AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 6, 1998
REGISTRATION NO.________
- ------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
---------------------
J.P. MORGAN & CO. INCORPORATED
(Exact name of Registrant as specified in its charter)
DELAWARE 13-2625764
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
60 WALL STREET, NEW YORK, NEW YORK 10260-0060
(212) 483-2323
(Address, including zip code, and telephone number,
including
area code, of Registrant's principal executive offices)
RACHEL F. ROBBINS
GENERAL COUNSEL AND SECRETARY
J.P. MORGAN & CO. INCORPORATED
60 WALL STREET, NEW YORK, NEW YORK 10260-0060
(212) 648-3535
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
---------------------
COPIES TO:
GENE A. CAPELLO, ESQ.
VICE PRESIDENT AND ASSISTANT GENERAL COUNSEL
J.P. MORGAN & CO. INCORPORATED
60 WALL STREET
NEW YORK, NEW YORK 10260-0060
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE
PUBLIC:
From time to time after the effective date of this
Registration Statement as determined by market conditions.
- ---------------------
If the only securities being registered on this Form are
being offered pursuant to dividend or interest reinvestment
plans, please check the following box. / /
If any of the securities being registered on this Form are
to be offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act of 1933, other than securities
offered only in connection with dividend or interest
reinvestment plans, please check the following box. /X/
If this Form is filed to register additional securities
for an offering pursuant to Rule 462(b) under the Securities
Act, please check the following box and list the Securities
Act registration statement number of the earlier effective
registration statement for the same offering. / /
If this Form is a post-effective amendment filed pursuant
to Rule 462(c) under the Securities Act, check the following
box and list the Securities Act registration statement
number of the earlier effective registration statement for
the same offering. / /
If delivery of the prospectus is expected to be made
pursuant to Rule 434, please check the following
box. / X /
<TABLE>
- ------------------------------------------------------------
CALCULATION OF REGISTRATION FEE
<CAPTION>
- ------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Proposed Proposed
Title of each maximum maximum
class of securities Amount to be offering price aggregate Amount of
to be registered registered per unit offering price registration fee
--------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Debt Securities,
Warrants to Purchase
Debt Securities,
Series Preferred Stock,
Depositary Shares,
Series Preferred Stock
and Depositary Share
Warrants and Universal
Warrants. $10,000,000,000 (1)(3) 100% (2) $10,000,000,000 (2)(3) $2,950,000
- ----------------------------------------------------------------------------------------------------------
Depositary Shares... (4) None None None
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
[FN]
(1) Or, if any securities are issued at original issue
discount, such greater amount as shall result in an initial
aggregate offering price of $10,000,000,000 to the Issuer.
There are being registered hereunder such indeterminate
number of shares of Series Preferred Stock, as may from time
to time (including shares of Series Preferred Stock which
may be issued upon exercise of Preferred Stock Warrants) be
issued at indeterminate prices, but with an aggregate
initial offering price not to exceed $10,000,000,000.
(2) Estimated pursuant to Rule 457 under the Securities Act
of 1933, as amended, solely for the purpose of calculating
the registration fee.
(3) In U.S. dollars or equivalent thereof in foreign
denominated coin or currency or currency units.
(4) There are also being registered hereunder such
indeterminate number of Depositary Shares to be evidenced by
Depositary Receipts to be issued pursuant to a Deposit
Agreement. In the event the Issuer
elects to offer to the public fractional interests in shares
of the Series Preferred Stock registered hereunder,
Depositary Receipts will be distributed to these persons
purchasing such fractional interests and the shares
of the Series Preferred Stock will be issued to the
Depositary under the Deposit Agreement.
</FN>
---------------------
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT
ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS
EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER
AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE
WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933, AS AMENDED,
OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE
ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID
SECTION 8(a), MAY DETERMINE.
<PAGE 1>
Prospectus
J.P. Morgan & Co. Incorporated
Debt Securities, Warrants to Purchase Debt Securities,
Series Preferred Stock, Depositary Shares, Warrants to
Purchase Series Preferred Stock or Depositary Shares and
Universal Warrants
J.P. Morgan & Co. Incorporated ("J.P. Morgan") may from
time to time offer its senior debt securities (the "Debt
Securities") and subordinated debt securities (the
"Subordinated Debt Securities") (the Debt Securities and the
Subordinated Debt Securities are collectively known as the
"J.P. Morgan Debt Securities"), warrants to purchase J.P.
Morgan Debt Securities (the "Debt Warrants"), one or more
series of its series preferred stock (the "Series Preferred
Stock"), interests in which may be represented by depositary
shares (the "Depositary Shares"), warrants to purchase
shares of Series Preferred Stock or Depositary Shares
(together the "Preferred Stock Warrants") and Universal
Warrants (the "Universal Warrants"), for issuance and sale,
at an aggregate initial public offering price not to exceed
$10,000,000,000, on terms determined by market conditions at
the time of sale. J.P. Morgan Debt Securities and Debt
Warrants are collectively called the "Securities". As used
herein, Securities shall include Securities denominated in
U.S. dollars or, at the option of J.P. Morgan if so
specified in the applicable Prospectus Supplement, in any
other freely transferable currency or units based on or
relating to currencies, including European Currency Units
(ECU). With respect to the J.P. Morgan Debt Securities as
to which this Prospectus is being delivered, the specific
designation, aggregate principal amount, maturity, rate and
time of payment of any interest, coin or currency or
currency units in which principal and interest will be paid,
purchase price and any terms for conversion or for mandatory
or optional redemption (including any sinking fund) of any
J.P. Morgan Debt Securities, the exercise price and terms of
any Debt Warrants and any other specific terms of the
Securities are set forth in the accompanying Prospectus
Supplement ("Prospectus Supplement"). If Series Preferred
Stock is offered, the Prospectus Supplement will set forth
the specific title, number of shares of Series Preferred
Stock and number of Depositary Shares, if any, any dividend,
liquidation, redemption, conversion, voting or other rights,
the initial public offering price and any other terms of the
offering. If Preferred Stock Warrants or Universal Warrants
are offered, the Prospectus Supplement will set forth the
number offered, a description (if applicable) of the Series
of Preferred Stock for which each is exercisable, the
exercise price and duration. The Securities, the Series
Preferred Stock, the Depositary Shares, the Preferred Stock
Warrants and the Universal Warrants are hereinafter
collectively known as the "Offered Securities".
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE
SECURITIES COMMISSION NOR HAS THE COMMISSION OR ANY STATE
SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
The Offered Securities may be offered directly, through
agents designated from time to time, through dealers or
through one or more managing underwriters, acting alone or
with other underwriters. See "Plan of Distribution". Any
such agents or dealers, and any underwriters, are set forth
in the Prospectus Supplement. If an agent of J.P. Morgan or
a dealer or underwriter is involved in the offering of the
Offered Securities in connection with which this Prospectus
is being delivered, the agent's commission, dealer's
purchase price or underwriter's discount will be set forth
in, or may be calculated from, the Prospectus Supplement and
the net proceeds to J.P. Morgan from such sale will be the
purchase price of such Offered Securities less such
commission in the case of an agent, the purchase price of
such Offered Securities in the case of a dealer, and the
public offering price less such discount in the case of an
underwriter and less, in each case, the other expenses of
J.P. Morgan associated with such issuance and distribution.
The aggregate proceeds to J.P. Morgan from all the Offered
Securities sold will be the purchase price of such Offered
Securities excluding any agents' commissions, any
underwriters' discounts and the other expenses of issuance
and distribution. See "Plan of Distribution" for possible
indemnification arrangements for agents, dealers and
underwriters.
This Prospectus and related Prospectus Supplement may be
used by direct or indirect wholly-owned subsidiaries of J.P.
Morgan in connection with offers and sales related to
secondary market transactions in the Offered Securities.
Such subsidiaries may act as principal or agent in such
transactions. Such sales will be made at prices related to
prevailing market prices at the time of sale.
May , 1998
<PAGE 2>
No person has been authorized to give any information or to
make any representations other than those contained or
incorporated by reference in this Prospectus and the
Prospectus Supplement in connection with the offering made
hereby, and if given or made such information or
representation must not be relied upon as having been
authorized by J.P. Morgan or by another person.
Available Information
J.P. Morgan is subject to the informational requirements of
the Securities Exchange Act of 1934, as amended (the "1934
Act"), and in accordance therewith files reports, proxy
statements and other information with the Securities and
Exchange Commission (the "Commission"). Such reports, proxy
statements and other information concerning J.P. Morgan may
be inspected and copied at the public reference facilities
maintained by the Commission at Room 1024, Judiciary Plaza,
450 Fifth Street, N.W., Washington, D.C. 20549, and at the
Commission's regional offices located at Northeast Regional
Office, Seven World Trade Center, Suite 1300, New York, New
York 10048 and Midwest Regional Office, Citicorp Center, 500
West Madison Street, Suite 1400, Chicago, Illinois 60661.
Copies of such material can also be obtained from the Public
Reference Section of the Commission at Judiciary Plaza, 450
Fifth Street, N.W., Washington, D.C. 20549 at prescribed
rates. The Commission maintains a website that contains
reports, proxy and information statements and other
materials that are filed through the Commission's Electronic
Data Gathering, Analysis and Retrieval (EDGAR) System. This
website can be accessed at http:/www.sec.gov. Information
provided to or filed with the Commission by J.P. Morgan
pursuant to the 1934 Act can be located by reference to the
Commission file number 1-5885. In addition, reports, proxy
statements and other information concerning J.P. Morgan may
be inspected at the offices of the New York Stock Exchange,
Inc., 20 Broad Street, New York, New York 10005.
Incorporation of Certain Documents by Reference
J.P. Morgan hereby incorporates by reference in this
Prospectus J.P. Morgan's Annual Report on Form 10-K for the
year ended December 31, 1997 (included in its Annual Report
to Stockholders) and J.P. Morgan's Reports on Form 8-K dated
January 15, 1998, February 19, 1998, March 27, 1998, April
14, 1998 and May 5, 1998, heretofore filed pursuant to
Section 13 of the 1934 Act.
In addition, all reports and definitive proxy or information
statements filed pursuant to Section 13(a), 13(c), 14 or
15(d) of the 1934 Act subsequent to the date of this
Prospectus and prior to the termination of the offering of
the Securities shall be deemed to be incorporated by
reference into this Prospectus and to be a part hereof from
the date of filing of such documents. Any statement
contained herein or in a document incorporated or deemed to
be incorporated by reference herein shall be deemed to be
modified or superseded for purposes of this Prospectus to
the extent that a statement contained herein or in any
subsequently filed document which also is or is deemed to be
incorporated by reference herein or in the accompanying
Prospectus Supplement modifies or supersedes such statement.
Any such statement so modified or superseded shall not be
deemed, except as so modified or superseded, to constitute a
part of this Prospectus.
J.P. Morgan will provide without charge to each person,
including any beneficial owner, to whom this Prospectus is
delivered, on the written or oral request of any such
person, a copy of any or all of the foregoing documents
incorporated herein by reference (other than exhibits to
such documents). Written requests should be directed to the
Office of the Secretary, J.P. Morgan & Co. Incorporated, 60
Wall Street, New York, New York 10260-0060. Telephone
requests may be directed to (212) 648-3380.
<PAGE 3>
J.P. MORGAN & CO. INCORPORATED
J.P. Morgan & Co. Incorporated ("J.P. Morgan"), whose
origins date to a merchant banking firm founded in London in
1838, is the holding company for subsidiaries engaged
globally in providing a wide range of financial services to
corporations, governments, financial institutions,
institutional investors, professional firms, privately held
companies, nonprofit organizations, and financially
sophisticated individuals. J.P. Morgan activities are
summarized as follows:
Finance and Advisory
The Finance and Advisory sector encompasses the
sophisticated advisory, capital raising, and financing work
that J.P. Morgan does for its broad base of clients around
the world -- including corporations, financial institutions,
governments, municipalities, and individuals. J.P. Morgan's
expertise is based on an in-depth knowledge of its clients'
needs and of the industries and financial markets in which
they operate.
In partnership with clients, J.P. Morgan's advisory
professionals analyze the risks and rewards of such
strategic alternatives as merger, acquisition, divestiture,
privatization, and recapitalization. J.P. Morgan also looks
for ways to unlock value when analyzing a client's capital
structure. J.P. Morgan's debt and equities underwriting
business provides clients with the capability to raise the
capital necessary to execute their strategies. High-quality
research is an integral part of this business.
J.P. Morgan's credit activities include meeting clients'
financing needs by arranging and syndicating loans and other
credit facilities. They also include the responsibility for
managing the firm's credit risk arising from traditional
credit activities as well as J.P. Morgan's derivatives
trading activities.
Market Making
J.P. Morgan's market making activities provide clients with
around-the-clock access to global markets. J.P. Morgan makes
markets in fixed income, equities, foreign exchange,
commodity instruments, and derivatives in both developed and
emerging markets. J.P. Morgan also develops customized
transactions to assist clients in managing risk and
enhancing returns. J.P. Morgan provides research to help
clients assess opportunities and track performance. J.P.
Morgan takes positions to facilitate client transactions and
to benefit from its role as a market maker.
J.P. Morgan's clients include banks, other nonbanks,
financial institutions, corporations, governments and their
agencies, leveraged funds, pension funds, mutual funds, and
individuals.
J.P. Morgan's fixed income activities include acting as a
primary dealer in U.S. and foreign government securities;
making markets in money market instruments, U.S. government
agency securities, corporate debt securities, swaps and
other derivatives; and helping clients manage their exposure
to interest rate and foreign exchange risk.
J.P. Morgan's emerging markets activities include acting as
a dealer and market maker in securities and derivatives from
non-G-10 countries in Latin America, Eastern Europe, Asia,
and Africa. While many of J.P. Morgan's emerging market
activities involve fixed income securities, J.P. Morgan
deals in many other markets and instruments.
