telerate Page:
Designated CMT Maturity Index:
Commercial Paper Rate: Option to Receive Payments in Specified Currency
(non-U.S. dollar denominated Note):
Federal Funds Rate:
LIBOR:
<PAGE>
Yes No
LIBOR Reuters:
LIBOR Telerate:
Index Currency:
Prime Rate : Place of Payment:
Treasury Rate:
Other:
Spread (+/-):
Spread Multiplier: % Redemption Provisions:
Maximum Interest Rate: %
Minimum Interest Rate: %
Initial Interest Reset Date:
Interest Reset Dates:
Interest Payment Dates: Other Terms:
Interest Determination Dates:
Authorized Denomination
(only if non-U.S. dollar denominated Note):
Calculation Agent:
Interest Payment Period:
Fleet Financial Group. Inc., a Rhode Island corporation (herein called the
"Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
SPECIMEN , or registered assigns, the Principal Amount
specified above on the Maturity Date specified above and to pay to the
registered holder hereof interest on said Principal Amount at a rate per annum
specified above and upon the terms provided under either the heading "Fixed Rate
Note" or "Floating Rate Note".
This Note is one of a duly authorized issue of notes of the Company (herein
referred to as the "Notes"), all issued or to be issued in one or more series
under an Indenture, dated as of October 1, 1992 (herein referred to as the
"Indenture"), between the Company and The First National Bank of Chicago, as
trustee (herein called the "Trustee", which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Trustee, the Company and the
Holders of the Notes and of the terms upon which the Notes are,
<PAGE>
and are to be, authenticated and delivered. The Notes of this series are
limited (except as otherwise provided in the Indenture) to the aggregate
principal amount established from time to time by the Board of Directors of the
Company. The Notes of this series may be issued at various times with different
maturity dates and different principal repayment provisions, may bear interest
at different rates and may otherwise vary, all as provided in the Indenture.
The Notes of this series may be subject to redemption or entitled to repayment
at the option of the Holder thereof, in both cases upon notice and in accordance
with the provisions of the Indenture and as indicated on page one hereof. The
Company may defease the Notes of this series in accordance with the provisions
of the Indenture.
PROVISIONS APPLICABLE TO FIXED RATE NOTES ONLY:
If the "Fixed Rate" line on page one of this Note is checked, the Company
will pay interest semiannually on May 1 and November 1 of each year (each an
"Interest Payment Date") and on the Maturity Date or upon earlier redemption or
repayment to the person to whom principal is payable. Interest shall accrue
from the Original Issue Date, or from the most recent Interest Payment Date to
which interest has been paid or duly provided for on this Note (or any
Predecessor Note) to, but excluding, the next following Interest Payment Date,
Maturity Date, or date of redemption or repayment, as the case may be. Interest
on Fixed Rate Notes will be computed on the basis of a 360-day year consisting
of twelve 30-day months.
If any Interest Payment Date or the Maturity Date (or the date of
redemption or repayment) of a Fixed Rate Note falls on a day that is not a
Business Day (defined below), the payment will be made on the next Business Day
as if it were made on the date such payment was due, and no interest will accrue
on the amount so payable for the period from and after such Interest Payment
Date or the Maturity Date (or the date of redemption or repayment), as the case
may be.
PROVISIONS APPLICABLE TO FLOATING RATE NOTES ONLY:
If the "Floating Rate" line on page one of this Note is checked, the
Company will pay interest on the Interest Payment Dates shown on page one at the
Initial Interest Rate shown on page one until the first Interest Reset Date
shown on page one following the Original Issue Date shown above and thereafter
at a rate determined in accordance with the provisions hereinafter set forth
under the headings "Determination of CMT Rate", "Determination of Commercial
Paper Rate", "Determination of Federal Funds Rate", "Determination of LIBOR",
"Determination of Prime Rate" or "Determination of Treasury Rate", depending on
whether the Base Rate is the CMT Rate, the Commercial Paper Rate, the Federal
Funds Rate, LIBOR, the Prime Rate, the Treasury Rate or other Base Rate, as
indicated on page one.
An interest payment shall be the amount of interest accrued from and
including the Original Issue Date, or from and including the last Interest
Payment Date to which interest has been paid, to, but excluding, the next
following Interest Payment Date, Maturity Date, or date of redemption or
repayment, as the case may be (an "Interest Period"). If the "Maximum Interest
Rate" on page one is checked, the Floating Rate Note is subject to a maximum
limitation on the rate of interest which may accrue during any Interest Period.
If the "Minimum Interest Rate" line is checked, the Floating Rate Note is
subject to a minimum limitation on the rate of interest which may accrue during
any Interest Period.
If any Interest Payment Date for any Floating Rate Note would fall on a day
that is not a Business Day with respect to such Note, such Interest Payment Date
will be the following day that is a Business Day with respect to such Note,
except that, in the case of a LIBOR Note, if such Business Day is in the next
succeeding calendar month, such Interest Payment Date will be the immediately
preceding day that is a Business Day with respect to such LIBOR Note. If the
Maturity Date (or date of redemption or repayment) of any Floating Rate Note
would fall on a day that is not a Business Day, the payment of interest and
principal (and premium, if any) may be made on the next succeeding Business Day,
and no interest on such payment will accrue for the period from and after the
Maturity Date (or the date of redemption or repayment).
Commencing with the first Interest Reset Date specified on page one hereof
following the Original Issue
<PAGE>
Date, the rate at which interest on this Note is payable shall be adjusted
daily, weekly, monthly, quarterly, semi-annually or annually as shown on page
one hereof under "Interest Reset Dates". The interest rate for each Interest
Reset Date shall be the Base Rate (as shown on page one hereof and described
below) applicable to such Interest Reset Date, plus or minus the Spread (defined
below), if any, and/or multiplied by the Spread Multiplier (defined below), if
any (each as indicated on page one hereof); provided, however, that the interest
rate in effect for the period from the Issue Date to the first Interest Reset
Date will be the Initial Interest Rate.
The "Spread" is the number of basis points (one basis point equals
one-hundredth of a percentage point) specified on page one hereof as being
applicable to the interest rate for such Floating Rate Note, and the "Spread
Multiplier" is the percentage specified on page one hereof as being applicable
to the interest rate for such Floating Rate Note. Both a Spread and/or a Spread
Multiplier may be applicable to the Interest Rate for a particular Floating Rate
Note, as set forth on page one hereof.
Each such adjusted rate shall be applicable on and after the Interest Reset
Date to which it relates but not including the next succeeding Interest Reset
Date. If any Interest Reset Date is a day that is not a Business Day, such
Interest Reset Date shall be postponed to the next day that is a business day,
except that if the rate of interest on this Note shall be determined by
reference to LIBOR and such Business Day is in the next succeeding calendar
month, such Interest Reset Date shall be the immediately preceding Business Day.
Subject to applicable provisions of law (including usury laws) and except as
specified on this Note, on each Interest Reset Date, the rate of interest on
this Note shall be the rate determined in accordance with the provisions of the
applicable heading below.
With respect to a Floating Rate Note, accrued interest shall be calculated
by multiplying the principal amount of such Floating Rate Note by an accrued
interest factor. Such accrued interest factor will be computed by adding the
interest factors calculated for each day in the Interest Period or from the last
date from which accrued interest is being calculated. The interest factor for
each such day is computed by dividing the interest rate applicable to such day
by 360, in the cases of Commercial Paper Rate Notes, Federal Funds Rate Notes,
LIBOR Notes and Prime Rate Notes or by the number of days in the year, in the
cases of CMT Rate Notes and Treasury Rate Notes. The interest rate applicable
to any day that is an Interest Reset Date will be the interest rate effective on
such Interest Reset Date. The interest rate applicable to any other day will be
the interest rate for the immediately preceding Interest Reset Date (or, if
none, the Initial Interest Rate, as shown on page one).
The "Calculation Date", where applicable, pertaining to an Interest
Determination Date will be the earlier of (i) the tenth calendar day after such
Interest Determination Date or, if any such day is not a Business Day, the next
succeeding Business Day and (ii) the Business Day preceding the applicable
Interest Payment Date or the Maturity Date, as the case may be.
The First National Bank of Chicago shall be the Calculation Agent unless
another Calculation Agent is specified on page one hereof. At the request of
the Holder, the Calculation Agent will provide the interest rate then in effect
and, if determined, the interest rate which will become effective on the next
Interest Reset Date.
Unless otherwise specified on page one hereof, all percentages resulting
from any calculation of the rate of interest on a Floating Rate Note will be
rounded, if necessary, to the nearest one hundred-thousandth of a percent
(.0000001), with five one-millionths of a percentage point rounded upward, and
all dollar amounts used in or resulting from such calculation on Floating Rate
Notes will be rounded to the nearest cent (with one-half cent being rounded
upward).
