CERTIFICATE OF NOTIFICATION
Filed by
MISSISSIPPI POWER COMPANY
Pursuant to order of the Securities and Exchange Commission dated May 11, 1998
in the matter of File No. 70-8737.
Mississippi Power Company (the "Company") hereby certifies to said
Commission, pursuant to Rule 24, as follows:
1. A Loan Agreement dated as of December 1, 1999 was made and entered
into by and between the Company and the Mississippi Business Finance Corporation
(the "MBFC"), and all transactions relating thereto (including the issuance by
the Company of its promissory note dated December 1, 1999 in the principal
amount of $9,400,000 pursuant thereto) were carried out in accordance with the
terms and conditions of and for the purposes represented by the application, as
amended, and of said order with respect thereto.
2. Filed herewith are the following exhibits.
Exhibit A - Loan Agreement between the MBFC and the Company, dated as
of December 1, 1999.
Exhibit B - Trust Indenture of the MBFC, dated as of December 1, 1999.
Exhibit C - Promissory Note of the Company to the MBFC, dated December
1, 1999.
Exhibit D - Opinion of Eaton and Cottrell, P.A. dated December 10,
1999.
Dated: December 10, 1999 MISSISSIPPI POWER COMPANY
By /s/Wayne Boston
Wayne Boston
Assistant Secretary
Exhibit A
MISSISSIPPI BUSINESS FINANCE CORPORATION
and
MISSISSIPPI POWER COMPANY
LOAN AGREEMENT
Dated as of December 1, 1999
Relating to
$9,400,000
Revenue Bonds,
Series 1999
(Mississippi Power Company Project)
<PAGE>
LOAN AGREEMENT
TABLE OF CONTENTS
(This Table of Contents is for convenience of reference
only and is not a part of this Loan Agreement)
PAGE
ARTICLE I: DEFINITIONS......................................1
ARTICLE II: ACQUISITION AND COMPLETION OF THE PROJECTS;
ISSUANCE OF THE BONDS...........................3
SECTION 2.1. Acquisition and Completion of the
Projects ..............................3
SECTION 2.2. Issuance of the Bonds..................3
SECTION 2.3. Establishment of Completion Date.......3
SECTION 2.4. Insufficiency of Construction Fund.....4
ARTICLE III: LOAN BY ISSUER; PROVISIONS FOR PAYMENT..........4
SECTION 3.1. Loan by Issuer........................4
SECTION 3.2. Delivery of Note by Company;
Other Amounts Payable ................4
SECTION 3.3. Obligation of the Company
Unconditional.........................5
SECTION 3.4. Assignment and Pledge of Payments
and Rights Under the Note and
the Agreement.........................5
ARTICLE IV: SPECIAL COVENANTS...............................5
SECTION 4.1. Use of Projects.......................5
SECTION 4.2. Indemnity Against Claims..............5
SECTION 4.3. Inspection of the Projects............6
SECTION 4.4. The Company to Maintain Its Corporate
Existence; Conditions Under Which
Exceptions Permitted..................6
SECTION 4.5. Annual Statement......................6
SECTION 4.6. Further Assurances and Corrective
Instruments...........................7
SECTION 4.7. Maintenance of Projects by Company....7
SECTION 4.8. Redemption or Purchase of Bonds.......7
SECTION 4.9. Non-Arbitrage Covenant................7
SECTION 4.10. Compliance with Indenture.............8
SECTION 4.11. Use of Proceeds.......................8
ARTICLE V: EVENTS OF DEFAULT AND REMEDIES....................8
SECTION 5.1. Events of Default.....................8
SECTION 5.2. Remedies on Default...................9
SECTION 5.3. Agreement to Pay Attorneys'Fees
and Expenses..................... 10
SECTION 5.4. No Additional Waiver Implied by
One Waiver .................... 10
ARTICLE VI MISCELLANEOUS...................................10
SECTION 6.1. Term of This Agreement...............10
SECTION 6.2. Notices..............................10
SECTION 6.3. Binding Effect.......................10
SECTION 6.4. Severability.........................11
SECTION 6.5. Amendments...........................11
SECTION 6.6. Execution in Counterparts............11
SECTION 6.7. Applicable Law.......................11
SECTION 6.8. Captions.............................11
SECTION 6.9. Other Financing......................11
SECTION 6.10. Amounts Remaining in the Bond Fund...11
<PAGE>
LOAN AGREEMENT dated as of December 1, 1999 between the MISSISSIPPI
BUSINESS FINANCE CORPORATION, a public corporation duly created and validly
existing pursuant to the Constitution and laws of the State of Mississippi (the
"Issuer"), and MISSISSIPPI POWER COMPANY, a corporation organized and existing
under the laws of the State of Mississippi (the "Company"), evidencing the
agreement of the parties hereto.
In consideration of the respective representations and agreements
hereinafter contained, the parties hereto agree as follows (provided that in the
performance of the agreements of the Issuer herein contained, any obligation it
may thereby incur for the payment of money shall not be a general debt,
liability or obligation of the Issuer, or of the State of Mississippi or any
political subdivision thereof but shall be payable solely out of the revenues
and proceeds derived from this Agreement and the Note (as hereinafter defined)
and the sale of the Bonds referred to herein:
ARTICLE I
DEFINITIONS
"Arbitrage Rebate Agreement", "Bondholder", "Bonds", "Business Day",
"Code", "Government Obligations", "outstanding", "Rebate Requirement",
"Remarketing Agent" and "Trustee" have the same meanings given and assigned to
such words in Article I of the Indenture (as hereinafter defined).
"Agreement" means this Loan Agreement and any amendments and
supplements hereto.
"Completion Date" means the date of completion of the acquisition,
construction, installation and equipping of the Projects (as hereinafter
defined) as such date shall be certified as provided in Section 2.3 hereof.
"Cost of Construction" with respect to the Projects means the
following:
(a) obligations of the Company incurred for labor and
materials (including re imbursements payable to the Company and
payments on contracts in the name of the Company) in connection with
the acquisition, construction, installation and equipping of the
Projects;
(b) the cost of contract bonds and of insurance of all kinds
that may be required or necessary during the course of construction of
the Projects;
(c) all costs of engineering services, including the costs for
test borings, surveys, estimates, plans and specifications and
preliminary investigation therefor, and for supervising construction,
as well as for the performance of all other duties required by or
consequent upon the proper construction of the Projects;
(d) overheads of the Company, to the extent not included in
subparagraph (c) above, allocable to the Projects by the Company in
accordance with the Uniform System of Accounts prescribed for Public
Utilities and Licensees by the Federal Energy Regulatory Commission;
(e) interest to accrue in respect of the Bonds and on other
indebtedness of the Company which is allocable to the Bonds to the
Completion Date, amounts paid to the United States Treasury pursuant to
Section 148(f) of the Code and the regulations promulgated thereunder,
and the Costs of Issuance; provided, however, that the Costs of
Issuance shall not exceed two percent of the aggregate face amount of
the Bonds, as allowed by the Code;
(f) all other costs which the Company may properly pay or
accrue for the acquisition, construction, installation or equipping of
the Projects; and
(g) any sums required to reimburse the Company for advances
made for any of the above items or for any other costs incurred or for
work done which are properly chargeable to the Projects.
"Costs of Issuance" means all expenses incurred in connection with the
issuance of the Bonds, including without limitation initial compensation and
expenses of the Trustee, legal expenses and fees, costs of printing and
engraving, recording and filing fees, compensation of the underwriters, if any,
and rating agency fees.
"Event of Default" means any of the occurrences enumerated in Section
5.1 of this Agreement.
"Indenture" means the Trust Indenture dated as of December 1, 1999,
relating to Revenue Bonds, Series 1999 (Mississippi Power Company Project),
between the Issuer and Hancock Bank, as Trustee, pursuant to which the Bonds are
authorized to be issued, and including any indenture supplemental thereto.
"Loan" means the loan to be made by the Issuer to the Company of the
proceeds (which shall be deemed to include the underwriting discounts, if any,
and original issue discount, if any) of the sale of the Bonds, exclusive of any
accrued interest paid by the initial purchasers of the Bonds upon the delivery
thereof.
"Note" means the non-negotiable promissory note of the Company issued
pursuant to Section 3.2 hereof, in the form set forth in Exhibit A hereto.
"Plans" means the plans and specifications prepared by or on behalf of
the Company for the Projects, as the same may be revised from time to time by
the Company in accordance with the last paragraph of Section 2.1 hereof, which
are on file with the Company and accessible to the Issuer.
"Projects" means the solid waste disposal facilities described in the
Plans and, as designed on the date hereof, described generally in Exhibit B
hereto.
"Qualifying Costs" means any Cost of Construction to the extent that
payment thereof would constitute, within the meaning of Section 142(a)(6) of the
Code and applicable final or proposed Treasury Regulations, the payment of costs
to provide facilities that are solid waste disposal facilities or facilities
functionally related and subordinate thereto.
ARTICLE II
ACQUISITION AND COMPLETION OF THE PROJECTS;
ISSUANCE OF THE BONDS
SECTION 2.1. Acquisition and Completion of the Projects. The Company
agrees to use its best efforts to cause the acquisition, construction,
installation and equipping of the Projects to be completed substantially in
accordance with the Plans with reasonable dispatch, delays incident to "force
majeure" (as defined in Section 5.1 hereof) only excepted. The Projects, in
whole or in part, shall belong to and be the property of the Company.
The Issuer and the Company agree that the Company may at any time or
from time to time supplement or amend the Plans (including additions thereto or
omissions therefrom), provided that such supplements or amendments shall not
result in the loss of the exclusion from gross income for federal income tax
purposes of interest on the Bonds.
SECTION 2.2. Issuance of the Bonds. In order to provide funds for the
purpose set forth in Section 3.1 hereof, the Issuer agrees that it will
initially issue and deliver the Bonds to the purchasers thereof at a price to be
approved in advance by the Company and apply and deposit the proceeds thereof in
accordance with the terms of the Indenture. The Indenture shall be satisfactory
in form and substance to the Company and shall provide the manner in which, and
the purposes for which, proceeds of Bonds may be used and invested.
The Issuer has authorized and directed the Trustee to disburse moneys
from the Construction Fund in respect of the Cost of Construction in accordance
with Section 4.10 of the Indenture.
SECTION 2.3. Establishment of Completion Date. The Completion Date
shall be evidenced to the Trustee and the Issuer by a certificate of the
Company: (i) stating that the Projects have been completed substantially in
accordance with the Plans, and (ii) stating that, except for amounts retained by
the Trustee at the Company's direction for any Cost of Construction not then due
and payable or which is in dispute, the entire Cost of Construction has been
paid. Notwithstanding the foregoing, such certificate shall state that it is
given without prejudice to any rights against third parties which exist at the
date of such certificate or which may subsequently come into being.
SECTION 2.4. Insufficiency of Construction Fund. The Issuer does not
make any warranty, either express or implied, that the amounts in the
Construction Fund and available for payment of the Cost of Construction will be
sufficient to pay all of the Cost of Construction. The Company agrees that it
shall pay from its own funds any amounts needed to complete the Projects after
exhaustion of the amounts in the Construction Fund. The Company further agrees
that, if after exhaustion of the amounts in the Construction Fund, it should pay
any portion of the Cost of Construction, it shall not be entitled to any
diminution of the amounts payable under the Note and as provided in Section 3.2
hereof.
ARTICLE III
LOAN BY ISSUER; PROVISIONS FOR PAYMENT
SECTION 3.1. Loan by Issuer. The Issuer hereby agrees to make the
Loan to the Company in order to finance the Cost of Construction of the
Projects.
SECTION 3.2. Delivery of Note by Company; Other Amounts Payable. In
order to evidence the Loan and the obligation of the Company to repay the same,
the Company shall execute and deliver the Note in a principal amount equal to
the aggregate principal amount of the Bonds and providing for payments which
correspond in time and amount with payments due on the Bonds. The Note shall be
dated the date of the initial authentication of, and mature on the same maturity
date as, the Bonds. If (i) on the date any payments on the Bonds are due there
are any available moneys on deposit with the Trustee which are not being held
for the payment of Bonds due and payable but which have not been presented for
payment, or (ii) on any date on which Bonds are required to be purchased
pursuant to the Bonds or Article III of the Indenture, there are available
moneys on deposit with the Trustee held for the payment of the purchase price
which are not being held for the payment of Bonds which have not been presented
for payment, then, in each case, such moneys shall be credited against the
payment then due under the Note, first in respect of interest and then, to the
extent of remaining moneys, in respect of principal.
The Company will also pay: (i) the fees, charges and reasonable
expenses of the Trustee and any paying agents and tender agents under the
Indenture, such fees, charges and reasonable expenses to be paid directly to the
Trustee or paying agents or tender agents, as the case may be, for their
respective accounts as and when such fees, charges and reasonable expenses
become due and payable, (ii) the fees, charges and reasonable expenses of the
Issuer, (iii) all amounts owed under the Arbitrage Rebate Agreement, including
but not limited to the Rebate Requirement, and (iv) any expenses in connection
with any redemption of the Bonds.
SECTION 3.3. Obligation of the Company Unconditional. The obligation of
the Company to make payments as provided in the Note and to perform and observe
the other agreements on its part contained herein shall be absolute and
unconditional notwithstanding any change in the tax or other laws of the United
States of America or of the State of Mississippi or any political subdivision of
either thereof or any failure of the Issuer to perform and observe any
agreement, whether express or implied, or any duty, liability or obligation
arising out of or connected with this Agreement. Nothing contained in this
Section 3.3 shall be construed to release the Issuer from the performance of any
of the agreements on its part herein contained; and, in the event the Issuer
should fail to perform any such agreement on its part, the Company may institute
such action against the Issuer as the Company may deem necessary to compel
performance or recover damages for nonperformance so long as such action shall
not violate the agreements on the part of the Company contained in the preceding
sentence, but in no event shall the Company be entitled to any diminution of the
amounts payable under the Note and as provided in Section 3.2 hereof.
SECTION 3.4. Assignment and Pledge of Payments and Rights Under the
Note and the Agreement. The Issuer shall assign to the Trustee as security under
the Indenture all rights, title and interests of the Issuer in and to (i) the
Note and all payments thereunder and (ii) this Agreement and all moneys
receivable hereunder (except for payments to the Issuer under the second
paragraph of Section 3.2 and under Sections 4.2 and 5.3 hereof). The Company
assents to such assignment and hereby agrees that, as to the Trustee, its
obligations to make such payments shall be absolute and shall not be subject to
any defense or any right of set-off, counterclaim or recoupment arising out of
any breach by the Issuer or the Trustee of any obligation to the Company,
whether hereunder or otherwise, or out of any indebtedness or liability at any
time owing to the Company by the Issuer or the Trustee.
ARTICLE IV
SPECIAL COVENANTS
SECTION 4.1. Use of Projects. The Issuer hereby acknowledges that it
shall have no rights to the use or possession of the Projects. The Issuer hereby
further acknowledges that the Projects will not constitute any part of the
security for the Bonds.
SECTION 4.2. Indemnity Against Claims. The Company will pay and
discharge and will indemnify and hold harmless the Issuer and the Trustee and
their respective officers, employees and agents from (a) any lien or charge upon
payments by the Company to the Issuer under the Note or hereunder, (b) any
taxes, assessments, impositions and other charges upon payments by the Company
to the Issuer under the Note or hereunder and (c) any and all liability,
damages, costs and expenses arising out of or resulting from the transactions
contemplated by this Agreement and the Indenture, including the reasonable fees
and expenses of counsel (in each case provided in this Section with respect to
the Trustee and its officers, employees and agents, only in the absence of
negligence or willful misconduct). If any such lien or charge is sought to be
imposed upon payments, or any such taxes, assessments, impositions or other
charges are sought to be imposed, or any such liability, damages, costs and
expenses are sought to be imposed, the Issuer or the Trustee, as the case may
be, will give prompt notice to the Company, and the Company shall have the sole
right and duty to assume, and will assume, the defense thereof, with full power
to litigate, compromise or settle the same in its sole discretion.
SECTION 4.3. Inspection of the Projects. The Company agrees that the
Issuer and its duly authorized agents may at reasonable times enter upon the
sites of the Projects and examine and inspect the Projects and the books and
records of the Company with respect to the Projects.
SECTION 4.4. The Company to Maintain Its Corporate Existence;
Conditions Under Which Exceptions Permitted. The Company agrees that during the
term of this Agreement it will maintain its corporate existence and
qualification to do business in the State of Mississippi, will not dissolve or
otherwise dispose of all or substantially all of its assets and will not
consolidate with or merge into another corporation or permit one or more other
corporations to consolidate with or merge into it; provided, that the Company
may, without violating the agreements contained in this Section 4.4, consolidate
with or merge into another domestic corporation (i.e., a corporation
incorporated and existing under the laws of one of the states of the United
States of America or under the laws of the United States of America) or permit
one or more other corporations to consolidate with or merge into it, or sell or
otherwise transfer to another domestic corporation all or substantially all of
its assets as an entirety and thereafter dissolve, provided that, in the event
the Company is not the surviving, resulting or transferee corporation, as the
case may be, (i) the surviving, resulting or transferee corporation assumes,
accepts and agrees in writing to pay and perform all of the obligations of the
Company herein and under the Note and is a Mississippi corporation or is
qualified to do business in the State of Mississippi as a foreign corporation
and (ii) such consolidation, merger or transfer of assets does not result in the
loss of the exclusion from gross income for federal income tax purposes of
interest on the Bonds.
SECTION 4.5. Annual Statement. The Company agrees to have an annual
audit made by its regular independent public accountants and within 180 days
after the close of each fiscal year to timely furnish the Trustee and any
Bondholder who may so request a balance sheet and statement of income and
surplus showing the financial condition of the Company and its consolidated
subsidiaries, if any, at the close of such fiscal year and the results of
operations of the Company and its consolidated subsidiaries, if any, for such
fiscal year, accompanied by a certificate or opinion of said accountants. The
requirements of this Section 4.5 may be satisfied by the submission to the
Trustee and each Bondholder who may request such information of the Company's
annual report to its shareholders, provided such annual report contains the
information required by the preceding sentence.
SECTION 4.6. Further Assurances and Corrective Instruments. The Issuer
and the Company agree that they will, from time to time, execute, acknowledge
and deliver, or cause to be executed, acknowledged and delivered, such
supplements hereto and such further instruments as may reasonably be required
for correcting any inadequate or incorrect description of the Projects and for
carrying out the intention or facilitating the performance of this Agreement and
the Note.
SECTION 4.7. Maintenance of Projects by Company. The Company agrees
that during the term of this Agreement it will pay all costs of operating,
maintaining and repairing the Projects; provided, however, that the Company
shall not be under any obligation to renew, repair or replace any inadequate,
obsolete, worn-out, unsuitable, undesirable or unnecessary portion of the
Projects. In any instance where the Company determines that any portion of the
Projects has become inadequate, obsolete, worn-out, unsuitable, undesirable or
unnecessary, the Company may remove such portion of the Projects and sell,
trade-in, exchange or otherwise dispose of such removed portion without any
notice to or responsibility or accountability to the Issuer, the Trustee or the
Bondholders therefor.
SECTION 4.8. Redemption or Purchase of Bonds. The Issuer shall take all
steps then necessary under the applicable provisions of the Indenture for the
redemption or purchase (other than a purchase pursuant to tenders as provided in
the form of Bonds or in lieu of redemption as provided in Section 3.07 of the
Indenture) of Bonds upon receipt, not less than ten days (or such shorter period
as is acceptable to the Trustee) prior to the day on which the Trustee is
required to give notice (if any) thereof pursuant to the Indenture, by the
Issuer and the Trustee from the Company of a written notice specifying:
(a) the principal amount of Bonds to be redeemed or
purchased;
(b) the date of such redemption or purchase; and
(c) in the case of a redemption of Bonds, directions to mail a
notice of redemption.
In the case of a purchase of Bonds, the written notice to the Trustee
shall, if available moneys on deposit with the Trustee are insufficient to
purchase the principal amount of Bonds specified in (a) above, be accompanied by
a deposit with the Trustee of cash or Government Obligations sufficient,
together with other available moneys on deposit with the Trustee, to make the
directed purchase of Bonds.
SECTION 4.9. Non-Arbitrage Covenant. The Company and the Issuer each
covenants that it shall take no action, nor shall the Company direct the
Trustee's taking any action or making any investment or use of the proceeds of
the Bonds or any other moneys, which would cause the Bonds to be treated as
"arbitrage bonds" within the meaning of Section 148 of the Code and the
proposed, temporary or final regulations thereunder as such may be applicable or
proposed to be applicable to the Bonds at the time of such action, investment or
use.
Without limiting the generality of the foregoing, the Company covenants
and agrees to comply with the requirements of Section 148(f) of the Code and any
proposed, temporary or final regulations thereunder as may be applicable to the
Bonds or the proceeds derived from the sale of the Bonds or any other moneys.
SECTION 4.10. Compliance with Indenture. The Company agrees to perform
and comply with all provisions of the Indenture applicable to it. In addition,
the Company shall have and enjoy all rights and options granted to it by the
Indenture.
SECTION 4.11. Use of Proceeds. The Company hereby covenants that at
least 95% of the proceeds of the Bonds will be used to pay Costs of Construction
of the Projects which constitute Qualifying Costs.
ARTICLE V
EVENTS OF DEFAULT AND REMEDIES
SECTION 5.1. Events of Default. Each of the following shall be an
"Event of Default" under this Agreement:
(a) Failure by the Company to pay when due the amounts
required to be paid pursuant to the Note which failure, in the case of
such amounts in respect of interest on any Bond, continues for five
days, or the failure by the Company to pay within 30 days of the date
due any other amounts required to be paid pursuant to this Agreement.
(b) Failure by the Company to observe and perform any
covenant, condition or agreement on its part to be observed or
performed hereunder, other than as referred to in subsection (a) of
this Section 5.1, for a period of 90 days after written notice,
specifying such failure and requesting that it be remedied, is given to
the Company by the Issuer or the Trustee, unless the Issuer and the
Trustee shall agree in writing to an extension of such period prior to
its expiration; provided, however, if the failure stated in the notice
cannot be corrected within the applicable period, the Issuer and the
Trustee will not unreasonably withhold their consent to an extension of
such period if corrective action is instituted by the Company within
the applicable period and diligently pursued.
(c) The dissolution or liquidation of the Company, except as
permitted by Section 4.4 hereof, or the commencement by the Company of
any case or proceeding seeking to have an order for relief entered on
its behalf as a debtor or to adjudicate it as bankrupt or insolvent or
seeking reorganization, liquidation, dissolution, winding-up,
arrangement, composition, readjustment of its debts or any other relief
under any bankruptcy, insolvency, reorganization or other similar law
of the United States or any state, or adjudication of the Company as
bankrupt, or an assignment by the Company for the benefit of its
creditors, or the entry by the Company into an agreement of composition
with its creditors, or the approval by a court of competent
jurisdiction of a petition applicable to the Company in any proceeding
for its reorganization instituted under the provisions of Title 11 of
the United States Code, as amended, or under any similar statutory
provision which may hereafter be enacted.
The foregoing provisions of Section 5.1(b) are subject to the limitation that,
if by reason of force majeure the Company is unable in whole or in part to carry
out its agreements herein contained other than those set forth in Sections 4.4
and 4.9 hereof, an Event of Default shall not be deemed to have occurred during
the continuance of such inability. The term "force majeure" as used herein shall
mean the following: acts of God; strikes; lockouts or other industrial
disturbances; acts of public enemies; orders of any kind of the government of
the United States or of the State of Mississippi or any of their departments,
agencies or officials or of any civil or military authority; insurrections;
riots; epidemics; landslides; lightning; earthquakes; fire; hurricanes;
tornadoes; storms; floods; washouts; droughts; arrests; restraints of government
and people; civil disturbances; explosions; breakage or accident to machinery,
transmission lines, pipes or canals; partial or entire failure of utilities; or
any other cause or event not reasonably within the control of the Company. The
Company agrees, however, to remedy to the extent practicable with all reasonable
dispatch the effects of any force majeure preventing the Company from carrying
out its agreements; provided that the settlement of strikes, lockouts and other
industrial disturbances shall be entirely within the discretion of the Company,
and the Company shall not be required to make settlement of strikes, lockouts
and other industrial disturbances by acceding to the demands of the opposing
party or parties when such course is in the judgment of the Company unfavorable
to the Company.