J.P. Morgan's equities market making activities include
acting as both agent and principal to facilitate clients'
transactions in exchange-listed and over-the-counter
securities. J.P. Morgan also structures equity derivatives
for clients.
<PAGE 4>
J.P. Morgan's foreign exchange capabilities include making
markets in spot, options, and short-term interest rate
products, in order to help clients manage their foreign
currency exposures.
J.P. Morgan's commodities activities include advising
clients on developing hedging, investment, and commodity-
linked financing strategies. J.P. Morgan also provides
commodity services which may include the settlement of
physical trades in various metal and oil markets and metal
borrowing and lending services.
Asset Management and Servicing
J.P. Morgan provides a wide range of investment-related
services, including: global asset management for pension
plans, governments, endowments, and foundations; integrated
financial services for high-net worth individuals; fully
bundled services for defined contribution pension plans
through American Century Companies; and mutual fund
distribution to intermediaries.
J.P. Morgan's global dedicated research capabilities support
portfolio management across all asset classes and markets.
With the acquisition of O'Connor Realty Advisors, a real
estate investment firm, J.P. Morgan has further broadened
its expertise and ability to bring a full range of
investment options to its clients. This spectrum of
capabilities is delivered to institutional and individual
investors in both discretionary account and mutual fund
form.
In July 1997, J.P. Morgan agreed to purchase a 45% interest
in American Century Companies, the fourth largest U.S. no-
load direct mutual fund company. With this investment, which
was concluded in January 1998, J.P. Morgan has gained scale
expertise in technology and operations for distribution and
servicing, as well as complementary investment capabilities
that broaden its product offerings significantly. J.P.
Morgan has formed a business partnership with American
Century to pursue jointly the growing retirement plan
market, distribution of mutual funds to third parties such
as financial advisors, and other opportunities in integrated
personal financial services.
J.P. Morgan offers ultra high-net worth clients an advice-
based integrated array of financial services that includes
tax-advantaged asset structures; a wide range of investment
options, including managed portfolios and brokerage; and
credit and liquidity services. These capabilities form the
foundation for an expansion of services to investors that
will be pursued selectively.
J.P. Morgan's futures and options brokerage group provides
institutional clients with worldwide access to major
exchanges by acting as brokers in executing and clearing
contracts. Currently, J.P. Morgan has dealers on 51
exchanges around the world. J.P. Morgan operates, under
contract, the Euroclear System, the world's largest
clearance and settlement system for internationally traded
securities. J.P. Morgan provides credit and deposit services
to Euroclear participants. In addition, J.P. Morgan provides
certain operational services such as the administration of
American depository receipt (ADR) programs.
Equity Investments
J.P. Morgan invests for its own account on a global basis in
private equity and equity-related securities in leveraged
and unleveraged acquisitions, privatizations,
recapitalizations, rapidly growing companies, expansion
financings, turnaround situations, and other special equity
situations. These investments are made with the objective
of maximizing total return, which is a measure of both long-
term appreciation and net recognized gains.
The Equity Investments group works closely with other areas
of J.P. Morgan to capture the competitive advantage of J.P.
Morgan's global presence and expertise in sourcing,
evaluating, managing, and exiting investments. Opportunities
often develop through relationships with clients. J.P.
Morgan has also
<PAGE 5>
managed initial public offerings and high-yield debt issues,
arranged credit facilities, and provided mergers and
acquisitions advice to portfolio companies at later stages
of their development.
Proprietary Investing and Trading
J.P. Morgan takes market and credit risk positions for our
own account using both relative value and directional risk-
taking strategies to enhance the value of the firm. J.P.
Morgan uses a relative value strategy when they anticipate
changes in relationships between markets and classes of
instruments (e.g., a change in prices between bonds and
swaps) or when they believe certain assets are fundamentally
mispriced by the market. J.P. Morgan uses directional
strategies in an attempt to profit from its anticipation of
how it believes a market will move (e.g., absolute rates or
prices will go up or down). Experienced market
professionals manage these strategies and use them over many
currencies and types of instruments, including fixed income
securities, foreign exchange, equity securities, commodity
products, and related derivatives.
Positions may be held for long or short periods of time,
depending on the strategy and actual market performance.
Certain longer-term strategies are considered to be
investment activities and tend to utilize government,
mortgage-backed, and corporate debt securities.
J.P. Morgan also manages its liquidity and capital profile
to ensure it has access to funding at a reasonable cost,
even under adverse circumstances, to support all the
business activities of the firm. A strong capital position
is an integral part of J.P. Morgan's liquidity management
because it enables the firm to raise funds as inexpensively
as possible in a variety of international markets.
Regulation
J.P. Morgan is subject to regulation under the Bank Holding
Company Act of 1956 (the "Bank Act"). Under the Bank Act,
J.P. Morgan is required to file reports with the Board of
Governors of the Federal Reserve System (the "Board"). J.P.
Morgan is also subject to examination by the Board. The Bank
Act prevents J.P. Morgan and its subsidiaries from engaging
in activities not related to banking, and limits the amount
of securities it can acquire of a company engaging in
nonbanking activities. An exception may be made if the Board
determines that the company's activities are closely related
to banking. Federal law and Board interpretations limit the
extent to which J.P. Morgan can engage in certain aspects of
the securities business. The Glass-Steagall Act prohibits
bank affiliates that are members of the Federal Reserve
System -- including J.P. Morgan Securities Inc. ("JPMSI"), a
"Section 20" subsidiary, -- from being engaged principally
in bank-ineligible underwriting and dealing activities
(mainly corporate debt and equity securities). This
prohibition restricts JPMSI's gross revenues from these
activities to a maximum of 25% of total gross revenues.
J.P. Morgan's largest subsidiary, Morgan Guaranty Trust
Company of New York ("Morgan Guaranty"), is a member of the
Federal Reserve System and a member of the Federal Deposit
Insurance Corporation ("FDIC"). Its business is subject to
both U.S. federal and state law. It is examined and
regulated by U.S. federal and state banking authorities.
J.P. Morgan and its nonbank subsidiaries are affiliates of
Morgan Guaranty within the meaning of the applicable federal
statutes. Morgan Guaranty is subject to restrictions on
loans and extensions of credit to J.P. Morgan and certain
other affiliates. It is also restricted on some other types
of transactions with J.P. Morgan, or involving J.P. Morgan's
securities.
Among other wholly owned subsidiaries:
JPMSI is a broker-dealer registered with and subject to
regulation by the Securities and Exchange Commission
and is a member of the National Association of
Securities Dealers, the New York Stock Exchange, and
other exchanges.
<PAGE 6>
J.P. Morgan Futures Inc. is subject to regulation by
the Commodity Futures Trading Commission, the National
Futures Association, and the commodity exchanges and
clearinghouses of which it is a member.
J.P. Morgan Investment Management Inc. is registered
with the Securities and Exchange Commission as an
investment advisor under the Investment Advisers Act of
1940, as amended.
J.P. Morgan subsidiaries conducting business in other
countries are also subject to regulations and restrictions
imposed by those jurisdictions, including capital
requirements.
As used in this Prospectus, unless the context otherwise
requires, the term "J.P. Morgan" refers to J.P. Morgan & Co.
Incorporated and its consolidated and unconsolidated
subsidiaries.
<TABLE>
Consolidated Ratios
<CAPTION>
Consolidated Ratio of Earnings to Fixed Charges
Three Months
Ended Year ended December 31,
March 31, 1998 1997 1996 1995 1994 1993
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Excluding Interest
on Deposits ..... 1.17(a) 1.27 1.35 1.35 1.40 1.70(b)
Including Interest
on Deposits...... 1.12(a) 1.20 1.26 1.24 1.28 1.46(b)
_______________
</TABLE>
[FN]
(a) For the three months ended March 31, 1998, the ratio of
earnings to fixed charges, excluding the after tax charge of
$129 million ($215 million before tax) related to
restructuring of business activities, was 1.23 excluding
interest on deposits and 1.17 including interest on
deposits.
(b) For the year ended December 31, 1993, the ratio of
earnings to fixed charges, including the cumulative effect
of a change in the method of accounting for postretirement
benefits other than pensions, was 1.64 excluding interest on
deposits and 1.43 including interest on deposits.
</FN>
<PAGE 7>
<TABLE>
Consolidated Ratios
<CAPTION>
Consolidated Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends
Three Months
Ended Year ended December 31,
March 31, 1998 1997 1996 1995 1994 1993
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Excluding Interest
on Deposits.... 1.16(a) 1.26 1.34 1.34 1.39 1.69(b)
Including Interest
on Deposits.... 1.12(a) 1.20 1.25 1.23 1.27 1.46(b)
_______________
</TABLE>
[FN]
(a) For the three months ended March 31, 1998, the ratio of
earnings to combined fixed charges and preferred stock
dividends, excluding the after tax charge of $129 million
($215 million before tax) related to restructuring of
business activities, was 1.22 excluding interest on deposits
and 1.16 including interest on deposits.
(b) For the year ended December 31, 1993, the ratio of
earnings to combined fixed charges and preferred stock
dividends, including the cumulative effect of a change in
the method of accounting for postretirement benefits other
than pensions, was 1.63 excluding interest on deposits and
1.42 including interest on deposits.
</FN>
Use of Proceeds
Unless otherwise indicated in the applicable Prospectus
Supplement, the net proceeds from the sale of the Offered
Securities will be used for general corporate purposes,
including investment in equity and debt securities and
interest-bearing deposits of subsidiaries. Pending such
use, J.P. Morgan may temporarily invest the net proceeds or
may use them to reduce short-term indebtedness.
Description of J.P. Morgan Debt Securities
The Debt Securities offered hereby will be issuable in one
or more series under an Indenture dated as of August 15,
1982 and all indentures supplemental thereto, including the
First Supplemental Indenture dated as of May 5, 1986, the
Second Supplemental Indenture dated as of February 27, 1996
and the Third Supplemental Indenture dates as of January 30,
1997 (collectively referred to as the "Debt Indenture"),
between J.P. Morgan and U.S. Bank Trust National Association
(formerly First Trust of New York, National Association),
successor to Chemical Bank (formerly Manufacturers Hanover
Trust Company), as Trustee (the "Debt Trustee"). The
Subordinated Debt Securities offered hereby will be issuable
in one or more series under an Indenture dated as of March
1, 1993, and any indentures supplemental thereto, (the
"Subordinated Indenture"), between J.P. Morgan and U.S. Bank
Trust National Association (formerly First Trust of New
York, National Association), successor to Citibank, N.A., as
Trustee (the "Subordinated Trustee"). The Debt Indenture
and the Subordinated Indenture are sometimes referred to
collectively as the "Indentures" and the Debt Trustee and
the Subordinated Trustee are sometimes referred to
collectively as the "Trustees." The following statements are
subject to the detailed provisions of the Indentures, copies
of which are filed as exhibits to the Registration
Statement, and to the provisions of the Trust Indenture Act
of 1939, as amended. Wherever references are made to
particular provisions of the Indentures, such provisions are
incorporated by reference as a part of the statements made
and such statements are qualified in their entirety by such
reference. Certain capitalized terms used herein are
defined in the Indentures. References in italics are to
sections or articles of the Indentures.
General
Each Indenture does not limit the amount of J.P. Morgan Debt
Securities that may be issued thereunder and provides that
J.P. Morgan Debt Securities may be issued in series
thereunder up to the aggregate principal amount that may be
authorized from time to time by J.P. Morgan. Reference is
made to the Prospectus Supplement for the following terms of
each series of J.P. Morgan Debt Securities in respect of
which this Prospectus is being delivered: (1) whether the
J.P. Morgan Debt Securities are Debt Securities or
Subordinated Debt Securities; (2) the designation, aggregate
principal amount and authorized denominations of such J.P.
Morgan Debt Securities; (3) the purchase price of such J.P.
Morgan Debt Securities (expressed as a percentage of the
principal amount thereof); (4) the date on which such J.P.
Morgan Debt Securities will mature; (5) the rate or rates
per annum at which such J.P. Morgan Debt Securities will
bear interest, if any, or the method by which such interest
will be determined; (6) the coin or currency or units based
on or relating to currency units (including ECU) for which
J.P. Morgan Debt Securities may be purchased and in which
payment of principal and interest will be made; (7) the
dates on which such interest, if any, will be payable; (8)
the terms of any mandatory or optional redemption (including
any sinking fund); (9) the currencies, currency units,
composite currencies, commodity prices,
<PAGE 8>
financial or non-financial indices, securities, baskets of
securities, indices, baskets of indices, interest rates,
swap rates, baskets of swap rates or factors, if any, to
which the principal, premium (if any) or interest of the
J.P. Morgan Debt Securities will be indexed; (10) the terms,
if any, on which the J.P. Morgan Debt Securities may be
converted or exchanged into securities of any entity
unaffiliated with J.P. Morgan, a basket of securities, an
index or indices of securities, a basket of indices, a
combination of the above, or the value thereof, or with
payments linked to the value thereof; (11) whether the J.P.
Morgan Debt Securities will be issued in fully registered
form without coupons attached or in bearer form with
coupons; (12) the restrictions, if any, applicable to the
exchange of J.P. Morgan Debt Securities of one form for
another and to the offer, sale and delivery of the J.P.