DETERMINATION OF CMT RATE. If the Base Rate, as indicated on page one
hereof, is, or is calculated by reference to, the CMT Rate, unless otherwise
specified on page one hereof, the "CMT Rate" will be determined by the
Calculation Agent, with respect to any Interest Determination Date (a "CMT
Interest Determination Date"), and shall be the rate displayed on the Designated
CMT Telerate Page under the caption "...Treasury Constant Maturities...Federal
Reserve Board Release H.15...Mondays Approximately 3:45 P.M.", under the column
for the Designated CMT Maturity Index for (i) if the Designated CMT Telerate
Page is 7055, the rate on such CMT Interest Determination Date and (ii) if the
Designated CMT Telerate Page is 7052, the week, or the month, as applicable,
ended immediately preceding the week in which the related CMT Interest
Determination Date occurs. If such rate is
<PAGE>
no longer displayed on the relevant page, or is not displayed by 3:00 P.M., New
York City time, on the related Calculation Date, then the CMT Rate for such CMT
Interest Determination Date will be such treasury constant maturity rate for the
Designated CMT Maturity Index as published in the relevant H.15(519). If such
rate is no longer published, or if not published by 3:00 P.M., New York City
time, on the related Calculation Date, then the CMT Rate for such CMT Interest
Determination Date will be such treasury constant maturity rate for the
Designated CMT Maturity Index (or other United States Treasury rate for the
Designated CMT Maturity Index) for the CMT Interest Determination Date with
respect to such Interest Reset Date as may then be published by either the Board
of Governors of the Federal Reserve System or the United States Department of
the Treasury that the Calculation Agent determines to be comparable to the rate
formerly displayed on the Designated CMT Telerate Page and published in the
relevant H.15(519). If such information is not provided by 3:00 P.M., New York
City time, on the related Calculation Date, then the CMT Rate for the CMT
Interest Determination Date will be calculated by the Calculation Agent and will
be a yield to maturity, based on the arithmetic mean of the secondary market
closing offer side prices as of approximately 3:30 P.M. (New York City time) on
the CMT Interest Determination Date reported, according to their written
records, by three leading primary United States government securities dealers
(each, a "Reference Dealer") in The City of New York selected by the Calculation
Agent (from five such Reference Dealers selected by the Calculation Agent and
eliminating the highest quotation (or, in the event of equality, one of the
highest) and the lowest quotation (or, in the event of equality, one of the
lowest)), for the most recently issued direct noncallable fixed rate obligations
of the United States ("Treasury Notes") with an original maturity of
approximately the Designated CMT Maturity Index and a remaining term to maturity
of not less than such Designated CMT Maturity Index minus one year. If the
Calculation Agent cannot obtain three such Treasury Note quotations, the CMT
Rate for such CMT Interest Determination Date will be calculated by the
Calculation Agent and will be a yield to maturity based on the arithmetic mean
of the secondary market offer side prices as of approximately 3:30 P.M. (New
York City time) on the CMT Interest Determination Date of three Reference
Dealers in the city of New York (from five such Reference Dealers selected by
the Calculation Agent and eliminating the highest quotation (or, in the event of
equality, one of the highest) and the lowest quotation (or, in the event of
equality, one of the lowest)), for Treasury Notes with an original maturity of
the number of years that is the next highest to the Designated CMT Maturity
Index and a remaining term to maturity closest to the Designated CMT Maturity
Index and in an amount of at least $100 million. If three or four (and not
five) of such Reference Dealers are quoting as described above, then the CMT
Rate will be based on the arithmetic mean of the offer prices obtained and
neither the highest nor the lowest of such quotes will be eliminated; provided,
however, that if fewer than three Reference Dealers selected by the Calculation
Agent are quoting as described herein, the CMT Rate will be the CMT Rate in
effect on such CMT Interest Determination Date. If two Treasury Notes with an
original maturity as described in the third preceding sentence have remaining
terms to maturity equally close to the Designated CMT Maturity Index, the quotes
for the Treasury Note with the shorter remaining term to maturity will be used.
"Designated CMT Telerate Page" means the display on the Dow Jones Telerate
Service on the page designated on page one hereof (or any other page as may
replace such page on that service for the purpose of displaying Treasury
Constant Maturities as reported in H.15(519)), for the purpose of displaying
Treasury Constant Maturities as reported in H.15(519). If no such page is
specified on page one hereof, the Designated CMT Telerate Page shall be 7052,
for the most recent week.
"Designated CMT Maturity Index" means the original period to maturity of
the U.S. Treasury securities (either 1, 2, 3, 5, 7, 10, 20, or 30 years)
specified on page one hereof with respect to which the CMT Rate will be
calculated, If no such maturity is specified, the Designated CMT Maturity Index
shall be two years.
DETERMINATION OF COMMERCIAL PAPER RATE. If the Base Rate, as indicated on
page one hereof, is, or is calculated by reference to, the Commercial Paper
Rate, unless otherwise specified on page one hereof, the "Commercial Paper Rate"
for each Interest Reset Date will be determined by the Calculation Agent as of
the second Business Day prior to such Interest Reset Date (a "Commercial Paper
Interest Determination Date") and shall be the Money Market Yield (as defined
below) on such date of the rate for commercial paper having the Index Maturity
as indicated on page one hereof, as such rate shall be published in H.15(519)
under the caption "Commercial Paper-nonfinancial". In the event that such rate
is not published prior to 9:00 A.M. New York City time on the Calculation Date,
then the Commercial Paper Rate shall be the Money Market Yield on such
Commercial Paper
<PAGE>
Interest Determination Date of the rate for commercial paper of the specified
Index Maturity as published in Composite Quotations under the heading
"Commercial Paper". If by 3:00 P.M. New York City time on such Calculation Date
such rate is not yet published in either H.15(519) or Composite Quotations, then
the Commercial Paper Rate shall be the Money Market Yield of the arithmetic mean
of the offered rates as of 11:00 A.M., New York City time, on that Commercial
Paper Interest Determination Date, of three leading dealers of commercial paper
in The City of New York selected by the Calculation Agent for commercial paper
having the specified Index Maturity placed for an industrial issuer whose bond
rating is "AA", or the equivalent, from a nationally recognized rating agency;
provided, however, that if the dealers selected as aforesaid by the Calculation
Agent are not quoting offered rates as mentioned in this sentence, the
Commercial Paper Rate will be the Commercial Paper Rate in effect on such
Commercial Paper Interest Determination Date.
"Money Market Yield" shall be a yield calculated in accordance with the
following formula:
Money Market Yield = D X 360
------------- x 100
360 - (D x M)
where "D" refers to the applicable per annum rate for commercial paper quoted on
a bank discount basis and expressed as a decimal; and "M" refers to the actual
number of days in the interest period for which interest is being calculated.
DETERMINATION OF FEDERAL FUNDS RATE. If the Base Rate, as indicated on
page one hereof, is, or is calculated by reference to, the Federal Funds Rate,
unless otherwise specified on page one hereof, the "Federal Funds Rate" with
respect to each Interest Reset Date will be determined by the Calculation Agent
as of the second Business Day prior to such Interest Reset Date (a "Federal
Funds Interest Determination Date"), and shall be the rate on that date for
Federal Funds as published in H.15(519) under the heading "Federal Funds
(Effective)" or, if not so published by 9:00 A.M., New York City time, on the
Calculation Date pertaining to such Federal Funds Interest Determination Date,
the Federal Funds Rate will be the rate on such Federal Funds Interest
Determination Date as published in Composite Quotations under the heading
"Federal Funds/Effective Rate". If such rate is not so published by 3:00 P.M.,
New York City time, on the Calculation Date pertaining to such Federal Funds
Interest Determination Date, the Federal Funds Rate for such Federal Funds Reset
Date will be calculated by the Calculation Agent and will be the arithmetic mean
of the rates for the last transaction in overnight Federal Funds arranged by
three leading brokers of Federal Funds transactions in The City of New York
selected by the Calculation Agent as of 9:00 A.M., New York City time, on such
Federal Funds Interest Determination Date; provided, however, that if the
brokers selected as aforesaid by the Calculation Agent are not quoting as
mentioned in this sentence, the Federal Funds Rate will be the Federal Funds
Rate in effect on such Federal Funds Interest Determination Date.
DETERMINATION OF LIBOR. If the Base Rate, as indicated on page one hereof,
is, or is calculated by reference to, LIBOR, unless otherwise specified on page
one hereof, "LIBOR" for each Interest Reset Date will be determined by the
Calculation Agent in accordance with the following provisions:
(i) With respect to an Interest Determination Date relating to a LIBOR
Note or any Floating Rate Note for which the interest rate is determined
with reference to LIBOR (a "LIBOR" Interest Determination Date"), LIBOR
will be either: (a) if "LIBOR Reuters" is specified on page one hereof, the
arithmetic mean of the offered rates (unless the specified Designated LIBOR
Page by its terms provides only for a single rate, in which case such
single rate shall be used) for deposits in the Index Currency having the
Index Maturity designated on page one hereof, commencing on the second
London Business Day immediately following such LIBOR Interest Determination
Date, that appear on the Designated LIBOR Page specified on page one
hereof, as of 11:00 A.M. London time, on such LIBOR Interest Determination
Date, if at least two such offered rates appear (unless, as aforesaid, only
a single rate is required) on such Designated LIBOR Page, or (b) if "LIBOR
Telerate" is specified on page one hereof or if neither "LIBOR Reuters" nor
"LIBOR Telerate" is specified as the method for calculating LIBOR, the rate
for deposits in the Index Currency having the Index Maturity designated on
page one hereof, commencing on the second London Business Day immediately
following such LIBOR Interest Determination Date that appears on the
Designated LIBOR Page specified on page one hereof as of 11:00 A.M., London
time, on such LIBOR Interest Determination Date. If fewer than two such
offered
<PAGE>
rates appear, or if no such rate appears, as applicable, LIBOR in respect
of the related LIBOR Interest Determination Date will be determined in
accordance with provisions described in clause (ii) below.
(ii) With respect to a LIBOR Interest Determination Date on which
fewer than two offered rates appear, or no rate appears, as the case may
be, on the applicable Designated LIBOR Page as specified in clause (i)
above, the Calculation Agent will request the principal London offices of
each of four major reference banks in the London interbank market, as
selected by the Calculation Agent, to provide the Calculation Agent with
its offered quotation for deposits in the Index Currency for the period of
the Index Maturity designated on page one hereof, commencing on the second
London Business Day immediately following such LIBOR Interest Determination
Date, to prime banks in the London interbank market at approximately 11:00
A.M., London time, on such LIBOR Interest Determination Date and in a
principal amount that is representative for a single transaction in such
Index Currency in such market at such time. If at least two such
quotations are provided, LIBOR determined on such LIBOR Interest
Determination Date will the arithmetic mean of such quotations. If fewer
than two quotations are provided, LIBOR determined on such LIBOR Interest
Determination Date will be the arithmetic mean of the rates quoted at
approximately 11:00 A.M., in the applicable Principal Financial Center, on
such LIBOR Interest Determination Date by three major banks in such
Principal Financial Center selected by the Calculation Agent for loans in
the Index Currency to leading European banks, having the Index Maturity
designated on page one hereof and in a principal amount that is
representative for a single transaction in such Index Currency in such
market at such time; provided, however, that if the banks so selected by
the Calculation Agent are not quoting as mentioned in this sentence, LIBOR
determined as of such LIBOR Interest Determination Date will be LIBOR in
effect on such LIBOR Interest Determination Date.