SECTION 5.2. Remedies on Default. Whenever any Event of Default shall
have occurred and be continuing, the Issuer may, in addition to any other remedy
now or hereafter existing at law, in equity or by statute, take either or both
of the following remedial steps:
(a) By written notice to the Company, the Issuer may declare
all amounts payable pursuant to the Note to be immediately due and
payable, whereupon the same shall become immediately due and payable;
(b) The Issuer may take whatever action at law or in equity
may appear necessary or desirable to collect the amounts referred to in
(a) above then due and thereafter to become due, or to enforce
performance and observance of any obligation, agreement or covenant of
the Company under this Agreement.
Any amounts collected pursuant to action taken under this Section 5.2 shall be
deposited with the Trustee and applied in accordance with the provisions of the
Indenture or, if the Bonds have been fully paid (or provision for payment
thereof has been made in accordance with the provisions of the Indenture) and
the fees and expenses of the Trustee and the paying agents and all other amounts
required to be paid under the Indenture shall have been paid, to the Company.
SECTION 5.3. Agreement to Pay Attorneys' Fees and Expenses. In the
event the Company should breach any of the provisions of the Note or this
Agreement and the Issuer or the Trustee should employ attorneys or incur other
expenses for the collection of amounts payable hereunder or the enforcement of
performance or observance of any obligation or agreement on the part of the
Company herein contained, the Company agrees that it will on demand therefor pay
to the Issuer or the Trustee, as the case may be, the reasonable fees of such
attorneys and such other reasonable expenses so incurred by the Issuer or the
Trustee.
SECTION 5.4. No Additional Waiver Implied by One Waiver. In the event
any agreement contained in the Note or in this Agreement should be breached by
either party and thereafter waived by the other party, such waiver shall be
limited to the particular breach so waived and shall not be deemed to waive any
other breach hereunder.
ARTICLE VI
MISCELLANEOUS
SECTION 6.1. Term of This Agreement. This Agreement shall remain in
full force and effect from the date hereof until such time as all of the
outstanding Bonds shall have been fully paid or provision made therefor in
accordance with the provisions of the Indenture, whichever shall first occur,
and the fees and expenses of the Trustee, the Issuer and any paying agents and
tender agents and all other amounts payable by the Company under this Agreement
and the Note shall have been paid.
SECTION 6.2. Notices. All notices, certificates or other communications
hereunder shall be sufficiently given and shall be deemed given when delivered
or mailed by registered or certified mail, postage prepaid, addressed as
follows: if to the Issuer, at 1306 Walter Sillers Building, 550 High Street,
Jackson, Mississippi 39201, Attention: Executive Director; if to the Company, at
2992 West Beach Boulevard, Gulfport, Mississippi 39501, Attention: Treasurer,
with copies to Southern Company Services, Inc., 270 Peachtree Street, N.W.,
Atlanta, Georgia 30303, Attention: Corporate Finance Department; and if to the
Trustee, at 2510 14th Street, 1 Hancock Plaza, Gulfport, Mississippi 39501,
Attention: Trust Department. A duplicate copy of each notice, certificate or
other communication given hereunder by either the Issuer or the Company to the
other shall also be given to the Trustee. The Issuer, the Company and the
Trustee may, by notice given hereunder, designate any further or different
addresses to which subsequent notices, certificates or other communications
shall be sent.
SECTION 6.3. Binding Effect. This Agreement shall inure to the benefit
of and shall be binding upon the Issuer, the Company and their respective
successors and assigns, subject, however, to the limitations contained in
Section 4.4 hereof, and shall inure to the benefit of the Trustee to the extent
stated herein.
SECTION 6.4. Severability. In the event any provision of this Agreement
shall be held invalid or unenforceable by any court of competent jurisdiction,
such holding shall not invalidate or render unenforceable any other provision
hereof.
SECTION 6.5. Amendments. This Agreement may not be effectively
terminated except in accordance with the provisions hereof and may not be
effectively amended except by a written agreement in accordance with Article XI
of the Indenture and signed by the parties hereto.
SECTION 6.6. Execution in Counterparts. This Agreement may be
executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.
SECTION 6.7. Applicable Law. This Agreement and the Note shall be
governed by and construed in accordance with the laws of the State of
Mississippi.
SECTION 6.8. Captions. The captions or headings in this Agreement
are for convenience only and in no way define, limit ordescribe the scope or
intent of any provisions or sections of this Agreement.
SECTION 6.9. Other Financing. Notwithstanding anything in this
Agreement to the contrary, the Issuer and the Company may hereafter enter into
agreements to provide for the financing or refinancing of costs of the Projects
or any portion thereof.
SECTION 6.10. Amounts Remaining in the Bond Fund. Any amounts remaining
in the Bond Fund upon termination of this Agreement shall, to the extent
provided in Section 4.14 of the Indenture, belong to and be paid to the Company
by the Trustee.
<PAGE>
IN WITNESS WHEREOF, the Issuer and the Company have caused this
Agreement to be executed in their respective corporate names and their
respective corporate seals to be hereunto affixed and attested by their duly
authorized officers, all as of the date first above written.
MISSISSIPPI BUSINESS FINANCE CORPORATION
[SEAL] By: ___________________________________
Executive Director
ATTEST:
_______________________________
Secretary
MISSISSIPPI POWER COMPANY
[SEAL] By: __________________________________
Vice President, Secretary, Treasurer
and Chief Financial Officer
ATTEST:
_______________________________
<PAGE>
STATE OF _____________ )
) ss:
COUNTY OF ___________ )
Personally appeared before me, the undersigned authority in and for the
said county and state, on this ______ day of December, 1999, within my
jurisdiction, the within named William T. Barry and James Vernon Smith, Sr., who
acknowledged that they are the Executive Director and Secretary, respectively,
of the Mississippi Business Finance Corporation, and that in said representative
capacities they executed the above and foregoing instrument, after first having
been duly authorized so to do.
[SEAL] _______________________________
Notary Public
My Commission Expires:
_____________________
<PAGE>
STATE OF ___________________ )
) ss
COUNTY OF ___________________ )
Personally appeared before me, the undersigned authority in and for the
said county and state, on this ______ day of December, 1999, within my
jurisdiction, the within named Michael W. Southern and Vicki L. Pierce who
acknowledged that they are the Vice President and Assistant Secretary,
respectively, of Mississippi Power Company, a Mississippi corporation, and that
for and on behalf of the said corporation and as its act and deed they executed
the above and foregoing instrument, after first having been duly authorized by
said corporation so to do.
[SEAL] ____________________________
Notary Public
My Commission Expires:
______________________
<PAGE>
EXHIBIT A
MISSISSIPPI POWER COMPANY
PROMISSORY NOTE
MISSISSIPPI POWER COMPANY ("Mississippi"), a corporation organized and
existing under the laws of the State of Mississippi, acknowledges itself
indebted and for value received hereby promises to pay to the order of the
Mississippi Business Finance Corporation (the "Issuer"), and its successors and
assigns, the principal sum of NINE MILLION FOUR HUNDRED THOUSAND DOLLARS
($9,400,000) together with interest on the unpaid principal balance thereof from
the date hereof until Mississippi's obligations with respect to the payment of
such sum shall be discharged at the rate or rates borne by the Bonds referred to
below. As additional interest hereon there shall be payable, and Mississippi
promises to pay when due, amounts which shall equal the premium, if any, due on
such Bonds in connection with the redemption thereof. Mississippi further
promises to pay the purchase price of such Bonds as hereinbelow provided.
This Note is issued to evidence the Loan (as defined in the Agreement
hereinafter referred to) of the Issuer to Mississippi and the obligation of
Mississippi to repay the same and shall be governed by and be payable in
accordance with the terms and conditions of a loan agreement (the "Agreement")
between the Issuer and Mississippi dated as of December 1, 1999, pursuant to
which the Issuer has loaned to Mississippi the proceeds of the sale of the
Issuer's $9,400,000 of Revenue Bonds, Series 1999 (Mississippi Power Company
Project) (the "Bonds"). This Note (together with the Agreement) has been
assigned to Hancock Bank (the "Trustee"), acting pursuant to a trust indenture
dated as of December 1, 1999 (the "Indenture") between the Issuer and the
Trustee, and may not be assigned by the Trustee except to a successor Trustee
pursuant to the terms of the Indenture. Such assignment is made as security for
the Bonds. The Bonds are dated and bear interest in accordance with the
provisions of the Indenture, and mature on December 1, 2027. The Bonds are
subject to redemption prior to maturity as provided therein.
Subject to the provisions of the Agreement, payments hereon are to be
made by paying to the Trustee, as assignee of the Issuer, in funds which will be
immediately available on the day payment is due, amounts which, and at or before
times which, shall correspond to the payments with respect to the principal of
and premium, if any, and interest on the Bonds whenever and in whatever manner
the same shall become due, whether at stated maturity, upon redemption or
declaration or otherwise, and the purchase price of Bonds required to be
purchased under the Indenture. If (i) on the date any payments on the Bonds are
due there are any available moneys on deposit with the Trustee which are not
being held for the payment of Bonds due and payable but which have not been
presented for payment, or (ii) on any date on which Bonds are required to be
purchased pursuant to the Bonds or Article III of the Indenture, there are
available moneys on deposit with the Trustee held for the payment of the
purchase price which are not being held for the payment of Bonds which have not
been presented for payment, then, in each case, such moneys shall be credited
against the payment then due hereunder, first in respect of interest and then,
to the extent of remaining moneys, in respect of principal. Upon the occurrence
of an Event of Default, as defined in the Agreement, the principal of and
interest on this Note may be declared immediately due and payable as provided in
the Agreement.
Neither the officers of Mississippi nor any persons executing this Note
shall be liable personally or shall be subject to any personal liability or
accountability by reason of the issuance hereof.
<PAGE>
IN WITNESS WHEREOF, Mississippi Power Company has caused this Note to
be executed in its corporate name and on its behalf by its President, its
Treasurer or a Vice President by his manual signature, and its corporate seal to
be impressed hereon and attested by the manual signature of its Secretary or an
Assistant Secretary, all as of the date first above written.
MISSISSIPPI POWER COMPANY
[SEAL]
By: ____________________________________
Vice President, Secretary, Treasurer
and Chief Financial Officer
Attest: ___________________________________
Assistant Secretary
<PAGE>
ASSIGNMENT
For value received, pay this promissory note to the order of Hancock
Bank, Gulfport, Mississippi, as Trustee under the Trust Indenture, dated as of
December 1, 1999, between the Mississippi Business Finance Corporation and
Hancock Bank, Gulfport, Mississippi, as Trustee, securing the payment of
Mississippi Business Finance Corporation Revenue Bonds, Series 1999 (Mississippi
Power Company Project), in the original principal amount of $9,400,000 without
recourse.
MISSISSIPPI BUSINESS FINANCE CORPORATION
By: ____________________________________
Executive Director
<PAGE>
EXHIBIT B
DESCRIPTION OF THE PROJECTS
The following solid waste disposal facilities acquired, constructed,
installed or equipped by Mississippi Power Company:
A. in connection with the Victor J. Daniel Jr. Electric Generating Plant
located in Jackson County, Mississippi, the major components include the
modification of fly ash hoppers, the addition of fly ash hopper vibrators and
associated components, the installation of electrical and mechanical
auxiliaries, the construction of associated structures and the installation of
related controls and instrumentation.
B. in connection with the Jack Watson Electric Generating Plant located in
Harrison County, Mississippi, the major components include the construction of a
slurry wall constructed around the 6,700 linear feet of the 10,000 linear foot
of dike surrounding the ash disposal pond. In addition, this project includes
discharge structure modifications to control the amount of effluent exiting the
ash disposal pond.
C. all of such facilities are for the collection, handling and disposal of
solid waste.
Exhibit B
MISSISSIPPI BUSINESS FINANCE CORPORATION
to
HANCOCK BANK,
as Trustee
TRUST INDENTURE
Dated as of December 1, 1999
Relating to
$9,400,000
Revenue Bonds,
Series 1999
(Mississippi Power Company Project)
<PAGE>
TABLE OF CONTENTS
ARTICLE I: DEFINITIONS AND RULES OF CONSTRUCTION......................3
Section 1.01. Definitions....................,...............3
Section 1.02. Rules of Construction..........................7
ARTICLE II: THE BONDS................................................7
Section 2.01. Issuance of Bonds; Form; Dating................7
Section 2.02. Interest on the Bonds..........................7
Section 2.03. Execution and Authentication..................14
Section 2.04. Bond Register.................................14
Section 2.05. Registration and Exchange of Bonds;
Persons Treated as Owners.....................14
Section 2.06. Mutilated, Lost, Stolen, Destroyed
or Undelivered Bonds..........................15
Section 2.07. Cancellation of Bonds.........................16
Section 2.08. Temporary Bonds...............................16
ARTICLE III: REDEMPTION, PURCHASES IN LIEU OF REDEMPTION AND
REMARKETING.............................................16
Section 3.01. Notices to Trustee............................16
Section 3.02. Redemption Dates..............................16
Section 3.03. Selection of Bonds to Be Redeemed.............16
Section 3.04. Redemption Notices............................16
Section 3.05. Payment of Bonds Called for Redemption........18
Section 3.06. Bonds Redeemed in Part........................18
Section 3.07. Purchase of Bonds in Lieu of Redemption.......18
Section 3.08. Disposition of Purchased Bonds................19
ARTICLE IV: APPLICATION OF PROCEEDS AND PAYMENT OF BONDS.............21
Section 4.01. Application of Proceeds.......................21
Section 4.02. Payment of Bonds..............................21
Section 4.03. Investments of Moneys.........................21
Section 4.04. Creation of Bond Fund.........................22
Section 4.05. Payments into the Bond Fund...................22
Section 4.06. Use of Moneys in the Bond Fund................22
Section 4.07. Custody of the Bond Fund......................23
Section 4.08. Creation of Construction Fund.................23
Section 4.09. Payments into the Construction Fund...........23
Section 4.10. Disbursements from the Construction Fund......23
Section 4.11. Completion of the Projects....................24
Section 4.12. Non-presentment of Bonds......................25
Section 4.13. Moneys to Be Held in Trust....................25
Section 4.14. Repayment to the Company from the Bond Fund...25
Section 4.15. Moneys Held in Trust; Unclaimed Funds.........25
Section 4.16. Rebate Fund...................................26
ARTICLE V: BOOK-ENTRY SYSTEM........................................26
Section 5.01. Book-Entry System.............................26
ARTICLE VI: COVENANTS...............................................28
Section 6.01. Payment of Bonds..............................28
Section 6.02. Performance of Covenants; Issuer..............28
Section 6.03. Recording and Filing; Further Assurances......28
Section 6.04. Tax Covenants.................................28
Section 6.05. Rights Under Agreement........................29
Section 6.06. Designation of Additional Paying Agents.......29
Section 6.07. Existence of Issuer...........................30
ARTICLE VII: DISCHARGE OF INDENTURE.................................30
Section 7.01. Bonds Deemed Paid; Discharge of Indenture.....30
Section 7.02. Application of Trust Money....................31
Section 7.03. Repayment to Company..........................31
ARTICLE VIII: DEFAULTS AND REMEDIES.................................31
Section 8.01. Events of Default.............................31
Section 8.02. Acceleration..................................32
Section 8.03. Other Remedies................................32
Section 8.04. Legal Proceeding by Trustee...................32
Section 8.05. Appointment of Receivers......................33
Section 8.06. Waiver of Past Defaults.......................33
Section 8.07. Control by Majority...........................33
Section 8.08. Limitation on Suits...........................34
Section 8.09. Rights of Holders to Receive Payment..........34
Section 8.10. Collection Suit by Trustee....................34
Section 8.11. Trustee May File Proofs of Claim..............34
Section 8.12. Priorities....................................35
Section 8.13. Undertaking for Costs.........................35
ARTICLE IX: TRUSTEE AND REMARKETING AGENT............................35
Section 9.01. Acceptance of the Trusts......................35
Section 9.02. Fees, Charges and Expenses of Trustee... .....38
Section 9.03. Notice to Bondholders if an Event of Default
Occurs........................................38
Section 9.04. Intervention by Trustee.......................38
Section 9.05. Successor Trustee.............................38
Section 9.06. Resignation by Trustee........................39
Section 9.07. Removal of Trustee............................39
Section 9.08. Appointment of Successor Trustee..............39
Section 9.09. Concerning Any Successor Trustee .............39
Section 9.10. Successor Trustee as Bond Registrar, Custodian
of the Bond Fund, the Rebate Fund and the
Construction Fund and Paying Agent............40
Section 9.11. Trustee and Issuer Required to Accept
Directions and Actions of Company.............40
Section 9.12. No Transfer of Note Held by the Trustee;
Exception.....................................40
Section 9.13. Filing of Certain Continuation Statements.....40
Section 9.14. Duties of Remarketing Agent...................41
Section 9.15. Eligibility of Remarketing Agent..............41
Section 9.16. Replacement of Remarketing Agent..............41
Section 9.17. Compensation of Remarketing Agent.............41
Section 9.18. Successor Remarketing Agent...................41
ARTICLE X: AMENDMENTS OF AND SUPPLEMENTS TO INDENTURE................42
Section 10.01. Without Consent of Bondholders...............42
Section 10.02. With Consent of Bondholders..................43
Section 10.03. Effect of Consents...........................43
Section 10.04. Notation on or Exchange of Bonds.............43
Section 10.05. Signing by Trustee of Amendments
and Supplements..............................43
Section 10.06. Company Consent Required.....................44
Section 10.07. Notice to Bondholders........................44
ARTICLE XI AMENDMENTS OF AND SUPPLEMENTS TO THE AGREEMENT............44
Section 11.01. Without Consent of Bondholders...............44
Section 11.02. With Consent of Bondholders..................44
Section 11.03. Consents by Trustee to Amendments
or Supplements...............................44
ARTICLE XII MISCELLANEOUS...........................................45
Section 12.01. Notices......................................45
Section 12.02. Bondholders' Consents........................45
Section 12.03. Appointment of Separate Paying Agent and/or
Tender Agent.................................46
Section 12.04. Limitation of Rights.........................46
Section 12.05. Severability.................................46
Section 12.06. Payments Due on Non-Business Days............46
Section 12.07. Governing Law................................46
Section 12.08. Captions.....................................47
Section 12.09. No Liability of Officers.....................47
Section 12.10. Counterparts.................................47
<PAGE>
TRUST INDENTURE
THIS INDENTURE made and entered into as of December 1, 1999 (the
"Indenture"), by and between the MISSISSIPPI BUSINESS FINANCE CORPORATION, a
public corporation duly created and validly existing pursuant to the
Constitution and laws of the State of Mississippi (the "Issuer"), and HANCOCK
BANK, Gulfport, Mississippi, a bank duly organized, existing and authorized to
accept and execute trusts of the character herein set out under and by virtue of
the laws of the State of Mississippi, as trustee (the "Trustee").
RECITALS
A. The Issuer is authorized by the provisions of Sections 57-10-201 et
seq., Mississippi Code of 1972, as amended and supplemented (the "Act"), among
other things, to provide financial assistance to businesses in the State of
Mississippi by providing loans and to issue bonds for the purpose of financing
the projects of "eligible businesses" under the Act.
B. In furtherance of its statutory purposes, the Issuer has entered into a
Loan Agreement dated as of December 1, 1999 (the "Agreement") with Mississippi
Power Company (the "Company") providing for the undertaking by the Issuer to
loan amounts to the Company in order to finance the acquisition, construction,
installation and equipping of certain solid waste disposal facilities
(collectively, the "Projects" and separately, a "Project"), or portions thereof,
at the Jack Watson Electric Generating Plant ("Plant Watson"), in Harrison
County, Mississippi, and at the Victor J. Daniel, Jr. Electric Generating Plant
("Plant Daniel") in Jackson County, Mississippi, as described in Exhibit B to
the Loan Agreement dated as of December 1, 1999 between the Issuer and the
Company (the "Agreement"). Plant Watson and Plant Daniel are herein sometimes
referred to individually as a "Plant" and collectively as the "Plants."
C. The Agreement provides that, for the purposes therein set forth, the
Issuer will issue and sell its Revenue Bonds, Series 1999 (Mississippi Power
Company Project), in the aggregate principal amount of $9,400,000 (the "Bonds");
that the Issuer will loan the proceeds of the Bonds to the Company; and that to
evidence the Loan (as hereinafter defined) the Company will execute and deliver,
concurrently with the issuance of the Bonds, a non-negotiable promissory note in
a like principal amount bearing interest at the rate or rates borne by the
Bonds.
D. The execution and delivery of this Indenture and the Agreement and the
issuance and sale of the Bonds have been in all respects duly and validly
authorized by resolution duly adopted by the Issuer.
E. All acts, conditions and things required by the Constitution and laws of
the State of Mississippi to happen, exist and be performed precedent to and in
connection with the execution and delivery of this Indenture and the Agreement
have happened, exist and have been performed as so required, in order to make
this Indenture a valid and binding trust indenture for the security of the Bonds
in accordance with its terms and in order to make the Agreement a valid and
binding agreement in accordance with its terms.
F. The Company has agreed to make payments on the aforementioned promissory
note to the Issuer in amounts sufficient to pay the principal, purchase price,
premium, if any, and interest on the Bonds, all as hereinafter defined.
G. The Trustee has accepted the trusts created by this Indenture and in
evidence thereof has joined in the execution hereof.
Accordingly, the Issuer and the Trustee agree as follows for the benefit of
each other and for the benefit of the holders of the Bonds issued pursuant to
this Indenture.
GRANTING CLAUSE
NOW, THEREFORE, THIS INDENTURE WITNESSETH, that in consideration of the
premises, of the acceptance by the Trustee of the trusts hereby created, and the
purchase and acceptance of the Bonds by the holders thereof, and also for and in
consideration of the sum of One Dollar ($1.00) to the Issuer in hand paid by the
Trustee at or before the execution and delivery of this Indenture, the receipt
of which is hereby acknowledged, and for the purpose of fixing and declaring the
terms and conditions upon which the Bonds are to be issued, authenticated,
delivered, secured and accepted by all persons who shall from time to time be or
become holders thereof, and in order to secure the payment of all Bonds at any
time issued and outstanding hereunder and the interest and the premiums, if any,
payable upon redemption or purchase in lieu of redemption thereon according to
their tenor, purport and effect, and in order to secure the performance and
observance of all the covenants, agreements and conditions therein or herein
contained; the Issuer has executed and delivered this Indenture, and will cause
the Company to deliver to the Trustee the Company's promissory note dated the
date of the initial issuance of the Bonds; the Issuer does hereby bargain, sell,
convey, assign and pledge to the Trustee, and grant to the Trustee a security
interest in, all rights, title and interests of the Issuer in, to and under such
promissory note and all payments, if any, made and to be made thereunder as
security for the payment of all outstanding Bonds and the interest and the
premium, if any, thereon and does hereby bargain, sell, convey, assign and
pledge to the Trustee, and grant to the Trustee a security interest in, all
other rights, title and interests of the Issuer in, to and under the Agreement
and all moneys receivable thereunder (except for Unassigned Rights, as defined
herein) as security for the satisfaction of any other obligation assumed by it
in connection with all outstanding Bonds at any time issued hereunder;
TO HAVE AND TO HOLD the same unto the Trustee and its successors in trust
forever;
IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth, for the
equal and proportionate benefit and security of all and singular present and
future holders of the Bonds issued under this Indenture, without preference,
priority or distinction as to lien or otherwise, except as otherwise hereinafter
provided, of any one Bond over any other Bond, by reason of priority in the
issue, sale or negotiation thereof or otherwise;
PROVIDED, HOWEVER, that if the Issuer, its successors or assigns shall pay
or cause to be paid the principal of, premium, if any, and interest on the Bonds
due or to become due thereon, at the times and in the manner mentioned in the
Bonds, and shall perform all the covenants and conditions required of it by this
Indenture, and shall pay or cause to be paid to the Trustee and any additional
paying agents all sums of money due or to become due to them in accordance with
the terms and provisions hereof, then upon such final payments this Indenture
and the rights hereby granted shall terminate and the Trustee shall release this
Indenture and shall execute such documents to evidence such termination and
release as may be reasonably required by the Issuer or the Company; otherwise
this Indenture to be and remain in full force and effect.