Morgan Debt Securities; (13) whether and under what
circumstances J.P. Morgan will pay additional amounts on
J.P. Morgan Debt Securities in the event of certain
developments with respect to United States withholding tax
or information reporting laws; (14) whether J.P. Morgan may
redeem the J.P. Morgan Debt Securities in the event of such
developments; and (15) any other specific terms. If a
Prospectus Supplement specifies that J.P. Morgan Debt
Securities are denominated in a currency other than U.S.
dollars or in a currency unit, such Prospectus Supplement
shall also specify the coin or currency or currency unit in
which the principal, premium, if any, and interest, if any,
on such J.P. Morgan Debt Securities will be payable, which
may be U.S. dollars based upon the exchange rate for such
other currency or currency unit existing on or about the
time a payment is due. Unless otherwise specified,
principal and interest, and additional amounts, if any, will
be payable at the office of U.S. Bank Trust National
Association in New York City, provided that payment of
interest on any J.P. Morgan Debt Securities in registered
form may be made at the option of J.P. Morgan by check
mailed to the registered holders.
Some of the J.P. Morgan Debt Securities may be issued as
original issue discount J.P. Morgan Debt Securities (bearing
no interest or interest at a rate which at the time of
issuance is below market rates), to be sold at a substantial
discount below their stated principal amount. Federal
income tax, accounting and other special considerations
applicable to any such original issue discount J.P. Morgan
Debt Securities will be described in the Prospectus
Supplement relating thereto.
J.P. Morgan Debt Securities may be presented for exchange,
and registered J.P. Morgan Debt Securities may be presented
for transfer, in the manner, at the places and subject to
the restrictions set forth in the applicable Indenture, the
J.P. Morgan Debt Securities and the Prospectus Supplement.
J.P. Morgan Debt Securities in bearer form and the coupons,
if any, appertaining thereto will be transferable by
delivery. No service charge will be made for any exchange
of the J.P. Morgan Debt Securities or transfer of J.P.
Morgan Debt Securities in registered form, but J.P. Morgan
may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.
(Sections 2.8 of the Indentures.)
The Indentures and Debt Securities will not contain any
provision that would require J.P. Morgan to repurchase or
redeem or otherwise modify the terms of the Debt Securities
upon a change in control or other events involving J.P.
Morgan that may adversely affect the credit quality of J.P.
Morgan.
Subordinated Debt Securities
Subordination
The Subordinated Debt Securities will be unsecured and will
be subordinate in right of payment to all Senior
Indebtedness (as defined below) of J.P. Morgan and, in
certain circumstances relating to the bankruptcy or
insolvency of J.P. Morgan, the Derivative Obligations (as
defined below), whether outstanding as of this date or
hereafter incurred. In addition, since J.P. Morgan is a
holding company, the right of J.P. Morgan to participate as
a shareholder in any distribution of assets of any
subsidiary upon its liquidation or reorganization or
otherwise (and thus the ability of holders of the
Subordinated Debt Securities to benefit as creditors of J.P.
Morgan from such distribution) is subject to the prior
claims of
<PAGE 9>
creditors of any such subsidiary. J.P. Morgan and its
subsidiaries are subject to claims by creditors for long-
term and short-term debt obligations, including substantial
obligations for federal funds purchased and securities sold
under repurchase agreements, as well as deposit liabilities.
There are also various legal limitations on the extent to
which subsidiaries of J.P. Morgan may pay dividends or
otherwise supply funds to J.P. Morgan.
The Subordinated Debt Securities will be subordinate in
right of payment as provided in the Indenture to all Senior
Indebtedness of J.P. Morgan. In certain events of
bankruptcy or insolvency of J.P. Morgan, the Subordinated
Debt Securities will also be subordinate in right of payment
to the extent set forth in the Subordinated Indenture to the
prior payment in full of Derivative Obligations (as defined
below). No payment pursuant to the Subordinated Debt
Securities may be made and no holder of the Subordinated
Debt Securities or any coupon appertaining thereto shall be
entitled to demand or receive any such payment (i) unless
all amounts of principal, premium, if any, and interest then
due on all Senior Indebtedness of J.P. Morgan shall have
been paid in full or duly provided for or (ii) if, at the
time of such payment or immediately after giving effect
thereto, there shall exist with respect to any given Senior
Indebtedness of J.P. Morgan any event of default permitting
the holders thereof to accelerate the maturity thereof or
any event which, with notice or lapse of time, or both, will
become such an event of default. (Section 10.2 of the
Subordinated Indenture.)
Upon any distribution of the assets of J.P. Morgan upon
dissolution, winding up, liquidation or reorganization, (i)
the holders of Senior Indebtedness of J.P. Morgan will be
entitled to receive payment in full of principal, premium,
if any, and interest before any payment may be made on the
Subordinated Debt Securities and (ii) if, after giving
effect to the operation of clause (i) above, amounts remain
available for payment or distribution in respect of the
Subordinated Debt Securities (any such remaining amount
being defined as the "Excess Proceeds") and creditors in
respect of Derivative Obligations have not received payment
in full of amounts due or to become due thereon, then such
Excess Proceeds shall first be applied to pay or provide for
the payment in full of all such Derivative Obligations
before any payment may be made on the Subordinated Debt
Securities. (Sections 10.3 and 10.12 of the Subordinated
Indenture.) By reason of such subordination, in the event
of a bankruptcy or insolvency of J.P. Morgan, holders of
Senior Indebtedness and Derivative Obligations of J.P. Morgan may
receive more, ratably, and holders of the Subordinated Debt
Securities or coupons appertaining thereto may receive less,
ratably, than the other creditors of J.P. Morgan. No series
of subordinated debt is subordinated to any other series of
subordinated debt. However, by reason of the obligation of
the holders of the Subordinated Debt Securities to pay over
any Excess Proceeds to creditors in respect of Derivative
Obligations, in the event of a bankruptcy or insolvency of
J.P. Morgan, the holders of the Subordinated Debt Securities
may receive less, ratably, than holders of Antecedent
Subordinated Indebtedness (as defined below). Such
subordination will not prevent the occurrence of any Event
of Default in respect of the Subordinated Debt Securities.
The Subordinated Indenture does not limit the amount of
Senior Indebtedness J.P. Morgan may incur.
<PAGE 10>
Senior Indebtedness of J.P. Morgan is defined as the
principal of, premium, if any, and interest on (a) all
indebtedness of J.P. Morgan for money borrowed, whether
outstanding on the date hereof or thereafter created,
assumed or incurred, except for (1) indebtedness issued
under the Subordinated Indenture; (2) Antecedent
Subordinated Indebtedness of J.P. Morgan; and (3) such
indebtedness as is by its terms expressly stated to be
junior in right of payment to the Subordinated Notes or to
rank pari passu with the Subordinated Debt Securities,
including, without limitation, the junior subordinated
obligations in respect of capital securities, and (b) any
deferrals, renewals or extensions of any such Senior
Indebtedness. The term "Indebtedness of J.P. Morgan for
money borrowed" as used in the foregoing sentence shall mean
any obligation of, or any obligation guaranteed by, J.P.
Morgan for the repayment of borrowed money, whether or not
evidenced by bonds, debentures, notes or other written
instruments, and any deferred obligation for the payment of
the purchase price of property or assets. The Subordinated
Debt Securities shall rank pari passu with the Subordinated
Notes issued under the Subordinated Indenture, although, as
noted in the immediately preceding paragraph, the
Subordinated Debt Securities, as opposed to the Antecedent
Subordinated Indebtedness, will be subordinated in the event
of a bankruptcy or insolvency of J.P. Morgan to Derivative
Obligations. The term "pari passu" as used herein shall
mean ranking equally in right of payment in the event of
J.P. Morgan's bankruptcy. (Section 1.1 of the Subordinated
Indenture.)
Derivative Obligations of J.P. Morgan are defined in the
Subordinated Indenture as obligations of J.P. Morgan to make
payments on claims in respect of derivative products such as
interest and foreign exchange rate contracts, commodity
contracts and similar arrangements; provided, however, that
<PAGE 11>
Derivative Obligations do not include claims in respect of
Senior Indebtedness or obligations which, by their terms,
are expressly stated not to be superior in right of payment
to the Subordinated Debt Securities or to rank pari passu
with the Subordinated Debt Securities. For purposes of
this definition, "claim" has the meaning
assigned thereto in Section 101(4) of the United States
Bankruptcy Code of 1978, as amended and in effect on the
date of the Subordinated Indenture. (Section 1.1 of the
Subordinated Indenture.)
Antecedent Subordinated Indebtedness of J.P. Morgan is
defined in the Subordinated Indenture as all indebtedness
and other obligations outstanding on the date of the
Subordinated Indenture and enumerated in clauses (a)(i)
through (a)(ix) of the definition of "Senior Indebtedness".
(Section 1.1 of the Subordinated Indenture.)
The Prospectus Supplement will set forth the aggregate
amount of outstanding indebtedness as of the most recent
practicable date that by the terms of such debt securities
would be senior to the subordinated debt and any limitation
on the issuance of such additional senior indebtedness.
Limited Right of Acceleration.
Unless otherwise specified in the Prospectus Supplement
relating to any series of Subordinated Debt Securities,
payment of principal of the Subordinated Debt Securities may
be accelerated only in the case of the bankruptcy or
reorganization of J.P. Morgan. There is no right of
acceleration in the case of a default in the payment of
principal of, premium, if any, or interest on the
Subordinated Debt Securities or the performance of any other
covenant of J.P. Morgan contained in the Indenture. In the
event of a default in the payment of principal of, premium,
if any, or interest, or the performance of any other
covenant in the Subordinated Debt Securities or the
Indenture, the Trustee may, subject to certain limitations
and conditions, seek to enforce payment of such principal,
premium, or interest or the performance of such covenant.
(Sections 5.2 and 5.4 of the Subordinated Indenture.)
Senior Debt Securities
The Debt Securities will be unsecured and will rank on a
parity with all other unsecured and unsubordinated
indebtedness of J.P. Morgan. Since J.P. Morgan is a holding
company, however, the right of J.P. Morgan to participate as
a shareholder in any distribution of assets of any
subsidiary upon its liquidation or reorganization or
otherwise (and thus the ability of holders of the Debt
Securities to benefit as creditors of J.P. Morgan from such
distribution) is subject to the prior claims of creditors of
any such subsidiary. J.P. Morgan and its subsidiaries are
subject to claims by creditors for long-term and short-term
debt obligations, including substantial obligations for
federal funds purchased and securities sold under repurchase
agreements, as well as deposit liabilities. There are also
various legal limitations on the extent to which
subsidiaries of J.P. Morgan may pay dividends or otherwise
supply funds to J.P. Morgan.
Events of Default, Waiver, Notice, J.P. Morgan Debt
Securities in Foreign Currencies
As to any series of J.P. Morgan Debt Securities, an Event of
Default is defined in the Indentures as (a) default for 30
days in payment of any interest on the J.P. Morgan Debt
Securities of such series; (b) default in payment of
principal of or premium, if any, on the J.P. Morgan Debt
Securities of such series when due either at maturity, upon
redemption, by declaration or otherwise; (c) default in the
payment of a sinking fund installment, if any, on the J.P.
Morgan Debt Securities of such series; (d) default by J.P.
Morgan in the performance of any other covenant or warranty
contained in the respective Indenture for the benefit of
such series which shall not have been remedied for a period
of 90 days after notice given as specified in the Indenture;
and (e) certain events of bankruptcy or reorganization of
J.P. Morgan. (Sections 5.1 of the Indentures.) An Event
of Default with respect to a particular series of J.P.
Morgan Debt Securities issued under the respective Indenture
does not necessarily constitute an Event of Default
<PAGE 12>
with respect to any other series of J.P. Morgan Debt
Securities issued thereunder. Each Indenture provides that
the Trustee may withhold notice to the holders of the
respective J.P. Morgan Debt Securities
of any series of any default (except in payment of principal
of or interest or premium, if any, on such J.P. Morgan Debt
Securities or in the making of any sinking fund payment with
respect to such J.P. Morgan Debt Securities) if the Trustee
considers it in the interest of the holders of J.P. Morgan
Debt Securities of such series to do so. (Sections 5.11 of
the Indentures.)
The Subordinated Indenture provides that if an Event of
Default described in clause (e) above shall have occurred
and be continuing, either the Subordinated Trustee or the
holders of at least 25% in principal amount of all
Subordinated Debt Securities then outstanding (voting as one
class) may declare the principal (or, in the case of
original issue discount Subordinated Debt Securities, the
portion thereof specified in the terms thereof) of all
Subordinated Debt Securities then outstanding and the
interest accrued thereon, if any, to be due and payable
immediately, but upon certain conditions such declarations
may be annulled and past defaults (except for defaults in
the payment of principal of or premium, or interest, if any,
on such Subordinated Debt Securities) may be waived by the
holders of a majority in principal amount of the
Subordinated Debt Securities of all series then outstanding.
(Sections 5.1 and 5.10 of the Subordinated Indenture.)
The Debt Indenture provides that (1) if an Event of Default
described in clause (a), (b), (c) or (d) above (if the Event
of Default under clause (d) is with respect to less than all
series of Debt Securities then outstanding) shall have
occurred and be continuing with respect to one or more
series, either the Trustee or the holders of at least 25% in
principal amount of the Debt Securities of such series then
outstanding (each such series voting as a separate class in
the case of an Event of Default under clause (a), (b) or (c)
and all such series voting as one class in the case of an
Event of Default under clause (d)) may declare the principal
(or, in the case of original issue discount Debt Securities,
the portion thereof specified in the terms thereof) of all
outstanding Debt Securities of such series and the interest
accrued thereon, if any, to be due and payable immediately
and (2) if an Event of Default described in clause (d) or
(e) above (if the Event of Default under clause (d) is with
respect to all series of Debt Securities then outstanding)
shall have occurred and be continuing, either the Debt
Trustee or the holders of at least 25% in principal amount
of all Debt Securities then outstanding (voting as one
class) may declare the principal (or, in the case of
original issue discount Debt Securities, the portion thereof
specified in the terms thereof) of all Debt Securities then
outstanding and the interest accrued thereon, if any, to be
due and payable immediately, but upon certain conditions
such declarations may be annulled and past defaults (except
for defaults in the payment of principal of, or premium or
interest, if any, on such Debt Securities) may be waived by
the holders of a majority in principal amount of the Debt
Securities of such series (or of all series as the case may
be) then outstanding. (Sections 5.1 and 5.10 of the Debt
Indenture.)