"Index Currency" means the currency (including composite currencies)
specified on page one hereof as the currency for which LIBOR shall be
calculated. If no such currency is specified on page one hereof, the Index
Currency shall be United States dollars.
"Designated LIBOR Page" means either (a) if "LIBOR Reuters" is specified on
page one hereof, the display on the Reuters Monitor Money Rates Service for the
purpose of displaying the London interbank rates of major banks for the
applicable Index Currency, or (b) if "LIBOR Telerate" is specified on page one
hereof or neither "LIBOR Reuters" nor "LIBOR Telerate" is specified as the
method for calculating LIBOR, the display on the Dow Jones Telerate Service for
the purpose of displaying the London interbank rates of major banks for the
applicable Index Currency.
"Principal Financial Center" will generally be the capital city of the
country of the specified Index Currency, except that with respect to United
States dollars, Deutsche Marks, Dutch Guilders, Italian Lire and Swiss Francs,
the Principal Financial Center shall be The City of New York, Frankfurt,
Amsterdam, Milan and Zurich, respectively.
DETERMINATION OF PRIME RATE. If the Base Rate, as indicated on page one
hereof, is, or is calculated by reference to, the Prime Rate, unless otherwise
specified on page one hereof, the "Prime Rate" with respect to each Interest
Reset Date will be determined by the Calculation Agent as of the second Business
Day prior to such Interest Reset Date (a "Prime Interest Determination Date")
and shall be the rate set forth on such date in H.15(519) under the heading
"Bank Prime Loan", or if not so published prior to 9:00 A.M., New York City
time, on the Calculation Date pertaining to such Prime Interest Determination
Date, then the Prime Rate will be determined by the Calculation Agent and will
be the arithmetic mean of the rates of interest publicly announced by each bank
that appears on the Reuters Screen USPRIME1 Page (as defined below) as such
bank's prime rate or base lending rates as in effect for that Prime Interest
Determination Date. If fewer than four such rates but more than one such rate
appear on the Reuters Screen USPRIME1 Page for the Prime Interest Determination
Date, the Prime Rate will be determined by the Calculation Agent and will be the
arithmetic mean of the prime rate quoted on the basis of the actual number of
days in the year divided by a 360-day year as of the close of business on such
Prime Interest Determination Date by four major money center banks in The City
of New York selected by the Calculation Agent from a list approved by the
Company. If fewer than two such rates appear on the Reuters Screen USPRIME1
Page, the Prime Rate will be determined by the Calculation Agent on the basis of
the rates furnished in The City of New York by the appropriate number of
substitute banks or trust companies organized and doing business under the laws
<PAGE>
of the United States, or any state thereof, having total equity capital of at
least U.S. $500,000,000 and being subject to supervision or examination by
Federal or State authority, selected by the Calculation Agent from a list
approved by the Company to provide such rate or rates; provided, however, that
if the banks selected as aforesaid are not quoting as mentioned in this
sentence, the Prime Rate will be the Prime Rate in effect on such Prime Interest
Determination Date. "Reuters Screen USPRIME1 Page" means the display designated
as page "USPRIME1" on the Reuters Monitor Money Rates Service (or such other
page as may replace the USPRIME1 page on that service for the purpose of
displaying prime rates or base lending rates of major United States banks).
DETERMINATION OF TREASURY RATE. If the Base Rate, as indicated on page one
hereof, is, or is calculated by reference to the Treasury Rate, unless otherwise
specified on page one hereof, the "Treasury Rate" for each Interest Reset Date
will be the rate for the auction held on the Treasury Rate Determination Date
(as hereinafter defined) of direct obligations of the United States ("Treasury
bills") having the Index Maturity, as indicated on page one hereof, as published
in H.15(519) under the heading, "U.S. Government Securities - Treasury Bills -
Auction Average (Investment)", or, if not so published by 9:00 A.M., New York
City time, on the Calculation Date pertaining to such Treasury Rate
Determination Date, the auction average rate (expressed as a bond equivalent
yield, rounded to the nearest one one-hundredth of a percent, with five
one-thousandths of a percent rounded upward, on the basis of a year of 365 or
366 days, as applicable, and applied on a daily basis) as announced by the
United States Department of the Treasury. In the event that the results of the
auction of Treasury bills having the applicable Index Maturity designated on
page one hereof are not published or reported as provided above by 3:00 P.M.,
New York City time, on such Calculation Date or if no such auction is held on
such Treasury Rate Determination Date, then the Treasury Rate shall be
calculated by the Calculation Agent and shall be a yield to maturity (expressed
as a bond equivalent yield, rounded to the nearest one one-hundredth of a
percent, with five one-thousandths of a percent rounded upward, on the basis of
a year of 365 or 366 days, as applicable, and applied on a daily basis) of the
arithmetic mean of the secondary market bid rates, as of approximately 3:30
P.M., New York City time, on such Treasury Rate Determination Date, of three
leading primary United States government securities dealers selected by the
Calculation Agent for the issue of Treasury bills with a remaining maturity
closest to the specified Index Maturity; provided, however, that if the dealers
selected as aforesaid by the Calculation Agent are not quoting as mentioned in
this sentence, the Treasury Rate for such Interest Reset Date will be the
Treasury Rate in effect on such Treasury Rate Determination Date.
The "Treasury Rate Determination Date" for any Interest Reset Date will be
the day of the week in which such Interest Reset Date falls on which Treasury
bills would normally be auctioned, but in no event shall the Treasury Rate
Determination Date be after the related Interest Reset Date. Treasury bills are
normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is normally held on the following Tuesday,
except such auction may be held on the preceding Friday. If, as the result of a
legal holiday, an auction is so held on the preceding Friday, such Friday will
be the Treasury Rate Determination Date pertaining to the Interest Reset Date
occurring in the next succeeding week. If no auction is held in any week (or on
the preceding Friday), the Treasury Rate Determination Date shall be the Monday
of the week in which the Interest Reset Date falls.
PROVISIONS APPLICABLE TO BOTH FIXED RATE NOTES AND FLOATING RATE NOTES:
The interest so payable on any Interest Payment Date will, subject to
certain exceptions in the Indenture hereinafter referred to, be paid to the
person in whose name this Note is registered at the close of business on the
Regular Record Date immediately preceding such Interest Payment Date or, if the
Interest Payment Date is a Maturity Date or date of redemption or repayment, to
the person in whose name this Note is registered at the close of business on the
Maturity Date or date of redemption or repayment; provided, however, that if the
Original Issue Date is between a Regular Record Date and an Interest Payment
Date or on an Interest Payment Date, interest for the period from and including
the Original Issue Date to, but excluding, the Interest Payment Date relating to
such Regular Record Date shall be paid on the next succeeding Interest Payment
Date to the person in whose name this Note is registered on the close of
business on the Regular Record Date preceding such Interest Payment Date. The
"Regular Record Date" with respect to any Interest Payment Date for Floating
Rate Notes shall be the date 15 calendar days immediately preceding such
Interest Payment Date, and for Fixed Rate Notes shall be the April 15 and
October 15 next preceding such Interest Payment Date, whether or not such date
shall be a Business Day.
<PAGE>
This Note may be presented for payment of principal and interest in the
Specified Currency at the office or agency of the Company maintained for such
purpose in the Place of Payment as indicated above, provided, however, that
payments of interest may be made at the option of the Company by check mailed to
the address of such person entitled thereto as such address shall appear on the
Security Register of this series, except for interest payable at the Maturity
Date or upon earlier redemption or repayment which will be made in immediately
available funds upon surrender of this Note. Payments of principal (and
premium, if any) and interest, if payable in a currency other than U.S. dollars,
will be made from an account at a bank outside the United States.
Principal (and premium, if any) and interest will be paid by the Company in
U.S. dollars based on an Exchange Rate (as defined in the Indenture), even if
this Note is denominated in a Specified Currency other than U.S. dollars;
provided, however, that if permitted as indicated on page one hereof, at the
written request of the Holder, made not later than the Regular Record Date or
Special Record Date, as the case may be, immediately preceding the applicable
Interest Payment Date or the fifteenth day immediately preceding the Maturity
Date or date of redemption or repayment, as the case may be, and pursuant to the
terms of the Indenture, payments of principal (and premium, if any) and interest
in respect of a Note denominated in a Specified Currency other than U.S. dollars
shall be paid in the Specified Currency and otherwise pursuant to the terms of
the Indenture, and any costs associated with such conversion will be borne by
the Holder. If this Note is denominated in a Specified Currency other then U.S.
dollars on page one hereof, the amount of U.S. dollar payment will be determined
by a New York clearing house bank designated by the Company (the "Exchange Rate
Agent") based on the quotation for such Specified Currency appearing at
approximately 11:00 a.m., New York City time, on the second Business Day
preceding the applicable date of payment, on the bank composite or
multi-contributor pages of the Reuters Monitor Foreign Exchange Service (or, if
such service is not then available to the Exchange Rate Agent, the Telerate
Monitor Foreign Exchange Service or, if neither is available, on a comparable
display or in a comparable manner as the Company and the Exchange Rate Agent
shall agree), bid by one of at least three banks (one of which may be the
Exchange Rate Agent) agreed to by the Company and the Exchange Rate Agent, which
will yield the largest number of U.S. dollars upon conversion from such
Specified Currency. If fewer than three bids are available, then such
conversion will be based on the Market Exchange Rate (as defined below) as of
the second Business Day preceding the applicable payment date or, if the Market
Exchange Rate for such date is not available, as of the most recent date on
which the Market Exchange Rate is available. If the principal of, or interest
on this Note is payable in a Specified Currency other than U.S. dollars (whether
by reason of the unavailability of such quotations or through an election by a
Holder) and such Specified Currency is not available to the Company for making
payments thereof due to the imposition of exchange controls or other
circumstances beyond the control of the Company, the Company will be entitled to
satisfy its obligations to Holders of this Note by making such payment in U.S.
dollars on the basis of the Market Exchange Rate on the second Business Day
prior to such payment date, if available, and if not so available, the exchange
rate determined in the following order: first, by the most recently available
Market Exchange Rate; second by the quotations of three (or if three are not
available, then two) recognized foreign exchange dealers (one of which may be
the Exchange Rate Agent) selected by the Exchange Rate Agent and the Company in
The City of New York or in the foreign country of issue of such currency, and
third, by such other quotations as the Company deems appropriate. If the
Specified Currency is a composite currency, payments will be an amount
determined by the Exchange Rate Agent by adding the results obtained by
multiplying the number of units of each component currency of such composite
currency, as of the most recent day on which such composite currency was used,
by the most recently available Market Exchange Rate for such component currency.