THIS INDENTURE FURTHER WITNESSETH, and it is expressly declared, that all
Bonds from time to time issued and secured hereunder are to be issued,
authenticated and delivered, and all said property, rights and interests,
including, without limitation, the amounts hereby assigned and pledged, are to
be dealt with and disposed of subject to the terms of this Indenture, and the
Issuer agrees with the Trustee and with the respective owners, from time to
time, of said Bonds, or part thereof, as follows:
ARTICLE I
DEFINITIONS AND RULES OF CONSTRUCTION
Section 1.01. Definitions. For all purposes of this Indenture, unless the
context requires otherwise, the following terms shall have the following
meanings:
"Act" means the provisions of Sections 57-10-201 et seq., Mississippi Code
of 1972, as amended and supplemented.
"Agreement" means the Loan Agreement dated as of December 1, 1999, between
the Issuer and the Company, as amended and supplemented from time to time.
"Arbitrage Rebate Agreement" means that certain agreement dated as of
December 1, 1999, among the Issuer, the Company and the Trustee, as amended and
supplemented from time to time.
"Beneficial Owner" means the purchaser of a beneficial interest in the
Bonds when the Bonds are held by the Securities Depository in the Book-Entry
System, and otherwise means a Bondholder.
"BMA Index" means, as of any date, the rate calculated according to the
Bond Market Association Municipal Swap Index as of the most recent date for
which such index was published or such other weekly, high-grade index composed
of weekly, tax-exempt variable rate demand notes produced by Municipal Market
Data, Inc. or any successor thereto, or as otherwise designated by the Bond
Market Association.
"Bond Fund" means the trust fund created by Section 4.04 of this Indenture.
"Bondholder" or "holder" means the registered owner of any Bond.
"Bonds" means the Revenue Bonds, Series 1999 (Mississippi Power Company
Project), issued by the Issuer hereunder in the aggregate principal amount of
$9,400,000.
"Book-Entry System" means the system maintained by the Securities
Depository described in Section 5.01.
"Business Day" means any day other than (i) a Saturday or Sunday, (ii) a
day on which commercial banks in New York, New York, Gulfport, Mississippi, or
the city in which the principal corporate trust office of the Trustee is
located, are authorized by law to close or (iii) a day on which the New York
Stock Exchange is closed.
"Code" means the Internal Revenue Code of 1986, as amended, and the
Treasury Regulations promulgated thereunder.
"Commercial Paper Mode" means each period of time, comprised of Commercial
Paper Periods, during which Commercial Paper Rates are in effect.
"Commercial Paper Period" means, with respect to any Bond, each period set
under Section 2.02(a)(3).
"Commercial Paper Rate" means the interest rate on each Bond set under
Section 2.02(a)(3).
"Company" means Mississippi Power Company, a Mississippi corporation, and
its successors and assigns, and any surviving, resulting or transferee entity as
provided in Section 4.4 of the Agreement.
"Construction Fund" means the trust fund created by Section 4.08.
"Cost of Construction" shall have the meaning assigned to it in the
Agreement.
"Costs of Issuance" shall have the meaning assigned to it in the Agreement.
"Daily Rate" means an interest rate on the Bonds set under
Section 2.02(a)(l).
"Event of Default" is defined in Section 8.01.
"Favorable Opinion of Tax Counsel" means an Opinion of Tax Counsel
addressed to the Issuer and to the Trustee to the effect that the action
proposed to be taken is permitted by the laws of the State and by this Indenture
and will not adversely affect any exclusion from gross income for federal income
tax purposes of interest on the Bonds.
"Government Obligations" means (i) noncallable direct obligations of the
United States for which its full faith and credit are pledged, (ii) noncallable
obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States, the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation of the United
States, or (iii) securities or receipts evidencing ownership interests in
obligations or specified portions (such as principal or interest) of obligations
described in (i) or (ii).
"Indenture" means this Trust Indenture, as it may be amended or
supplemented from time to time in accordance with its terms.
"Interest Payment Date" is defined in the form of the Bonds appearing in
Exhibit A hereto.
"Interest Period" is defined in the form of the Bonds appearing in Exhibit
A hereto.
"Long-Term Interest Rate" means an interest rate on the Bonds set under
Section 2.02(a)(4).
"Long-Term Interest Rate Period" is defined in Section 2.02(a)(4).
"Maturity Date" means the stated maturity for the Bonds as set forth in
Section 2.01.
"Note" means the promissory note executed and delivered by the Company in
the form attached to the Agreement concurrently with the issuance of the Bonds.
"Opinion of Counsel" means a written opinion of counsel selected by the
Company who is acceptable to the Issuer and the Trustee. Such counsel may be an
employee of or counsel to the Issuer, the Trustee or the Company.
"Opinion of Tax Counsel" means an Opinion of Counsel by counsel of
nationally recognized standing in matters relating to the exclusion of interest
from gross income on obligations issued by or on behalf of states and their
political subdivisions.
"outstanding" when used with reference to Bonds, or "Bonds outstanding"
means all Bonds which have been authenticated and delivered by the Trustee under
this Indenture, except the following:
a. Bonds cancelled or purchased by or delivered to the Trustee for
cancellation.
b. Bonds that have become due (at maturity or on redemption,
acceleration or otherwise) and for the payment, including interest accrued
to the due date, of which sufficient moneys are held by the Trustee.
c. Bonds deemed paid by Section 7.01.
d. Bonds in lieu of which others have been authenticated under Section
2.05 (relating to registration and exchange of Bonds) or Section 2.06
(relating to mutilated, lost, stolen, destroyed or undelivered Bonds).
Bonds purchased pursuant to tenders or in lieu of redemption and not
delivered to the Trustee for payment are not outstanding, but there will be
outstanding Bonds authenticated and delivered in lieu of such undelivered Bonds
as provided in the second paragraph of Section 2.06.
"Participant" means one of the entities which deposit securities, directly
or indirectly, in the Book-Entry System.
"Person" means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, estate, unincorporated organization or
government or any agency or political subdivision thereof.
"Plant Daniel" means the Victor J. Daniel, Jr. steam electric generating
plant located in Jackson County, Mississippi.
"Plant Watson" means the Jack Watson steam electric generating plant
located in Harrison County, Mississippi.
"Principal," when used with reference to any Bonds, includes any premium
payable on those Bonds.
"Projects" shall have the meaning assigned to it in the Agreement.
"Rebate Requirement" shall have the meaning set forth in the Arbitrage
Rebate Agreement.
"Record Date" is defined in the form of the Bonds appearing as Exhibit A
hereto.
"Remarketing Agent" means Goldman, Sachs & Co. and its successors under
this Indenture.
"Responsible Officer" means any officer or trust officer of the Trustee
assigned by the Trustee to administer its corporate trust matters.
"Securities Depository" means The Depository Trust Company, New York, New
York or its nominee, and its successors and assigns, or any successor appointed
under Section 5.01.
"State" means the State of Mississippi.
"Trustee" means the entity identified as such in the heading of this
Indenture and its successors under this Indenture, acting in its trust capacity.
"Unassigned Rights" means the rights of the Issuer under the second
paragraph of Section 3.2 and under Section 4.2 and Section 5.3 of the Agreement.
"Weekly Rate" means an interest rate on the Bonds set under
Section 2.02(a)(2).
Section 1.02. Rules of Construction. Unless the context otherwise requires,
a. an accounting term not otherwise defined has the meaning
assigned to it in accordance with generally accepted accounting principles,
b. references to Articles and Sections are to the Articles and
Sections of this Indenture, and
c. the singular form of any word, including the terms defined in
Section 1.01, includes the plural, and vice versa, and a word of any gender
includes all genders.
ARTICLE II
THE BONDS
Section 2.01. Issuance of Bonds; Form; Dating. The Bonds shall be
designated "Mississippi Business Finance Corporation Revenue Bonds, Series 1999
(Mississippi Power Company Project)." The total principal amount of Bonds that
may be outstanding shall not exceed $9,400,000. The Bonds shall be substantially
in the form of Exhibit A, which is part of this Indenture, in the denominations
provided for in the Bonds. The Bonds may have notations, legends or endorsements
required by law or usage.
All Bonds will be dated the date of original issuance and delivery and
shall mature, subject to prior redemption, on December 1, 2027. Bonds will be
numbered as determined by the Trustee.
Upon the execution and delivery of this Indenture, the Issuer will execute
and deliver to the Trustee and the Trustee will authenticate the Bonds and
deliver them to the purchaser or purchasers as directed by the Issuer.
Section 2.02. Interest on the Bonds. Interest on the Bonds will be payable
as provided in the Bonds and in this Section 2.02. Interest on the Bonds will
initially be payable at the Commercial Paper Rate. The interest rate
determination method may be changed by the Company as described in paragraph (b)
below. The methods of determining the various interest rates are as provided in
the following paragraph (a).
(a) Interest Rate Determination Methods. While there exists an Event of
Default under the Indenture, the interest rate on the Bonds will be the rate on
the Bonds on the day before the Event of Default occurred, except that if
interest on any Bond was then payable at a Commercial Paper Rate, the interest
rate for all Bonds then bearing interest at a Commercial Paper Rate will be the
highest Commercial Paper Rate then in effect for any Bond.
(1) Daily Rate. When interest on the Bonds is payable at a Daily
Rate, the Remarketing Agent will set a Daily Rate on or before 11:00
a.m., New York City time, on each Business Day for that Business Day.
Each Daily Rate will be the minimum rate necessary (as determined by
the Remarketing Agent based on the examination of tax-exempt
obligations comparable to the Bonds known by the Remarketing Agent to
have been priced or traded under then-prevailing market conditions)
for the Remarketing Agent to sell the Bonds on the day the rate is set
at their principal amount (without regard to accrued interest). The
Daily Rate for any non-Business Day will be the rate for the last day
for which a rate was set.
(2) Weekly Rate. When interest on the Bonds is payable at a Weekly Rate,
the Remarketing Agent will set a Weekly Rate on or before 5:00 p.m., New York
City time, on the last Business Day before the commencement of a period during
which the Bonds bear interest at a Weekly Rate and on each Tuesday thereafter so
long as interest on the Bonds is to be payable at a Weekly Rate or, if any
Tuesday is not a Business Day, on the next preceding Business Day. Each Weekly
Rate will be the minimum rate necessary (as determined by the Remarketing Agent
based on the examination of tax-exempt obligations comparable to the Bonds known
by the Remarketing Agent to have been priced or traded under then prevailing
market conditions) for the Remarketing Agent to sell the Bonds on the date the
rate is set at their principal amount (without regard to accrued interest).
Thereafter, each Weekly Rate shall apply to (i) the period beginning on the
Wednesday after the Weekly Rate is set and ending on the following Tuesday or,
if earlier, ending on the day before the effective date of a new method of
determining the interest rate on the Bonds or (ii) the period beginning on the
effective date of the change to a Weekly Rate and ending on the next Tuesday.
(3) Commercial Paper Rate. During a Commercial Paper Mode, each Bond will
bear interest during the Commercial Paper Period for such Bond at the Commercial
Paper Rate for such Bond. Different Commercial Paper Periods may apply to
different Bonds at any time and from time to time. Except as otherwise described
in this subparagraph (3), the Commercial Paper Period and Commercial Paper Rate
for each Bond will be determined by the Remarketing Agent no later than 12:15
p.m., New York City time, on the first day of each Commercial Paper Period.
(i) Determination of Commercial Paper Periods. Subject to Section
2.02(b)(2)(vii), each Commercial Paper Period will be a period of at least 1 day
and not more than 365 days, determined by the Remarketing Agent to be the period
which, together with all other Commercial Paper Periods for all Bonds then
outstanding, will, in the judgment of the Remarketing Agent, result in the
lowest overall interest expense on the Bonds over the next 365 days. Each
Commercial Paper Period will end on either the day before a Business Day or on
the day before the Maturity Date for such Bond. However, any Bond purchased on
behalf of the Company and remaining unsold by the Remarketing Agent as of the
close of business on the first day of the Commercial Paper Period for that Bond
will have a Commercial Paper Period of 1 day or, if that Commercial Paper Period
would not end on a day before a Business Day, a Commercial Paper Period of the
shortest possible duration greater than 1 day ending on a day before a Business
Day.
In determining the number of days in each Commercial Paper Period, the
Remarketing Agent shall take into account the following factors: (I) existing
short-term tax-exempt market rates and indices of such short-term rates, (II)
the existing market supply and demand for short-term tax-exempt securities,
(III) existing yield curves for short-term and long-term tax-exempt securities
for obligations of credit quality comparable to the Bonds, (IV) general economic
conditions, (V) industry economic and financial conditions that may affect or be
relevant to the Bonds, (VI) the number of days in other Commercial Paper Periods
applicable to the Bonds and (VII) such other facts, circumstances and conditions
as the Remarketing Agent, in its sole discretion, shall determine to be
relevant.
(ii) Determination of Commercial Paper Rates. The Commercial Paper Rate for
each Commercial Paper Period for each Bond shall be the minimum rate necessary
(as determined by the Remarketing Agent based on the examination of tax-exempt
obligations comparable to the Bonds known by the Remarketing Agent to have been
priced or traded under then-prevailing market conditions) for the Remarketing
Agent to sell such Bond on the date and at the time of such determination at its
principal amount (without regard to accrued interest).
(4) Long-Term Interest Rate. The Remarketing Agent will set a Long-Term
Interest Rate on a date no more than 15 days before the beginning of any period
(a "Long-Term Interest Rate Period") in which interest on any of the Bonds will
be payable at a Long-Term Interest Rate. The last day of each such Long-Term
Interest Rate Period shall be determined by the Company in accordance with
Section 2.02(b)(1). Each Long-Term Interest Rate will be the minimum rate
necessary (as determined by the Remarketing Agent based on the examination of
tax-exempt obligations comparable to the Bonds known by the Remarketing Agent to
have been priced or traded under then-prevailing market conditions) for the
Remarketing Agent to sell the Bonds on the effective date of the Long-Term
Interest Rate at their principal amount (without regard to accrued interest).
(5) Failure of Remarketing Agent to Announce Interest Rates on the Bonds.
If the appropriate interest rate or Commercial Paper Period is not or cannot be
determined for whatever reason, the method of determining interest on the Bonds
shall be automatically converted to the Weekly Rate (without the necessity of
complying with the requirements of Section 2.02(b)) and the interest rate shall
be equal to the BMA Index, or such other index (or percentage of an index)
deemed appropriate for tax-exempt securities of the nature of the Bonds as the
Remarketing Agent may have previously selected, until such time as the method of
determining interest on the Bonds can be changed in accordance with Section
2.02(b); provided, that if the Bonds are then in a Long-Term Interest Rate
Period, the Bonds shall bear interest at a Weekly Rate, but only if a Favorable
Opinion of Tax Counsel with respect to the change to a Weekly Rate has been
delivered to the Trustee and the Issuer. If such Favorable Opinion of Tax
Counsel has not been delivered, the Bonds shall remain in a Long-Term Interest
Rate Period with an interest rate equal to the interest rate for the prior
Long-Term Interest Rate Period and with a duration equal to the prior Long-Term
Interest Rate Period (or, if earlier, a Long-Term Interest Rate Period ending on
the day before the Maturity Date for such Bond). The Trustee shall promptly
notify the Bondholders of any such automatic change as set forth in Section
2.02(c).
While Bonds are in a Commercial Paper Mode, during any transition period
caused by an automatic conversion of such Bonds to a Weekly Rate in accordance
with this Subsection (5), Bonds bearing interest at a Weekly Rate and Bonds
bearing interest at a Commercial Paper Rate, as applicable, shall be governed by
the provisions of this Indenture applicable to such methods of determining
interest on the Bonds.
(b) (1) Change in Interest Rate Determination Method. The Company may
change the method of determining the interest rate on the Bonds by notifying the
Issuer, the Trustee, the Remarketing Agent and, if a Book-Entry System is then
in effect for the Bonds, the Securities Depository. Such notice shall contain
(a) the effective date, (b) the proposed interest rate determination method, and
(c) if the change is to a Long-Term Interest Rate or Rates, the last day of the
first such Long-Term Interest Rate Period and, at the option of the Company, the
effective date and last day of any successive Long-Term Interest Rate Periods
(which last day for each Long-Term Interest Rate Period must be either the day
before the Maturity Date for such Bonds or a day which next precedes a Business
Day and is at least 365 days after the effective date). The Long-Term Interest
Rate Period shall be the same duration for all of the Bonds. The notice must be
accompanied by a Favorable Opinion of Tax Counsel, except as described below. If
the Company's notice complies with this paragraph, and if the Company shall
deliver a confirming Opinion of Tax Counsel on the effective date as specified
in the notice, the interest rate on the Bonds will be payable at the new rate on
the effective date specified in the notice until there is another change as
provided in this Section. Notwithstanding anything in this Indenture to the
contrary, the Company must deliver a Favorable Opinion of Tax Counsel whenever
there is a change from a period during which the interest rate on the Bonds is
set at intervals of 365 days or less to a period during which the interest rate
on the Bonds is set at intervals in excess of 365 days, or vice versa.
If the Company wishes to designate successive Long-Term Interest Rate
Periods without specifying the effective dates and last days as described in the
preceding paragraph for the second or any subsequent Long-Term Interest Rate
Periods, it may do so by following the same procedure as for a change in the
interest rate determination method as provided in the foregoing paragraph.
If, 30 days before the end of a Long-Term Interest Rate Period, the Company
has not provided for the next interest rate period, a new Long-Term Interest
Rate Period of the same duration (or as close to such duration as is possible so
that such new Long-Term Interest Rate Period ends on a day next preceding a
Business Day) will follow (or if shorter, a Long-Term Interest Rate Period
ending on the day before the Maturity Date for the Bonds).
When one Long-Term Interest Rate Period follows another, all provisions of
this Indenture applying to a change in the interest rate determination method
will apply, except:
(A) the redemption described under "Mandatory Redemption Upon a Change in
the Method of Determining the Interest Rate on the Bonds" in the Bonds;
(B) the Company will not be required to deliver a Favorable Opinion of Tax
Counsel if a new Long-Term Interest Rate Period begins as a result of the
Company failing to provide for the next interest rate period; and
(C) the Company will not be required to deliver a Favorable Opinion of Tax
Counsel if the Company has previously designated a series of successive
Long-Term Interest Rate Periods which, together with the current Long-Term
Interest Rate Period, are substantially equal in length, and if a Favorable
Opinion of Tax Counsel was delivered before the first such Long-Term Interest
Rate Period in that series which applies to each such successive Long-Term
Interest Rate Period.
(2) Limitations. Any change in the method of determining interest on the
Bonds pursuant to paragraph (1) above must comply with the following:
(i) the effective date of a change (or each effective date in the case of a
change from a Commercial Paper Mode) shall be a Business Day which is at least
15 days (30 days if a Long-Term Interest Rate is then in effect and the
effective date is before the day after the last day of a Long-Term Interest Rate
Period) after the twelfth Business Day (or such shorter period as is acceptable
to the Trustee) after receipt by the Trustee of the Company's notice of the
change;
(ii) if a Long-Term Interest Rate is then in effect, the effective date of
any change must be either the day after the last day of the then current
Long-Term Interest Rate Period or, except as described in clause (iii) below, a
day on which the Bonds would otherwise be subject to redemption or purchase in
lieu of redemption under the paragraph "Optional Redemption at a Premium During
Long-Term Interest Rate Period" in Section 8 of the Bonds if the change did not
occur;
(iii) if the Company has previously designated successive Long-Term
Interest Rate Periods, the effective date of each Long-Term Interest Rate Period
must be the day after the last day of the previous Long-Term Interest Rate
Period;
(iv) if a Commercial Paper Mode is then in effect, the effective date of
any change must be either the day after the last day of the Commercial Paper
Mode or, as to any Bond, the day after the last day of the Commercial Paper
Period then in effect (or to be in effect) with respect to that Bond;
(v) if any Bonds have been called for redemption and the redemption has not
yet occurred, the effective date of the change cannot be before such redemption
date;
(vi) if a Long-Term Interest Rate or a Daily Rate is then in effect, the
effective date of any change cannot occur during the period after a Record Date
and to, but not including, the related Interest Payment Date; and
(vii) if a Commercial Paper Mode is then in effect, the Remarketing Agent
shall determine Commercial Paper Periods of such duration that will, in the
judgment of the Remarketing Agent, best promote an orderly transition on the
effective date. After the receipt by the Trustee of the Company's notice of such
change, the day after the last day of each Commercial Paper Period shall be,
with respect to such Bond, the effective date of the change. The Remarketing
Agent shall promptly give written notice of each such last date and each such
effective date with respect to each Bond to the Issuer, the Company, and the
Trustee.
During any such transition period, Bonds bearing interest at a Commercial
Paper Rate shall be governed by the provisions of this Indenture applicable to a
Commercial Paper Mode and Bonds bearing interest at a Daily Rate, Weekly Rate or
Long-Term Interest Rate, as applicable, shall be governed by the provisions of
this Indenture applicable to such methods of determining interest on the Bonds.
(c) Notice to Bondholders of Change in Interest Rate Determination Method.
When a change in the interest rate determination method is to be made, or upon
commencement of a new Long-Term Interest Rate Period, the Trustee will, upon
notice from the Company pursuant to Section 2.02(b), notify the affected
Bondholders by first class mail at least 15 days before the effective date (or
each effective date in the case of an adjustment from a Commercial Paper Mode)
of the change, except that such notice shall be given at least 30 days prior to
the effective date if a Long-Term Interest Rate is in effect and the effective
date is on or before the end of the Long-Term Interest Rate Period. The notice
shall be effective when sent and shall state:
(1) that the interest rate determination method will be changed and what
the new method will be,
(2) the proposed effective date of the new rate, and
(3) that a mandatory redemption or mandatory purchase in lieu of redemption
will result on the effective date of the change as provided in the Bonds and all
the information required by this Indenture to be included in a notice of
redemption set forth in Section 3.04.
The information required in any notice pursuant to this subsection (c) and
the information referred to in any redemption notice (including an Additional
Notice) pursuant to Section 3.04 may be combined in a single notice if it is
sent to Bondholders in the manner and at the time specified under "Notice of
Redemption" in Section 8 of the form of the Bonds.
(d) Calculation of Interest. The Remarketing Agent shall provide the
Trustee and the Company with notice in writing or by telephone (any such notice
by telephone to be delivered to a Responsible Officer of the Trustee) promptly
confirmed by facsimile transmission by 12:30 p.m., New York City time,
(1) on the first Business Day after a month in which interest on the Bonds
was payable at a Daily Rate, of the Daily Rate for each day in such month,
(2) on each day on which a Weekly Rate becomes effective, of the Weekly
Rate,
(3) on the first day of each Commercial Paper Period, of the length thereof
and the Commercial Paper Rate, and, if there is more than one Commercial Paper
Rate then in effect, of the related applicable principal amounts,
(4) on the first Business Day of a Long-Term Interest Rate Period, of the
Long-Term Interest Rate or Long-Term Interest Rates set for that period and the
related applicable principal amounts, and
(5) on any Business Day preceding any redemption or purchase date, any
interest rate requested by the Trustee in order to enable it to calculate the
accrued interest, if any, due on such redemption or purchase date.
Using the rates supplied by this notice, the Trustee will calculate the
interest payable on the Bonds. The Remarketing Agent will inform the Trustee and
the Company orally at the oral request of either of them of any interest rate
set by the Remarketing Agent. The Trustee will confirm the effective interest
rate by telephone or in writing to any Bondholder who requests it in any manner.
The setting of the rates and the determination of Commercial Paper Periods
by the Remarketing Agent and the calculation of interest payable on the Bonds by
the Trustee as provided in this Indenture will be conclusive and binding on the
Issuer, the Company, the Trustee and the owners of the Bonds.