The holders of a majority in principal amount of the
outstanding J.P. Morgan Debt Securities of each series
affected (with each series voting as a separate class) shall
have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the
Trustee under the applicable Indenture, subject to certain
limitations specified in the applicable Indenture, provided
that the holders of J.P. Morgan Debt Securities shall have
offered to the Trustee reasonable indemnity against expenses
and liabilities. (Sections 5.9 and 6.2(d) of the
Indentures.) The Indentures require the annual delivery by
J.P. Morgan to the Trustee of a written statement as to the
absence of certain defaults under the applicable Indenture.
(Sections 3.5 of the Indentures.) Whenever either Indenture
provides for an action by, or the determination of any of
the rights of, or any distribution to, holders of J.P.
Morgan Debt Securities, in the absence of any provision to
the contrary in the form of J.P. Morgan Debt Security, any
amount in respect of any J.P. Morgan Debt Security
denominated in a currency other than U.S. dollars or in any
currency unit shall be treated as that amount of U.S.
dollars that could be obtained for such amount on such
reasonable basis of exchange and as of such date as J.P.
Morgan specifies to the Trustee or in the absence of such
notice, as the Trustee may determine. (Section 12.11 of the
Subordinated Indenture and Section 11.11 of the Debt
Indenture.)
<PAGE 13>
Modification of the Indentures; Waiver of Compliance
Each Indenture contains provisions permitting J.P. Morgan
and the Trustee, with the consent of the holders of not less
than a majority in principal amount of the respective J.P.
Morgan Debt Securities of all series affected by such
modification or waiver at the time outstanding (voting as
one class), to modify the Indenture or any supplemental
indenture or the rights of the holders of the respective
J.P. Morgan Debt Securities, or waive compliance by J.P.
Morgan with any of its obligations thereunder, provided that
no such modification or waiver shall (i) extend the final
maturity of any respective J.P. Morgan Debt Security, or
reduce the principal amount thereof, or reduce the rate or
extend the time of payment of interest thereon, or change
the currency or currency unit of payment thereof, or change
the method in which amounts of payments of principal or
interest thereon are determined, or reduce the portion of
the principal amount of an original issue discount J.P.
Morgan Debt Security due and payable upon acceleration of
the maturity thereof or the portion of the principal amount
thereof provable in bankruptcy, or reduce any amount payable
upon redemption of any J.P. Morgan Debt Security, or impair
or affect the right of a holder to institute suit for the
payment thereof or, if the J.P. Morgan Debt Securities
provide therefor, any right of repayment at the option of
the holder of a J.P. Morgan Debt Security, without the
consent of the holder of each respective J.P. Morgan Debt
Security so affected or (ii) reduce the aforesaid percentage
of J.P. Morgan Debt Securities of any series, the consent of
the holders of which is required for any such modification,
without the consent of the holder of each J.P. Morgan Debt
Security so affected. (Sections 8.2 and 8.6 of the
Indentures.)
The Indentures also permit J.P. Morgan and the Trustee to
amend such Indenture in certain circumstances without the
consent of the holders of J.P. Morgan Debt Securities to
evidence the merger of J.P. Morgan, the replacement of the
Trustee, to effect modifications which do not affect any
series of J.P. Morgan Debt Security already outstanding, and
for certain other purposes. (Sections 8.1 of the
Indentures.)
Consolidations, Mergers and Sales of Assets
J.P. Morgan may not merge or consolidate with any other
corporation or sell or convey all or substantially all of
its assets to any Person, unless either J.P. Morgan shall be
the continuing corporation or the successor corporation
shall be a corporation organized under the laws of the
United States or any state thereof and shall expressly
assume the payment of the principal of and interest on the
J.P. Morgan Debt Securities and the performance and
observance of all the covenants and conditions of the
Indenture binding upon J.P. Morgan, and J.P. Morgan or such
successor corporation shall not, immediately after such
merger or consolidation, or such sale or conveyance, be in
default in the performance of any such covenant or
condition. (Articles Nine of the Indentures.)
Concerning the Trustee, Paying Agent, Registrar and Transfer
Agent
J.P. Morgan and its subsidiaries have normal banking
relationships with the Trustee, U.S. Bank Trust National
Association . U.S. Bank Trust National Association, 100 Wall
Street, Suite 1600, New York, New York 10005, will also be
the paying agent, registrar and transfer agent for any
series of J.P. Morgan Debt Securities.
Global J.P. Morgan Debt Securities
Any series of J.P. Morgan Debt Securities may be issued in
the form of one or more global certificates (the "Global
Debt Security") registered in the name of a depository or a
nominee of a depository (the "Depository"). Unless
otherwise specified in an applicable Prospectus Supplement,
the Depository will be the Depository Trust Company
("DTC"). The Corporation has been informed by DTC that its
nominee will be CEDE & CO. ("CEDE"). Accordingly, CEDE is
expected to be the initial registered holder of any series
of J.P. Morgan Debt Securities. No person acquiring an
interest in such series of J.P. Morgan Debt
<PAGE 14>
Securities (a "Holder") will be entitled to receive a
certificate representing such person's interest in the J.P.
Morgan Debt Securities except as set forth herein. Unless
and until definitive J.P. Morgan Debt Securities are issued
under the limited circumstances described herein, all
references to actions by Holders shall refer to actions
taken by DTC upon instructions from its Participants (as
defined below), and all references herein to payments and
notices to Holders shall refer to payments and notices to
DTC or CEDE, as the registered holder of the J.P. Morgan
Debt Securities, as the case may be, for distribution to
Holders in accordance with the DTC procedures.
DTC is a limited purpose trust company organized under the
New York Banking Law, a "banking organization" within the
meaning of the New York Banking Law, a member of the Federal
Reserve System, a "clearing corporation" within the meaning
of the New York Uniform Commercial Code, and a "clearing
agency" registered pursuant to Section 17A of the 1934 Act.
DTC was created to hold securities for its participating
organizations ("'Participants") and to facilitate the
clearance and settlement of securities transactions between
Participants through electronic book-entry, thereby
eliminating the need for physical movement of certificates.
Participants include securities brokers and dealers, banks,
trust companies and clearing corporations, and may include
certain other organizations. Indirect access to the DTC
system also is available to others such as banks, brokers,
dealers and trust companies that clear through or maintain a
custodial relationship with a Participant, either directly
or indirectly ("Indirect Participants").
Holders that are not Participants or Indirect Participants
but desire to purchase, sell or otherwise transfer ownership
of, or other interests in, J.P. Morgan Debt Securities may
do so only through Participants and Indirect Participants.
Under a book-entry format, Holders may experience some delay
in their receipt of payments, since such payments will be
forwarded by the agent designated by J.P. Morgan to CEDE, as
nominee for DTC. DTC will forward such payments to its
Participants, which thereafter will forward them to Indirect
Participants or Holders. It is anticipated that CEDE, as
nominee of DTC, will be the registered holder of all of the
J.P. Morgan Debt Securities. Holders will not be recognized
by either of the Trustees as registered holders of the J.P.
Morgan Debt Securities entitled to the benefits of the
relevant Indenture. Holders that are not Participants will
be permitted to exercise their rights as such only
indirectly through Participants.
Under the rules, regulations and procedures creating and
affecting DTC and its operations (the "Rules"), DTC will be
required to make book-entry transfers of J.P. Morgan Debt
Securities among Participants and to receive and transmit
payments to Participants. Participants and Indirect
Participants with which Holders have accounts with respect
to the J.P. Morgan Debt Securities similarly are required to
make book-entry transfers and receive and transmit such
payments on behalf of their respective Holders.
Because DTC can only act on behalf of Participants, who in
turn act on behalf of Indirect Participants, and on behalf
of certain banks, trust companies and other persons approved
by it, the ability of a Holder to pledge J.P. Morgan Debt
Securities to persons or entities that do not participate in
the DTC system, or to otherwise act with respect to such
J.P. Morgan Debt Securities, may be limited due to the
absence of physical certificates for such J.P. Morgan Debt
Securities.
DTC has advised J.P. Morgan that it will take any action
permitted to be taken by a Holder under the relevant
Indenture only at the direction of one or more Participants
to whose accounts with DTC the J.P. Morgan Debt Securities
are credited. The Global Debt Security shall be
exchangeable for J.P. Morgan Debt Securities registered in
the names of persons other than DTC or its nominee only if
(i) DTC notifies J.P. Morgan that it is unwilling or unable
to continue as depository for such Global Debt Security or
if at any time DTC ceases to be a clearing agency registered
under the 1934 Act at a time when DTC is required to be so
registered to act as such depository or (ii) J.P. Morgan
executes and delivers to the Trustee a Company Order that
such Global Debt Security shall be so exchangeable. Any
Global Debt Security that is exchangeable pursuant to the
preceding sentence shall be exchangeable for J.P. Morgan
<PAGE 15>
Debt Securities registered in such names as DTC shall
direct. Upon the occurrence of any event described in the
immediately preceding paragraph, DTC is generally required
to notify all Participants of the availability through DTC
of definitive J.P. Morgan Debt Securities. Upon surrender
by DTC of the Global Debt Security representing the J.P.
Morgan Debt Securities and instructions for registration,
the Trustee will reissue the J.P. Morgan Debt Securities as
definitive J.P. Morgan Debt Securities, and thereafter the
Trustee will recognize the holders of such definitive J.P.
Morgan Debt Securities as registered holders of J.P. Morgan
Debt Securities entitled to the benefits of the applicable
Indenture.
The Global Debt Security may not be transferred except as a
whole by DTC with respect to such Global Debt Security to a
nominee of DTC or by a nominee of DTC to DTC or another
nominee of DTC or to a successor Depository appointed by the
Corporation. DTC may not sell, assign, transfer or
otherwise convey any beneficial interest in a Global Debt
Security evidencing all or part of the J.P. Morgan Debt
Securities unless such beneficial interest is an amount
equal to an authorized denomination for the J.P. Morgan Debt
Securities.
Governing Law and Judgments
The Securities will be governed by and construed in
accordance with the laws of the State of New York. In the
event action based on Securities denominated in a Specified
Currency other than U.S. dollars were commenced in a court
in the United States, it is likely that such court would
grant judgment relating to the Securities only in U.S.
Dollars. If an action based on Securities denominated in a
Specified Currency other than U.S. dollars were commenced in
a New York court, however, such court should render or enter
a judgment or decree in the Specified Currency. Such
judgment should then be converted into U.S. dollars at the
rate of exchange prevailing on the date of entry of the
judgment or decree.
Description of Debt Warrants
J.P. Morgan may issue Debt Warrants for the purchase of J.P.
Morgan Debt Securities. The Debt Warrants are to be issued
under warrant agreements (each a "Debt Warrant Agreement")
to be entered into between J.P. Morgan and Morgan Guaranty,
as warrant agent (the "Debt Warrant Agent"), all as set
forth in the Prospectus Supplement relating to the
particular issue of Debt Warrants (the "Offered Debt
Warrants"). A copy of the Debt Warrant Agreement, including
the form of warrant certificate (the "Debt Warrant
Certificate") representing the Debt Warrants, substantially
in the form in which it will be executed, is filed as an
exhibit to the Registration Statement. Brief summaries of
the principal provisions of the Debt Warrant Agreement and
the Debt Warrant Certificates do not purport to be complete.
General
If Debt Warrants are offered, the Prospectus Supplement will
describe the terms of the Offered Debt Warrants, the Debt
Warrant Agreement relating to the Offered Debt Warrants and
the Debt Warrant Certificates representing the Offered Debt
Warrants, including the following: (1) the designation,
aggregate principal amount and terms of the J.P. Morgan Debt
Securities purchasable upon exercise of the Offered Debt
Warrants; (2) if applicable, the designation and terms of
any related J.P. Morgan Debt Securities with which the
Offered Debt Warrants are issued and the number of Offered
Debt Warrants issued with each such J.P. Morgan Debt
Security; (3) if the J.P. Morgan Debt Securities purchasable
upon exercise of Offered Debt Warrants are denominated in a
currency other than U.S. dollars or in any currency unit,
the denomination of such J.P. Morgan Debt Securities and the
coin or currency or units based on or relating to currencies
(including ECU) in which the principal, premium, if any, and
interest on such J.P. Morgan Debt Securities will be
payable, which may be U.S. dollars based upon the exchange
rate for such other currency or currency unit existing on or
about the time a payment is due; (4) if
<PAGE 16>
applicable, the date on and after which the Offered Debt
Warrants and the related J.P. Morgan Debt Securities will be
separately transferable; (5) the principal amount of J.P.
Morgan Debt Securities purchasable upon exercise of the
Offered Debt Warrants and the price at which and coin or
currency or units based on or relating to currencies
(including ECU) in which such principal amount of J.P.
Morgan Debt Securities may be purchased upon such exercise;
(6) the date on which the right to exercise the Offered Debt
Warrants shall commence and the date (the "Expiration Date")
on which such right shall expire; (7) if the J.P. Morgan
Debt Securities purchasable upon exercise of Offered Debt
Warrants are original issue discount J.P. Morgan Debt
Securities, a discussion of the specific Federal income tax,
accounting and other special considerations applicable
thereto; and (8) whether the Debt Warrants represented by
the Debt Warrant Certificates will be issued in registered
or bearer form.