Any Payment made under the circumstances described above, where the required
payment is in a Specified Currency other than U.S. dollars or any payment made
in the Specified Currency, will not constitute an Event of Default under the
Indenture. "Market Exchange Rate" means the noon buying rate for cable
transfers in New York City as determined by the Federal Reserve Bank of New York
for such Specified Currency.
"Business Day" means any day other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which banking institutions are authorized
or obligated by law, regulation or executive order to close in either The City
of New York or (1) with respect to Notes denominated in a Specified Currency
other than U.S. Dollars, in the city as specified by Fleet pursuant to the
applicable Indenture and (2) with respect to LIBOR Notes, is also a "London
Business Day". "London Business Day" means any day on which dealings in the
applicable Index Currency are transacted in the London interbank market.
<PAGE>
In case an Event of Default (as defined in the Indenture) with respect to
Notes of this series shall occur and be continuing, the principal amount (or, if
the Note is an Original Issue Discount Note, such lesser portion of the
principal amount as may be applicable) of the Notes of this series may be
declared due and payable, in the manner and with the effect provided in the
Indenture. If this Note is an Original Issue Discount Note (as defined below),
in the event of an acceleration of the Maturity hereof, the amount payable to
the Holder of this Note upon such acceleration will be determined by this Note
but will be an amount less than the amount payable at the Maturity of the
principal of this Note. An "Original Issue Discount Note" is a Note, including
any zero-coupon note, which has a stated redemption price at maturity that
exceeds its Issue Price by at least 0.25% of its principal amount, multiplied by
the number of full years from the Original Issue Date to the Maturity Date for
such Note, and any other Note designated by the Company as issued with original
issue discount for United States Federal income tax purposes.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company with the consent of the
Holders of 66 2/3% in aggregate principal amount of the Outstanding Securities
of each series to be affected. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of
the Outstanding Securities of each series, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof, or in
exchange herefor, or in lieu hereof whether or not any notation of such consent
or waiver is made upon this Note.
No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of (premium, if any) and
interest on this Note, at the times, places and rate and in the coin or
currency, herein prescribed.
The Notes of this series are issued in fully registered form without
coupons. Notes of this series denominated in U.S. dollars (as indicated on page
one hereof) will be issued in denominations of $1,000 or any amount in excess
thereof which is an integral multiple thereof. Notes of this series denominated
in a Specified Currency other than U.S. dollars (as indicated on page one
hereof) will be issued in the Authorized Denomination as indicated on page one
hereof.
As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note may be registered on the Security Register of
this series upon surrender of this Note for registration of transfer at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, State of New York, duly endorsed by or accompanied by, a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar, duly executed by the Holder hereof or his attorney duly authorized in
writing, and thereupon a new Note or Notes of this series of authorized
denomination and for the same aggregate principal amount will be issued to the
designated transferee or transferees.
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
Prior to due presentment for registration of transfer of this Note, the
Company, the Trustee, and any Agent of the Company or the Trustee may treat the
person in whose name this Note is registered as the owner of this Note for all
purposes, whether or not this Note be overdue, and neither the Company nor the
Trustee nor any such Agent shall be affected by any notice to the contrary.
If so specified on page one hereof, this Note will be redeemable at the
Company's option on a date or dates specified prior to maturity at a price or
prices, each set forth on page one hereof, together with accrued interest to the
date of redemption. This Note will not be subject to any sinking fund. If so
redeemable, the Company may redeem this Note either in whole or from time to
time in part, upon not less than 30, nor more than 60, days' notice.
<PAGE>
If less than all of the Notes with like tenor and terms are to be redeemed, the
Notes to be redeemed shall be selected by the applicable Note Registrar by such
method as such Note Registrar shall deem fair and appropriate.
The Company may specify that this Note will be repayable at the option of
the Holder on a date or dates specified prior to maturity at a price or prices
set forth on page one hereof, together with accrued interest to the date of
repayment. In order for this Note to be repaid, the Paying Agent must receive
at least 30, but not more than 45, days, prior to the repayment date (i) this
Note with the form entitled "Option to Elect Repayment" at the end of this Note
duly completed or (ii) a telegram, telex, facsimile transmission or a letter
from a member of a national securities exchange of the National Association of
Securities Dealers, Inc. or a commercial bank or trust company in the United
States of America setting forth the name of the Holder of this Note, a statement
that the option to elect repayment is being exercised thereby and a guarantee
that this Note to be repaid with the form entitled "Option to Elect Repayment"
at the end of this Note duly completed will be received by the Paying Agent not
less than five Business Days after the date of such telegram, telex, facsimile
transmission or letter and such Note and form duly completed are received by the
Paying Agent by such fifth Business Day. Exercise of the repayment option by
the Holder of this Note shall be irrevocable. The repayment option may be
exercised by the Holder of this Note for less then the entire principal amount
of this Note provided that the principal amount of this Note remaining
outstanding after repayment is an authorized denomination.
The Company may at any time purchase this Note at any price in the open
market or otherwise. Notes so purchased by the Company may be held or resold
or, at the discretion of the Company, may be surrendered to the Trustee for
cancellation.
By acceptance of this Note, the holder hereof agrees to be bound by the
provisions of the Indenture. Terms used herein which are defined in the
Indenture shall have the respective meanings assigned thereto in the Indenture.
This Note shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by or on behalf of
the Trustee under the Indenture.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
Dated:
TRUSTEE'S CERTIFICATE OF
AUTHENTICATION FLEET FINANCIAL GROUP, INC.
This is one of the Securities of
the series provided for under the
within-mentioned Indenture.
By
--------------------------------
THE FIRST NATIONAL BANK OF CHICAGO, Chairman and Chief Executive
as Trustee Officer
By By
------------------------------ --------------------------------
Authorized Officer Secretary
<PAGE>
[TO BE DELETED IF NOTE ISSUED AS GLOBAL BOOK-ENTRY NOTE]
----------------
ABBREVIATIONS
The following abbreviations, when used in the inscription on page one of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - _____ Custodian _________
(Cust) (Minor)
TEN ENT - as tenants by the under Uniform Gifts to Minors Act
entireties
------------------------------
JT TEN - as joint tenants with right of (State)
survivorship and not as tenant
in common
Additional abbreviations may also be used though not in the above list.
----------------------
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
--------------------------------------------------
(Name and address of assignee, including zip code,
must be printed or typewritten)
- ----------------------- ------------------------------------
- ----------------------- ------------------------------------
the within Note, and all rights thereunder, hereby irrevocably constituting and
appointing __________________________________ Attorney to transfer said Note on
the books of the within Company, with full power of substitution in the
premises.
Dated:
-------------------------- -------------------------
NOTICE: The signature to this assignment
must correspond with the name as it
appears upon page one of the within
Note in every particular, without
alteration or enlargement or any
change whatever and must be
guaranteed by a commercial bank or
trust company having its principal
office or a correspondent in The
City of New York or by a member of
the New York Stock Exchange.
<PAGE>
[TO BE DELETED UNLESS HOLDER HAS OPTION TO ELECT REPAYMENT]
-------------------------
REGISTRAR, PAYING AGENTS AND TRANSFER AGENT
REGISTRAR AND PAYING AGENT
(subject to change)
The First National Bank of Chicago
1 North State Street
9th Floor
Chicago, IL 60602
-------------------------
OPTION TO ELECT REPAYMENT
The undersigned hereby irrevocably requests and instructs the Company to
repay the within Note (or portion hereof specified below) pursuant to its terms
at a price equal to the applicable Repayment Price thereof together with
interest to the Repayment Date, to the undersigned
---------------------------------- ---------------------
---------------------------------- ---------------------
---------------------------------- ---------------------
(Please print or typewrite name and address of the undersigned)
If less than the entire principal amount of the within note is to
be repaid, specify the portion thereof which the Holder elects to have
repaid: _________ ____________: and specify the denomination or denominations
(which shall be in authorized denominations) of the Notes to be issued to the
Holder for the portion of the within Note not being repaid (in the absence of
any such specification, one such Note will be issued for the portion not being
repaid):
------------------------------------------------ -------------
Date Signature
--------------------------- -------------------------
ABBREVIATIONS
The following abbreviations, when used in the instruction on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entirety
JT TEN - as joint tenants with right of survivorship and not as
tenants in common
UNIF GIFT MIN ACT - _____________ Custodian for ____________________
(Cust) (Minor)
Under Uniform Gifts to Minors Act
------------------------------------
(State)
Additional abbreviations may be used though not in the above list.
<PAGE>
Exhibit 4(b)
REGISTERED REGISTERED
IF APPLICABLE, THE "TOTAL AMOUNT OF OID", "YIELD TO MATURITY" AND "INITIAL
ACCRUAL PERIOD OID" (COMPUTED UNDER THE APPROXIMATE METHOD) BELOW WILL BE
COMPLETED SOLELY FOR THE PURPOSES OF APPLYING THE FEDERAL INCOME TAX ORIGINAL
ISSUE DISCOUNT ("OID") RULES.
THIS NOTE IS NOT A SAVINGS ACCOUNT, DEPOSIT OR OTHER OBLIGATION OF ANY BANK OR
NONBANK SUBSIDIARY OF FLEET FINANCIAL GROUP, INC. AND IS NOT INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, BANK INSURANCE FUND OR ANY OTHER
GOVERNMENT AGENCY.
CUSIP PRINCIPAL AMOUNT:
NO. O - SPECIMEN
FLEET FINANCIAL GROUP, INC.