(e) Change in Rate Determination Method-Opinions of Counsel.
Notwithstanding any provision of this Section 2.02, no change shall be made in
the interest rate determination method at the direction of the Company pursuant
to Section 2.02(b)(1) if the Company shall fail to deliver a Favorable Opinion
of Tax Counsel and confirmation thereof required under Section 2.02(b)(1). If
the Trustee shall have sent any notice to the Bondholders regarding a change in
rate under Section 2.02(c), then in the event of such failure to deliver such
opinion or confirmation, the Trustee shall promptly notify all Bondholders of
such failure.
Section 2.03. Execution and Authentication. The Bonds shall be signed on
behalf of the Issuer with the manual or facsimile signature of its Executive
Director and attested by the manual or facsimile signature of its Secretary or
Assistant Secretary, and the seal of the Issuer shall be impressed or imprinted
on the Bonds by facsimile or otherwise. All authorized facsimile signatures
shall have the same effect as if manually signed. If an officer of the Issuer
whose signature is on a Bond no longer holds that office at the time the Trustee
authenticates the Bond, the Bond shall nevertheless be valid. Also, if a person
signing a Bond is the proper officer on the actual date of execution, the Bond
shall be valid even if that person is not the proper officer on the nominal date
of action.
A Bond shall not be valid for any purpose under this Indenture until the
Trustee manually signs the certificate of authentication on the Bond. Such
signature shall be conclusive evidence that the Bond has been authenticated
under this Indenture.
As a precondition to the initial authentication and delivery of the Bonds,
the Trustee shall receive a request and authorization to the Trustee from the
Issuer, signed by the Executive Director of the Issuer, to authenticate and
deliver the Bonds to the persons and in the manner therein described.
Section 2.04. Bond Register. Bonds must be presented at the principal
corporate trust office of the Trustee for registration, registration of
transfer, exchange and payment. Bonds tendered by their holders must be
delivered as specified in the Bonds. The Trustee shall keep a register of Bonds
and of their registration of transfer and exchange, which register shall be open
to inspection by the Issuer and the Company during normal business hours.
Section 2.05. Registration and Exchange of Bonds; Persons Treated as
Owners. Bonds may be registered as transferred only on the register maintained
by the Trustee. Upon surrender for registration of transfer of any Bond to the
Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the holder or the holder's attorney duly authorized in writing, the
Trustee will authenticate a new Bond or Bonds of the same maturity, in an equal
total principal amount and registered in the name of the transferee.
Bonds may be exchanged for an equal total principal amount of Bonds of the
same maturity but of different authorized denominations. The Trustee will
authenticate and deliver Bonds that the Bondholder making the exchange is
entitled to receive, bearing numbers not then outstanding.
Except in connection with the purchase of Bonds tendered for purchase or
purchased in lieu of redemption, the Trustee will not be required to register
the transfer of or to exchange any Bond called for redemption or during the
period beginning 15 days before the mailing of notice calling the Bonds or any
portion of the Bonds for redemption and ending on the redemption date.
The registered owner of a Bond shall be treated as the absolute owner of
the Bond for all purposes, and payment of principal, interest, premium, if any,
or purchase price shall be made only to or upon the written order of the holder
or the holder's legal representative, notwithstanding any notice, actual or
constructive, to the contrary.
The Trustee will require the payment by a Bondholder requesting exchange or
registration of transfer of any tax or other governmental charge required to be
paid in respect of the exchange or registration of transfer but will not impose
any other charge.
Section 2.06. Mutilated, Lost, Stolen, Destroyed or Undelivered Bonds. If
any Bond is mutilated, lost, stolen or destroyed, the Trustee will authenticate
a new Bond of the same denomination with similar terms if any mutilated Bond
shall first be surrendered to the Trustee, and if, in the case of any lost,
stolen or destroyed Bond, there shall first be furnished to the Issuer, the
Trustee and the Company evidence of such loss, theft or destruction, together
with an indemnity, satisfactory to them. If the Bond has matured or become
subject to redemption or purchase, instead of issuing a replacement Bond, the
Trustee may with the consent of the Company pay the Bond or the Company may
purchase the Bond without requiring surrender of the Bond and make such
requirements as the Trustee deems fit for its protection, including a lost
instrument bond. The Issuer, the Company and the Trustee may charge their
reasonable fees and expenses in this connection.
If a Bond is called for redemption and the Company elects to purchase the
Bond in lieu of redemption as provided in Article III, or if the holder of a
Bond gives irrevocable instructions to the Trustee for purchase, and in each
case funds are deposited with the Trustee sufficient for the purchase, the
Trustee upon request of the Company or the Remarketing Agent will authenticate a
new Bond in the same maturity and in the same denomination registered as the
Company or the Remarketing Agent may direct and deliver it to the Company or
upon the Company's order, whether or not the Bond purchased or called for
redemption is ever delivered, and the undelivered Bonds shall be cancelled on
the books of the Trustee, whether or not said undelivered Bonds have been
delivered to the Trustee. From and after the purchase date, interest on such
Bond shall cease to be payable to the prior holder thereof, such holder shall
cease to be entitled to the benefits or security of this Indenture and shall
have recourse solely to the funds held by the Trustee for the purchase of such
Bond and the Trustee shall not register any further transfer of such Bond by
such prior holder. All funds held by the Trustee for the purchase of undelivered
Bonds shall be held uninvested.
Section 2.07. Cancellation of Bonds. Whenever a Bond is delivered to the
Trustee for cancellation (upon payment, redemption or otherwise), or for
registration of transfer, exchange or replacement pursuant to Section 2.05 or
Section 2.06, the Trustee will promptly cancel and dispose of the Bond in
accordance with the Trustee's policy of disposal; provided, however, that the
Trustee may but shall not be required to destroy cancelled Bonds.
Section 2.08. Temporary Bonds. Until definitive Bonds are ready for
delivery, the Issuer may execute and the Trustee will authenticate temporary
Bonds substantially in the form of the definitive Bonds, with appropriate
variations. The Issuer will, without unreasonable delay, prepare and the Trustee
will authenticate definitive Bonds in exchange for the temporary Bonds. Such
exchange shall be made by the Trustee without charge.
ARTICLE III
REDEMPTION, PURCHASES IN LIEU OF REDEMPTION AND REMARKETING
Section 3.01. Notices to Trustee. If the Company wishes that any Bonds be
redeemed pursuant to any optional redemption provision in the Bonds, the Company
will notify the Trustee of the applicable provision, the redemption date, the
principal amount of the Bonds to be redeemed and other necessary particulars in
accordance with Section 4.8 of the Agreement.
Section 3.02. Redemption Dates. The redemption date of Bonds to be redeemed
pursuant to any optional redemption provision in the Bonds will be a date
permitted by the Bonds and specified by the Company in the notice delivered
pursuant to Section 4.8 of the Agreement. The redemption date for mandatory
redemptions will be as specified in the Bonds to be redeemed or determined by
the Trustee consistently with the provisions of the Bonds.
Section 3.03. Selection of Bonds to Be Redeemed. Except as provided in the
Bonds, if fewer than all the Bonds are to be redeemed, the Trustee will select
the Bonds to be redeemed by lot or other method it deems fair and appropriate,
except that the Trustee will first select any Bonds owned by the Company or any
of its nominees or held by the Trustee for the account of the Company or any of
its nominees. The Trustee will make the selection from Bonds not previously
called for redemption. For this purpose, the Trustee will consider each Bond in
a denomination larger than the minimum denomination permitted by the Bonds at
the time to be separate Bonds each in the minimum denomination. Provisions of
this Indenture that apply to Bonds called for redemption also apply to portions
of Bonds called for redemption.
Section 3.04. Redemption Notices.
(a) Official Notice of Redemption. The Trustee will give notice of each
redemption as provided in the Bonds and will at the same time give a copy of the
notice to the Remarketing Agent, provided that no redemption notice shall be
given with respect to a redemption under "Mandatory Redemption on Each Interest
Payment Date During Commercial Paper Mode" in Section 8 of the form of the
Bonds. The notice shall identify the Bonds to be redeemed and shall state (1)
the redemption date (and, if the Bonds provide that accrued interest will not be
paid on the redemption date, the date it will be paid), (2) the redemption
price, (3) that the Bonds called for redemption must be surrendered to collect
the redemption price, (4) the address at which the Bonds must be surrendered and
(5) that interest on the Bonds called for redemption ceases to accrue on the
redemption date.
With respect to an optional redemption of any Bonds under "Optional
Redemption at a Premium During Long-Term Interest Rate Period," "Extraordinary
Optional Redemption" or "Optional Redemption During Daily or Weekly Rate Period"
in Section 8 of the form of the Bonds, unless moneys sufficient to pay the
principal of, premium, if any, and interest on the Bonds to be redeemed shall
have been received by the Trustee prior to the giving of such notice of
redemption, such notice may state that said redemption shall be conditional upon
the receipt of such moneys by the Trustee on or prior to the date fixed for
redemption. If such moneys are not received, such notice shall be of no force
and effect, the Issuer shall not redeem such Bonds, the redemption price shall
not be due and payable, and the Trustee shall give notice, in the same manner in
which the notice of redemption was given, that such moneys were not so received
and that such Bonds will not be redeemed.
Failure to give any required notice of redemption as to any particular
Bonds or any defect therein will not affect the validity of the call for
redemption of any Bonds in respect of which no such failure or defect has
occurred. Any notice mailed as provided in the Bonds shall be effective when
sent and will be conclusively presumed to have been given whether or not
actually received by any holder.
(b) Additional Notice of Redemption. In addition to the redemption notice
required above, if there is not a Book-Entry System in effect for the Bonds,
further notice (the "Additional Notice") shall be given by the Trustee as set
out below. No defect in the Additional Notice nor any failure to give all or any
portion of the Additional Notice shall in any manner defeat the effectiveness of
a call for redemption if notice is given as prescribed in paragraph (a) above.
(1) Each Additional Notice of redemption shall contain the information
required in paragraph (a) above for an official notice of redemption plus (i)
the CUSIP numbers of all Bonds being redeemed; (ii) the date of the Bonds as
originally issued; (iii) the interest rate determination method for, or the rate
of interest borne by each Bond being redeemed; (iv) the maturity date of each
Bond being redeemed; and (v) any other descriptive information needed to
identify accurately the Bonds being redeemed.
(2) Each Additional Notice of redemption shall be sent at least 30 days
before the redemption date by registered or certified mail or overnight delivery
service (or by such other means as the Trustee may have established with the
securities depository or information service) to all registered securities
depositories then in the business of holding substantial amounts of obligations
similar to the Bonds (such depositories now being The Depository Trust Company
of New York, New York, and Midwest Securities Trust Company of Chicago,
Illinois) and to one or more national information services that disseminate
notices of redemption of obligations such as the Bonds.
The information required in any redemption notice (including an Additional
Notice) pursuant to this Section and the information required in any notice
pursuant to Section 2.02(c) may be combined in a single notice if it is sent to
Bondholders in the manner and at the time specified under "Notice of Redemption"
in Section 8 of the form of the Bonds.
Section 3.05. Payment of Bonds Called for Redemption. Upon surrender to the
Trustee, Bonds called for redemption shall be paid or purchased in lieu of
redemption as provided in this Article at the redemption price (including
premium, if any) stated in the notice, plus interest accrued to the redemption
date, or at a purchase price as provided in the form of Bond, except that
interest payable on Bonds bearing interest at a Daily Rate will be paid on the
fifth Business Day following the redemption date. Bonds called for redemption
and purchased pursuant to a tender before the redemption date will not be
redeemed but will be dealt with as provided below in this Article. Upon the
payment of the redemption price of the Bonds being redeemed, each check or other
transfer of funds issued for such purpose shall bear the CUSIP number
identifying, by issue and maturity, the Bonds being redeemed with the proceeds
of such check or other transfer.
Section 3.06. Bonds Redeemed in Part. Subject to Article V, upon surrender
of a Bond redeemed or purchased in lieu of redemption in part, the Trustee will
authenticate for the holder a new Bond or Bonds in authorized denominations
equal in principal amount to the unredeemed or unpurchased portion of the Bond
surrendered.
Section 3.07. Purchase of Bonds in Lieu of Redemption. When Bonds are
called for redemption pursuant to the paragraphs captioned "Optional Redemption
at a Premium During Long-Term Interest Rate Period", "Mandatory Redemption at
Beginning of a New Long-Term Interest Rate Period" or "Mandatory Redemption Upon
a Change in the Method of Determining the Interest Rate on the Bonds" in Section
8 of the form of the Bonds, the Company may purchase some or all of the Bonds
called for redemption for a price equal to the otherwise applicable redemption
price, if it (or the Remarketing Agent) gives written notice to the Trustee by
5:00 p.m. New York City time on the day before the redemption date that it
wishes to purchase the Bonds the principal amount of which is specified in the
notice and furnishes the Trustee sufficient money in sufficient time for the
Trustee to make the purchase on the redemption date. The Trustee will purchase
Bonds called for redemption pursuant to the paragraph captioned "Mandatory
Redemption on Each Interest Payment Date During Commercial Paper Mode" unless
otherwise instructed in writing by the Company, or unless the Indenture
otherwise requires that they be redeemed and cancelled, before the redemption
date. The Trustee will purchase the Bonds pursuant to this Section only as
provided in Section 4.02.
Section 3.08. Disposition of Purchased Bonds. (a) Bonds to be Remarketed.
Bonds purchased pursuant to tenders as provided in the form of Bonds or in lieu
of redemption as provided in Section 3.07 will be offered for sale by the
Remarketing Agent as provided in this Section 3.08 except as follows:
(1) Bonds purchased pursuant to a tender after having been called for
redemption under a provision in the form of Bond that does not provide the
Company an option to purchase in lieu of redemption will be cancelled.
(2) Bonds called for redemption under "Mandatory Redemption Upon a Change
in the Method of Determining the Interest Rate on the Bonds" in Section 8 of the
form of Bond, which are tendered between the date notice of redemption is given
and the redemption date, may be remarketed before the redemption date only if
the buyer receives a copy of the redemption notice from the Remarketing Agent.
(3) Bonds will not be offered for sale under this Section during the
continuance of an Event of Default under Section 8.01(a), (b), (c) or (d). Bonds
will be offered for sale under this Section 3.08 during an event which with the
passage of time or the giving of notice or both may become an Event of Default
only in the sole discretion of the Remarketing Agent.
(b) Remarketing Effort. Except to the extent the Company directs the
Remarketing Agent not to do so, the Remarketing Agent will offer for sale and
use reasonable efforts to sell all Bonds to be sold as provided in paragraph (a)
above and, when directed by the Company, any Bonds held by the Company. The sale
price of each Bond must be equal to the principal amount of each Bond plus
accrued interest, if any, to the purchase date. The Company may direct the
Remarketing Agent from time to time to cease and to resume sales efforts with
respect to some of or all the Bonds. The Remarketing Agent may buy as principal
any Bonds to be offered under this Section 3.08.
(c) Notices in Respect of Tenders. When the Trustee receives a notice from
a Bondholder (or a Beneficial Owner through its direct Participant) as specified
in paragraph 6 of the form of the Bond for the Bondholder (or a Beneficial Owner
through its direct Participant) to tender Bonds, the Trustee will promptly
notify the Remarketing Agent and the Company by facsimile transmission or
telephone, promptly confirmed in writing, of the receipt of such notice, but in
no event later than the following times:
(i) when the Bonds bear interest at a Daily Rate, no later than 11:30
a.m. (New York City time) on the same Business Day; and
(ii) when the Bonds bear interest at a Weekly Rate, no later than
11:30a.m. (New York City time) on the Business Day next succeeding receipt
of such notice.
(d) Delivery of Remarketed Bonds.
(i) Except when a book-entry system of registration is in effect, the
Trustee shall hold all Bonds delivered pursuant to this Section 3.08 in trust
for the benefit of the owners thereof until moneys representing the purchase
price of such Bonds shall have been delivered to or for the account of or to the
order of such Bondholders, and thereafter, if such Bonds are remarketed, shall
deliver replacement Bonds, prepared by the Trustee in accordance with the
directions of the Remarketing Agent and authenticated by the Trustee, for any
Bonds purchased in accordance with the written directions of the Remarketing
Agent to the Remarketing Agent for delivery to the purchasers thereof.
(ii) The Remarketing Agent shall advise the Trustee and the Company in
writing or by facsimile transmission of the principal amount of Bonds which have
been remarketed, together with the denominations and registration instructions
(including taxpayer identification numbers) in accordance with the following
schedule (all times of which are New York City time):
CURRENT METHOD OF INTEREST RATE TIME BY WHICH INFORMATION
DETERMINATION OR, IN CONNECTION TO BE FURNISHED
WITH A CHANGE IN SUCH METHOD,THE TO TRUSTEE
NEW METHOD OF INTEREST RATE
DETERMINATION
Commercial Paper Period 12:15 p.m. on the purchase date
Daily Rate Period 12:15 p.m. on the purchase date
Weekly Rate Period 12:15 p.m. on the purchase date
Long-Term Interest Rate Period 12:15 p.m. on the purchase date
(iii) The terms of any sale by the Remarketing Agent shall provide for the
authorization of the payment of the purchase price by the Remarketing Agent to
the Trustee in exchange for Bonds registered in the name of the new Bondholder
which shall be delivered by the Trustee to the Remarketing Agent at or before
2:00 p.m. (New York City time) on the purchase date if the purchase price has
been received from the Remarketing Agent by the time set forth in Section
3.08(e) on the purchase date.
(e) Delivery of Proceeds of Sale. The Remarketing Agent shall deliver
directly to the Trustee an amount equal to the principal amount thereof plus
accrued interest, if any, of the Bonds which the Remarketing Agent has advised
the Trustee have been remarketed pursuant to Section 3.08(d) (ii) no later than
12:30 p.m. (New York City time) on the purchase date.
ARTICLE IV
APPLICATION OF PROCEEDS AND PAYMENT OF BONDS
Section 4.01. Application of Proceeds. Upon the issuance and delivery of
the Bonds, the Issuer will cause the proceeds of the initial sale of the Bonds
to be deposited with the Trustee and the Trustee shall apply the proceeds from
the initial sale of the Bonds as follows:
(a) the accrued interest, if any, received from the sale of the Bonds
shall be deposited into the Bond Fund; and
(b) the balance of such proceeds shall be deposited into the
Construction Fund.
Section 4.02. Payment of Bonds. The Trustee will make payments of principal
of, premium, if any, and interest on the Bonds from moneys available to the
Trustee under this Indenture for that purpose. The Trustee will pay the purchase
price of tendered Bonds first from the proceeds of the sale of Bonds under
Section 3.08 and second from other moneys available to the Trustee for that
purpose.
All moneys received as proceeds of remarketing the Bonds under Section 3.08
shall be held segregated by the Trustee in a separate and segregated trust
account. To the extent that the payment of principal or interest on the Bonds is
made from moneys as described in this Section, such payment shall also satisfy
and discharge any payment obligation of the Company under the Note and the
Trustee shall promptly notify the Company in writing if such payment requirement
has not been satisfied. If any Bond is redeemed prior to maturity or if the
Company surrenders any Bond to the Trustee for cancellation, the Trustee shall
cancel such Bond.
Section 4.03. Investments of Moneys. The Trustee will invest and reinvest
moneys held by the Trustee as directed by the Company, in:
(a) Government Obligations;
(b) Bonds and notes of the Federal Land Bank;
(c) Obligations of the Federal Intermediate Credit Bank;
(d) Obligations of the Federal Bank for Cooperatives;
(e) Bonds and notes of Federal Home Loan Banks;
(f) Negotiable or non-negotiable certificates of deposit, time deposits or
similar banking arrangements, issued by a bank or trust company (which may be
the commercial banking department of the Trustee or any bank or trust company
under common control with the Trustee) or savings and loan association which are
insured by the Federal Deposit Insurance Corporation or secured as to principal
by Government Obligations; or
(g) Other investments then permitted by law.
The Trustee may make investments permitted by this Article through its own
bond department or the bond department of any bank or trust company under common
control with the Trustee. Investments will be made so as to mature or be subject
to redemption at the option of the holder on or before the date or dates that
the Trustee anticipates that moneys from the investments will be required. The
Trustee, when authorized by the Company, may trade with itself in the purchase
and sale of securities for such investment. Investments will be registered in
the name of the Trustee and held by or under the control of the Trustee. The
Trustee will sell and reduce to cash a sufficient amount of investments whenever
the cash held by the Trustee is insufficient. The Trustee shall not be liable
for any loss from such investments to the extent directed by the Company and to
the extent such directions have been complied with by the Trustee.
Section 4.04 Creation of Bond Fund. In addition to the trusts created under
Section 4.01, there is hereby created and established with the Trustee a trust
fund to be designated "Mississippi Business Finance Corporation Revenue Bonds,
Series 1999 (Mississippi Power Company Project) Bond Fund". Moneys deposited
therein shall be used to pay the principal of and premium, if any, and interest
on the Bonds as provided in this Indenture.
Section 4.05. Payments into the Bond Fund. There shall be deposited into
the Bond Fund that portion, if any, of the proceeds from the sale of the Bonds
consisting of accrued interest on the Bonds up to the date of their delivery. In
addition, there shall be deposited into the Bond Fund, as and when received, (i)
all payments of the amounts owed by the Company under the first paragraph of
Section 3.2 of the Agreement; and (ii) all other moneys received by the Trustee
under and pursuant to any of the provisions of the Agreement which are required,
or which are accompanied by directions from the Company that such moneys are, to
be paid into the Bond Fund. The Issuer hereby covenants and agrees that, so long
as any of the Bonds are outstanding, it will deposit, or cause to be paid to the
Trustee for deposit in the Bond Fund for its account, sufficient sums from
revenues derived pursuant to the Agreement and the Note promptly to meet and pay
the principal of and premium, if any, and interest on the Bonds as the same
become due and payable; provided, however, that nothing herein shall be
construed as requiring the Issuer to use any funds or revenues from any source
other than revenues derived pursuant to the Agreement or the Note. The Trustee
is authorized to receive at any time payments or prepayments from the Company
pursuant to the Agreement and the Note for deposit in the Bond Fund.
Section 4.06. Use of Moneys in the Bond Fund. All interest accruing on the
Bonds up to the date of their delivery, if any, will be paid from the amounts,
if any, deposited in the Bond Fund pursuant to the first sentence of Section
4.05. Except as provided in this Indenture, moneys in the Bond Fund shall be
used solely for the payment of the principal of, purchase price and premium, if
any, and interest on the Bonds. Upon receipt of a written notice from the
Company pursuant to Section 4.8 of the Agreement and, in the case of a purchase
of Bonds, upon the deposit of cash or Government Obligations in the Bond Fund
sufficient, together with other amounts available therefor in the Bond Fund, to
make the purchase of Bonds, the Issuer and the Trustee covenant and agree to
take and cause to be taken the necessary steps to redeem or purchase such
principal amount of Bonds as specified by the Company in such written notice;
provided, however, that any available moneys in the Bond Fund may be used on
direction of the Company to redeem a part of the Bonds outstanding and then
redeemable or to purchase Bonds for cancellation so long as the Company is not
in default with respect to any payments required pursuant to Section 3.2 of the
Agreement and to the extent said moneys are in excess of the amount required for
payment of the Bonds theretofore matured or called for redemption and interest
accrued and payable in respect of outstanding Bonds.
Section 4.07. Custody of the Bond Fund. The Bond Fund shall be in the
custody of the Trustee but in the name of the Issuer, and the Issuer hereby
authorizes and directs the Trustee to withdraw sufficient funds from the Bond
Fund to pay the principal of, purchase price and premium, if any, and interest
on the Bonds as the same become due and payable and to make said funds so
withdrawn available to the paying agents hereunder at their principal office,
for the purpose of paying said principal, purchase price and premium, if any,
and interest, which authorization and direction the Trustee hereby accepts.
Section 4.08. Creation of Construction Fund. There is hereby created and
established with the Trustee a trust fund to be designated "Mississippi Business
Finance Corporation Revenue Bonds, Series 1999 (Mississippi Power Company
Project) Construction Fund", which shall be expended in accordance with the
provisions of this Article IV.