Debt Warrant Certificates will be exchangeable for new Debt
Warrant Certificates of different denominations, may, if in
registered form, be presented for registration and transfer,
and may be exercised at the corporate trust office of the
Debt Warrant Agent or any other office indicated in the
Prospectus Supplement. Prior to the exercise of their Debt
Warrants, holders of Debt Warrants will not have any of the
rights of holders of the J.P. Morgan Debt Securities
purchasable upon such exercise and will not be entitled to
payments of principal of, premium, if any, or interest, if
any, on the J.P. Morgan Debt Securities purchasable upon
such exercise.
Exercise of Debt Warrants
Each Offered Debt Warrant will entitle the holder to
purchase for cash such principal amount of J.P. Morgan Debt
Securities at such exercise price as shall in each case be
set forth in, or be determinable as set forth in, the
Prospectus Supplement relating to the Offered Debt Warrants.
Offered Debt Warrants may be exercised at any time up to the
close of business on the Expiration Date set forth in the
Prospectus Supplement relating to the Offered Debt Warrants.
After the close of business on the Expiration Date (or such
later date to which such Expiration Date may be extended by
J.P. Morgan), unexercised Debt Warrants will become void.
Subject to any restrictions and additional requirements that
may be set forth in the Prospectus Supplement relating
thereto, Debt Warrants may be exercised by delivery to the
Debt Warrant Agent of the Debt Warrant Certificate
evidencing such Debt Warrants properly completed and duly
executed and of payment as provided in the Prospectus
Supplement of the amount required to purchase the J.P.
Morgan Debt Securities purchasable upon such exercise. The
exercise price will be that price applicable on the date of
receipt of payment in full of the requisite amount of funds,
determined as set forth in the Prospectus Supplement
relating to the Offered Debt Warrants. Upon receipt of such
payment and such Debt Warrant Certificate at the corporate
trust office of the Debt Warrant Agent or any other office
indicated in the Prospectus Supplement, J.P. Morgan will, as
soon as practicable, forward the J.P. Morgan Debt Securities
purchasable upon such exercise. If less than all of the
Debt Warrants represented by such Debt Warrant Certificate
are exercised, a new Debt Warrant Certificate will be issued
for the remaining Debt Warrants.
Description of Series Preferred Stock
J.P. Morgan is authorized to issue up to 10,000,000 shares
of preferred stock without par value (the "Preferred
Stock"), which may be issued from time to time in one or
more series with such terms as are determined by resolution
of the Board of Directors. All shares of Series Preferred
Stock, irrespective of series, constitute one and the same
class. See "Description of Capital Stock." The following
description of the terms of the Series Preferred Stock sets
forth certain general terms and provisions of the Series
Preferred Stock to which any Prospectus Supplement may
relate. Certain terms of any series of Series Preferred
Stock offered by any Prospectus Supplement will be described
in the Prospectus Supplement
<PAGE 17>
relating to such series of Series Preferred Stock. If so
indicated in the Prospectus Supplement, the terms of any
such series may differ from the terms set forth below.
The Board of Directors is authorized to establish and
designate series and to fix the number of shares and the
relative rights, preferences and limitations of the
respective series of the Series Preferred Stock. The terms
of a particular series of Series Preferred Stock may differ,
among other things, in (1) the number of shares to
constitute such series, (2) the dividend rate (or the method
of calculation) on the shares of such series, and whether
such dividends are cumulative, (3) whether or not the shares
of the series shall be redeemable and the terms thereof, (4)
the terms and amount of any sinking fund provided for the
purchase or redemption of the series, (5) whether or not the
shares of the series shall be convertible into, or
exchangeable for, cash or shares of any other series of
Series Preferred Stock or other securities of J.P. Morgan
and the terms thereof, (6) the amount per share payable on
the shares of the series in case of liquidation, dissolution
or winding up of J.P. Morgan, (7) the terms of voting
rights, if any, of shares of the series, (8) whether there
are restrictions or conditions upon the issue or reissue of
any additional preferred stock ranking on a parity with or
prior to such series as to dividends or upon liquidation,
dissolution or winding up, and (9) the other rights and
privileges and any qualifications, limitations or
restrictions of such rights or privileges of such series.
Unless otherwise specifically set forth in the Prospectus
Supplement relating to a series of Series Preferred Stock,
all series of Series Preferred Stock shall be of equal rank,
preference and priority as to dividends and upon
liquidation, dissolution or winding up of J.P. Morgan; when
the stated dividends are not paid in full, the shares of all
series of the Series Preferred Stock shall share ratably in
any payment thereof, and upon liquidation, dissolution or
winding up of J.P. Morgan, if assets are insufficient to pay
in full all shares of all series of Series Preferred Stock,
then such assets shall be distributed among the holders
ratably.
As described under "Depositary Shares" below, J.P. Morgan
may, at its option, elect to offer depositary shares
evidenced by depositary receipts, each representing a
fraction (to be specified in the Prospectus Supplement
relating to the particular series of Series Preferred Stock)
of a share of the particular series of Series Preferred
Stock issued and deposited with a depositary, in lieu of
offering full shares of such series of the Series Preferred
Stock.
Since J.P. Morgan is a holding company, the right of J.P.
Morgan, and hence the right of creditors and stockholders of
J.P. Morgan, to participate in any distribution of assets of
any subsidiary, upon its liquidation or reorganization or
otherwise is necessarily subject to the prior claims of
creditors of the
subsidiary, except to the extent that claims of J.P. Morgan
itself as a creditor of the subsidiary may be recognized.
The brief description of the principal provisions of the
Series Preferred Stock set forth below does not purport to
be complete.
Dividend Rights
The holders of the Series Preferred Stock shall be entitled
to receive, but only when and as declared by the Board of
Directors out of funds legally available for that purpose,
cash dividends at the rates and on the dates set forth in
the Prospectus Supplement relating to a particular series of
Series Preferred Stock, and no more, payable quarterly
(each, a "Dividend Payment Date"), unless otherwise
specified in the Prospectus Supplement relating to a series
of Series Preferred Stock. Such rate may be fixed or
variable. Each such dividend will be payable to the holders
of record as they appear on the stock books of J.P. Morgan
(or, if applicable, the records of the Depositary referred
to below under "Depositary Shares") on such record dates as
will be fixed by the Board of Directors of J.P. Morgan or a
duly authorized committee thereof. Dividends payable on the
Series Preferred Stock for any period less than a full
quarter will be computed on the basis of the actual number
of days elapsed over a 360 day year and for a period of a
full calendar quarter, will be computed on the basis of a
360 day year consisting of twelve 30 day months.
<PAGE 18>
Unless otherwise specified in the Prospectus Supplement
relating to a series of Series Preferred Stock, such
dividends shall be payable from, and shall be cumulative
from, the date of original issue of each share, so that if
in any quarterly dividend period (being the period between
such dividend payment dates) dividends at the rate or rates
as described in the Prospectus Supplement relating to such
series of Series Preferred Stock shall not have been
declared and paid or set apart for payment on all
outstanding shares of Series Preferred Stock for such
quarterly dividend period and all preceding quarterly
dividend periods from and after the first day from which
dividends are cumulative then the aggregate deficiency shall
be declared and fully paid or set apart for payment, but
without interest, before any dividends shall be declared or
paid or set apart for payment on the Common Stock by J.P.
Morgan. The cutting-off of dividends on Common Stock until
the arrearages have been paid or provided for, as outlined
above, and such rights, if any, to vote for the election of
directors as may be set forth in the Prospectus Supplement
relating to a series of Series Preferred Stock, shall be the
only consequences of the failure to declare or pay dividends
on the Series Preferred Stock. After payment in full of all
dividend arrearages on the Series Preferred Stock, dividends
on the Common Stock may be declared and paid out of funds
legally available for that purpose as the Board of Directors
may determine.
Each series of the Series Preferred Stock will be entitled
to dividends as described in the Prospectus Supplement
relating to such series. Different series of the Series
Preferred Stock may be entitled to dividends at different
dividend rates or based upon different methods of
determination.
Optional Redemption
J.P. Morgan may, at its option, at any time or from time to
time on not less than 30 and not more than 60 days' notice,
redeem one or more series of the Series Preferred Stock, in
whole or in part, at the redemption prices and on the dates
set forth in the Prospectus Supplement for the related
series of Series Preferred Stock.
Any optional redemption by J.P. Morgan shall be with the
approval of the appropriate bank regulatory authorities
unless at the time such approval is not required. At the
date of this Prospectus approval by the Federal Reserve
Board is required.
If less than all the outstanding shares of a series of the
Series Preferred Stock are to be redeemed, the selection of
the shares to be redeemed shall be determined by lot or pro
rata as may be determined by the Board of Directors of J.P.
Morgan or by any other method which may be determined by the
Board of Directors to be equitable. From and after the
redemption date (unless default shall be made by J.P. Morgan
in providing for the payment of the redemption price),
dividends shall cease to accrue on the shares of such Series
Preferred Stock called for redemption and all rights of the
holders thereof (except the right to receive the redemption
price) shall cease.
At the option of J.P. Morgan, shares of Series Preferred
Stock redeemed or otherwise acquired may be restored to the
status of authorized but unissued shares of Series Preferred
Stock.
Conversion or Exchange
The holders of the Series Preferred Stock will have such
rights, if any, to convert such shares into or to exchange
such shares for, cash or shares of any other series of
Series Preferred Stock or other securities of J.P. Morgan,
as may be set forth in the Prospectus Supplement relating to
a series of Series Preferred Stock.
<PAGE 19>
Voting Rights
Except as indicated below or in the Prospectus Supplement
relating to a particular series of Series Preferred Stock,
or except as expressly required by applicable law, the
holders of the Series Preferred Stock will not be entitled
to vote. In the event that J.P. Morgan issues full shares
of any series of Series Preferred Stock, each such share
will be generally entitled to one vote on matters on which
holders of such series of the Series Preferred Stock are
entitled to vote, irrespective of such series' aggregate
stated value, liquidation preference or initial offering
price. However, as more fully described under "Depositary
Shares" below, if J.P. Morgan elects to issue Depositary
Shares representing a fraction of a share of a series of
Series Preferred Stock, each such Depositary Share will, in
effect, be entitled to such fraction of a vote as shall be
set forth in the Prospectus Supplement relating to such
series rather than one vote, per Depositary Share.
If at the time of any annual meeting of stockholders for the
election of directors, the equivalent of six quarterly
dividends (whether or not consecutive) payable by J.P.
Morgan on any series of Series Preferred Stock are in
default, the number of directors of J.P. Morgan will be
increased by two and the holders of record of all
outstanding series of Series Preferred Stock upon which like
voting rights have been conferred, voting as a single class
without regard to series, will be entitled to vote for the
election of such additional two directors until all
dividends in default have been paid or declared and set
apart for payment.
So long as any shares of Series Preferred Stock remain
outstanding (except as may be otherwise specified in the
Certificate of Designation creating such Series Preferred
Stock), J.P. Morgan shall not, without the affirmative vote
or consent of the holders of at least two-thirds of the
votes of the Series Preferred Stock at the time outstanding
and, entitled to vote, given in person or by proxy, either
in writing or by resolution adopted at a meeting at which
the holders of any series of Series Preferred Stock (alone
or together with the holders of one or more other series of
Series Preferred Stock at the time outstanding and entitled
to vote) voting separately as a class, alter the provisions
of the Series Preferred Stock so as to materially adversely
affect its rights; provided; however, that in the event any
such materially adverse alteration affects the rights of
only a single series of Series Preferred Stock, then the
alteration may be effected only with the vote or consent of
at least two-thirds of the votes of such series of Series
Preferred Stock; provided, further, that no such vote of any
series of Series Preferred Stock will be required to
authorize an increase in the amount of the authorized Series
Preferred Stock and/or the creation and issuance of other
series of Series Preferred Stock in accordance with J.P.
Morgan's Restated Certificate of Incorporation, as amended.
In connection with the exercise of the voting rights
contained in the preceding sentence, holders of all series
of Series Preferred Stock which are granted such voting
rights shall vote as a class (except as specifically
provided otherwise).
The foregoing voting provisions will not apply if, in
connection with the matters specified, provision is made for
the redemption or retirement of all outstanding Series
Preferred Stock.
Under regulations adopted by the Federal Reserve Board, if
the holders of any series of Series Preferred Stock become
entitled to vote for the election of directors because
dividends on such series are in arrears, such series may
then be deemed a "class of voting securities" and a holder
of 25% or more of such series (or a holder of 5% or more if
it otherwise exercises a "controlling influence" over J.P.
Morgan) may then be subject to regulation as a bank holding
company in accordance with the Bank Holding Company Act of
1956, as amended. In addition, at such time (i) any bank
holding company may be required to obtain the approval of
the Federal Reserve Board under the Bank Holding Company Act
of 1956, as amended, to acquire or retain 5% or more of any
series of Series Preferred Stock and (ii) any person other
than a bank holding company may be required to obtain the
approval of the Federal Reserve Board under the Bank Change
in Control Act to acquire 10% or more of such series of
Series Preferred Stock.
<PAGE 20>
Liquidation Rights
Upon any liquidation, dissolution or winding up of J.P.
Morgan, whether voluntary or involuntary, the holders of
each series of Series Preferred Stock shall have preference
and priority over the Common Stock for payment out of the
assets of J.P. Morgan or proceeds thereof, whether from
capital or surplus, of such amounts as are set forth in the
Prospectus Supplement relating to such series of Series
Preferred Stock and, after such payment, the holders of such
series of Series Preferred Stock shall be entitled to no
other payments. If, in such case, the assets of J.P. Morgan
or proceeds thereof shall be insufficient to make the full
liquidating payment on such series of Series Preferred Stock
and liquidating payments on any other outstanding series of
Series Preferred Stock (including accrued and unpaid
dividends, if any), then such assets and proceeds shall be
distributed among the holders of such series of Series
Preferred Stock and any other outstanding series of Series
Preferred Stock, ratably in accordance with the respective
amounts which would be payable on all Series Preferred Stock
(including accrued and unpaid dividends, if any) if all such
liquidating amounts payable were paid in full. A
consolidation or merger of J.P. Morgan with or into any
other corporation or corporations or a sale, whether for
cash, shares of stock, securities or properties, of all or
substantially all or any part of the assets of J.P. Morgan
shall not be deemed or construed to be a liquidation,
dissolution or winding up of J.P. Morgan.