MEDIUM-TERM NOTE, SERIES O
SUBORDINATED
Issue Price: % Maturity Date:
Original Issue Date: Index Maturity:
Fixed Rate - Interest Rate: % Total Amount of OID:
Floating Rate -
Initial Interest Rate: % Yield to Maturity: %
Base Rate: Initial Accrual Period OID:
Specified Currency (if other than U.S. dollars):
CMT Rate:
Designated CMT Telerate Page:
Designated CMT Maturity Index:
Commercial Paper Rate: Option to Receive Payments in Specified Currency
(non-U.S. dollar denominated Note):
Federal Funds Rate:
<PAGE>
LIBOR:
Yes No
LIBOR Reuters::
LIBOR Telerate
Index Currency:
Prime Rate : Place of Payment:
Treasury Rate:
Other:
Spread (+/-):
Spread Multiplier: % Redemption Provisions:
Maximum Interest Rate: %
Minimum Interest Rate: %
Initial Interest Reset Date:
Interest Reset Dates:
Interest Payment Dates: Other Terms:
Interest Determination Dates:
Authorized Denomination
(only if non-U.S. dollar denominated Note):
Calculation Agent:
Interest Payment Period:
Fleet Financial Group. Inc., a Rhode Island corporation (herein called the
"Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
SPECIMEN , or registered assigns, the Principal
Amount specified above on the Maturity Date specified above and to pay to the
registered holder hereof interest on said Principal Amount at a rate per annum
specified above and upon the terms provided under either the heading "Fixed Rate
Note" or "Floating Rate Note".
This Note is one of a duly authorized issue of notes of the Company (herein
referred to as the "Notes"), all issued or to be issued in one or more series
under an Indenture, dated as of October 1, 1992, as supplemented by a First
Supplemental Indenture dated as of November 30, 1992 (as supplemented, herein
referred to as the "Indenture"), between the Company and The First National Bank
of Chicago, as trustee (herein called the "Trustee", which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental
<PAGE>
thereto reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Trustee, the
Company and the Holders of the Notes and of the terms upon which the Notes are,
and are to be, authenticated and delivered. The Notes of this series are
limited (except as otherwise provided in the Indenture) to the aggregate
principal amount established from time to time by the Board of Directors of the
Company. The Notes of this series may be issued at various times with different
maturity dates and different principal repayment provisions, may bear interest
at different rates and may otherwise vary, all as provided in the Indenture.
The Notes of this series may be subject to redemption or entitled to repayment
at the option of the Holder thereof, in both cases upon notice and in accordance
with the provisions of the Indenture and as indicated on page one hereof. The
Company may defease the Notes of this series in accordance with the provisions
of the Indenture.
Upon any distribution of assets of the Company upon dissolution, winding
up, liquidation or reorganization, the payment of the principal of, premium, if
any, and interest on, this Note is to be subordinated in right of payment to the
extent provided in the Indenture to the prior payment in full of all Senior
Indebtedness and Other Financial Obligations of the Company (each as defined in
the Indenture). Each Holder of this Note, by the acceptance thereof, agrees to
and shall be bound by such provisions of the Indenture.
PROVISIONS APPLICABLE TO FIXED RATE NOTES ONLY:
If the "Fixed Rate" line on page one of this Note is checked, the Company
will pay interest semiannually on May 1 and November 1 of each year (each an
"Interest Payment Date") and on the Maturity Date or upon earlier redemption or
repayment to the person to whom principal is payable. Interest shall accrue
from the Original Issue Date, or from the most recent Interest Payment Date to
which interest has been paid or duly provided for on this Note (or any
Predecessor Note) to, but excluding, the next following Interest Payment Date,
Maturity Date, or date of redemption or repayment, as the case may be. Interest
on Fixed Rate Notes will be computed on the basis of a 360-day year consisting
of twelve 30-day months.
If any Interest Payment Date or the Maturity Date (or the date of
redemption or repayment) of a Fixed Rate Note falls on a day that is not a
Business Day (defined below), the payment will be made on the next Business Day
as if it were made on the date such payment was due, and no interest will accrue
on the amount so payable for the period from and after such Interest Payment
Date or the Maturity Date (or the date of redemption or repayment), as the case
may be.
PROVISIONS APPLICABLE TO FLOATING RATE NOTES ONLY:
If the "Floating Rate" line on page one of this Note is checked, the
Company will pay interest on the Interest Payment Dates shown on page one at the
Initial Interest Rate shown on page one until the first Interest Reset Date
shown on page one following the Original Issue Date shown above and thereafter
at a rate determined in accordance with the provisions hereinafter set forth
under the headings "Determination of CMT Rate", "Determination of Commercial
Paper Rate", "Determination of Federal Funds Rate", "Determination of LIBOR",
"Determination of Prime Rate" or "Determination of Treasury Rate", depending on
whether the Base Rate is the CMT Rate, the Commercial Paper Rate, the Federal
Funds Rate, LIBOR, the Prime Rate, the Treasury Rate or other Base Rate, as
indicated on page one.
An interest payment shall be the amount of interest accrued from and
including the Original Issue Date, or from and including the last Interest
Payment Date to which interest has been paid, to, but excluding, the next
following Interest Payment Date, Maturity Date, or date of redemption or
repayment, as the case may be (an "Interest Period"). If the "Maximum Interest
Rate" on page one is checked, the Floating Rate Note is subject to a maximum
limitation on the rate of interest which may accrue during any Interest Period.
If the "Minimum Interest Rate" line is checked, the Floating Rate Note is
subject to a minimum limitation on the rate of interest which may accrue during
any Interest Period.
If any Interest Payment Date for any Floating Rate Note would fall on a day
that is not a Business Day with respect to such Note, such Interest Payment Date
will be the following day that is a Business Day with respect to
<PAGE>
such Note, except that, in the case of a LIBOR Note, if such Business Day is in
the next succeeding calendar month, such Interest Payment Date will be the
immediately preceding day that is a Business Day with respect to such LIBOR
Note. If the Maturity Date (or date of redemption or repayment) of any Floating
Rate Note would fall on a day that is not a Business Day, the payment of
interest and principal (and premium, if any) may be made on the next succeeding
Business Day, and no interest on such payment will accrue for the period from
and after the Maturity Date (or the date of redemption or repayment).
Commencing with the first Interest Reset Date specified on page one hereof
following the Original Issue Date, the rate at which interest on this Note is
payable shall be adjusted daily, weekly, monthly, quarterly, semi-annually or
annually as shown on page one hereof under "Interest Reset Dates". The interest
rate for each Interest Reset Date shall be the Base Rate (as shown on page one
hereof and described below) applicable to such Interest Reset Date, plus or
minus the Spread (defined below), if any, and/or multiplied by the Spread
Multiplier (defined below), if any (each as indicated on page one hereof);
provided, however, that the interest rate in effect for the period from the
Issue Date to the first Interest Reset Date will be the Initial Interest Rate.
The "Spread" is the number of basis points (one basis point equals
one-hundredth of a percentage point) specified on page one hereof as being
applicable to the interest rate for such Floating Rate Note, and the "Spread
Multiplier" is the percentage specified on page one hereof as being applicable
to the interest rate for such Floating Rate Note. Both a Spread and/or a Spread
Multiplier may be applicable to the Interest Rate for a particular Floating Rate
Note, as set forth on page one hereof.
Each such adjusted rate shall be applicable on and after the Interest Reset
Date to which it relates but not including the next succeeding Interest Reset
Date. If any Interest Reset Date is a day that is not a Business Day, such
Interest Reset Date shall be postponed to the next day that is a Business Day,
except that if the rate of interest on this Note shall be determined by
reference to LIBOR and such Business Day is in the next succeeding calendar
month, such Interest Reset Date shall be the immediately preceding Business Day.
Subject to applicable provisions of law (including usury laws) and except as
specified on this Note, on each Interest Reset Date, the rate of interest on
this Note shall be the rate determined in accordance with the provisions of the
applicable heading below.
With respect to a Floating Rate Note, accrued interest shall be calculated
by multiplying the principal amount of such Floating Rate Note by an accrued
interest factor. Such accrued interest factor will be computed by adding the
interest factors calculated for each day in the Interest Period or from the last
date from which accrued interest is being calculated. The interest factor for
each such day is computed by dividing the interest rate applicable to such day
by 360, in the cases of Commercial Paper Rate Notes, Federal Funds Rate Notes,
LIBOR Notes and Prime Rate Notes or by the number of days in the year, in the
cases of CMT Rate Notes and Treasury Rate Notes. The interest rate applicable
to any day that is an Interest Reset Date will be the interest rate effective on
such Interest Reset Date. The interest rate applicable to any other day will be
the interest rate for the immediately preceding Interest Reset Date (or, if
none, the Initial Interest Rate, as shown on page one).
The "Calculation Date", where applicable, pertaining to an Interest
Determination Date will be the earlier of (i) the tenth calendar day after such
Interest Determination Date or, if any such day is not a Business Day, the next
succeeding Business Day and (ii) the Business Day preceding the applicable
Interest Payment Date or the Maturity Date, as the case may be.
The First National Bank of Chicago shall be the Calculation Agent unless
another Calculation Agent is specified on page one hereof. At the request of
the Holder, the Calculation Agent will provide the interest rate then in effect
and, if determined, the interest rate which will become effective on the next
Interest Reset Date.
Unless otherwise specified on page one hereof, all percentages resulting
from any calculation of the rate of interest on a Floating Rate Note will be
rounded, if necessary, to the nearest one hundred-thousandth of a percent
(.0000001), with five one-millionths of a percentage point rounded upward, and
all dollar amounts used in or resulting from such calculation on Floating Rate
Notes will be rounded to the nearest cent (with one-half cent being rounded
upward).