Section 4.09. Payments into the Construction Fund. The balance of the
proceeds of the sale of the Bonds by the Issuer, after deducting the amount
required to be deposited in the Bond Fund pursuant to the first sentence of
Section 4.05, shall be deposited in the Construction Fund.
Section 4.10. Disbursements from the Construction Fund. The Trustee is
hereby authorized and directed to make payments from the Construction Fund to
pay the Cost of Construction, or to reimburse the Company for any Cost of
Construction paid or incurred by the Company before or after execution of the
Agreement and delivery of the Bonds, and the Trustee shall be relieved of all
liability with respect to making payments from the Construction Fund in
accordance with this Section 4.10. The Trustee shall make each disbursement from
the Construction Fund upon receipt of a written requisition by the Company
stating with respect to each disbursement to be made: (i) the requisition
number, (ii) the name and address of the person, firm or corporation to whom
payment is due, (iii) the amount to be paid, and (iv) that each obligation or
portion thereof which is to be paid has been properly incurred, is a proper
charge against the Construction Fund, and has not been the basis of any previous
requisition from the Construction Fund. Notwithstanding the foregoing provisions
of this Section 4.10, no such disbursement from the Construction Fund shall be
made if an Event of Default of which the Trustee has received notice or is
deemed to have notice pursuant to Section 9.01(h) shall have occurred and be
continuing.
The Trustee shall keep and maintain adequate records pertaining to the
Construction Fund and all disbursements therefrom; and, after the Projects have
been completed and a certificate of payment of all costs has been filed with the
Trustee as provided in Section 4.11 hereof, the Trustee shall file an accounting
thereof with the Issuer and the Company.
Section 4.11. Completion of the Projects. The completion of the Projects
and payment of all Cost of Construction shall be evidenced by the filing with
the Trustee and the Issuer of the certificate required by the provisions of
Section 2.3 of the Agreement. All moneys in the Construction Fund (including
moneys earned thereon by investment thereof) remaining after the Completion Date
and payment, or provision for payment, in full of the Cost of Construction shall
be used by the Trustee, without any further notice or direction from the Issuer
or the Company, to redeem outstanding Bonds in the largest amount possible at
the earliest possible redemption date or dates at which the redemption price for
such Bonds to be redeemed is 100% of the principal amount thereof, plus accrued
interest to the redemption date, under the terms of the Bonds, as specified in
the form of Bonds, the Trustee being hereby directed to give notice of such
redemption in accordance with Section 3.04. Until such notice of redemption
shall have been given, such moneys shall, should the Company so direct, be (i)
paid into the Bond Fund (but only if an Opinion of Tax Counsel is delivered to
the Trustee which states that such payment will not under applicable statutes
and regulations cause the loss of the exclusion from gross income for federal
income tax purposes of the interest on the Bonds), or (ii) used for any other
purpose; provided that an Opinion of Tax Counsel has been delivered to the
Trustee to the effect that the use of such moneys for such purpose is
permissible under the Agreement and then applicable Mississippi law and will not
under applicable statutes and regulations cause the loss of the exclusion from
gross income for federal income tax purposes of the interest on the Bonds;
provided, further, that amounts approved by the Company shall be retained by the
Trustee in the Construction Fund for payment of any Cost of Construction not
then due and payable or which is in dispute, and any balance remaining of such
retained funds after full payment of the Cost of Construction shall be held and
applied, or used as directed by the Company, in the manner specified in this
Section 4.11.
After the Completion Date and until used for one or more of the foregoing
purposes, such moneys shall be transferred to and held in a separate account in
either the Construction Fund or the Bond Fund, as appropriate, and shall not be
invested so as to provide a yield on such moneys greater than the yield on the
Bonds, all as such terms are defined and used in Section 148 of the Code and any
proposed, temporary or final regulations promulgated thereunder; provided that
such yield restriction shall not apply if the Trustee is furnished with an
Opinion of Tax Counsel to the effect that, under applicable statutes and
regulations, the lack of a yield restriction on such moneys or a restriction at
a higher yield or differently-computed yield will not result in the loss of the
exclusion from gross income for federal income tax purposes of the interest on
the Bonds; provided that the Trustee shall invest such funds as directed by the
Company and shall have no liability therefor. All such investments shall also
comply with the terms and provisions of the Arbitrage Rebate Agreement.
In the event the Company shall direct redemption of the Bonds pursuant to
an Extraordinary Optional Redemption as described in the form of Bonds attached
hereto as Exhibit A prior to the Completion Date, the Trustee shall without
further authorization deposit any balance remaining in the Construction Fund
into the Bond Fund.
Section 4.12. Non-presentment of Bonds. In the event any Bond shall not be
presented for payment when the principal thereof becomes due, either at maturity
or at the date fixed for redemption thereof, if funds sufficient to pay such
Bond shall have been deposited in the Bond Fund or otherwise made available to
the Trustee through deposit therein as provided in Section 4.05, all liability
of the Issuer to the holder thereof for the payment of such Bond shall forthwith
cease, terminate and be completely discharged, and thereupon it shall be the
duty of the Trustee to hold such funds within a separate account in the Bond
Fund, subject to the provisions of Section 4.15, without liability for interest
thereon, for the benefit of the holder of such Bond, which shall thereafter
(subject to the provisions of Section 4.15) be restricted exclusively to such
funds for any claim of whatever nature on his part under this Indenture or on,
or with respect to, said Bond.
Section 4.13. Moneys to Be Held in Trust. All moneys required to be
deposited with or paid to the Trustee for the account of the Bond Fund or the
Construction Fund under any provision of this Indenture shall be held by the
Trustee in trust, and except for moneys deposited with or paid to the Trustee
for the redemption of Bonds or the payment of Bonds, including Bonds which are
deemed to be paid within the meaning of Section 7.01, shall, while held by the
Trustee, constitute part of the trust estate and be subject to the security
interest created hereby.
Section 4.14. Repayment to the Company from the Bond Fund. Any amounts
remaining in the Bond Fund (other than moneys, if any, set aside as provided
herein), after payment in full of the Bonds (or provision for payment thereof
having been made in accordance with this Indenture), the fees and expenses of
the Trustee and any additional paying agent and all other amounts required to be
paid hereunder shall be repaid to the Company as provided in Section 6.10 of the
Agreement.
Section 4.15. Moneys Held in Trust; Unclaimed Funds. Money received by the
Remarketing Agent or the Trustee from the sale of a Bond under Section 3.08 or
for the purchase of a Bond will be held segregated from other funds of the
Remarketing Agent or the Trustee in trust for the benefit of the person from
whom such Bond was purchased or the person delivering such purchase money, as
the case may be, and will not be invested. The Trustee shall promptly, but in no
event later than 30 days of their original deposit, apply moneys received from
the Company in accordance with this Indenture, or if not directed herein, as
directed by the Company.
Notwithstanding the provisions of the immediately preceding paragraph, any
moneys which shall be set aside by the Trustee or deposited by the Trustee with
the paying agents and which shall remain unclaimed by the holders of such Bonds
for a period of six (6) years after the date on which such Bonds shall have
become due and payable shall upon request in writing be paid to the Company or
to such officer, board or body as may then be entitled by law to receive the
same, and thereafter the holders of such Bonds shall look only to the Company or
to such officer, board or body, as the case may be, for payment and then only to
the extent of the amount so received without any interest thereon, and the
Trustee, the Issuer and the paying agents shall have no responsibility with
respect to such moneys.
Section 4.16. Rebate Fund. To the extent and at the time required by the
Arbitrage Rebate Agreement, there shall be created and established a Rebate Fund
which shall be administered by the Trustee in accordance with the provisions of
this Indenture and the Arbitrage Rebate Agreement and which Rebate Fund shall
not be part of the trust estate or subject to the security interest created
thereby.
ARTICLE V
BOOK-ENTRY SYSTEM
Section 5.01. Book-Entry System. The Bonds shall be initially issued in the
name of Cede & Co., as nominee for The Depository Trust Company as the initial
Securities Depository and registered owner of such Bonds, and held in the
custody of the Securities Depository. A single certificate will be issued and
delivered to the Securities Depository, or a custodian thereof, for the Bonds.
The Beneficial Owners will not receive physical delivery of Bond certificates
except as provided herein. For so long as the Securities Depository shall
continue to serve as securities depository for such Bonds as provided herein,
all transfers of beneficial ownership interests will be made by book-entry only
on the records of the Securities Depository, and no investor or other party
purchasing, selling or otherwise transferring beneficial ownership of such Bonds
is to receive, hold or deliver any Bond certificate. The Issuer, the Company and
the Trustee will recognize the Securities Depository or its nominee as the
Bondholder of such Bonds for all purposes, including payment, notices and
voting.
The Issuer and the Trustee covenant and agree, so long as The Depository
Trust Company shall continue to serve as Securities Depository for the Bonds, to
meet the requirements of The Depository Trust Company with respect to required
notices and other provisions of a Blanket Issuer Letter of Representations
between The Depository Trust Company and the Issuer.
The Issuer, the Trustee, the Company and the Remarketing Agent may
conclusively rely upon (i) a certificate of the Securities Depository as to the
identity of the Participants in the Book-Entry System and (ii) a certificate of
any such Participant as to the identity of, and the respective principal amount
of Bonds beneficially owned by, the Beneficial Owners.
Whenever, during the term of the Bonds, the beneficial ownership thereof is
determined by a book-entry at the Securities Depository, the requirements in
this Indenture of holding, delivering or transferring Bonds shall be deemed
modified to require the appropriate person to meet the requirements of the
Securities Depository as to registering or registering the transfer of the
book-entry to produce the same effect. Any provision hereof permitting or
requiring delivery of Bonds shall, while the Bonds are in a Book-Entry System,
be satisfied by the notation on the books of the Securities Depository in
accordance with applicable law.
The Trustee and the Issuer, at the direction and expense of the Company and
with the consent of the Remarketing Agent, may from time to time appoint a
successor Securities Depository and enter into an agreement with such successor
Securities Depository to establish procedures with respect to the Bonds
consistent with current industry practice. Any successor Securities Depository
shall be a "clearing agency" registered under Section 17A of the Securities
Exchange Act of 1934, as amended.
None of the Issuer, the Company, the Trustee nor the Remarketing Agent will
have any responsibility or obligation to any Securities Depository, any
Participants in the Book-Entry System or the Beneficial Owners with respect to
(i) the accuracy of any records maintained by the Securities Depository or any
Participant; (ii) the payment by the Securities Depository or by any Participant
of any amount due to any Beneficial Owner in respect of the principal amount or
redemption or purchase price of, or interest on, any Bonds; (iii) the delivery
of any notice by the Securities Depository or any Participant; (iv) the
selection of the Beneficial Owners to receive payment in the event of any
partial redemption of the Bonds; or (v) any other action taken by the Securities
Depository or any Participant.
Bond certificates are required to be delivered to and registered in the
name of the Beneficial Owner, under the following circumstances:
(a) The Securities Depository determines to discontinue providing its
service with respect to the Bonds and no successor Securities Depository is
appointed as described above. Such a determination may be made at any time
by giving 30 days' notice to the Issuer, the Company, the Remarketing Agent
and the Trustee and discharging its responsibilities with respect thereto
under applicable law.
(b) The Company determines not to continue the Book-Entry System
through a Securities Depository.
The Trustee is hereby authorized to make such changes to the form of bond
attached hereto as Exhibit A which are necessary or appropriate to reflect
whether the Book-Entry System is in effect, that a successor Securities
Depository has been appointed or that an additional or co-paying agent or tender
agent has been designated pursuant to Section 12.03.
If at any time, the Securities Depository ceases to hold the Bonds all
references herein to the Securities Depository shall be of no further force or
effect.
ARTICLE VI
COVENANTS
Section 6.01. Payment of Bonds. The Issuer will promptly pay the principal
of, premium, if any, and interest on, and other amounts due with respect to, the
Bonds on the dates and in the manner provided in the Bonds, but only from the
amounts assigned to and held by the Trustee under this Indenture. The Bonds and
the interest thereon shall not be deemed to constitute a debt, liability or
obligation of the Issuer or the State or any political subdivision thereof, or a
pledge of the faith and credit of the Issuer or the State or any political
subdivision thereof, but the Bonds shall be payable solely from the revenues
provided therefor as herein described and the Issuer is not obligated to pay the
Bonds or the interest thereon except from the revenues and proceeds pledged
therefor and neither the faith and credit nor the taxing power of the Issuer or
the State or any political subdivision thereof is pledged to the payment of the
principal of or the premium, if any, or interest on this Bond.
Section 6.02. Performance of Covenants; Issuer. The Issuer covenants that
it will faithfully perform at all times any and all covenants, undertakings,
stipulations and provisions contained in this Indenture, in any and every Bond
executed, authenticated and delivered hereunder and in all of its proceedings
pertaining hereto. The Issuer covenants that it is duly authorized under the
Constitution and laws of the State, including particularly and without
limitation the Act, to issue the Bonds authorized hereby and to execute this
Indenture, to accept, assign and pledge the Note and the Agreement and the
amounts payable under the Note and to pledge the amounts hereby pledged in the
manner and to the extent herein set forth; that all action on its part necessary
for the issuance of the Bonds and the execution and delivery of this Indenture
and the Agreement has been duly and effectively taken; and that the Bonds in the
hands of the owners thereof are and will be valid and enforceable obligations of
the Issuer according to the terms thereof and hereof.
Section 6.03. Recording and Filing; Further Assurances. The Issuer will
execute and deliver such supplemental indentures and such further instruments,
and do such further acts, as the Trustee may reasonably require for the better
assuring, assigning and confirming to the Trustee the amounts assigned under
this Indenture for the payment of the Bonds. The Issuer further covenants that
it will not create or suffer to be created any lien, encumbrance or charge upon
its interest in the Note or the Agreement, if any, except the lien of this
Indenture.
Section 6.04. Tax Covenants. (a) The Issuer covenants that it shall take no
action nor make any investment or use of the proceeds of the Bonds or any other
moneys which would cause the Bonds to be treated as "arbitrage bonds" within the
meaning of Section 148 of the Code to the extent that the same may be applicable
or proposed to be applicable to the Bonds at the time of such action, investment
or use or which would cause any Bond to be treated as an obligation not
described in Section 103(a) of the Code by reason of its failure to meet any of
the requirements contained in Section 148 of the Code.
Notwithstanding any provision of this Indenture to the contrary, the
Trustee shall not be liable or responsible for any calculation or determination
which may be required in connection with, or for the purpose of complying with,
Section 148 of the Code, or any successor statute or any regulation, ruling or
other judicial or administrative interpretation thereof, including, without
limitation, the calculation of amounts required to be paid to the United States
of America or the determination of the maximum amount which may be invested in
obligations having a yield higher than the yield on the Bonds, and the Trustee
shall not be liable or responsible for monitoring the compliance by the Issuer
or the Company with the Arbitrage Rebate Agreement and any of the requirements
of Section 148 of the Code or any applicable regulation, ruling or other
judicial or administrative interpretation thereof; it being acknowledged and
agreed that the sole obligation of the Trustee with respect to the investment of
monies held under any fund or account created hereunder shall be to invest such
monies in accordance with Section 4.03 in each case pursuant to the instructions
received by the Trustee in accordance with Section 4.03.
(b) The Issuer and the Company covenant and agree that they shall take all
necessary or desirable steps to comply with the requirements of the Arbitrage
Rebate Agreement and this Section in order to ensure that interest on the Bonds
is excluded from gross income for federal income tax purposes under Section
103(a) of the Code; provided, however, the Issuer and the Company shall not be
required to comply with any such requirement in the event the Issuer or the
Company, as the case may be, receives a Favorable Opinion of Tax Counsel that
compliance with such requirement is not required to maintain the federal income
tax exclusion of interest on the Bonds, or in the event the Issuer or the
Company, as the case may be, receives a Favorable Opinion of Tax Counsel that
compliance with some other requirement in lieu of such requirement will meet the
requirements of Section 148(f) of the Code, in which case compliance with such
other requirement specified in the Favorable Opinion of Tax Counsel shall
constitute compliance with such requirement.
(c) The Company covenants and agrees that it shall calculate or cause to be
calculated the Rebate Requirement with respect to the Bonds as required by the
Arbitrage Rebate Agreement.
Section 6.05. Rights Under Agreement. The Agreement, a duly executed
counterpart of which has been filed with the Trustee, sets forth the covenants
and obligations of the Issuer and the Company, and reference is hereby made to
the same for a detailed statement of said covenants and obligations of the
Company thereunder; and the Issuer agrees that the Trustee in its own name or in
the name of the Issuer may enforce all rights of the Issuer and all obligations
of the Company under and pursuant to the Agreement for and on behalf of the
Bondholders, whether or not the Issuer is in default hereunder.
Section 6.06. Designation of Additional Paying Agents. The Issuer may
cause, with the consent of the Company, the necessary arrangements to be made
through the Trustee and to be thereafter continued for the designation of
additional paying agents and for providing for the payment of such of the Bonds
as shall be presented when due at the corporate trust office of the Trustee, or
its successor in trust hereunder, or at the principal office of said additional
paying agents. All such funds held by said additional paying agents shall be
held by each of them in trust and shall constitute a part of the trust estate
and shall be subject to the security interest created hereby.
Section 6.07. Existence of Issuer. The Issuer covenants that it will at all
times maintain its corporate existence and will duly procure any necessary
renewals and extensions thereof; will use its best efforts to maintain, preserve
and renew all the rights, powers, privileges and franchises owned by it; and
will comply with all valid acts, rules, regulations and orders of any
legislative, executive, judicial or administrative body applicable to the
Projects.
ARTICLE VII
DISCHARGE OF INDENTURE
Section 7.01. Bonds Deemed Paid; Discharge of Indenture. Any Bond will be
deemed paid for all purposes of this Indenture when (a) payment of the principal
of and interest on the Bond to the due date of such principal and interest
(whether at maturity, upon redemption or otherwise) or the payment of the
purchase price either (1) has been made in accordance with the terms of the
Bonds or (2) has been provided for by depositing with the Trustee in trust (A)
moneys in an amount which are sufficient to make such payment and/or (B)
Government Obligations maturing as to principal and interest in such amounts and
at such times as will insure, without any further reinvestment, the availability
of sufficient moneys to make such payment, and (b) all compensation and
reasonable expenses of the Trustee pertaining to each Bond in respect of which
such deposit is made have been paid or provided for to the Trustee's
satisfaction. When a Bond is deemed paid, it will no longer be secured by or
entitled to the benefits of this Indenture or be an obligation of the Issuer,
and shall be payable solely from the moneys or Government Obligations under
(a)(2) above, except that such Bond may be tendered if and as provided in the
Bonds and it may be registered as transferred, exchanged, registered, discharged
from registration or replaced as provided in Article II.
Notwithstanding the foregoing, upon the deposit of funds or Government
Obligations under clause (a)(2) of the first paragraph of this Section 7.01, the
purchase price of tendered Bonds shall be paid from the sale of Bonds under
Section 3.08. If payment of such purchase price is not made from the sale of
Bonds pursuant to Section 3.08, payment shall be made from funds (or Government
Obligations) on deposit pursuant to this Section without the need of any further
instruction or direction by the Company, in which case such Bonds shall be
surrendered to the Trustee and cancelled.
Notwithstanding the foregoing, no deposit under clause (a)(2) of the first
paragraph of this Section 7.01 shall be deemed a payment of a Bond until (1) the
Company has furnished the Trustee an Opinion of Tax Counsel to the effect that
the deposit of such cash or Government Obligations will not cause the Bonds to
become "arbitrage bonds" under Section 148 of the Code and (2) (a) notice of
redemption of the Bond is given in accordance with Article III or, if the Bond
is not to be redeemed or paid within the next 60 days, until the Company has
given the Trustee, in form satisfactory to the Trustee, irrevocable instructions
(i) to notify, as soon as practicable, the owner of the Bond, in accordance with
Article III, that the deposit required by (a)(2) above has been made with the
Trustee and that the Bond is deemed to be paid under this Article and stating
the maturity or redemption date upon which moneys are to be available for the
payment of the principal of the Bond, and premium, if any, and interest on such
Bond, if the Bond is to be redeemed rather than paid and (ii) to give notice of
redemption not less than 30 nor more than 60 days prior to the redemption date
for such Bond or (b) the maturity of the Bond.
When all outstanding Bonds are deemed paid under the foregoing provisions
of this Section, the Trustee will upon request acknowledge the discharge of the
lien of this Indenture, provided, however that the obligations relating to the
tender for purchase as provided in the Bonds, the obligations under Section 6.04
and obligations under Article II in respect of the registration of transfer,
exchange, registration, discharge from registration and replacement of Bonds
shall survive the discharge of the lien of this Indenture.
Section 7.02. Application of Trust Money. The Trustee shall hold in trust
money or Government Obligations deposited with it pursuant to the preceding
Section and shall apply the deposited money and the money from the Government
Obligations in accordance with this Indenture only to the payment of principal
of, premium, if any, and interest on the Bonds and to the payment of the
purchase price of tendered Bonds.
Section 7.03. Repayment to Company. The Trustee shall promptly pay to the
Company upon request any excess money or securities held by the Trustee at any
time under this Article VII and any money held by the Trustee under any
provision of this Indenture for the payment of principal or interest or for the
purchase of Bonds that remains unclaimed for six years.
ARTICLE VIII
DEFAULTS AND REMEDIES
Section 8.01. Events of Default. An "Event of Default" is any of the
following:
(a) Default in the payment of any interest on any Bond when due and as
the same shall become due and payable, which default continues for five
days;
(b) Default in the due and punctual payment of principal on any Bond
when due and payable, whether at maturity, upon redemption, or by
declaration or otherwise;
(c) Default in the due and punctual payment of the purchase price of
any Bond required to be purchased in accordance with its terms; or
(d) An event of default has occurred and is continuing under the
Agreement.
Section 8.02. Acceleration. Upon the occurrence of an Event of Default the
Trustee may, and upon the written request of the holders of not less than 25% in
aggregate principal amount of Bonds then outstanding shall, by notice in writing
delivered to the Issuer and the Company, declare the principal of all Bonds then
outstanding and the interest accrued thereon immediately due and payable; and
such principal and interest shall thereupon become and be immediately due and
payable.
If after the principal of the Bonds and the accrued interest thereon have
been so declared to be due and payable, all arrears of interest and interest on
overdue installments of interest (if lawful) and the principal and premium, if
any, on all Bonds then outstanding which shall have become due and payable
otherwise than by acceleration and all other sums payable under this Indenture
or upon the Bonds, except the principal of, and interest on, the Bonds which by
such declaration shall have become due and payable, are paid by the Issuer, and
the Issuer also performs all other things in respect of which it may have been
in default hereunder and pays the reasonable charges of the Trustee, the
Bondholders and any trustee appointed under law, including the Trustee's
reasonable attorneys' fees, then, and in every such case, the Trustee shall
annul such declaration and its consequences, and such annulment shall be binding
upon all holders of Bonds issued hereunder; but no such annulment shall extend
to or affect any subsequent default or impair any right or remedy consequent
thereon. The Trustee shall forward a copy of any such annulment notice pursuant
to this paragraph to the Issuer and the Company.
Section 8.03. Other Remedies. If an Event of Default occurs and is
continuing, subject to Section 8.06, the Trustee, before or after declaring the
principal of the Bonds and the interest accrued thereon immediately due and
payable, may, and upon request of the holders of at least 25% in principal
amount of the Bonds then outstanding shall, pursue any available remedy by
proceeding at law or in equity available to the Trustee under the Agreement and
the Note to collect the principal of or interest on the Bonds or to enforce the
performance of any provision of the Bonds, the Note, this Indenture or the
Agreement.
The Trustee, as the assignee of all the right, title and interest of the
Issuer in and to the Agreement and the Note, may enforce each and every right
granted to the Issuer under the Agreement and the Note. In exercising such
rights and the rights given the Trustee under this Article VIII, the Trustee
shall take such action as, in the judgment of the Trustee applying the standards
described in Section 9.01(a), would best serve the interests of the Bondholders.