Miscellaneous
Unless otherwise specified in the applicable Prospectus
Supplement, First Chicago Trust Company will serve as
transfer agent, dividend disbursing agent and registrar for
any series of Series Preferred Stock. The holders of any
series of Series Preferred Stock will not have any
preemptive rights to purchase or subscribe for any shares of
any class or other securities of any type of J.P. Morgan.
When issued, each series of the Series Preferred Stock will
be fully paid and nonassessable. The Certificate of
Designation setting forth the provisions of any series of
Series Preferred Stock will become effective after the date
of the Prospectus Supplement relating to such series of
Series Preferred Stock, but on or before issuance of such
series of Series Preferred Stock.
Depositary Shares
General
J.P. Morgan may, at its option, elect to offer fractional
shares of a particular series of Series Preferred Stock,
rather than full shares of such series of Series Preferred
Stock. In the event such option is exercised, J.P. Morgan
will issue to the public receipts for Depositary Shares,
each of which will represent a fraction (to be set forth in
the Prospectus Supplement relating to a particular series of
Series Preferred Stock) of a share of a particular series of
Series Preferred Stock as described below. The shares of
any series of Series Preferred Stock represented by
Depositary Shares will be deposited under a Deposit
Agreement (the "Deposit Agreement") between J.P. Morgan and
a bank or trust company selected by J.P. Morgan having its
principal office in the United States and having a combined
capital and surplus of at least $50,000,000 (the
"Depositary"). Subject to the terms of the Deposit
Agreement, each owner of a Depositary Share will be
entitled, in proportion to the applicable fraction of a
share of Series Preferred Stock represented by such
Depositary Share, to all the rights and preferences of the
Series Preferred Stock represented thereby (including
dividend, voting, redemption and liquidation rights).
The Depositary Shares will be evidenced by depositary
receipts issued pursuant to the Deposit Agreement
("Depositary Receipts"). Depositary Receipts will be
distributed to those persons purchasing the fractional
shares of the particular series of Series Preferred Stock in
accordance with the terms of the offering described in the
related Prospectus Supplement. Copies of the forms of the
Deposit Agreement and
<PAGE 21>
Depositary Receipt are filed as exhibits to the Registration
Statement, and the following summary is qualified in its
entirety by reference to such exhibits.
Pending the preparation of definitive engraved Depositary
Receipts, the Depositary may, upon the written order of J.P.
Morgan, issue temporary Depositary Receipts substantially
identical to (and entitling the holders thereof to all the
rights pertaining to) the definitive Depositary Receipts but
not in definitive form. Definitive Depositary Receipts will
be prepared thereafter without unreasonable delay, and
temporary Depositary Receipts will be exchangeable for
definitive Depositary Receipts at J.P. Morgan's expense.
Dividends and Other Distributions
The Depositary will distribute all cash dividends or other
cash distributions received in respect of the particular
series of Series Preferred Stock to the record holders of
Depositary Shares relating to such Series Preferred Stock in
proportion to the number of such Depositary Shares owned by
such holders.
In the event of a distribution other than in cash, the
Depositary will distribute property received by it to the
record holders of Depositary Shares entitled thereto, unless
the Depositary determines that it is not feasible to make
such distribution, in which case the Depositary may, with
the approval of J.P. Morgan, sell such property and
distribute the net proceeds from such sale to such holders.
Withdrawal of Stock
Upon surrender of Depositary Receipts at the corporate trust
office of the Depositary (unless the related Depositary
Shares have previously been called for redemption), the
holder of the Depositary Shares evidenced thereby is
entitled to delivery, at such office to or upon his order,
of the number of whole shares of the related series of
Series Preferred Stock and any money or other property
represented by such Depositary Shares. Holders of
Depositary Shares will be entitled to receive whole shares
of the related series of Series Preferred Stock on the basis
set forth in the related Prospectus Supplement for such
series of Series Preferred Stock, but holders of such whole
shares of Series Preferred Stock will not thereafter be
entitled to receive Depositary Shares therefor. If the
Depositary Receipts delivered by the holder evidence a
number of Depositary Shares in excess of the number of
Depositary Shares representing the number of whole shares of
the related series of Series Preferred Stock to be
withdrawn, the Depositary will deliver to such holder at the
same time a new Depositary Receipt evidencing such excess
number of Depositary Shares.
Redemption of Depositary Shares
If a series of Series Preferred Stock represented by
Depositary Shares is subject to redemption, the Depositary
Shares will be redeemed from the proceeds received by the
Depositary resulting from the redemption, in whole or in
part, of such series of Series Preferred Stock held by the
Depositary. The redemption price per Depositary Share will
be equal to the applicable fraction of the redemption price
per share payable with respect to such series of the Series
Preferred Stock. Whenever J.P. Morgan redeems shares of
Series Preferred Stock held by the Depositary, the
Depositary will redeem as of the same redemption date the
number of Depositary Shares representing shares of the
related series of Series Preferred Stock so redeemed. If
less than all the Depositary Shares are to be redeemed, the
Depositary Shares to be redeemed will be selected by lot or
pro rata as may be determined by the Depositary.
Voting the Series Preferred Stock
Upon receipt of notice of any meeting at which the holders
of the Series Preferred Stock are entitled to vote, the
Depositary will mail the information contained in such
notice of meeting to the record holders of
<PAGE 22>
the Depositary Shares relating to such Series Preferred
Stock. Each record holder of such Depositary Shares on the
record date (which will be the same date as the record date
for the Series Preferred Stock) will be entitled to instruct
the Depositary as to the exercise of the voting rights
pertaining to the amount of the Series Preferred Stock
represented by such holder's Depositary Shares. The
Depositary will endeavor, insofar as practicable, to vote
the amount of the Series Preferred Stock represented by such
Depositary Shares in accordance with such instructions, and
J.P. Morgan will agree to take all action which may be
deemed necessary by the Depositary in order to enable the
Depositary to do so. The Depositary will abstain from
voting shares of the Series Preferred Stock to the extent it
does not receive specific instructions from the holders of
Depositary Shares representing such Series Preferred Stock.
Amendment and Termination of the Deposit Agreement
The form of Depositary Receipt evidencing the Depositary
Shares and any provision of the Deposit Agreement may at any
time be amended by agreement between J.P. Morgan and the
Depositary. However, any amendment which materially and
adversely alters the rights of the holders of Depositary
Shares will not be effective unless such amendment has been
approved by the holders of at least a majority of the
Depositary Shares then outstanding. The Deposit Agreement
may be terminated by J.P. Morgan or the Depositary only if
(i) all outstanding Depositary Shares have been redeemed or
(ii) there has been a final distribution in respect of the
related series of Series Preferred Stock in connection with
any liquidation, dissolution or winding up of J.P. Morgan
and such distribution has been distributed to the holders of
Depositary Receipts.
Charges of Depositary
J.P. Morgan will pay all transfer and other taxes and
governmental charges arising solely from the existence of
the depositary arrangements. J.P. Morgan will pay charges
of the Depositary in connection with the initial deposit of
the related series of Series Preferred Stock and any
redemption of such Series Preferred Stock. Holders of
Depositary Receipts will pay transfer and other taxes and
governmental charges and such other charges as are expressly
provided in the Deposit Agreement to be for their accounts.
Resignation and Removal of Depositary
The Depositary may resign at any time by delivering to J.P.
Morgan notice of its election to do so, and J.P. Morgan may
at any time remove the Depositary, any such resignation or
removal to take effect upon the appointment of a successor
Depositary and its acceptance of such appointment. Such
successor depositary must be appointed within 60 days after
delivery of the notice of resignation or removal and must be
a bank or trust company having its principal office in the
United States and having a combined capital and surplus of
at least $50,000,000.
Miscellaneous
The Depositary will forward all reports and communications
from J.P. Morgan which are delivered to the Depositary and
which J.P. Morgan is required to furnish to the holders of
the related series of Series Preferred Stock.
Neither the Depositary nor J.P. Morgan will be liable if it
is prevented or delayed by law or any circumstance beyond
its control in performing its obligations under the Deposit
Agreement. The obligations of J.P. Morgan and the
Depositary under the Deposit Agreement will be limited to
performance in good faith of their duties thereunder and
they will not be obligated to prosecute or defend any legal
proceeding in respect of any Depositary Shares or Series
Preferred Stock unless satisfactory
<PAGE 23>
indemnity is furnished. They may rely on written advice of
counsel or accountants, or information provided by persons
presenting Series Preferred Stock for deposit, holders of
Depositary Receipts or other persons believed to be
competent and on documents believed to be genuine.
Description of Preferred Stock Warrants
J.P. Morgan may issue Preferred Stock Warrants for the
purchase of a particular series of Series Preferred Stock or
Depositary Shares. The Preferred Stock Warrants are to be
issued under warrant agreements (each a "Preferred Stock
Warrant Agreement") to be entered into between J.P. Morgan
and Morgan Guaranty, as warrant agent (the "Preferred Stock
Warrant Agent"), all as set forth in the Prospectus
Supplement relating to the particular issue of Preferred
Stock Warrants (the "Offered Preferred Stock Warrants"). A
copy of the Preferred Stock Warrant Agreement, including the
form of preferred stock warrant certificate (the "Preferred
Stock Warrant Certificate") representing the Preferred Stock
Warrants, substantially in the form in which it will be
executed, is filed as an exhibit to the Registration
Statement. Brief summaries of the principal provisions of
the Preferred Stock Warrant Agreement and Preferred Stock
Warrant Certificates do not purport to be complete.
General
If Preferred Stock Warrants are offered, the Prospectus
Supplement will describe the terms of the Offered Preferred
Stock Warrants, and the Preferred Stock Warrant Agreement
relating to the Offered Preferred Stock Warrants and the
Preferred Stock Warrant Certificates representing the
Offered Preferred Stock Warrants including the following:
(i) the designation, number of shares, stated value and
terms (including, without limitation, liquidation,
dividend, conversion and voting rights) of the series
of Series Preferred Stock or Depositary Shares
purchasable upon exercise of Preferred Stock Warrants
and the price at which such number of shares of Series
Preferred Stock or Depositary Shares may be purchased
upon such exercise;
(ii) the date on which the right to exercise such
Preferred Stock Warrants shall commence and the date
(the "Expiration Date") on which such right shall
expire;
(iii) United States Federal income tax consequences
applicable to such Preferred Stock Warrants; and
(iv) any other terms of such Preferred Stock Warrants.
Preferred Stock Warrants for the purchase of Series
Preferred Stock or Depositary Shares will be offered and
exercisable for U.S. dollars only. Preferred Stock
Warrants will be issued in registered form only. The
exercise price for Preferred Stock Warrants will be subject
to adjustment in accordance with the applicable Prospectus
Supplement.
Exercise of Preferred Stock Warrants
Each Preferred Stock Warrant will entitle the holder to
purchase for cash such number of shares (as applicable) of
Series Preferred Stock or Depositary Shares, at such
exercise price as shall in each case be set forth in, or
calculable from, the Prospectus Supplement relating to the
Offered Preferred Stock Warrants, which exercise price may
be subject to adjustment upon the occurrence of certain
events as set forth in such Prospectus Supplement. Offered
Preferred Stock Warrants may be exercised at any time up
<PAGE 24>
to the close of business on the Expiration Date set forth in
the Prospectus Supplement relating to the Offered Preferred
Stock Warrants. After the close of business on the
Expiration Date (or such later date to which such Expiration
Date may be extended by J.P. Morgan), unexercised Preferred
Stock Warrants will become void. The place or places where,
and the manner in which, Preferred Stock Warrants may be
exercised shall be specified in the Prospectus Supplement
relating to such Preferred Stock Warrants.
Prior to the exercise of any Preferred Stock Warrants to
purchase Series Preferred Stock or Depositary Shares,
holders of such Preferred Stock Warrants will not have any
rights of holders of the Series Preferred Stock or
Depositary Shares purchasable upon such exercise, including
the right to receive payments of dividends, if any, on the
Series Preferred Stock or Depositary Shares purchasable upon
such exercise or to exercise any applicable right to vote.
Description of Universal Warrants
The following description of the terms of the Universal
Warrants sets forth certain general terms and provisions of
the Universal Warrants to which any Prospectus Supplement
may relate. The particular terms of the Universal Warrants
offered by any Prospectus Supplement and the extent, if any,
to which such general provisions do not apply to the
Universal Warrants so offered will be described in the
Prospectus Supplement relating to such Universal Warrants.
Each issue of Universal Warrants will be issued under a
warrant agreement (each a "Universal Warrant Agreement") to
be entered into between J.P. Morgan and Morgan Guaranty, as
warrant agent (the "Universal Warrant Agent"), all as
described in the Prospectus Supplement relating to such
Universal Warrants. A copy of the form of Universal Warrant
Agreement including the form of Universal warrant
certificate (the "Universal Warrant Certificate")
representing the Universal Warrants, substantially in the
form in which it will be executed, will be filed as an
exhibit to the Registration Statement. Brief summaries of
the principal provisions of the Universal Warrants and the
Universal Warrant Agreement do not purport to be complete.