<PAGE>
DETERMINATION OF CMT RATE. If the Base Rate, as indicated on page one
hereof, is, or is calculated by reference to, the CMT Rate, unless otherwise
specified on page one hereof, the "CMT Rate" will be determined by the
Calculation Agent, with respect to any Interest Determination Date (a "CMT
Interest Determination Date"), and shall be the rate displayed on the Designated
CMT Telerate Page under the caption "...Treasury Constant Maturities...Federal
Reserve Board Release H.15...Mondays Approximately 3:45 P.M.", under the column
for the Designated CMT Maturity Index for (i) if the Designated CMT Telerate
Page is 7055, the rate on such CMT Interest Determination Date and (ii) if the
Designated CMT Telerate Page is 7052, the week, or the month, as applicable,
ended immediately preceding the week in which the related CMT Interest
Determination Date occurs. If such rate is no longer displayed on the relevant
page, or is not displayed by 3:00 P.M., New York City time, on the related
Calculation Date, then the CMT Rate for such CMT Interest Determination Date
will be such treasury constant maturity rate for the Designated CMT Maturity
Index as published in the relevant H.15(519). If such rate is no longer
published, or if not published by 3:00 P.M., New York City time, on the related
Calculation Date, then the CMT Rate for such CMT Interest Determination Date
will be such treasury constant maturity rate for the Designated CMT Maturity
Index (or other United States Treasury rate for the Designated CMT Maturity
Index) for the CMT Interest Determination Date with respect to such Interest
Reset Date as may then be published by either the Board of Governors of the
Federal Reserve System or the United States Department of the Treasury that the
Calculation Agent determines to be comparable to the rate formerly displayed on
the Designated CMT Telerate Page and published in the relevant H.15(519). If
such information is not provided by 3:00 P.M., New York City time, on the
related Calculation Date, then the CMT Rate for the CMT Interest Determination
Date will be calculated by the Calculation Agent and will be a yield to
maturity, based on the arithmetic mean of the secondary market closing offer
side prices as of approximately 3:30 P.M. (New York City time) on the CMT
Interest Determination Date reported, according to their written records, by
three leading primary United States government securities dealers (each, a
"Reference Dealer") in The City of New York selected by the Calculation Agent
(from five such Reference Dealers selected by the Calculation Agent and
eliminating the highest quotation (or, in the event of equality, one of the
highest) and the lowest quotation (or, in the event of equality, one of the
lowest)), for the most recently issued direct noncallable fixed rate obligations
of the United States ("Treasury Notes") with an original maturity of
approximately the Designated CMT Maturity Index and a remaining term to maturity
of not less than such Designated CMT Maturity Index minus one year. If the
Calculation Agent cannot obtain three such Treasury Note quotations, the CMT
Rate for such CMT Interest Determination Date will be calculated by the
Calculation Agent and will be a yield to maturity based on the arithmetic mean
of the secondary market offer side prices as of approximately 3:30 P.M. (New
York City time) on the CMT Interest Determination Date of three Reference
Dealers in the city of New York (from five such Reference Dealers selected by
the Calculation Agent and eliminating the highest quotation (or, in the event of
equality, one of the highest) and the lowest quotation (or, in the event of
equality, one of the lowest)), for Treasury Notes with an original maturity of
the number of years that is the next highest to the Designated CMT Maturity
Index and a remaining term to maturity closest to the Designated CMT Maturity
Index and in an amount of at least $100 million. If three or four (and not
five) of such Reference Dealers are quoting as described above, then the CMT
Rate will be based on the arithmetic mean of the offer prices obtained and
neither the highest nor the lowest of such quotes will be eliminated; provided,
however, that if fewer than three Reference Dealers selected by the Calculation
Agent are quoting as described herein, the CMT Rate will be the CMT Rate in
effect on such CMT Interest Determination Date. If two Treasury Notes with an
original maturity as described in the third preceding sentence have remaining
terms to maturity equally close to the Designated CMT Maturity Index, the quotes
for the Treasury Note with the shorter remaining term to maturity will be used.
"Designated CMT Telerate Page" means the display on the Dow Jones Telerate
Service on the page designated on page one hereof (or any other page as may
replace such page on that service for the purpose of displaying Treasury
Constant Maturities as reported in H.15(519)), for the purpose of displaying
Treasury Constant Maturities as reported in H.15(519). If no such page is
specified on page one hereof, the Designated CMT Telerate Page shall be 7052,
for the most recent week.
"Designated CMT Maturity Index" means the original period to maturity of
the U.S. Treasury securities (either 1, 2, 3, 5, 7, 10, 20, or 30 years)
specified on page one hereof with respect to which the CMT Rate will be
calculated, If no such maturity is specified, the Designated CMT Maturity Index
shall be two years.
<PAGE>
DETERMINATION OF COMMERCIAL PAPER RATE. If the Base Rate, as indicated on
page one hereof, is, or is calculated by reference to, the Commercial Paper
Rate, unless otherwise specified on page one hereof, the "Commercial Paper Rate"
for each Interest Reset Date will be determined by the Calculation Agent as of
the second Business Day prior to such Interest Reset Date (a "Commercial Paper
Interest Determination Date") and shall be the Money Market Yield (as defined
below) on such date of the rate for commercial paper having the Index Maturity
as indicated on page one hereof, as such rate shall be published in H.15(519)
under the caption "Commercial Paper-nonfinancial". In the event that such rate
is not published prior to 9:00 A.M. New York City time on the Calculation Date,
then the Commercial Paper Rate shall be the Money Market Yield on such
Commercial Paper Interest Determination Date of the rate for commercial paper of
the specified Index Maturity as published in Composite Quotations under the
heading "Commercial Paper". If by 3:00 P.M. New York City time on such
Calculation Date such rate is not yet published in either H.15(519) or Composite
Quotations, then the Commercial Paper Rate shall be the Money Market Yield of
the arithmetic mean of the offered rates as of 11:00 A.M., New York City time,
on that Commercial Paper Interest Determination Date, of three leading dealers
of commercial paper in The City of New York selected by the Calculation Agent
for commercial paper having the specified Index Maturity placed for an
industrial issuer whose bond rating is "AA", or the equivalent, from a
nationally recognized rating agency; provided, however, that if the dealers
selected as aforesaid by the Calculation Agent are not quoting offered rates as
mentioned in this sentence, the Commercial Paper Rate will be the Commercial
Paper Rate in effect on such Commercial Paper Interest Determination Date.
"Money Market Yield" shall be a yield calculated in accordance with the
following formula:
Money Market Yield = D X 360
------------- x 100
360 - (D x M)
where "D" refers to the applicable per annum rate for commercial paper quoted on
a bank discount basis and expressed as a decimal; and "M" refers to the actual
number of days in the interest period for which interest is being calculated.
DETERMINATION OF FEDERAL FUNDS RATE. If the Base Rate, as indicated on
page one hereof, is, or is calculated by reference to, the Federal Funds Rate,
unless otherwise specified on page one hereof, the "Federal Funds Rate" with
respect to each Interest Reset Date will be determined by the Calculation Agent
as of the second Business Day prior to such Interest Reset Date (a "Federal
Funds Interest Determination Date"), and shall be the rate on that date for
Federal Funds as published in H.15(519) under the heading "Federal Funds
(Effective)" or, if not so published by 9:00 A.M., New York City time, on the
Calculation Date pertaining to such Federal Funds Interest Determination Date,
the Federal Funds Rate will be the rate on such Federal Funds Interest
Determination Date as published in Composite Quotations under the heading
"Federal Funds/Effective Rate". If such rate is not so published by 3:00 P.M.,
New York City time, on the Calculation Date pertaining to such Federal Funds
Interest Determination Date, the Federal Funds Rate for such Federal Funds Reset
Date will be calculated by the Calculation Agent and will be the arithmetic mean
of the rates for the last transaction in overnight Federal Funds arranged by
three leading brokers of Federal Funds transactions in The City of New York
selected by the Calculation Agent as of 9:00 A.M., New York City time, on such
Federal Funds Interest Determination Date; provided, however, that if the
brokers selected as aforesaid by the Calculation Agent are not quoting as
mentioned in this sentence, the Federal Funds Rate will be the Federal Funds
Rate in effect on such Federal Funds Interest Determination Date.
DETERMINATION OF LIBOR. If the Base Rate, as indicated on page one hereof,
is, or is calculated by reference to, LIBOR, unless otherwise specified on page
one hereof, "LIBOR" for each Interest Reset Date will be determined by the
Calculation Agent in accordance with the following provisions:
(i) With respect to an Interest Determination Date relating to a LIBOR
Note or any Floating Rate Note for which the interest rate is determined
with reference to LIBOR (a "LIBOR" Interest Determination Date"), LIBOR
will be either: (a) if "LIBOR Reuters" is specified on page one hereof, the
arithmetic mean of the offered rates (unless the specified Designated LIBOR
Page by its terms provides only for a single rate, in which case such
single rate shall be used) for deposits in the Index Currency having the
Index Maturity designated on page one hereof, commencing on the second
London Business Day immediately following such LIBOR
<PAGE>
Interest Determination Date, that appear on the Designated LIBOR Page
specified on page one hereof, as of 11:00 A.M. London time, on such LIBOR
Interest Determination Date, if at least two such offered rates appear
(unless, as aforesaid, only a single rate is required) on such Designated
LIBOR Page, or (b) if "LIBOR Telerate" is specified on page one hereof or
if neither "LIBOR Reuters" nor "LIBOR Telerate" is specified as the method
for calculating LIBOR, the rate for deposits in the Index Currency having
the Index Maturity designated on page one hereof, commencing on the second
London Business Day immediately following such LIBOR Interest Determination
Date that appears on the Designated LIBOR Page specified on page one hereof
as of 11:00 A.M., London time, on such LIBOR Interest Determination Date.
If fewer than two such offered rates appear, or if no such rate appears, as
applicable, LIBOR in respect of the related LIBOR Interest Determination
Date will be determined in accordance with provisions described in clause
(ii) below.