Section 8.04. Legal Proceeding by Trustee. If any Event of Default has
occurred and is continuing, the Trustee in its discretion may, and upon the
written request of the holders of not less than 25% in principal amount of all
Bonds then outstanding and receipt of indemnity to its satisfaction shall, in
its own name:
(a) by mandamus, or other suit, action or proceeding at law or in equity,
enforce all rights of the Bondholders, including the right to require the Issuer
to enforce any rights under the Agreement and the Note and to require the Issuer
to carry out any other provisions of this Indenture for the benefit of the
Bondholder and to perform its duties under the Act;
(b) bring suit upon the Bonds;
(c) by action or suit in equity require the Issuer to account as if it were
the trustee of an express trust for the Bondholders; or
(d) by action or suit in equity enjoin any acts or things which may be
unlawful or in violation of the rights of the Bondholders.
No remedy conferred upon or reserved to the Trustee or to the Bondholders
by the terms of this Indenture is intended to be exclusive of any other remedy,
but each and every such remedy shall be cumulative and shall be in addition to
any other remedy given to the Trustee or to the Bondholders hereunder or now or
hereafter existing at law or in equity or by statute.
No delay or omission to exercise any right or power accruing upon any
default or Event of Default shall impair any such right or power or shall be
construed to be a waiver of any such default or Event of Default or acquiescence
therein; and every such right and power may be exercised from time to time as
often as may be deemed expedient.
No waiver of any default or Event of Default hereunder, whether by the
Trustee or by the Bondholders, shall extend to or shall affect any subsequent
default or Event of Default or shall impair any rights or remedies consequent
thereon.
Section 8.05. Appointment of Receivers. Upon the occurrence and continuance
of an Event of Default, and upon the filing of a suit or other commencement of
judicial proceedings to enforce the rights of the Trustee and of the Bondholders
under this Indenture, the Trustee shall be entitled as a matter of right to the
appointment of a receiver or receivers of the trust estate with such powers as
the court making such appointment shall confer.
Section 8.06. Waiver of Past Defaults. The holders of a majority in
principal amount of the Bonds then outstanding by notice to the Trustee may
waive an existing Event of Default and its consequences. When an Event of
Default is waived, it is cured and stops continuing, but no such waiver shall
extend to any subsequent or other Event of Default or impair any right
consequent to it.
Section 8.07. Control by Majority. The holders of a majority in principal
amount of the Bonds then outstanding may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on it. However, the Trustee may refuse
to follow any direction that conflicts with law or this Indenture or, subject to
Section 9.01, that the Trustee determines is unduly prejudicial to the rights of
other Bondholders, or would involve the Trustee in personal liability.
Section 8.08. Limitation on Suits. A Bondholder may not pursue any remedy
with respect to this Indenture or the Bonds unless (a) the holder gives the
Trustee notice stating that an Event of Default is continuing, (b) the holders
of at least 25% in principal amount of the Bonds then outstanding make a written
request to the Trustee to pursue the remedy, (c) such holder or holders offer to
the Trustee indemnity satisfactory to the Trustee against any loss, liability or
expense and (d) the Trustee does not comply with the request within 60 days
after receipt of the request and the offer of indemnity; it being understood and
intended that no one or more holders of the Bonds shall have any right in any
manner whatsoever to affect, disturb or prejudice the lien of this Indenture by
its, his or their action or to enforce any right hereunder except in the manner
herein provided, and that all proceedings at law or in equity shall be
instituted, had and maintained in the manner herein provided and for the equal
and ratable benefit of the holders of all Bonds then outstanding. Nothing in the
Indenture contained shall, however, affect or impair the right of any Bondholder
to enforce the payment of the principal of and premium, if any, and interest on
any Bond at and after the maturity thereof, or the obligation of the Issuer to
pay the principal of and premium, if any, and interest on each of the Bonds
issued hereunder to the respective holders thereof at the time and place, from
the source and in the manner in the Bonds expressed.
A Bondholder may not use this Indenture to prejudice the rights of another
Bondholder or to obtain a preference or priority over the other Bondholders.
Section 8.09. Rights of Holders to Receive Payment. Notwithstanding any
other provision of this Indenture, the right of any holder to receive payment of
principal of and interest on a Bond, on or after the due dates expressed in the
Bond, or the purchase price of a Bond on or after the date for its purchase as
provided in the Bond, or to bring suit for the enforcement of any such payment
on or after such dates, shall not be impaired or affected without the consent of
the holder.
Section 8.10. Collection Suit by Trustee. If an Event of Default under
Section 8.01(a), (b) or (c) occurs and is continuing, the Trustee may recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount remaining unpaid.
Section 8.11. Trustee May File Proofs of Claim. The Trustee may file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee and the Bondholders allowed in any
judicial proceedings relative to the Company, its creditors or its property and,
unless prohibited by law or applicable regulations, may vote on behalf of the
holders in any election of a trustee in bankruptcy or other person performing
similar functions. In the event of a bankruptcy or reorganization of the
Company, the Trustee may file a proof of claim on behalf of all Bondholders with
respect to the obligations of the Company pursuant to the Agreement and the
Note.
Section 8.12. Priorities. If the Trustee collects any money pursuant to
this Article, it shall be deposited into the Bond Fund and paid out in the
following order:
FIRST: To the Rebate Fund, any amounts necessary to
meet the Rebate Requirement.
SECOND: To the Trustee for amounts to which it is entitled
under Section 9.02.
THIRD: To Bondholders for amounts due and unpaid on the Bonds for
principal and interest, ratably, without preference or
priority of any kind, according to the amounts due and
payable on the Bonds for principal and interest,
respectively.
FOURTH: To the Company.
The Trustee may fix a payment date for any payment to the Bondholders.
Section 8.13. Undertaking for Costs. In any suit for the enforcement of any
right or remedy under this Indenture or in any suit against the Trustee for any
action taken or omitted by it as Trustee, a court in its discretion may require
the filing by any party litigant in the suit of an undertaking to pay the costs
of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made by
the party litigant. This Section does not apply to a suit by the Trustee or the
Issuer, a suit by a holder pursuant to Section 8.07 or a suit by holders of more
than 10% in principal amount of the Bonds then outstanding.
ARTICLE IX
TRUSTEE AND REMARKETING AGENT
Section 9.01. Acceptance of the Trusts. The Trustee hereby accepts the
trusts imposed upon it by this Indenture, and agrees to perform said trusts, but
only upon and subject to the following express terms and conditions:
(a) The Trustee, prior to the occurrence of any Event of Default and after
the curing or waiver of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture. In case an Event of Default has occurred (which has not
been cured or waived) the Trustee shall exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in
their exercise, as a prudent corporate trustee would exercise or use under the
circumstances in the enforcement of a corporate indenture.
(b) The Trustee may execute any of the trusts or powers hereof and perform
any of its duties by or through attorneys, agents, receivers or employees
selected by it with reasonable care and the Trustee shall not be responsible for
the conduct of such attorneys, agents, receivers or employees, if selected with
reasonable care, and shall be entitled to advice of counsel concerning all
matters relating to the trusts hereof and the duties hereunder, and may in all
cases pay such reasonable compensation to all such attorneys, agents, receivers
and employees as may reasonably be employed in connection with the trusts
hereof. The Trustee may act upon the opinion or advice of any attorney (who may
be the attorney or attorneys for the Issuer or the Company), approved by the
Trustee in the exercise of reasonable care. The Trustee shall not be responsible
for any loss or damage resulting from any action or inaction in good faith in
reliance upon such opinion or advice.
(c) The Trustee shall not be responsible for any recital herein, or in the
Bonds (except in respect to the certificate of the Trustee endorsed on the
Bonds), or for the recording or re-recording, filing or re-filing of this
Indenture, or any other instrument required by this Indenture to secure the
Bonds, or for insuring the Projects or collecting any insurance moneys, or for
validity of the execution by the Issuer of this Indenture or of any supplements
hereto or instruments of further assurance, or for the sufficiency of the
security for the Bonds issued hereunder or intended to be secured hereby.
(d) The Trustee shall not be accountable for the use of any Bonds
authenticated or delivered hereunder. The Trustee may become the owner of Bonds
secured hereby with the same rights which it would have if not the Trustee. To
the extent permitted by law, the Trustee may also receive tenders and purchase
in good faith Bonds from itself, including any department, affiliate or
subsidiary, with like effect as if it were not the Trustee.
(e) The Trustee shall be protected in acting upon any notice, request,
consent, certificate, order, affidavit, letter, telegram or other paper or
document believed by it to be genuine and correct and to have been signed or
sent by the proper person or persons. Any action taken by the Trustee pursuant
to this Indenture upon the request or authority or consent of any person who at
the time of making such request or giving such authority or consent is the owner
of any Bond, shall be conclusive and binding upon all future owners of the same
Bond and upon owners of Bonds issued in exchange therefor or in place thereof.
(f) As to the existence or non-existence of any fact or as to the
sufficiency or validity of any instrument, paper or proceeding, the Trustee
shall be entitled to rely upon a certificate signed by the Issuer or the Company
as sufficient evidence of the facts therein contained; and prior to the
occurrence of a default of which the Trustee has been notified as provided in
subsection (h) of this Section 9.01, or of which by said subsection it is deemed
to have notice, the Trustee shall also be at liberty to accept a similar
certificate to the effect that any particular dealing, transaction or action is
necessary or expedient, but may at its discretion secure such further evidence
deemed necessary or advisable, but shall in no case be bound to secure the same.
The Trustee may accept a certificate of the Secretary or Assistant Secretary of
the Issuer under the Issuer's seal to the effect that a resolution in the form
therein set forth has been adopted by the Issuer as conclusive evidence that
such resolution has been duly adopted, and is in full force and effect.
(g) The permissive right of the Trustee to do things enumerated in this
Indenture shall not be construed as a duty, and it shall not be answerable for
other than its negligence or willful default.
(h) The Trustee shall not be required to take notice or be deemed to have
notice of any Event of Default hereunder except failure by the Issuer to cause
to be made any of the payments to the Trustee required to be made by Article IV
hereof, unless the Trustee shall be specifically notified in writing of such
Event of Default by the Issuer or by the holders of at least 25% in aggregate
principal amount of Bonds then outstanding; and all notices or other instruments
required by this Indenture to be delivered to the Trustee must, in order to be
effective, be delivered at the principal corporate trust office of the Trustee,
and in the absence of such notice so delivered the Trustee may conclusively
assume there is no default except as aforesaid.
(i) At any and all reasonable times the Trustee and its duly authorized
agents, attorneys, experts, engineers, accountants and representatives shall
have the right fully to inspect any and all parts of the Projects, including all
books, papers and records of the Issuer pertaining to the Projects and the Bonds
and to take such memoranda from and in regard thereto as may be desired.
(j) The Trustee shall not be required to give any bond or surety in respect
of the execution of the said trusts and powers or otherwise in respect of the
premises.
(k) Notwithstanding anything elsewhere in this Indenture contained, the
Trustee shall have the right, but shall not be required, to demand, in respect
of the authentication of any Bonds, the withdrawal of any cash, the release of
any property, or any action whatsoever within the purview of this Indenture, any
showings, certificates, opinions, appraisals or other information, or corporate
action or evidence thereof, in addition to that by the terms hereof required as
a condition of such action by the Trustee, which the Trustee in its discretion
may deem desirable for the purpose of establishing the right of the Issuer to
the authentication of any Bonds, the withdrawal of any cash, or the taking of
any other action by the Trustee.
(l) Before taking any action referred to in Section 8.03, 8.04, 8.05, 8.08,
8.09 or 9.04, the Trustee may require that a satisfactory indemnity bond be
furnished for the reimbursement of all expenses to which it may be put and to
protect it against all liability, except liability which is adjudicated to have
resulted from its negligence or willful default by reason of any action so
taken.
(m) All moneys received by the Trustee or any paying agent shall, until
used or applied or invested as herein provided, be held in trust for the
purposes for which they were received but need not be segregated from other
funds except to the extent required herein or by law. Neither the Trustee nor
any paying agent shall be under any liability for interest on any moneys
received hereunder except such as may be mutually agreed upon.
(n) No provision of the Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or
powers.
Section 9.02. Fees, Charges and Expenses of Trustee. The Trustee shall be
entitled to payment and reimbursement for reasonable fees for its services
rendered hereunder and all advances, counsel fees and other expenses reasonably
and necessarily made or incurred by the Trustee in connection with such
services. Upon an Event of Default, but only upon an Event of Default, the
Trustee shall have a first lien, with right of payment prior to payment on
account of principal of and premium, if any, and interest on any Bond, upon the
trust estate for the foregoing fees, charges and expenses incurred by it.
Section 9.03. Notice to Bondholders if an Event of Default Occurs. If an
Event of Default occurs of which the Trustee is by Section 9.01(h) required to
take notice or if notice of an Event of Default be given as in Section 9.01(h)
provided, then the Trustee shall promptly give written notice thereof by
registered or certified mail to each owner of Bonds then outstanding.
Section 9.04. Intervention by Trustee. In any judicial proceeding to which
the Issuer is a party and which in the opinion of the Trustee and its counsel
has a substantial bearing on the interests of the owners of the Bonds, the
Trustee may intervene on behalf of the Bondholders and shall do so if requested
in writing by the owners of at least 25% of the aggregate principal amount of
Bonds then outstanding. The rights and obligations of the Trustee under this
Section 9.04 are subject to the approval of a court of competent jurisdiction.
Section 9.05. Successor Trustee. Any corporation or association into which
the Trustee may be converted or merged, or with which it may be consolidated, or
to which it may sell or transfer its trust business and assets as a whole or
substantially as a whole or any corporation or association resulting from any
such conversion, sale, merger, consolidation or transfer to which it is a party,
ipso facto, shall be and become successor Trustee hereunder and vested with all
of the title to the trust estate and all the trusts, powers, discretions,
immunities, privileges and all other matters as was its predecessor, without the
execution or filing of any instrument or any further act, deed or conveyance on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding.
Section 9.06. Resignation by Trustee. The Trustee and any successor Trustee
may at any time resign from the trusts hereby created by giving thirty days'
written notice to the Issuer and the Company, served personally or sent by
registered or certified mail, and to each owner of Bonds then outstanding, sent
by registered or certified mail, and such resignation shall take effect upon the
appointment of a successor Trustee pursuant to Section 9.08 hereof.
Section 9.07. Removal of Trustee. The Trustee may be removed at any time,
by an instrument or concurrent instruments in writing delivered to (a) the
Trustee and to the Issuer, the Remareketing Agent and the Company, and signed by
the owners of a majority in aggregate principal amount of Bonds then
outstanding, or (b) to the Trustee and the owners of all Bonds then outstanding,
and signed by the Issuer and the Company.
Section 9.08. Appointment of Successor Trustee. In case the Trustee
hereunder shall resign or be removed, or be dissolved, or shall be in course of
dissolution or liquidation, or otherwise become incapable of acting hereunder,
or in case it shall be taken under the control of any public officer or
officers, or of a receiver appointed by a court, a successor shall be appointed
by the Issuer at the direction of the Company. The Issuer shall cause notice of
such appointment to be given in the same manner as the giving of notices of
redemption as set forth in Section 3.04. If the Issuer fails to make such
appointment promptly, a successor may be appointed by the owners of a majority
in aggregate principal amount of Bonds then outstanding. Every such successor
Trustee appointed pursuant to the provisions of this Section 9.08 shall be a
trust company or bank in good standing having a reported capital, surplus and
undivided profits of not less than $25,000,000, if there be such an institution
willing, qualified and able to accept the trusts upon reasonable and customary
terms.
Section 9.09. Concerning Any Successor Trustee. Every successor Trustee
appointed hereunder shall execute, acknowledge and deliver to its predecessor
and also to the Issuer an instrument in writing accepting such appointment
hereunder, and thereupon such successor, without any further act, deed or
conveyance, shall become fully vested with all of the estates, properties,
rights, powers, trusts, duties and obligations of its predecessor; but such
predecessor shall, nevertheless, on the written request of the Issuer, or of its
successor, execute and deliver an instrument transferring to such successor
Trustee all the estates, properties, rights, powers and trusts of such
predecessor hereunder, and every predecessor Trustee shall deliver all
securities and moneys held by it as Trustee hereunder to its successor. Should
any instrument in writing from the Issuer be required by any successor Trustee
for more fully and certainly vesting in such successor the estate, rights,
powers and duties hereby vested or intended to be vested in the predecessor, any
and all such instruments in writing shall, on request, be executed, acknowledged
and delivered by the Issuer. The resignation of any Trustee and the instrument
or instruments removing any Trustee and appointing a successor hereunder,
together with all other instruments provided for in this Article IX, may be
filed and/or recorded by the successor Trustee in each recording office where
the Indenture shall have been filed and/or recorded and the successor Trustee
shall bear the cost thereof.
Section 9.10. Successor Trustee as Bond Registrar, Custodian of the Bond
Fund, the Rebate Fund and the Construction Fund and Paying Agent. In the event
of a change of Trustee, the Trustee which has resigned or been removed shall
cease to be bond registrar, custodian of the Bond Fund and the Construction Fund
and a paying agent for principal of and premium, if any, and interest on the
Bonds, and the successor Trustee shall become such bond registrar, custodian and
a paying agent.
Section 9.11. Trustee and Issuer Required to Accept Directions and Actions
of Company. Whenever, after a reasonable request by the Company, the Issuer
shall fail, refuse or neglect to give any direction to the Trustee or to require
the Trustee to take any action which the Issuer is required to have the Trustee
take pursuant to the provisions of the Agreement or this Indenture, the Company
as agent of the Issuer may give any such direction to the Trustee or require the
Trustee to take any such action, and the Trustee is hereby irrevocably empowered
and directed to accept such direction from the Company as sufficient for all
purposes of this Indenture. The Company shall have the right as agent of the
Issuer to cause the Trustee to comply with any of the Trustee's obligations
under this Indenture to the same extent that the Issuer is empowered so to do.
Certain actions or failures to act by the Issuer under this Indenture may
create or result in an Event of Default under this Indenture and the Company, as
agent of the Issuer, may to the extent permitted by law, perform any and all
acts or take such action as may be necessary for and on behalf of the Issuer to
prevent or correct said Event of Default and the Trustee shall take or accept
such performance by the Company as performance by the Issuer in such event.
The Issuer hereby makes, constitutes and appoints the Company irrevocably
as its agent to give all directions, do all things and perform all acts
provided, and to the extent so provided, by this Section 9.11.
Section 9.12. No Transfer of Note Held by the Trustee; Exception. Except as
required to effect an assignment to a successor Trustee, the Trustee shall not
sell, assign or transfer the Note and the Trustee is authorized to enter into an
agreement with the Company to such effect.
Section 9.13. Filing of Certain Continuation Statements. From time to time,
the Trustee shall duly file, or cause to be filed, at the expense of the
Company, continuation statements for the purpose of continuing without lapse the
effectiveness of the filing of the financing statements with respect to the
security interest created by this Indenture in the Agreement and the Note, at or
prior to the issuance of the Bonds and any previously filed continuation
statements which shall have been filed as herein required. The Issuer shall sign
and deliver to the Trustee or its designee such continuation statements as may
be requested of it from time to time by the Trustee. Upon the filing of any such
continuation statements the Trustee shall immediately notify the Issuer and the
Company that the same has been accomplished.
Section 9.14 Duties of Remarketing Agent. The Remarketing Agent will set
the interest rates on the Bonds and perform the other duties provided for in
Section 2.02 and will remarket the Bonds as provided in Section 3.08, subject to
any provisions of a remarketing agreement between the Company and the
Remarketing Agent. The Remarketing Agent may for its own account or as broker or
agent for others deal in Bonds and may do anything any other Bondholder may do
to the same extent as if the Remarketing Agent were not serving as such.
Section 9.15 Eligibility of Remarketing Agent. The initial Remarketing
Agent appointed under this Indenture is Goldman, Sachs & Co. The Remarketing
Agent will be a bank, trust company or member of the National Association of
Securities Dealers, Inc. organized and doing business under the laws of the
United States or any state or the District of Columbia, will have a combined
capital stock, surplus and undivided profits of at least $15,000,000 as shown in
its most recent published annual report, will be a Participant in the Securities
Depository and will be authorized by law to perform all the duties imposed upon
it by this Indenture. Any successor Remarketing Agent shall be rated at least
Baa3/P-3 or otherwise qualified by Moody's Investors Service, Inc. or have an
equivalent rating of another rating agency.
Section 9.16 Replacement of Remarketing Agent. The Remarketing Agent may
resign by notifying the Issuer, Trustee and Company. Such resignation will take
effect on the day a successor Remarketing Agent appointed in accordance with
this Section 9.16 has accepted the appointment or, if no successor has so
accepted, 30 days after notice of resignation has been sent. The Company may
remove the Remarketing Agent at any time by an instrument signed by the Company
and filed with the Remarketing Agent, the Issuer and the Trustee at least 30
days prior to the effective date of such removal (which will not in any event
occur prior to the appointment of a successor Remarketing Agent). A new
Remarketing Agent may be appointed by the Company upon the resignation or
removal of the Remarketing Agent. The Trustee shall promptly notify the
Bondholders of any change in the Remarketing Agent.
Section 9.17. Compensation of Remarketing Agent. The Remarketing Agent will
not be entitled to any compensation from the Issuer, the Trustee or any property
held under this Indenture but must make separate arrangements with the Company
for compensation.
Section 9.18. Successor Remarketing Agent. If the Remarketing Agent
consolidates with, merges or converts into, or transfers all or substantially
all its assets (or, in the case of a bank or trust company, its corporate trust
assets) to another corporation, the resulting, surviving or transferee
corporation without any further act shall be the successor Remarketing Agent,
provided that such successor shall be eligible under the applicable provisions
in this Article.
ARTICLE X
AMENDMENTS OF AND SUPPLEMENTS TO INDENTURE
Section 10.01. Without Consent of Bondholders. The Issuer and the Trustee
may amend or supplement this Indenture or the Bonds without notice to or consent
of any Bondholder:
(a) to cure any ambiguity, inconsistency or formal defect
or omission,
(b) to grant to the Trustee for the benefit of the Bondholders
additional rights, remedies, powers or authority,
(c) to subject to this Indenture additional collateral or to add
other agreements of the Issuer,
(d) to modify this Indenture or the Bonds to permit qualification
under the Trust Indenture Act of 1939, as amended, or any similar
federal statute at the time in effect, or to permit the qualification
of the Bonds for sale under the securities laws of any state of the
United States,
(e) to authorize different authorized denominations of the Bonds
and to make correlative amendments and modifications to this Indenture
regarding exchangeability of Bonds of different authorized
denominations, redemptions of portions of Bonds of particular
authorized denominations and similar amendments and modifications of a
technical nature,
(f) to increase or decrease the number of days specified for the
giving of notices in Section 2.02 and to make corresponding changes to
the period for notice of redemption of the Bonds; provided that no
decreases in any such number of days shall become effective except
while the Bonds bear interest at a Daily Rate or a Weekly Rate and
until 30 days after the Trustee has given notice to the owners of the
Bonds,
(g) to provide for an uncertificated system of registering the
Bonds or to provide for the change to or from a Book-Entry System for
the Bonds,
(h) to evidence the succession of a new Trustee or the
appointment by the Trustee or the Issuer of a co-trustee, or
(i) to make any change (including a change in Section 4.01 to
reflect any amendment to the Code or interpretations by the Internal
Revenue Service of the Code) that does not materially adversely affect
the rights of any Bondholder.