General
J.P. Morgan may issue Universal Warrants (i) to purchase or
sell securities of any entity unaffiliated with J.P. Morgan
or securities based on the performance of such entity, but
not including the performance of a particular subsidiary or
subsidiaries of such entity, a basket of securities, an
index or indices of securities, a basket of indices, or any
combination of the above, (ii) to purchase or sell
currencies or currency units or composite currencies, (iii)
to purchase or sell commodities or (iv) entitling the
holders thereof to receive an amount in cash determined by
references to increases or decreases in the yield or closing
price of one or more debt instruments, in the interest rate,
interest swap rate or other rate; or any combination of the
above.
J.P. Morgan may satisfy its obligations, if any, with
respect to any Universal Warrants by delivering the
underlying securities, currencies or commodities (if
applicable) or the cash value of the Universal Warrant, as
set forth in the applicable prospectus supplement.
Prospective purchasers of Universal Warrants should be aware
of special United States Federal income tax considerations
applicable to instruments such as the Universal Warrants.
The Prospectus Supplement relating to each issue of
Universal Warrants will describe such tax considerations.
Reference is made to the Prospectus Supplement for the
following terms of and information relating to any Universal
Warrants: (i) whether such Universal Warrants are put
Warrants or call Warrants; (ii) the designated securities,
currencies or composite currencies, index or indices of
securities or the formula for
<PAGE 25>
determining the cash settlement value of such; (iii) the
price at which and the currency or composite currency with
which such Universal Warrants may be exercised; (iv) whether
such exercise price may be paid in cash, by the exchange of
any other Security offered with such Universal Warrants or
both and the method of such exercise; (v) whether the
exercise of such Universal Warrants is to be settled in cash
or by delivery of the underlying securities, currencies or
commodities or both; (vi) the date on which the right to
exercise the Universal Warrants shall commence and the date
(the "Universal Warrant Expiration Date") on which such
right shall expire or, if the Universal Warrants are not
continuously exercisable throughout such period, the
specific date or dates on which they will be exercisable
(each, a "Universal Warrant Exercise Date," which term shall
also mean, with respect to Universal Warrants continuously
exercisable for a period of time, every date during such
period); (vii) the national securities exchange on which
such Universal Warrants will be listed, if any; (viii)
whether such Universal Warrants will, from the perspective
of holders, be represented by certificates or issued in book-
entry form; (ix) the place or places at which payment of the
cash settlement value of such Universal Warrants is to be
made by J.P. Morgan, if applicable; (x) the circumstances
which will cause the Universal Warrants to be deemed to be
automatically exercised, and any other terms of such
Universal Warrants.
Book-Entry Procedure and Settlement
Except as may otherwise be provided in the applicable
Prospectus Supplement, the Universal Warrants will be issued
in the form of a single global Universal Warrant
Certificate, registered in the name of a depositary or its
nominee. Holders will not be entitled to receive definitive
certificates representing Universal Warrants. A holder's
ownership of a Universal Warrant will be recorded on or
through the records of the brokerage firm or other entity
that maintains such holder's account. In turn, the total
number of Universal Warrants held by an individual brokerage
firm for its clients will be maintained on the records of
the depositary in the name of such brokerage firm or its
agent. Transfer of ownership of any Universal Warrant will
be affected only through the selling holder's brokerage
firm.
Exercise of Universal Warrants
Unless otherwise specified in the applicable Prospectus
Supplement, each Universal Warrant will entitle the holder
to the cash settlement value of such Universal Warrant on
the applicable Universal Warrant Exercise Date, in each case
as such terms will be defined in the applicable Prospectus
Supplement.
Listing
Each issue of Universal Warrants may be listed on a national
securities exchange, subject only to official notice of
issuance and exchange approval as a condition of sale of any
such Universal Warrants. If such listing is sought, there
can be no assurance that such approval will be granted. In
the event that the Universal Warrants are delisted from, or
permanently suspended from trading on, such exchange, the
Universal Warrant Expiration Date for such Universal
Warrants will be the date such delisting or trading
suspension becomes effective and Universal Warrants not
previously exercised will be deemed automatically exercised
on such Universal Warrant Expiration Date. The applicable
Universal Warrant agreement will contain a covenant of J.P.
Morgan not to seek delisting of the Universal Warrants, or
suspension of their trading, on such exchange unless J.P.
Morgan has, at the same time, arranged for listing on
another national securities exchange.
Risk Factors Relating To Universal Warrants
Universal Warrants involve a high degree of risk, including
the risk of expiring worthless. Purchasers should be
prepared to sustain a loss of some or all of the purchase
price of their Universal Warrants. Prospective purchasers
of the Universal Warrants should be experienced with respect
to options and
<PAGE 26>
option transactions and should reach an investment decision
only after careful consideration with their advisers of the
suitability of the Universal Warrants in light of their
particular financial circumstances, the information set
forth under "Description of Universal Warrants" herein and
the risk factors and information regarding the Universal
Warrants set forth in the Prospectus Supplement relating to
such Universal Warrants.
Description of Capital Stock
The authorized capital stock of J.P. Morgan consists of
500,000,000 shares of Common Stock, $2.50 par value, and
10,000,000 shares of Preferred Stock, no par value. At
March 31, 1998, there were 177,933,414 shares of Common
Stock outstanding and 2,444,300 shares of Series A
Adjustable Rate Cumulative Preferred Stock, 50,000 shares
each of Series B, C, D, E and F Variable Cumulative
Preferred Stock and 400,000 shares of Series H Fixed
Cumulative Preferred Stock outstanding.
The brief summary of the principal provisions contained in
J.P. Morgan's Restated Certificate of Incorporation does not
purport to be complete.
Common Stock
Subject to the prior rights of the Preferred Stock, holders
of J.P. Morgan Common Stock are entitled to receive
dividends when, as and if declared by the Board of Directors
out of any fund legally available therefor and upon
liquidation, dissolution or winding up to receive pro rata
all of J.P. Morgan remaining after provision has been made
for the payments of creditors.
Under the Federal Reserve Act, there are legal restrictions
that limit the amount of dividends that Morgan Guaranty
Trust Company of New York ("Morgan Guaranty"), a subsidiary
of J.P. Morgan and a state member bank, can declare. The
most restrictive test requires approval of the Board of
Governors of the Federal Reserve System if dividends
declared exceed the net profits for that year as defined,
combined with the net profits for the preceding two years.
The calculation of the amount available for payment of
dividends is based on net profits determined in accordance
with bank regulatory accounting principles reduced by the
amount of dividends declared. At December 31, 1997, the
cumulative retained net profits for the years 1997 and 1996
available for distribution as dividends by Morgan Guaranty
in 1998 without approval of the Federal Reserve Board
amounted to approximately $1,679 million.
The Federal Reserve Board may prohibit the payment of
dividends if it determines that circumstances relating to
the financial condition of a bank are such that the payment
of dividends would be an unsafe and unsound practice.
Voting Rights
Subject to the voting rights of the Preferred Stock, all
voting rights are vested in the holders of shares of J.P.
Morgan Common Stock, each share being entitled to one vote.
Preemptive Rights
Holders of J.P. Morgan Common Stock do not have any
preemptive rights to subscribe to any additional securities
that J.P. Morgan may issue.
<PAGE 27>
Preferred Stock
General. The Preferred Stock, of which 10,000,000 shares
have been authorized, upon issuance has preference over the
Common Stock with respect to the payment of dividends and
the distribution of assets in the event of liquidation,
dissolution or winding up of J.P. Morgan and such other
rights, preferences and limitations as may be fixed by the
Board of Directors. Dividend provisions, liquidation
preferences, voting rights, if any, sinking fund and
redemption provisions, if any, and conversion and exchange
provisions, if any, also will be fixed by the Board of
Directors. The shares of Series Preferred Stock referred to
in this Prospectus, when issued and paid for, will be
validly issued, fully paid and non-assessable.
Series A Preferred Stock
Adjustable Rate Cumulative Preferred Stock, Series A. In
March 1983, the Corporation issued 2,500,000 shares of the
Adjustable Rate Cumulative Preferred Stock, Series A (the
"Series A Preferred Stock") of which 2,444,300 shares are
currently outstanding. Dividends on the Series A Preferred
Stock are cumulative. If the equivalent of six quarterly
dividends payable on the Series A Preferred Stock are in
arrears in an amount equivalent to dividends for six full
dividend periods (whether or not consecutive), the number of
directors of J.P. Morgan will be increased by two and the
holders of the outstanding Series A Preferred Stock, voting
together as a single class with holders of shares of any
other series preferred stock then outstanding upon which
like voting rights have been conferred and are then
exercisable, will be entitled to elect two additional
directors (the holders of record of Series A Preferred Stock
being entitled to cast 1/10 of one vote) until all dividends
in arrears have been declared and paid or set apart for
payment in full. In the event of liquidation or
dissolution, the holders of shares of Series A Preferred
Stock are entitled to receive a distribution of $100 per
share, plus, in each case, accrued and unpaid dividends to
the date of final distribution.
Except under certain circumstances, shares of Series A
Preferred Stock were not redeemable prior to March 1, 1986.
On or after such date and prior to February 29, 1988, shares
of Series A Preferred Stock were redeemable at the option of
J.P. Morgan, as a whole or in part, at a redemption price
per share of $103.00 and thereafter at $100 per share. The
redemption price set forth above with respect to Series A
Preferred Stock will be increased, in each case, by the
amount of accrued and unpaid dividends thereon to the date
fixed for redemption.
Dividends on the Series A Preferred Stock are established
quarterly by a formula based on the interest rates of
certain actively traded U.S. Treasury obligations. In no
event will the quarterly dividends payable on the Series A
Preferred Stock be less than 5.00% or greater than 11.50%
per annum.
Series B, C, D, E and F Preferred Stock
Variable Cumulative Preferred Stock, Series B, C, D, E and
F. In January 1990, as another series of series preferred
stock, J.P. Morgan issued $250 million, or 250,000 shares,
of Variable Cumulative Preferred Stock, Series B, C, D, E
and F (the "Variable Cumulative Preferred Stock") in five
series of 50,000 shares each: Series B, Series C, Series D,
Series E and Series F. These issues, priced at $1,000 per
share, have contingent voting rights and a liquidation
preference of $1,000 per share, plus accrued and unpaid
dividends. Each of the five series is identical except that
the dividend rates and dividend payment dates vary and
separate auctions on different auction dates are held by
each series.
The shares of each of these series of Variable Cumulative
Preferred Stock are redeemable as a whole or in part (in
units of 100 shares), except under certain conditions, at
the option of J.P. Morgan, at a redemption price of $1,000
per share plus an amount equal to accrued and unpaid
dividends.
<PAGE 28>
Dividends on each series of Variable Cumulative Preferred
Stock are cumulative and are payable generally every 49
days, subject to certain conditions. The dividend rates are
set at a rate per annum that is determined either by an
auction conducted on each such series of Variable Cumulative
Preferred Stock on the business day preceding the
commencement of a subsequent dividend period or by a
remarketing. The rate for any dividend period is subject to
a maximum rate based upon the "AA" Composite Commercial
Paper Rate and the credit ratings of the Variable Cumulative
Preferred Stock in effect on a particular auction date.
Series H Preferred Stock
Fixed Cumulative Preferred Stock, Series H. In February
1996, as another series of preferred stock, J.P. Morgan
issued $200 million, or 400,000 shares, of 6 5/8% Cumulative
Preferred Stock, Series H (the "Series H Preferred Stock").
Shares of the Series H Preferred Stock have a stated value
of $500 per share.
The shares of this Series H Preferred Stock are not
redeemable prior to March 31, 2006. On or after March 31,
2006, J.P. Morgan, at its option, with prior approval of the
appropriate bank regulators, if so required, may redeem the
Series H Preferred stock, as a whole or in part, at any time
or from time to time out of funds legally available
therefor, at a redemption price of $500 per share plus an
amount equal to accrued and unpaid dividends thereon to the
date fixed for redemption.
Dividends on this Series H Preferred Stock shall be declared
by the Board of Directors of J.P. Morgan at a
rate of 6 5/8% per annum on the stated value thereof. Such
dividends shall be cumulative and payable generally on March
31, June 30, September 30 and December 31 of each year.
Plan of Distribution
J.P. Morgan may sell the Securities being offered hereby (i)
through agents, (ii) through underwriters, (iii) through
dealers and (iv) directly to purchasers. J.P. Morgan may
sell the Series Preferred Stock, including any associated
Depositary Shares, the Preferred Stock Warrants or the
Universal Warrants being offered hereby through
underwriters. Any such persons may be customers of, engage
in transactions with, or perform services for, J.P. Morgan
in the ordinary course of business.
Securities may be offered and sold through agents designated
by J.P. Morgan from time to time. Any such agent involved
in the offer or sale of the Securities in respect of which
this Prospectus is delivered will be named, and any
commissions payable by J.P. Morgan to such agent will be set
forth, in the Prospectus Supplement. Unless otherwise
indicated in the Prospectus Supplement, any such agent will
be acting on a best efforts basis for the period of its
appointment (ordinarily five business days or less). Any
such agent may be deemed to be an underwriter, as that term
is defined in the Securities Act of 1933, as amended (the
"1933 Act"), of the Securities so offered and sold. Agents
may be entitled under agreements which may be entered into
with J.P. Morgan to indemnification by J.P. Morgan against
certain liabilities, including liabilities under the 1933
Act.