(ii) With respect to a LIBOR Interest Determination Date on which
fewer than two offered rates appear, or no rate appears, as the case may
be, on the applicable Designated LIBOR Page as specified in clause (i)
above, the Calculation Agent will request the principal London offices of
each of four major reference banks in the London interbank market, as
selected by the Calculation Agent, to provide the Calculation Agent with
its offered quotation for deposits in the Index Currency for the period of
the Index Maturity designated on page one hereof, commencing on the second
London Business Day immediately following such LIBOR Interest Determination
Date, to prime banks in the London interbank market at approximately 11:00
A.M., London time, on such LIBOR Interest Determination Date and in a
principal amount that is representative for a single transaction in such
Index Currency in such market at such time. If at least two such
quotations are provided, LIBOR determined on such LIBOR Interest
Determination Date will the arithmetic mean of such quotations. If fewer
than two quotations are provided, LIBOR determined on such LIBOR Interest
Determination Date will be the arithmetic mean of the rates quoted at
approximately 11:00 A.M., in the applicable Principal Financial Center, on
such LIBOR Interest Determination Date by three major banks in such
Principal Financial Center selected by the Calculation Agent for loans in
the Index Currency to leading European banks, having the Index Maturity
designated on page one hereof and in a principal amount that is
representative for a single transaction in such Index Currency in such
market at such time; provided, however, that if the banks so selected by
the Calculation Agent are not quoting as mentioned in this sentence, LIBOR
determined as of such LIBOR Interest Determination Date will be LIBOR in
effect on such LIBOR Interest Determination Date.
"Index Currency" means the currency (including composite currencies)
specified on page one hereof as the currency for which LIBOR shall be
calculated. If no such currency is specified on page one hereof, the Index
Currency shall be United States dollars.
"Designated LIBOR Page" means either (a) if "LIBOR Reuters" is specified on
page one hereof, the display on the Reuters Monitor Money Rates Service for the
purpose of displaying the London interbank rates of major banks for the
applicable Index Currency, or (b) if "LIBOR Telerate" is specified on page one
hereof or neither "LIBOR Reuters" nor "LIBOR Telerate" is specified as the
method for calculating LIBOR, the display on the Dow Jones Telerate Service for
the purpose of displaying the London interbank rates of major banks for the
applicable Index Currency.
"Principal Financial Center" will generally be the capital city of the
country of the specified Index Currency, except that with respect to United
States dollars, Deutsche Marks, Dutch Guilders, Italian Lire and Swiss Francs,
the Principal Financial Center shall be The City of New York, Frankfurt,
Amsterdam, Milan and Zurich, respectively.
DETERMINATION OF PRIME RATE. If the Base Rate, as indicated on page one
hereof, is, or is calculated by reference to, the Prime Rate, unless otherwise
specified on page one hereof, the "Prime Rate" with respect to each Interest
Reset Date will be determined by the Calculation Agent as of the second Business
Day prior to such Interest Reset Date (a "Prime Interest Determination Date")
and shall be the rate set forth on such date in H.15(519) under the heading
"Bank Prime Loan", or if not so published prior to 9:00 A.M., New York City
time, on the Calculation Date pertaining to such Prime Interest Determination
Date, then the Prime Rate will be determined by the Calculation Agent and will
be the arithmetic mean of the rates of interest publicly announced by each bank
that appears on the Reuters Screen USPRIME1 Page (as defined below) as such
bank's prime rate or base lending rates
<PAGE>
as in effect for that Prime Interest Determination Date. If fewer than four
such rates but more than one such rate appear on the Reuters Screen USPRIME1
Page for the Prime Interest Determination Date, the Prime Rate will be
determined by the Calculation Agent and will be the arithmetic mean of the prime
rate quoted on the basis of the actual number of days in the year divided by a
360-day year as of the close of business on such Prime Interest Determination
Date by four major money center banks in The City of New York selected by the
Calculation Agent from a list approved by the Company. If fewer than two such
rates appear on the Reuters Screen USPRIME1 Page, the Prime Rate will be
determined by the Calculation Agent on the basis of the rates furnished in The
City of New York by the appropriate number of substitute banks or trust
companies organized and doing business under the laws of the United States, or
any state thereof, having total equity capital of at least U.S. $500,000,000 and
being subject to supervision or examination by Federal or State authority,
selected by the Calculation Agent from a list approved by the Company to provide
such rate or rates; provided, however, that if the banks selected as aforesaid
are not quoting as mentioned in this sentence, the Prime Rate will be the Prime
Rate in effect on such Prime Interest Determination Date. "Reuters Screen
USPRIME1 Page" means the display designated as page "USPRIME1" on the Reuters
Monitor Money Rates Service (or such other page as may replace the USPRIME1 page
on that service for the purpose of displaying prime rates or base lending rates
of major United States banks).
DETERMINATION OF TREASURY RATE. If the Base Rate, as indicated on page one
hereof, is, or is calculated by reference to the Treasury Rate, unless otherwise
specified on page one hereof, the "Treasury Rate" for each Interest Reset Date
will be the rate for the auction held on the Treasury Rate Determination Date
(as hereinafter defined) of direct obligations of the United States ("Treasury
bills") having the Index Maturity, as indicated on page one hereof, as published
in H.15(519) under the heading, "U.S. Government Securities - Treasury Bills -
Auction Average (Investment)", or, if not so published by 9:00 A.M., New York
City time, on the Calculation Date pertaining to such Treasury Rate
Determination Date, the auction average rate (expressed as a bond equivalent
yield, rounded to the nearest one one-hundredth of a percent, with five
one-thousandths of a percent rounded upward, on the basis of a year of 365 or
366 days, as applicable, and applied on a daily basis) as announced by the
United States Department of the Treasury. In the event that the results of the
auction of Treasury bills having the applicable Index Maturity designated on
page one hereof are not published or reported as provided above by 3:00 P.M.,
New York City time, on such Calculation Date or if no such auction is held on
such Treasury Rate Determination Date, then the Treasury Rate shall be
calculated by the Calculation Agent and shall be a yield to maturity (expressed
as a bond equivalent yield, rounded to the nearest one one-hundredth of a
percent, with five one-thousandths of a percent rounded upward, on the basis of
a year of 365 or 366 days, as applicable, and applied on a daily basis) of the
arithmetic mean of the secondary market bid rates, as of approximately 3:30
P.M., New York City time, on such Treasury Rate Determination Date, of three
leading primary United States government securities dealers selected by the
Calculation Agent for the issue of Treasury bills with a remaining maturity
closest to the specified Index Maturity; provided, however, that if the dealers
selected as aforesaid by the Calculation Agent are not quoting as mentioned in
this sentence, the Treasury Rate for such Interest Reset Date will be the
Treasury Rate in effect on such Treasury Rate Determination Date.
The "Treasury Rate Determination Date" for any Interest Reset Date will be
the day of the week in which such Interest Reset Date falls on which Treasury
bills would normally be auctioned, but in no event shall the Treasury Rate
Determination Date be after the related Interest Reset Date. Treasury bills are
normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is normally held on the following Tuesday,
except such auction may be held on the preceding Friday. If, as the result of a
legal holiday, an auction is so held on the preceding Friday, such Friday will
be the Treasury Rate Determination Date pertaining to the Interest Reset Date
occurring in the next succeeding week. If no auction is held in any week (or on
the preceding Friday), the Treasury Rate Determination Date shall be the Monday
of the week in which the Interest Reset Date falls.
PROVISIONS APPLICABLE TO BOTH FIXED RATE NOTES AND FLOATING RATE NOTES:
The interest so payable on any Interest Payment Date will, subject to
certain exceptions in the Indenture hereinafter referred to, be paid to the
person in whose name this Note is registered at the close of business on the
Regular Record Date immediately preceding such Interest Payment Date or, if the
Interest Payment Date is a Maturity Date or date of redemption or repayment, to
the person in whose name this Note is registered at the close
<PAGE>
of business on the Maturity Date or date of redemption or repayment; provided,
however, that if the Original Issue Date is between a Regular Record Date and an
Interest Payment Date or on an Interest Payment Date, interest for the period
from and including the Original Issue Date to, but excluding, the Interest
Payment Date relating to such Regular Record Date shall be paid on the next
succeeding Interest Payment Date to the person in whose name this Note is
registered on the close of business on the Regular Record Date preceding such
Interest Payment Date. The "Regular Record Date" with respect to any Interest
Payment Date for Floating Rate Notes shall be the date 15 calendar days
immediately preceding such Interest Payment Date, and for Fixed Rate Notes shall
be the April 15 and October 15 next preceding such Interest Payment Date,
whether or not such date shall be a Business Day.
This Note may be presented for payment of principal and interest in the
Specified Currency at the office or agency of the Company maintained for such
purpose in the Place of Payment as indicated above, provided, however, that
payments of interest may be made at the option of the Company by check mailed to
the address of such person entitled thereto as such address shall appear on the
Security Register of this series, except for interest payable at the Maturity
Date or upon earlier redemption or repayment which will be made in immediately
available funds upon surrender of this Note. Payments of principal (and
premium, if any) and interest, if payable in a currency other than U.S. dollars,
will be made from an account at a bank outside the United States.