Section 10.02. With Consent of Bondholders. If an amendment of or
supplement to this Indenture or the Bonds without any consent of Bondholders is
not permitted by the preceding Section, the Issuer and the Trustee may enter
into such amendment or supplement without prior notice to any Bondholders but
with the consent of the holders of at least a majority in principal amount of
the Bonds then outstanding. However, without the consent of each Bondholder
affected, no amendment or supplement may (a) extend the maturity of the
principal of, or interest on, any Bond, (b) reduce the principal amount of, or
rate of interest on, any Bond, (c) effect a privilege or priority of any Bond or
Bonds over any other Bond or Bonds, (d) reduce the percentage of the principal
amount of the Bonds required for consent to such amendment or supplement, (e)
impair the exclusion from federal gross income of interest on any Bond, (f)
eliminate the holders' rights to tender the Bonds, or any mandatory redemption
of the Bonds, extend the due date for the purchase of Bonds tendered by the
holders thereof or call for mandatory redemption or reduce the purchase or
redemption price of such Bonds, (g) create a lien ranking prior to or on a
parity with the lien of this Indenture on the property described in the Granting
Clause of this Indenture or (h) deprive any Bondholder of the lien created by
this Indenture on such property. In addition, if moneys or Government
Obligations have been deposited or set aside with the Trustee pursuant to
Article VII for the payment of Bonds and those Bonds shall not have in fact been
actually paid in full, no amendment to the provisions of that Article shall be
made without the consent of the holder of each of those Bonds affected.
Section 10.03. Effect of Consents. Any consent received pursuant to Section
10.02 will bind each Bondholder delivering such consent and each subsequent
holder of a Bond or portion of a Bond evidencing the same debt as the consenting
holder's Bond.
Section 10.04. Notation on or Exchange of Bonds. If an amendment or
supplement changes the terms of a Bond, the Trustee may require the holder to
deliver it to the Trustee. The Trustee may place an appropriate notation on the
Bond about the changed terms and return it to the holder. Alternatively, if the
Trustee, the Issuer and the Company determine, the Issuer in exchange for the
Bond will issue and the Trustee will authenticate a new Bond that reflects the
changed terms.
Section 10.05. Signing by Trustee of Amendments and Supplements. No
amendment or supplement shall be effective until signed by the Trustee. The
Trustee will sign any amendment or supplement to the Indenture or the Bonds
authorized by this Article if, in the opinion of the Trustee, the amendment or
supplement does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may, but need not, sign it.
In signing an amendment or supplement, the Trustee will be entitled to receive
and (subject to Section 9.01) will be fully protected in relying on an Opinion
of Counsel stating that such amendment or supplement is authorized by this
Indenture.
Section 10.06. Company Consent Required. An amendment or supplement to this
Indenture or the Bonds shall not become effective unless the Company delivers to
the Trustee its written consent to the amendment or supplement.
Section 10.07. Notice to Bondholders. The Trustee shall cause notice of the
execution of each supplement or amendment to this Indenture or the Agreement to
be mailed to the Bondholders. The notice will at the option of the Trustee,
either (i) briefly state the nature of the amendment or supplement and that
copies of it are on file with the Trustee for inspection by Bondholders or (ii)
enclose a copy of such amendment or supplement.
ARTICLE XI
AMENDMENTS OF AND SUPPLEMENTS TO THE AGREEMENT
Section 11.01. Without Consent of Bondholders. The Issuer may enter into,
and the Trustee may consent to, any amendment of or supplement to the Agreement,
or may waive compliance by the Company of any provision of the Agreement, in
each case without notice to or consent of any Bondholder, if the amendment,
supplement or waiver is required or permitted (a) by the provisions of the
Agreement or this Indenture, (b) to cure any ambiguity, inconsistency or formal
defect or omission, (c) to identify more precisely the Projects, (d) in
connection with any authorized amendment of or supplement to this Indenture or
(e) to make any change that in the judgment of the Trustee does not materially
adversely affect the rights of any Bondholder.
Section 11.02. With Consent of Bondholders. If an amendment of or
supplement to the Agreement without any consent of Bondholders is not permitted
by Section 11.01, the Issuer may enter into, and/or the Trustee may consent to
(as the case may be), such amendment or supplement, or may waive compliance by
the Company of any provision of the Agreement, without notice to any Bondholder
but with the consent of the holders of at least a majority in principal amount
of the Bonds then outstanding. However, without the consent of each Bondholder
affected, no amendment, supplement or waiver may result in anything described in
the lettered clauses of Section 10.02.
Section 11.03. Consents by Trustee to Amendments or Supplements. The
Trustee will consent to any amendment or supplement to the Agreement authorized
by this Article XI if, in the opinion of the Trustee, the amendment or
supplement does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may, but need not, sign it.
No such amendment or supplement shall be effective until the Trustee shall sign
a consent thereto. In signing a consent to an amendment or supplement, the
Trustee shall be entitled to receive and (subject to Section 9.01) shall be
fully protected in relying on an Opinion of Counsel stating that such amendment
or supplement is authorized or permitted by this Indenture.
ARTICLE XII
MISCELLANEOUS
Section 12.01. Notices. (a) Any notice, request, direction, designation,
consent, acknowledgment, certification, appointment, waiver or other
communication required or permitted by this Indenture or the Bonds must be in
writing except as expressly provided otherwise in this Indenture or the Bonds.
(b) Any notice or other communication shall be sufficiently given and
deemed given when delivered by hand or mailed by first-class mail, postage
prepaid, addressed as follows: if to the Issuer, at 1306 Walter Sillers
Building, 550 High Street, Jackson, Mississippi 39201, Attention: Executive
Director; if to the Trustee, to Hancock Bank, 2510 14th Street, 1 Hancock Plaza,
Gulfport, Mississippi 39501, Attention: Trust Department; if to the Company, at
2992 West Beach Boulevard, Gulfport, Mississippi 39501, Attention: Treasurer,
with copies to Southern Company Services, Inc., 270 Peachtree Street, N.W.,
Atlanta, Georgia 30303, Attention: Corporate Finance Department; and if to the
Remarketing Agent, to Goldman, Sachs & Co., 85 Broad Street, New York, New York
10004, Attention: Municipal Finance Department. Any addressee may designate
additional or different addresses for purposes of this Section.
Section 12.02. Bondholders' Consents. Any consent or other instrument
required by this Indenture to be signed by Bondholders may be in any number of
concurrent documents and may be signed by a Bondholder or by the holder's agent
appointed in writing. Proof of the execution of such instrument or of the
instrument appointing an agent and of the ownership of Bonds, if made in the
following manner, shall be conclusive for any purposes of this Indenture with
regard to any action taken by the Trustee under the instrument:
(a) The fact and date of a person's signing an instrument may be
proved by the certificate of any officer in any jurisdiction who by law has
power to take acknowledgments within that jurisdiction that the person
signing the writing acknowledged before the officer the execution of the
writing, or by an affidavit of any witness to the signing.
(b) The fact of ownership of Bonds, the amount or amounts, numbers and
other identification of such Bonds and the date of holding shall be proved
by the registration books kept pursuant to this Indenture.
In determining whether the holders of the required principal amount of
Bonds outstanding have taken any action under this Indenture, Bonds owned by the
Company or any person controlling, controlled by or under common control with
the Company shall be disregarded and deemed not to be outstanding. In
determining whether the Trustee shall be protected in relying on any such
action, only Bonds which the Trustee knows to be so owned shall be disregarded.
Any consent or other instrument shall be irrevocable and shall bind any
subsequent owner of such Bond or any Bond delivered in substitution therefor.
Section 12.03. Appointment of Separate Paying Agent and/or Tender Agent.
If, at any time, the Securities Depository ceases to hold the Bonds, with the
effect that the Bonds are no longer subject to the Book-Entry System, then the
Issuer and the Trustee, acting at the request of the Company, may appoint one or
more banks or trust companies to act as paying agent and/or tender agent for the
Bonds hereunder. In addition, the Trustee, acting at the request of the Company,
at any time may appoint such a paying agent and/or tender agent. Any such paying
agent or tender agent shall be a bank or trust company organized under the laws
of the United States of America or any state thereof, shall have a reported
capital and surplus of at least $100,000,000 and (if the Book-Entry System is no
longer in effect) a corporate trust office located in New York, New York at
which Bonds may be presented for payment or purchase and shall perform such
duties and responsibilities as may be delegated to it hereunder. If such a
paying agent or tender agent is appointed, then all references herein to the
"Trustee" shall include such paying agent or tender agent to the extent of the
duties performed by such entity. Provided it meets the requirements herein, the
Trustee may serve as paying agent and/or tender agent.
Section 12.04. Limitation of Rights. Nothing expressed or implied in this
Indenture or the Bonds shall give any person other than the Trustee, Issuer,
Company, Remarketing Agent and the Bondholders any right, remedy or claim under
or with respect to this Indenture.
Section 12.05. Severability. If any provision of this Indenture shall be
held or deemed to be or shall, in fact, be illegal, inoperative or
unenforceable, the same shall not affect any other provision or provisions
herein contained or render the same invalid, inoperative or unenforceable to any
extent whatsoever.
Section 12.06. Payments Due on Non-Business Days. If a payment date is not
a Business Day at the place of payment, then payment may be made at that place
on the next Business Day, and no interest shall accrue for the intervening
period.
Section 12.07. Governing Law. This Indenture shall be governed exclusively
by and construed in accordance with the applicable laws of the State.
Section 12.08. Captions. The captions in this Indenture are for convenience
only and do not define or limit the scope or intent of any provisions or
Sections of this Indenture.
Section 12.09. No Liability of Officers. No covenant or agreement contained
in the Bonds or this Indenture shall be deemed to be a covenant or agreement of
any member, officer, agent or employee of the Issuer in his individual capacity,
and neither the officers of the Issuer nor any official executing the Bonds or
this Indenture shall be liable personally on the Bonds or be subject to any
personal liability or accountability by reason of the issuance of the Bonds or
the execution and delivery of this Indenture.
Section 12.10. Counterparts. This Indenture may be signed in several
counterparts. Each will be an original, but all of them together constitute the
same instrument.
<PAGE>
IN WITNESS WHEREOF, the Mississippi Business Finance Corporation has caused
these presents to be signed in its name and behalf by its Executive Director,
and its official seal to be hereunto affixed and attested by its Secretary and
to evidence its acceptance of the trusts hereby created Hancock Bank, as
Trustee, has caused these presents to be signed in its name and behalf and its
official seal to be hereunto affixed and attested by its duly authorized
officer, all as of the day and year first above written.
MISSISSIPPI BUSINESS FINANCE
[SEAL] CORPORATION
By: ____________________________________
Executive Director
Attest:
Secretary
_____________________________________
HANCOCK BANK, as Trustee
[SEAL] By: ____________________________________
Title:__________________________
<PAGE>
STATE OF NEW YORK
COUNTY OF NEW YORK
Personally appeared before me, the undersigned authority in and for the
said county and state, on this ____ day of December, 1999, within my
jurisdiction, the within named William T. Barry and James Vernon Smith, Sr., who
acknowledged that they are the Executive Director and Secretary, respectively,
of the Mississippi Business Finance Corporation, and that in said representative
capacities they executed the above and foregoing instrument, after first having
been duly authorized so to do.
__________________________________
Notary Public
My Commission Expires:
________________________________
<PAGE>
STATE OF __________
COUNTY OF __________
Personally appeared before me, the undersigned authority in and for the
said county and state, on this ____ day of December, 1999, within my
jurisdiction, the within named Elizabeth Zeigler, who acknowledged that she is a
________________________ of Hancock Bank, a Mississippi state chartered bank,
and that for and on behalf of the said bank and as its act and deed she executed
the above and foregoing instrument, after first having been duly authorized by
said bank so to do.
_________________________________
Notary Public
My Commission Expires:
___________________________________
<PAGE>
Exhibit A
Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its
agent for registration of transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co. has an interest herein.
UNITED STATES OF AMERICA
STATE OF MISSISSIPPI
No. R-1 $9,400,000
Mississippi Business Finance Corporation
Revenue BOND,
Series 1999
Mississippi Power Company Project)
TYPE OF INTEREST
MATURITY DATE DATE CUSIP RATE PERIOD
December 1, 2027 December 1, 1999 605279CT3 Commercial Paper
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: $9,400,000
Mississippi Business Finance Corporation (the "Issuer"), a public
corporation duly created and validly existing under the Constitution and laws of
the State of Mississippi, for value received, hereby promises to pay, solely
from the sources described in this Bond, to the Registered Owner identified
above, or registered assigns, on the Maturity Date stated above (or if this Bond
is called for earlier redemption as described herein, on the redemption date)
the principal amount identified above and to pay interest as provided in this
Bond.
1. Indenture; Agreement. This Bond is one of the bonds (the "Bonds"),
limited to $9,400,000 in aggregate principal amount, issued under the Trust
Indenture dated as of December 1, 1999 (the "Indenture"), between the Issuer and
Hancock Bank, Gulfport, Mississippi, as trustee (the "Trustee"). The terms of
the Bonds include those in the Indenture and those contained herein. Bondholders
are referred to the Indenture for a statement of certain of those terms. When
used with reference to the Bonds, the term "principal" includes any premium
payable on those Bonds. Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to them in the Indenture.
The Issuer has entered into a Loan Agreement dated as of December 1, 1999
(the "Agreement") with Mississippi Power Company, a Mississippi corporation (the
"Company"). Under the provisions of the Agreement the Issuer has loaned the
proceeds of the Bonds of this series to the Company (the "Loan"). In order to
evidence the Loan and the Company's obligation to repay the same, the Company
has executed and delivered its non-negotiable promissory note (the "Note"). The
Note provides for the repayment by the Company of the Loan, including interest
thereon, in installments sufficient to pay the principal of, purchase price and
premium, if any, and interest on the Bonds as the same shall become due and
payable, and the Agreement further obligates the Company to pay the cost of
operating, maintaining and repairing the Projects (as hereinafter defined). The
Note provides that the payments thereunder shall be paid directly to the Trustee
as assignee of the Issuer. The Issuer has assigned its rights to such payments
under the Agreement and the Note to the Trustee as security for the Bonds. The
proceeds of the Bonds will be used to finance certain solid waste disposal
facilities (collectively, the "Projects" and separately, a "Project") located at
the Jack Watson steam electric generating plant ("Plant Watson") in Harrison
County, Mississippi, and at the Victor J. Daniel, Jr. steam electric generating
plant ("Plant Daniel") in Jackson County, Mississippi.
The Indenture, the Agreement and the Note may be amended, and references to
them include any amendments.
The Issuer has established a book-entry only system of registration for the
Bonds (the "Book-Entry System"). Except as specifically provided otherwise in
the Indenture, a Securities Depository (or its nominee) will be the registered
owner of this Bond. By acceptance of a confirmation of purchase, delivery or
transfer, the Beneficial Owner (if any) of this Bond shall be deemed to have
agreed to this arrangement. If the Securities Depository (or its nominee) is the
registered owner of this Bond, it shall be treated as the owner of it for all
purposes.
2. Source of Payments. The principal of, premium, if any, and interest on
the Bonds are limited obligations of the Issuer and, as provided in the
Indenture, are payable solely and only from payments derived from the Agreement,
the Note and from any other moneys held by the Trustee under the Indenture for
such purpose. The Bonds are issued pursuant to and in full compliance with the
Constitution and laws of the State of Mississippi, particularly the provisions
of Sections 57-10-201 et seq., Mississippi Code of 1972, as amended and
supplemented, and pursuant to resolutions adopted by the Issuer on August 19,
1999 and November 10, 1999, which resolutions authorize the execution and
delivery of the Bonds, the Agreement and the Indenture. The Bonds and the
interest thereon are limited special obligations of the Issuer and are payable
solely from the revenues and other amounts derived from the Agreement and the
Note and are secured as set forth in the Indenture. The Bonds and the interest
thereon shall not be deemed to constitute a debt, liability or obligation of the
Issuer or the State of Mississippi or any political subdivision thereof, or a
pledge of the faith and credit of the Issuer or the State of Mississippi or any
political subdivision thereof, but the Bonds shall be payable solely from the
revenues provided therefor as herein described and the Issuer is not obligated
to pay principal of the Bonds or premium, if any, or the interest thereon or
other costs incident thereto except from the revenues and proceeds pledged
therefor and neither the faith and credit nor the taxing power of the Issuer or
the State of Mississippi or any political subdivision thereof is pledged to the
payment of the principal of or the premium, if any, or interest on this Bond. No
covenant or agreement contained in the Indenture shall be deemed to be a
covenant or agreement of any member, officer, agent or employee of the Issuer in
his individual capacity and no member of the Board of Directors of the Issuer
nor any officer of the Issuer executing this Bond shall be liable personally on
the Bonds or be subject to any personal liability in connection with the
issuance of this Bond.
Payments under the Note sufficient for the prompt payment when due of the
principal of and premium, if any, and interest on the Bonds are to be paid to
the Trustee by the Company for the account of the Issuer and deposited in the
Bond Fund as defined in and created under the Indenture which special fund is
pledged to and charged with the payment of the principal of and premium, if any,
and interest on the Bonds and such amounts to be paid thereunder have been duly
pledged and assigned for that purpose. In addition, substantially all other
rights of the Issuer under the Agreement have also been assigned to the Trustee
to secure payment of the principal of and premium, if any, and interest on the
Bonds issued under the Indenture.
3. Interest Rate. Interest on this Bond will be paid at the lesser of (a) a
Daily Rate, a Weekly Rate, a Commercial Paper Rate or a Long-Term Interest Rate
as selected by the Company and as determined in accordance with the Indenture
and (b) 13% per annum. Interest will initially be payable at a Commercial Paper
Rate as set forth in the Indenture. The Company may change the interest rate
determination method from time to time. A change in the method will result in
mandatory redemption of the Bonds (see "Redemption" below). While there exists
an Event of Default under the Indenture, the interest rate on the Bonds will be
the rate on the Bonds on the day before the Event of Default occurred, except
that if interest on any Bond was then payable at a Commercial Paper Rate, the
default rate for all Bonds then bearing interest at a Commercial Paper Rate will
be the highest Commercial Paper Rate then in effect for any Bond.
When interest is payable at a Daily, Weekly or Commercial Paper Rate, it
will be computed on the basis of the actual number of days elapsed over a year
of 365 days (366 in leap years), and when payable at a Long-Term Interest Rate
on the basis of a 360-day year of twelve 30-day months. Interest on overdue
principal and, to the extent lawful, on overdue premium and interest will be
payable at the rate on the Bonds on the day before the default occurred.
4. Interest Payment and Record Dates. Interest will accrue on the unpaid
portion of the principal of this Bond from the Dated Date stated above and
thereafter from the Interest Payment Date (as hereinafter defined) next
preceding the date of authentication hereof to which interest has been paid or
duly provided for, unless the date of authentication hereof is an Interest
Payment Date to which interest has been paid or duly provided for, in which case
from the date of authentication hereof, or unless no interest has been paid or
duly provided for on the Bonds of this series, in which case from said Dated
Date; provided, however, that if the date of authentication is between the
Record Date (as hereinafter defined) for any Interest Payment Date and such
Interest Payment Date, then interest will accrue from such Interest Payment Date
or, if the Company shall default in payment of the interest due on such Interest
Payment Date, then from the next preceding Interest Payment Date to which
interest has been paid or duly provided for, or if no interest has been paid or
duly provided for, then from said Dated Date. When interest is payable at the
rate in the first column below, interest accrued during the period (an "Interest
Period") shown in the second column will be paid on the date (an "Interest
Payment Date") in the third column to holders of record on the date (a "Record
Date") in the fourth column:
<TABLE>
<CAPTION>
INTEREST
RATE INTEREST PERIOD PAYMENT DATE RECORD DATE
<S> <C> <C> <C>
Daily* Calendar month Fifth Business Day of Last Business Day of the
the next month month
Weekly* Calendar month First Business Day of Last Business Day before
the next month Interest Payment Date
Commercial Paper From 1 to 365 days as Day after the last day Last Business Day before
determined or each Bond of Commercial Paper Interest Payment Date
pursuant to Section Period
2.02(a)(3) of the Indenture
("Commercial Paper Period")
Long-Term** Six-month period or portion Next day (June 1 or Fifteenth of the month
thereof ending the last day of December 1) before the Interest
May or November Payment Date (May 15 or
November 15)***
</TABLE>
"Business Day" is defined in the Indenture. Payment of defaulted interest
will be made to holders of record as of the fifth-to-last Business Day before
payment.
___________________________________
* If there shall be a change from a Daily Rate or a Weekly Rate on a day
other than the first day of a calendar month, the then current Interest Period
relating to such Daily Rate or Weekly Rate shall end on the day immediately
preceding the date on which the new interest rate on the Bonds shall become
effective, which date in the case of a change from a Weekly Rate, shall be the
Interest Payment Date for such Interest Period, for which the Record Date shall
be the immediately preceding Business Day; but in the case of a change from a
Daily Rate, the Interest Payment Date for such Interest Period shall be the
fifth Business Day after the last day of such Interest Period, for which the
Record Date shall be the last Business Day of such Interest Period. If such new
interest rate shall be a Daily Rate or a Weekly Rate, the first Interest Period
relating thereto shall begin on the effective date of such new interest rate and
end on the last day of the then current calendar month, for which the Interest
Payment Date and the Record Date shall be as prescribed in this Table.
** If there shall be a change from a Long-Term Interest Rate on a day other
than the day after the last day of the then current Long-Term Interest Rate
Period, or if there shall be an early termination of such Long-Term Interest
Rate Period and a new Long-Term Interest Rate shall be set, such Long-Term
Interest Rate Period shall end on the day immediately preceding the date on
which the new interest rate shall become effective, which date shall be the
Interest Payment Date for such Long-Term Interest Rate Period, for which the
Record Date shall be 15 days prior to such Interest Payment Date or, if sooner,
the first day of such Long-Term Interest Rate Period. If such new interest rate
shall be a Daily Rate or a Weekly Rate, the first Interest Period relating
thereto shall begin on the effective date of such new interest rate and end on
the last day of the then current calendar month, for which the Interest Payment
Date and the Record Date shall be as prescribed in this table.
*** If an Interest Payment Date occurs less than 15 days after the first
day of a Long-Term Interes Rate Period, the first day of such Long-Term
Interest Rate Period is the Record Date for such Interest Payment Date.
5. Method of Payment. Holders must surrender Bonds to the Trustee to
collect principal at maturity or upon redemption. (See "Tenders" below for the
payment of purchase price of tendered Bonds.) Interest on Bonds bearing interest
at a Commercial Paper Rate is payable only upon presentation of such Bonds to
the Trustee. Interest on Bonds bearing interest at a Daily, Weekly or Long-Term
Interest Rate will be paid to the registered holder hereof as of the Record Date
by check mailed by first-class mail on the Interest Payment Date to such
holder's registered address. A holder of $1,000,000 or more in principal amount
of Bonds may be paid interest at a Daily, Weekly or Commercial Paper Rate by
wire transfer in immediately available funds to an account in the continental
United States if the holder makes a written request of the Trustee (in form
satisfactory to the Trustee) at least two Business Days before the Record Date
specifying the account address. The notice may provide that it will remain in
effect for later interest payments until changed or revoked by another written
notice. Principal and interest will be paid in money of the United States that
at the time of payment is legal tender for payment of public and private debts
or by checks or wire transfers payable in such money. If any payment on the
Bonds is due on a non-Business Day, it will be made on the next Business Day,
and no interest will accrue as a result.
6. Tenders. "Tender" means to require, or the act of requiring, the Trustee
to purchase a Bond at the holder's option under the provisions of this Section 6
at 100% of the principal amount plus interest accrued to the date of purchase.
During a Daily Rate Period, if a Bond is tendered after the Record Date and
before the Interest Payment Date for that Interest Period, the Trustee will pay
(but only from funds available therefor as provided in the Indenture) a purchase
price of principal plus interest accruing after the last day of that Interest
Period. The holder will receive interest for that Interest Period by check or
wire transfer as described in Section 5 above.
Daily Rate Tender. When interest on the Bonds is payable at a Daily Rate
and a Book-Entry System is in effect, a Beneficial Owner (through its direct
Participant in the Securities Depository) may tender his interest in a Bond (or
portion of Bond) by delivering an irrevocable written notice or an irrevocable
telephone notice, promptly confirmed in writing, to the Trustee (any such
telephone notice to be delivered to a trust officer of the Trustee) and an
irrevocable notice by telephone, telegraph or facsimile transmission to the
Remarketing Agent, in each case by 11:00 a.m., New York City time, on a Business
Day, stating the principal amount of the Bond (or portion of Bond) being
tendered, payment instructions for the purchase price and the Business Day
(which may be the date the notice is delivered) the Bond (or portion of Bond) is
to be purchased. The Beneficial Owner shall effect delivery of such Bonds by
causing such direct Participant to transfer its interest in the Bonds equal to
such Beneficial Owner's interest on the records of the Securities Depository to
the participant account of the Trustee or its agent with the Securities
Depository. Any notice received by the Trustee after 11:00 a.m., New York City
time, shall be deemed to have been given on the next Business Day.
When interest on the Bonds is payable at a Daily Rate and a Book-Entry
System is not in effect, a holder of a Bond may tender the Bond (or portion of
Bond) by delivering the notices as described above (which shall include the
certificate number of the Bond), and shall also deliver the Bond to the Trustee
by 1:00 p.m., New York City time, on the date of purchase (see additional
requirements below).
Weekly Rate Tender. When interest on the Bonds is payable at a Weekly Rate
and a Book-Entry System is in effect, a Beneficial Owner (through its direct
Participant in the Securities Depository) may tender his interest in a Bond (or
portion of Bond) by delivering an irrevocable written notice or an irrevocable
telephone notice, promptly confirmed in writing, to the Trustee (any such
telephone notice to be delivered to a trust officer of the Trustee) and an
irrevocable notice by telephone, telegraph or facsimile transmission to the
Remarketing Agent, in each case prior to 5:00 p.m., New York City time on a
Business Day stating the principal amount of the Bond (or portion of Bond) being
tendered, payment instructions for the purchase price, and the date, which must
be a Business Day at least seven days after the notice is delivered, on which
the Bond (or portion of Bond) is to be purchased. The Beneficial Owner shall
effect delivery of such Bonds by causing such direct Participant to transfer its
interest in the Bonds equal to such Beneficial Owner's interest on the records
of the Securities Depository to the participant account of the Trustee or its
agent with the Securities Depository.
When interest on the Bonds is payable at a Weekly Rate and a Book-Entry
System is not in effect, a holder of a Bond may tender the Bond (or portion of
Bond) by delivering the notices as described above (which shall include the
certificate number of the Bond), and shall also deliver the Bond to the Trustee
by 1:00 p.m., New York City time, on the date of purchase (see additional
requirements below).
Payment of Purchase Price. The purchase price for a tendered Bond will be
paid in immediately available funds to the registered owner of the Bond by the
close of business on the date of purchase.
7. Delivery Address; Additional Delivery Requirements. Notices in respect
of tenders and Bonds tendered must be delivered to the Trustee, and notices in
respect of tenders must be delivered to the Remarketing Agent, as provided in
the Indenture.
All tendered Bonds must be accompanied by an instrument of transfer
satisfactory to the Trustee, executed in blank by the registered owner or his
duly authorized attorney, with the signature guaranteed by an eligible guarantor
institution.
Limitation on Tenders. No Bonds may be tendered while they bear interest at
a Commercial Paper Rate or a Long-Term Interest Rate.
Irrevocable Notice Deemed to be Tender of Bond; Undelivered Bonds. The
giving of notice by the registered owner of a Bond as provided in Section 6
constitutes the irrevocable tender for purchase of each Bond (or portion) with
respect to which such notice was given, irrespective of whether such Bond was
delivered as provided in Section 6. The determination of the Trustee as to
whether a notice of tender has been properly delivered shall be conclusive and
binding upon the Bondholders.
The Trustee may refuse to accept delivery of any Bond for which a proper
instrument of transfer has not been provided. If any owner of a Bond who gave
notice fails to deliver his Bond to the Trustee at the place and on the
applicable date and time specified, or fails to deliver his Bond properly
endorsed, his Bond shall constitute an undelivered Bond as described in the
Indenture. BY ACCEPTANCE OF THIS BOND, THE OWNER AGREES TO SELL AND SURRENDER
THIS BOND, PROPERLY ENDORSED, TO THE TRUSTEE AFTER THE GIVING OF IRREVOCABLE
NOTICE OF TENDER FOR PURCHASE AS DESCRIBED ABOVE.
8. Redemptions. As provided below, the Company has the right to purchase
Bonds in lieu of certain redemptions. BY ACCEPTANCE OF THIS BOND, THE OWNER
AGREES TO SELL AND SURRENDER THIS BOND, PROPERLY ENDORSED, TO THE COMPANY IN
LIEU OF REDEMPTION UNDER THE CONDITIONS DESCRIBED BELOW. All redemptions and
purchases in lieu of redemption will be made in funds immediately available on
the redemption or purchase date and will be at a redemption or purchase price of
100% of the principal amount of the Bonds being redeemed or purchased (unless a
premium is required as provided below) plus interest accrued to the redemption
or purchase date, except that interest accruing at a Daily Rate will be paid on
the fifth Business Day following the redemption or purchase date. Bonds tendered
for purchase on a date after a call for redemption but before the redemption
date will be purchased pursuant to the tender. No purchase of Bonds by the
Company or advance use of any funds to effectuate any such purchase shall be
deemed to be a payment or redemption of the Bonds or of any portion thereof and
such purchase will not operate to extinguish or discharge the indebtedness
evidenced by such Bonds.
Optional Redemption at a Premium During Long-Term Interest Rate Period.
During any Long-Term Interest Rate Period, if the Long-Term Interest Rate Period
is less than or equal to five years, the Bonds will not be redeemable pursuant
to this provision during the Long-Term Interest Rate Period.
If the Long-Term Interest Rate Period is greater than five years, the Bonds
will not be redeemable for five years after the date on which the Bonds begin to
bear interest at the Long-Term Interest Rate. After the five year no-call
period, the Bonds may be redeemed or purchased by the Company in lieu of
redemption at any time in whole or in part at 102% of their principal amount.
The premium will decline every year on the anniversary of the date on which the
Bonds begin to bear interest at the Long-Term Interest Rate, by one percentage
point until the Bonds are redeemable without premium.
As an alternative to and in lieu of the foregoing redemption provisions,
if, with respect to any Long-Term Interest Rate Period, a Favorable Opinion of
Tax Counsel is delivered to the Trustee not later than the date of the
establishment of such Long-Term Interest Rate Period, the Bonds may be redeemed
or purchased by the Company in lieu of redemption during such Long-Term Interest
Rate Period at the option of the Company in whole or in part at any time after a
no-call period, if any, established by the Remarketing Agent, at the percentages
of their principal amount, plus accrued interest, as follows: the Remarketing
Agent shall, given the duration of the Long-Term Interest Rate Period, determine
and inform the Trustee and the Company, on a date which is no later than the
establishment of the Long-Term Interest Rate, the periods during which the Bonds
shall not be subject to redemption or purchase by the Company in lieu of
redemption (the "Call Protection Period"), the premium or premiums payable upon
redemption or purchase by the Company in lieu of redemption (the "Call
Premiums"), if any, applicable to the redemption or purchase by the Company in
lieu of redemption of Bonds after the Call Protection Period, and the period or
periods during which the Call Premiums shall be effective (the "Call Premium
Periods") necessary to establish the Long-Term Interest Rate. Such Call
Protection Period, Call Premiums and Call Premium Periods shall be established
in accordance with optional call redemption provisions which, in the judgment of
the Remarketing Agent, are generally accepted as the standard features for
obligations such as the Bonds, given the length of the Long-Term Interest Rate
Period.
Extraordinary Optional Redemption. The Bonds are subject to redemption in
whole at any time upon receipt by the Trustee and the Issuer of a written notice
from the Company stating that the Company has determined that:
(i) Any federal, state or local body exercising governmental or
judicial authority has taken any action which results in the imposition of
unreasonable burdens or excessive liabilities with respect to either Project or
either Plant, rendering impracticable or uneconomical the operation of either
Project or either Plant, including, without limitation, the condemnation or
taking by eminent domain of all or substantially all of either Project or either
Plant; or
(ii) Changes in the economic availability of raw materials, operating
supplies or facilities or technological or other changes have made the continued
operation of either Plant as an efficient generating facility uneconomical; or
(iii) Either Project or either Plant has been damaged or destroyed to
such an extent that it is not practicable or desirable to rebuild, repair or
restore such Project or Plant.
If the Issuer shall have received such notice by the Company, the Issuer,
upon request of the Company, shall give written notice to the Trustee directing
the Trustee to take all action necessary to redeem the outstanding Bonds in
whole and on a date specified in such notice, which date shall be not less than
forty-five (45) nor more than ninety (90) days from the date the notice is
received by the Trustee.
Optional Redemption During Daily or Weekly Rate Period. When interest on
the Bonds is payable at a Daily or Weekly Rate, the Bonds may be redeemed in
whole or in part at the option of the Company, on any Business Day.
Mandatory Redemption at Beginning of a New Long-Term Interest Rate Period.
When the Bonds bear interest at a Long-Term Interest Rate and a new Long-Term
Interest Rate is to be determined, the Bonds will be redeemed or purchased by
the Company in lieu of redemption on the effective date of the new Long-Term
Interest Rate. In the case of a change prior to the day originally established
as the day after the last day of a Long-Term Interest Rate Period, the Bonds
will be redeemed or purchased at the percentage of their principal amount which
would be payable upon the applicable redemption or purchase in lieu thereof
described under "Optional Redemption at a Premium During Long-Term Interest Rate
Period" above.
Mandatory Redemption on Each Interest Payment Date During Commercial Paper
Mode. When Bonds bear interest at a Commercial Paper Rate, each Bond will be
redeemed or purchased by the Company in lieu of redemption on the Interest
Payment Date for such Bond. If Bonds are scheduled to be redeemed under the
following paragraph, the Bonds will be called under, and redemption will be
governed by, that paragraph and not this paragraph.
Mandatory Redemption Upon a Change in the Method of Determining the
Interest Rate on the Bonds. On the effective date of the change in the method of
determining the interest rate on the Bonds (the four methods being Daily,
Weekly, Commercial Paper or Long-Term Interest Rates) the Bonds will be redeemed
or purchased by the Company in lieu of redemption on the effective date of such
change. Any such redemption or purchase shall be at a price equal to 100% of the
principal amount of the Bonds, except that in the case of a change prior to the
day originally established as the day after the last day of a Long-Term Interest
Rate Period, the Bonds will be redeemed or purchased at the percentage of their
principal amount which would be payable upon the applicable redemption or
purchase in lieu thereof described under "Optional Redemption at a Premium
During Long-Term Interest Rate Period" above.
Notice of Redemption. At least 30 days before each redemption (except
"Mandatory Redemption on Each Interest Payment Date During Commercial Paper
Mode" described above, for which no notice will be given and except for certain
redemptions in connection with a change in interest rate determination method
described under "Mandatory Redemption Upon a Change in the Method of Determining
the Interest Rate on the Bonds" described above, for which 15 days' notice may
be given), the Trustee will mail a notice of redemption by first-class mail to
each Bondholder at the holder's registered address. Failure to give any required
notice of redemption as to any particular Bonds, or any defect therein, will not
affect the validity of the call for redemption of any Bonds in respect of which
no failure or defect occurs. Any notice mailed as provided in this paragraph
shall be effective when sent and will be conclusively presumed to have been
given whether or not actually received by the addressee.
Effect of Notice of Redemption. When notice of redemption is required and
given, and when Bonds are to be redeemed without notice, Bonds called for
redemption become due and payable on the redemption date at the applicable
redemption price, subject to the Company's right to purchase Bonds as provided
above; in such case when funds are deposited with the Trustee sufficient for
redemption or for purchase, interest on the Bonds to be redeemed or purchased
ceases to accrue as of the date of redemption or purchase.
9. Denominations; Transfer; Exchange. The Bonds may be issued in registered
form without coupons in denominations as follows: (1) when interest is payable
at a Daily, Weekly or Commercial Paper Rate, $100,000 or any integral multiple
thereof; and (2) when interest is payable at a Long-Term Interest Rate, $5,000
and integral multiples of $5,000 thereafter. A holder may register the transfer
of or exchange Bonds in accordance with the Indenture. The Trustee may require a
holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture. Except in connection with the purchase of Bonds tendered for purchase
or purchased in lieu of redemption, the Trustee will not be required to register
the transfer of or exchange any Bond which has been called for redemption or
during the period beginning 15 days before the mailing of notice calling the
Bonds or any portion of the Bonds for redemption and ending on the redemption
date.
10. Persons Deemed Owners. The registered holder of this Bond shall be
treated as the owner of it for all purposes.
11. Funds in Trust; Unclaimed Funds. All moneys which the Trustee shall
have withdrawn from the Bond Fund or shall have received from any other source
and set aside, or deposited with the paying agents, for the purpose of paying
any of the Bonds hereby secured, either at the maturity thereof or upon call for
redemption, shall be held in trust for the respective holders of such Bonds. But
any moneys which shall be so set aside or deposited by the Trustee and which
shall remain unclaimed by the holders of such Bonds for a period of six (6)
years after the date on which such Bonds shall have become due and payable shall
upon request in writing be paid to the Company or to such officer, board or body
as may then be entitled by law to receive the same, and thereafter the holders
of such Bonds shall look only to the Company or to such officer, board or body,
as the case may be, for payment and then only to the extent of the amount so
received without any interest thereon, and the Trustee, the Issuer and the
paying agents shall have no responsibility with respect to such moneys.
12. Discharge Before Redemption or Maturity. If the Company at any time
deposits with the Trustee money or Government Obligations as described in the
Indenture sufficient to pay at redemption or maturity principal of and interest
on the outstanding Bonds, and if the Company also pays all other sums then
payable by the Company under the Indenture, the lien of the Indenture will be
discharged. After discharge, Bondholders must look only to the deposited money
and securities for payment. Government Obligations are securities backed by the
faith and credit of the United States or securities evidencing ownership
interest in such full-faith and credit securities.
13. Amendment, Supplement, Waiver. Subject to certain exceptions, the
Indenture, the Agreement or the Bonds may be amended or supplemented, and any
past default or compliance with any provision may be waived, with the consent of
the holders of a majority in principal amount of the Bonds then outstanding. Any
such consent shall be irrevocable and shall bind any subsequent owner of this
Bond or any Bond delivered in substitution for this Bond. Without the consent of
any Bondholder, the Issuer may amend or supplement the Indenture, the Agreement
or the Bonds as described in the Indenture, among other things, to cure any
ambiguity, omission, defect or inconsistency, to provide for uncertificated
Bonds in addition to or in place of certificated Bonds, to provide for a
Book-Entry System for the Bonds or to make any change that does not materially
adversely affect the rights of any Bondholder.
14. Defaults and Remedies. The Indenture provides that the occurrences of
certain events constitute Events of Default. If an Event of Default occurs and
is continuing, the Bonds may become or may be declared immediately due and
payable, as provided in the Indenture. An Event of Default and its consequences
may be waived as provided in the Indenture. Bondholders may not enforce the
Indenture or the Bonds except as provided in the Indenture. Except as
specifically provided in the Indenture, the Trustee may refuse to enforce the
Indenture or the Bonds unless it receives indemnity satisfactory to it. Subject
to certain limitations, holders of a majority in principal amount of the Bonds
then outstanding may direct the Trustee in its exercise of any trust or power.
15. No Recourse Against Others. A member, director, officer or employee, as
such, of the Issuer shall not have any liability for any obligations of the
Issuer or the Company under the Bonds or the Indenture or for any claim based on
such obligations or their creation. Each Bondholder by accepting a Bond waives
and releases all such liability. The waiver and release are part of the
consideration for the issue of the Bond.
16. Authentication. This Bond shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the Indenture until
the certificate of authentication hereon shall have been duly executed by the
Trustee.
17. Abbreviations. Customary abbreviations may be used in the name of a
Bondholder or an assignee, such as TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).
A copy of the Indenture may be inspected at the corporate trust office of
the Trustee located at 2510 14th Street, 1 Hancock Plaza, Gulfport, Mississippi
39501.
<PAGE>
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and
things required to exist, happen and be performed precedent to and in the
execution and delivery of the Indenture and the issuance of this Bond do exist,
have happened and have been performed in due time, form and manner as required
by law.
IN WITNESS WHEREOF the Mississippi Business Finance Corporation has caused
this Bond to be executed in its name by its Executive Director by his manual or
facsimile signature and attested by the manual or facsimile signature of its
Secretary and its corporate seal to be hereunto affixed or printed hereon.
MISSISSIPPI BUSINESS FINANCE
CORPORATION
[SEAL]
By: ___________________________
Executive Director
Attest:
_______________________________
Secretary
<PAGE>
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds of the series designated therein and
issued under the provisions of the within-mentioned Indenture.
HANCOCK BANK,
as Trustee
Date:_________________________ By: __________________________________
Authorized Signature
[FORM OF VALIDATION CERTIFICATE]
(To be endorsed on all Bonds)
STATE OF MISSISSIPPI
COUNTY OF HINDS
The undersigned, Secretary of the Issuer, hereby certifies that the within
Mississippi Business Finance Corporation Revenue Bond, Series 1999 was validated
and confirmed by decree of the Chancery Court of the First Judicial District of
Hinds County, Mississippi rendered on the 29th day of November, 1999.
(SEAL) ___________________________________
Secretary of Mississippi
Business Finance Corporation
<PAGE>
The following abbreviations, when used in the inscription on the face of
the within Bond, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM- as tenants UNIF GIFT MIN ACT- _______ Custodian ________
common (Cust) (Minor)
TEN ENT- as tenants by the
entireties under Uniform Gifts to Minors Act
JT TEN- as joint tenants
with right of
survivorship and ________________________________
not as tenants (State)
in common
Additional abbreviations may also be used though not in list above.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
________________________________________________________________________________
Please insert social security or
other identifying number of assignee
____________________________________
________________________________________________________________________________
(Name and Address of Assignee)
________________________________________________________________________________
the within Bond and does hereby irrevocably constitute and appoint
______________________ attorney to transfer the said Bond on the books kept for
registration thereof with full power of substitution in the premises.
Dated:_____________________________
Signature guaranteed
_______________________________
Medallion Number:_____________
*Signature(s) must be guaranteed by NOTICE: The signature to this assignment
an eligible guarantor institution must correspond with the name of the
which is a member of a recognized registered owner as it appears upon the
signature guarantee program, i.e. face of the within Bond in every
Securities Transfer Agents Medallion particular, enlargement or any change
New York StockExchange whatever.
Medallion Signature Program (MSP).
Exhibit C
The holder hereof has agreed not to transfer this Note except to a
successor Trustee under the Trust Indenture dated as of December 1, 1999 of the
Mississippi Business Finance Corporation relating to the Bonds (hereinafter
referred to).
MISSISSIPPI POWER COMPANY
PROMISSORY NOTE
$9,400,000 December 1, 1999
MISSISSIPPI POWER COMPANY ("Mississippi"), a corporation organized and
existing under the laws of the State of Mississippi, acknowledges itself
indebted and for value received hereby promises to pay to the order of the
Mississippi Business Finance Corporation (the "Issuer"), and its successors and
assigns, the principal sum of NINE MILLION FOUR HUNDRED THOUSAND DOLLARS
($9,400,000) together with interest on the unpaid principal balance thereof from
the date hereof until Mississippi's obligations with respect to the payment of
such sum shall be discharged at the rate or rates borne by the Bonds referred to
below. As additional interest hereon there shall be payable, and Mississippi
promises to pay when due, amounts which shall equal the premium, if any, due on
such Bonds in connection with the redemption thereof. Mississippi further
promises to pay the purchase price of such Bonds as hereinbelow provided.
This Note is issued to evidence the Loan (as defined in the Agreement
hereinafter referred to) of the Issuer to Mississippi and the obligation of
Mississippi to repay the same and shall be governed by and be payable in
accordance with the terms and conditions of a loan agreement (the "Agreement")
between the Issuer and Mississippi dated as of December 1, 1999, pursuant to
which the Issuer has loaned to Mississippi the proceeds of the sale of the
Issuer's $9,400,000 of Revenue Bonds, Series 1999 (Mississippi Power Company
Project) (the "Bonds"). This Note (together with the Agreement) has been
assigned to Hancock Bank (the "Trustee"), acting pursuant to a trust indenture
dated as of December 1, 1999 (the "Indenture") between the Issuer and the
Trustee, and may not be assigned by the Trustee except to a successor Trustee
pursuant to the terms of the Indenture. Such assignment is made as security for
the Bonds. The Bonds are dated and bear interest in accordance with the
provisions of the Indenture, and mature on December 1, 2027. The Bonds are
subject to redemption prior to maturity as provided therein.
Subject to the provisions of the Agreement, payments hereon are to be
made by paying to the Trustee, as assignee of the Issuer, in funds which will be
immediately available on the day payment is due, amounts which, and at or before
times which, shall correspond to the payments with respect to the principal of
and premium, if any, and interest on the Bonds whenever and in whatever manner
the same shall become due, whether at stated maturity, upon redemption or
declaration or otherwise, and the purchase price of Bonds required to be
purchased under the Indenture. If (i) on the date any payments on the Bonds are
due there are any available moneys on deposit with the Trustee which are not
being held for the payment of Bonds due and payable but which have not been
presented for payment, or (ii) on any date on which Bonds are required to be
purchased pursuant to the Bonds or Article III of the Indenture, there are
available moneys on deposit with the Trustee held for the payment of the
purchase price which are not being held for the payment of Bonds which have not
been presented for payment, then, in each case, such moneys shall be credited
against the payment then due hereunder, first in respect of interest and then,
to the extent of remaining moneys, in respect of principal. Upon the occurrence
of an Event of Default, as defined in the Agreement, the principal of and
interest on this Note may be declared immediately due and payable as provided
in the Agreement.
Neither the officers of Mississippi nor any persons executing this Note
shall be liable personally or shall be subject to any personal liability or
accountability by reason of the issuance hereof.
<PAGE>
IN WITNESS WHEREOF, Mississippi Power Company has caused this Note to
be executed in its corporate name and on its behalf by its President, its
Treasurer or a Vice President by his manual signature, and its corporate seal to
be impressed hereon and attested by the manual signature of its Secretary or an
Assistant Secretary, all as of the date first above written.
MISSISSIPPI POWER COMPANY
By: ____________________________________
Vice President, Secretary, Treasurer
and Chief Financial Officer
Attest: ____________________________________
Assistant Secretary
<PAGE>
ASSIGNMENT
For value received, pay this promissory note to the order of Hancock
Bank, Gulfport, Mississippi, as Trustee under the Trust Indenture, dated as of
December 1, 1999, between the Mississippi Business Finance Corporation and
Hancock Bank, Gulfport, Mississippi, as Trustee, securing the payment of
Mississippi Business Finance Corporation Revenue Bonds, Series 1999 (Mississippi
Power Company Project), in the original principal amount of $9,400,000 without
recourse.
MISSISSIPPI BUSINESS FINANCE
CORPORATION
By:________________________________
Executive Director
Exhibit D
EATON AND COTTRELL, P.A.
Attorneys At Law
1310 Twenty Fifth Avenue
Gulfport, Mississippi 39501-7748
December 10, 1999
Re: Statement on Form U-1 of
Mississippi Power Company
(herein called the "Company")
File No. 70-8737
Securities and Exchange Commission
Washington, DC 20549
Gentlemen:
We have read the statement on Form U-1, as amended, referred to above and
are furnishing this opinion with respect to the issuance of $9,400,000 aggregate
principal amount of Revenue Bonds (as defined therein) for the benefit of the
Company.
We are of the opinion that:
(a) the Company is validly organized and duly existing as a
corporation under the laws of the State of Mississippi and is
duly admitted to do business under the laws of the State of
Alabama;
(b) the transactions have been consummated in accordance with such
statement on Form U-1, as amended;
(c) all state laws applicable to the transactions have been
complied with;
(d) the Company's Note evidencing its obligations with respect to
the Revenue Bonds is a valid and binding obligation of the
Company in accordance with its terms; and
(e) the consummation of such transactions did not violate the
legal rights of the holders of any securities issued by the
Company or any associate company thereof.
<PAGE>
Securities and Exchange Commission
December 10, 1999
Page 2
We hereby give our written consent to the use of this opinion in
connection with the above-mentioned statement on Form U-1, as amended,
and to the filing thereof with the Commission at the time of the filing
by the Company of its certificate of notification pursuant to Rule 24.
Very truly yours,
/s/Eaton & Cottrell, P.A.