Principal (and premium, if any) and interest will be paid by the Company in
U.S. dollars based on an Exchange Rate (as defined in the Indenture), even if
this Note is denominated in a Specified Currency other than U.S. dollars;
provided, however, that if permitted as indicated on page one hereof, at the
written request of the Holder, made not later than the Regular Record Date or
Special Record Date, as the case may be, immediately preceding the applicable
Interest Payment Date or the fifteenth day immediately preceding the Maturity
Date or date of redemption or repayment, as the case may be, and pursuant to the
terms of the Indenture, payments of principal (and premium, if any) and interest
in respect of a Note denominated in a Specified Currency other than U.S. dollars
shall be paid in the Specified Currency and otherwise pursuant to the terms of
the Indenture, and any costs associated with such conversion will be borne by
the Holder. If this Note is denominated in a Specified Currency other then U.S.
dollars on page one hereof, the amount of U.S. dollar payment will be determined
by a New York clearing house bank designated by the Company (the "Exchange Rate
Agent") based on the quotation for such Specified Currency appearing at
approximately 11:00 a.m., New York City time, on the second Business Day
preceding the applicable date of payment, on the bank composite or
multi-contributor pages of the Reuters Monitor Foreign Exchange Service (or, if
such service is not then available to the Exchange Rate Agent, the Telerate
Monitor Foreign Exchange Service or, if neither is available, on a comparable
display or in a comparable manner as the Company and the Exchange Rate Agent
shall agree), bid by one of at least three banks (one of which may be the
Exchange Rate Agent) agreed to by the Company and the Exchange Rate Agent, which
will yield the largest number of U.S. dollars upon conversion from such
Specified Currency. If fewer than three bids are available, then such
conversion will be based on the Market Exchange Rate (as defined below) as of
the second Business Day preceding the applicable payment date or, if the Market
Exchange Rate for such date is not available, as of the most recent date on
which the Market Exchange Rate is available. If the principal of, or interest
on this Note is payable in a Specified Currency other than U.S. dollars (whether
by reason of the unavailability of such quotations or through an election by a
Holder) and such Specified Currency is not available to the Company for making
payments thereof due to the imposition of exchange controls or other
circumstances beyond the control of the Company, the Company will be entitled to
satisfy its obligations to Holders of this Note by making such payment in U.S.
dollars on the basis of the Market Exchange Rate on the second Business Day
prior to such payment date, if available, and if not so available, the exchange
rate determined in the following order: first, by the most recently available
Market Exchange Rate; second by the quotations of three (or if three are not
available, then two) recognized foreign exchange dealers (one of which may be
the Exchange Rate Agent) selected by the Exchange Rate Agent and the Company in
The City of New York or in the foreign country of issue of such currency, and
third, by such other quotations as the Company deems appropriate. If the
Specified Currency is a composite currency, payments will be an amount
determined by the Exchange Rate Agent by adding the results obtained by
multiplying the number of units of each component currency of such composite
currency, as of the most recent day on which such composite currency was used,
by the most recently available Market Exchange Rate for such component currency.
Any Payment made under the circumstances described above, where the required
payment is in a Specified Currency other than U.S. dollars or any payment made
in the Specified Currency, will not constitute an Event of Default under the
Indenture. "Market Exchange Rate" means the noon buying rate for cable
transfers in New York City as
<PAGE>
determined by the Federal Reserve Bank of New York for such Specified Currency.
"Business Day" means any day other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which banking institutions are authorized
or obligated by law, regulation or executive order to close in either The City
of New York or (1) with respect to Notes denominated in a Specified Currency
other than U.S. Dollars, in the city as specified by Fleet pursuant to the
applicable Indenture and (2) with respect to LIBOR Notes, is also a "London
Business Day". "London Business Day" means any day which dealings in the
applicable Index Currency are transacted in the London interbank market.
In case an Event of Default (as defined in the Indenture) with respect to
Notes of this series shall occur and be continuing, the principal amount (or, if
the Note is an Original Issue Discount Note, such lesser portion of the
principal amount as may be applicable) of the Notes of this series may be
declared due and payable, in the manner and with the effect provided in the
Indenture. If this Note is an Original Issue Discount Note (as defined below),
in the event of an acceleration of the Maturity hereof, the amount payable to
the Holder of this Note upon such acceleration will be determined by this Note
but will be an amount less than the amount payable at the Maturity of the
principal of this Note. An "Original Issue Discount Note" is a Note, including
any zero-coupon note, which has a stated redemption price at maturity that
exceeds its Issue Price by at least 0.25% of its principal amount, multiplied by
the number of full years from the Original Issue Date to the Maturity Date for
such Note, and any other Note designated by the Company as issued with original
issue discount for United States Federal income tax purposes.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company with the consent of the
Holders of 66 2/3% in aggregate principal amount of the Outstanding Securities
of each series to be affected. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of
the Outstanding Securities of each series, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof, or in
exchange herefor, or in lieu hereof whether or not any notation of such consent
or waiver is made upon this Note.
No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of (premium, if any) and
interest on this Note, at the times, places and rate and in the coin or
currency, herein prescribed.
The Notes of this series are issued in fully registered form without
coupons. Notes of this series denominated in U.S. dollars (as indicated on page
one hereof) will be issued in denominations of $1,000 or any amount in excess
thereof which is an integral multiple thereof. Notes of this series denominated
in a Specified Currency other than U.S. dollars (as indicated on page one
hereof) will be issued in the Authorized Denomination as indicated on page one
hereof.
As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note may be registered on the Security Register of
this series upon surrender of this Note for registration of transfer at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, State of New York, duly endorsed by or accompanied by, a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar, duly executed by the Holder hereof or his attorney duly authorized in
writing, and thereupon a new Note or Notes of this series of authorized
denomination and for the same aggregate principal amount will be issued to the
designated transferee or transferees.
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
Prior to due presentment for registration of transfer of this Note, the
Company, the Trustee, and any Agent
<PAGE>
of the Company or the Trustee may treat the person in whose name this Note is
registered as the owner of this Note for all purposes, whether or not this Note
be overdue, and neither the Company nor the Trustee nor any such Agent shall be
affected by any notice to the contrary.
If so specified on page one hereof, this Note will be redeemable at the
Company's option on a date or dates specified prior to maturity at a price or
prices, each set forth on page one hereof, together with accrued interest to the
date of redemption. This Note will not be subject to any sinking fund. If so
redeemable, the Company may redeem this Note either in whole or from time to
time in part, upon not less than 30, nor more than 60, days' notice. If less
than all of the Notes with like tenor and terms are to be redeemed, the Notes to
be redeemed shall be selected by the applicable Note Registrar by such method as
such Note Registrar shall deem fair and appropriate.
The Company may specify that this Note will be repayable at the option of
the Holder on a date or dates specified prior to maturity at a price or prices
set forth on page one hereof, together with accrued interest to the date of
repayment. In order for this Note to be repaid, the Paying Agent must receive
at least 30, but not more than 45, days, prior to the repayment date (i) this
Note with the form entitled "Option to Elect Repayment" at the end of this Note
duly completed or (ii) a telegram, telex, facsimile transmission or a letter
from a member of a national securities exchange of the National Association of
Securities Dealers, Inc. or a commercial bank or trust company in the United
States of America setting forth the name of the Holder of this Note, a statement
that the option to elect repayment is being exercised thereby and a guarantee
that this Note to be repaid with the form entitled "Option to Elect Repayment"
at the end of this Note duly completed will be received by the Paying Agent not
less than five Business Days after the date of such telegram, telex, facsimile
transmission or letter and such Note and form duly completed are received by the
Paying Agent by such fifth Business Day. Exercise of the repayment option by
the Holder of this Note shall be irrevocable. The repayment option may be
exercised by the Holder of this Note for less then the entire principal amount
of this Note provided that the principal amount of this Note remaining
outstanding after repayment is an authorized denomination.
The Company may at any time purchase this Note at any price in the open
market or otherwise. Notes so purchased by the Company may be held or resold
or, at the discretion of the Company, may be surrendered to the Trustee for
cancellation.
By acceptance of this Note, the holder hereof agrees to be bound by the
provisions of the Indenture. Terms used herein which are defined in the
Indenture shall have the respective meanings assigned thereto in the Indenture.
This Note shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by or on behalf of
the Trustee under the Indenture.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
Dated:
---------------------------
TRUSTEE'S CERTIFICATE OF FLEET FINANCIAL GROUP, INC.
AUTHENTICATION
This is one of the Securities of
the series provided for under the
within-mentioned Indenture.
By
-------------------------------
THE FIRST NATIONAL BANK OF CHICAGO, Chairman and Chief Executive
as Trustee Officer
By By
------------------------------- ------------------------------
Authorized Officer Secretary
<PAGE>
[TO BE DELETED IF NOTE ISSUED AS GLOBAL BOOK-ENTRY NOTE]
----------------
ABBREVIATIONS
The following abbreviations, when used in the inscription on page one of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - _____ Custodian _________
(Cust) (Minor)
TEN ENT - as tenants by the under Uniform Gifts to Minors Act
entireties
------------------------------
JT TEN - as joint tenants with right of (State)
survivorship and not as tenant
in common
Additional abbreviations may also be used though not in the above list.
----------------------
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
--------------------------------------------------
(Name and address of assignee, including zip code,
must be printed or typewritten)
- ----------------------- ------------------------------------
- ----------------------- ------------------------------------
the within Note, and all rights thereunder, hereby irrevocably constituting and
appointing __________________________________ Attorney to transfer said Note on
the books of the within Company, with full power of substitution in the
premises.
Dated:
-------------------------- -------------------------
NOTICE: The signature to this assignment
must correspond with the name as it
appears upon page one of the within
Note in every particular, without
alteration or enlargement or any
change whatever and must be
guaranteed by a commercial bank or
trust company having its principal
office or a correspondent in The
City of New York or by a member of
the New York Stock Exchange.
<PAGE>
[TO BE DELETED UNLESS HOLDER HAS OPTION TO ELECT REPAYMENT]
-------------------------
REGISTRAR, PAYING AGENTS AND TRANSFER AGENT
REGISTRAR AND PAYING AGENT
(subject to change)
The First National Bank of Chicago
1 North State Street
9th Floor
Chicago, IL 60602
-------------------------
OPTION TO ELECT REPAYMENT
The undersigned hereby irrevocably requests and instructs the Company to
repay the within Note (or portion hereof specified below) pursuant to its terms
at a price equal to the applicable Repayment Price thereof together with
interest to the Repayment Date, to the undersigned
---------------------------------- ---------------------
---------------------------------- ---------------------
---------------------------------- ---------------------
(Please print or typewrite name and address of the undersigned)
If less than the entire principal amount of the within note is to
be repaid, specify the portion thereof which the Holder elects to have
repaid: _________ ____________: and specify the denomination or denominations
(which shall be in authorized denominations) of the Notes to be issued to the
Holder for the portion of the within Note not being repaid (in the absence of
any such specification, one such Note will be issued for the portion not being
repaid):
------------------------------------------------ -------------
Date Signature
--------------------------- -------------------------
ABBREVIATIONS
The following abbreviations, when used in the instruction on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entirety
JT TEN - as joint tenants with right of survivorship and not as
tenants in common
UNIF GIFT MIN ACT - _____________ Custodian for ____________________
(Cust) (Minor)
Under Uniform Gifts to Minors Act
------------------------------------
(State)
Additional abbreviations may be used though not in the above list.