If an underwriter or underwriters are utilized in the sale
of the Offered Securities, J.P. Morgan will execute an
underwriting agreement with such underwriter or underwriters
at the time an agreement for such sale is reached, and the
names of the specific managing underwriter or underwriters,
as well as any other underwriters, and the terms of the
transaction, including compensation of the underwriters and
dealers, if any, will be set forth in the Prospectus
Supplement which will be used by the underwriters to make
resales of the Offered Securities in respect of which this
Prospectus is delivered to the public. Underwriters will
acquire Offered Securities for their own account and may
resell such Offered Securities from time to time in one or
more transactions, including negotiated transactions, at
fixed public offering prices or at varying prices determined
at the time of sale. Offered Securities may be offered to
the public
<PAGE 29>
either through underwriting syndicates represented by
managing underwriters, or directly by the managing
underwriters. The underwriters may be entitled, under the
relevant underwriting agreement, to indemnification by J.P.
Morgan against certain liabilities, including liabilities
under the 1933 Act. Only underwriters named in the
Prospectus Supplement are deemed to be underwriters in
connection with the Offered Securities offered thereby. If
any underwriter or underwriters are utilized in the sale of
the Offered Securities, the underwriting agreement provides
that the obligations of the underwriters are subject to
certain conditions precedent and that the underwriters with
respect to a sale of Offered Securities will be obligated to
purchase all such Offered Securities if any are purchased.
If a dealer is utilized in the sale of the Securities in
respect of which this Prospectus is delivered, J.P. Morgan
will sell such Securities to the dealer, as principal. The
dealer may then resell such Securities to the public at
varying prices to be determined by such dealer at the time
of resale. Any such dealer may be deemed to be an
underwriter, as such term is defined in the 1933 Act, of the
Securities so offered and sold. Dealers may be entitled,
under agreements which may be entered into with J.P. Morgan,
to indemnification by J.P. Morgan against certain
liabilities, including liabilities under the 1933 Act. The
name of the dealer and the terms of the transaction will be
set forth in the Prospectus Supplement relating thereto.
Offers to purchase Securities may be solicited directly by
J.P. Morgan and sales thereof may be made by J.P. Morgan
directly to institutional investors or others, who may be
deemed to be underwriters within the meaning of the 1933
Act, with respect to any sale thereof. The terms of any
such sales will be described in the Prospectus Supplement
relating thereto.
If so indicated in the Prospectus Supplement, J.P. Morgan
will authorize agents and underwriters to solicit offers by
certain institutions to purchase Offered Securities from
J.P. Morgan at the public offering price set forth in the
Prospectus Supplement pursuant to Delayed Delivery Contracts
("Contracts") providing for payment and delivery on the date
stated in the Prospectus Supplement. Each Contract will be
for an amount not less than, and, unless J.P. Morgan
otherwise agrees, the aggregate principal amount of
Securities sold pursuant to Contracts shall be not less nor
more than, the respective amounts stated in the Prospectus
Supplement. Institutions with whom Contracts, when
authorized, may be made include commercial and savings
banks, insurance companies, pension funds, investment
companies, educational and charitable institutions and other
institutions but shall in all cases be subject to the
approval of J.P. Morgan.
Contracts will not be subject to any conditions except the
condition that any related sale of Offered Securities to
underwriters shall have occurred and the purchase by an
institution of the Offered Securities covered by its
Contract shall not at the time of delivery be prohibited
under the laws of any jurisdiction in the United States to
which such institution is subject. A commission indicated
in the Prospectus Supplement will be paid to underwriters
and agents soliciting purchases of Offered Securities
pursuant to Contracts accepted by J.P. Morgan.
The place and time of delivery of the Offered Securities in
respect of which this Prospectus is delivered will be set
forth in the accompanying Prospectus Supplement.
This Prospectus and related Prospectus Supplement may be
used by direct or indirect wholly-owned subsidiaries of J.P.
Morgan in connection with offers and sales related to
secondary market transactions in the Offered Securities.
Such subsidiaries may act as principal or agent in such
transactions. Such sales will be made at prices related to
prevailing market prices at the time of a sale.
The offer and sale of the Offered Securities by an affiliate
of J.P. Morgan will comply with the requirements of Rule
2720 of the National Association of Securities Dealers, Inc.
(the "NASD") Conduct
<PAGE 30>
Rules regarding underwriting of securities of an affiliate
and will comply with any restrictions imposed on the
Underwriter by the Board of Governors of the Federal Reserve
System. Accordingly, an affiliate of J.P. Morgan that is a
member of the NASD may participate in a public offering and
sale of J.P. Morgan Debt Securities, Series Preferred Stock
or Depositary Shares if the offering is of a class of
securities rated investment grade by a nationally recognized
statistical rating organization. In addition, an affiliate
of J.P. Morgan that is a member of the NASD may participate
in any public offering and sale of the Offered Securities,
including without limitation Debt Warrants, Preferred Stock
Warrants and Universal Warrants, if the price at which an
equity issue is distributed to the public is no higher or
the yield at which a debt issue is distributed to the public
is no lower than that recommended by a "qualified
independent underwriter" (determined to be so qualified by
the NASD prior to commencement of such offering), in each
case in compliance with the provisions of the NASD.
Each NASD member participating in offers and sales of the
Offered Securities will not execute a transaction in the
Offered Securities in a discretionary account without the
prior written specific approval of the member's customer.
Certain of the underwriters or agents and their associates
may be customers of, engage in transactions with, and
perform services for, J.P. Morgan in the ordinary course of
business.
Experts
The audited financial statements contained in J.P. Morgan's
Annual Report on Form 10-K for the year ended December 31,
1997, (included in J.P. Morgan's Annual Report to
Stockholders) are incorporated by reference in this
Prospectus in reliance on the report of Price Waterhouse
LLP, independent accountants, given on the authority of said
firm as experts in auditing and accounting.
Legal Opinions
The validity of the offered Securities offered hereby will
be passed upon by Gene A. Capello, Vice President and
Assistant General Counsel of J.P. Morgan, and by Cravath,
Swaine & Moore, New York, New York, counsel for any
underwriters, selling agents and certain other purchasers.
<PAGE 31>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
The expenses in connection with the issuance and
distribution of securities being registered, other than underwriting
compensation and related hedging costs, are as follows:
Securities and Exchange Commission Registration $2,950,000
Legal Fees and Expenses. . . . . . . . . . . . 25,000*
NASD Fees . . . . . . . . . . . . . . . . . . 30,500
Accounting Fees and Expenses . . . . . . . . . 50,000*
Trustees fees and expenses (including counsel fees) 20,000*
Rating Agency Fees . . . . . . . . . . . . . . 65,000*
Printing and Engraving Fees . . . . . . . . . 60,000*
Miscellaneous . . . . . . . . . . . . . . . . 26,000*
---------
Total . . . . . . . . . . . . . . . . . . . . $3,226,500
=========
- --------------------------
* Estimated
Item 15. Indemnification of Officers and Directors.
Article Seventh of the Restated Certificate of Incorporation
of J.P. Morgan & Co. Incorporated (the "Registrant")
provides, in effect, that, to the extent and under the
circumstances permitted by Section 145 of the General
Corporation Law of Delaware, the Registrant shall indemnify
directors, officers, employees and agents of the Registrant,
or persons serving at the written request of the Registrant
as directors, officers, employees or agents of another
corporation or enterprise, including Morgan Guaranty,
against loss and expenses. Subsection (a) of Section 145 of
the General Corporation Law of Delaware empowers a
corporation to indemnify any person who was or is a party or
is threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an
action by or in the right of the corporation) by reason of
the fact that he is or was a director, officer, employee or
agent of the corporation, or is or was serving at the
request of the corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture,
trust or other enterprise, against expenses (including
attorneys' fees), judgments, fines and amounts paid in
settlement actually and reasonably incurred by him in
connection with such action, suit, or proceeding if he acted
in good faith and in a manner he reasonably believed to be
in or not opposed to the best interests of the corporation,
and, with respect to any criminal action or proceeding, had
no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit, or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a
presumption that the person did not act in good faith and in
a manner which he reasonably believed to be in or not
opposed to the best interests of the corporation, and, with
respect to any criminal action or proceeding, had reasonable
cause to believe that his conduct was unlawful.
Subsection (b) of Section 145 empowers a corporation to
indemnify any person who was or is a party or is threatened
to be made a party to any threatened, pending or completed
action or suit by or in the right of the corporation to
procure a judgment in its favor by reason of the fact that
such person acted in any of the
<PAGE 32>
capacities set forth above, against expenses (including
attorneys' fees) actually and reasonably incurred by him in
connection with the defense or settlement of such action or
suit if he acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of
the corporation, except that no indemnification may be made
in respect of any claim, issue or matter as to which such
person shall have been adjudged to be liable to the
corporation unless and only to the extent that the Delaware
Court of Chancery or the court in which such action or suit
was brought shall determine that despite the adjudication of
liability such person is fairly and reasonably entitled to
indemnity for such expenses which the court shall deem
proper.
Section 145 further provides that to the extent a director,
officer, employee or agent of a corporation has been
successful in the defense of any action, suit or proceeding
referred to in subsections (a) and (b) or in the defense of
any claim, issue or matter therein, he shall be indemnified
against expenses (including attorneys' fees) actually and
reasonably incurred by him in connection therewith. It also
provides that indemnification provided for by Section 145
shall not be deemed exclusive of any other rights to which
the indemnified party may be entitled under any by-law,
agreement, vote of shareholders or disinterested directors
or otherwise, and it empowers the corporation to purchase
and maintain insurance in such amounts as the Board of
Directors deems appropriate on behalf of a director,
officer, employee or agent of the corporation against any
liability asserted against him or incurred by him in any
such capacity or arising out of his status as such whether
or not the corporation would have the power to indemnify him
against such liabilities under Section 145.
The indemnification permitted by Article Seventh of the
Restated Certificate of Incorporation of the Registrant has
been extended to all officers and directors of the
Registrant's wholly owned direct and indirect subsidiaries,
and to such officers and directors in their respective
capacities as directors and officers of other corporations
25% or more of the voting securities of which is owned,
directly or indirectly, by the Registrant. The Registrant
has purchased liability insurance of the type referred to in
Section 145. Subject to a $250,000 deductible for each loss,
the policy covers the Registrant with respect to its
obligation to indemnify directors and officers of the
Registrant and its wholly owned direct and indirect
subsidiaries. In addition, the policy covers directors and
officers of the Registrant and its wholly owned direct and
indirect subsidiaries with respect to certain liabilities
which are not reimbursable by the Registrant. Subject to
certain exclusions from the coverage, the insurance provides
for payment of loss in excess of the applicable deductible
to an aggregate limit of $90,000,000 for the three-year
policy term. Insurance coverage does not extend to certain
claims, including claims based upon or attributable to the
insured's gaining personal profit or advantage in which he
is not legally entitled, claims brought about or contributed
to by the dishonesty of the insured, and claims under
Section 16(b) of the Securities Exchange Act of 1934 for an
accounting of profits resulting from the purchase or sale by
the insured of the Registrant's securities. In addition,
the Registrant has purchased catastrophic loss insurance
which provides, among other things, excess insurance
coverage , over the $90,000,000 officer and director policy.
Subject to certain exclusions from the coverage, the
insurance provides for payment of loss, in the case of the
officer and director excess coverage, to an aggregate limit
of $400,000,000 for the three-year policy term.
Item 16. Exhibits.
1(a)(1)* Form of Underwriting Agreement
(including form of Delayed Delivery Contract) for
Subordinated Debt Securities.
1(a)(2)** Form of Underwriting Agreement (including
form of Delayed Delivery Contract) for Debt Securities.
1(a)(3)+ Form of Underwriting Agreement for
Series Preferred Stock, Depositary Shares and Preferred
Stock Warrants.
1(a)(4)+ Form of Underwriting Agreement for
Currency Warrants.
1(b)(1)* Form of Purchase Agreement for
Subordinated Debt Securities.
<PAGE 33>
1(b)(2)** Form of Purchase Agreement for Debt
Securities.
1(c)(1)* Form of Selling Agent Agreement for
Subordinated Debt Securities.
1(c)(2)** Form of Selling Agent Agreement for Debt
Securities.
1(d)(1)++ Form of Distribution Agreement for Medium-
Term Notes.
3(a)+++ Restated Certificate of Incorporation of
J.P. Morgan & Co. Incorporated, as amended.
3(b) By-Laws of J.P. Morgan & Co.
Incorporated as amended through April 11, 1996.
(Incorporated by reference to J.P. Morgan's Report on Form
8-K dated April 11, 1996 filed pursuant to Section 13 of the
Securities and Exchange Act of 1934 (the "Act")).
4(a)(1)* Indenture dated as of March 1, 1993,
between J.P. Morgan & Co. Incorporated and Citibank, N.A.,
as Trustee , (now U.S. Bank Trust National Association,
formerly First Trust of New York, National Association, as
Successor Trustee).
4(a)(2)** Indenture dated as of August 15, 1982,
between J.P. Morgan & Co. Incorporated and Chemical Bank
(formerly Manufacturers Hanover Trust Company),as Trustee
(now U.S. Bank Trust National Association, formerly First
Trust of New York, National Association, as Successor
Trustee), (incorporated herein by reference to J.P. Morgan's
Current Report on Form 8-K dated February 7, 1986, filed
pursuant to Section 13 of the Act).
4(a)(3)** Form of First Supplemental Indenture
dated as of May 5, 1986 between J.P. Morgan & Co.
Incorporated and Chemical Bank (formerly Manufacturers
Hanover Trust Company), as Trustee, (now U.S. Bank Trust
National Association, formerly First Trust of New York,
National Association, as Successor Trustee) (incorporated
herein by reference to J.P. Morgan's Current Report on Form
8-K, dated August 13, 1986, filed pursuant to Section 13 of
the Act).
4(a)(4)+ Form of Certificate of Designations for
Series Preferred Stock.
4(a)(5)+ Form of Certificate for Shares of Series
Preferred Stock.
4(a)(6)+ Form of Deposit Agreement.
4(a)(7)+ Form of Depositary Receipt of Depositary
Shares (contained as Exhibit A to Form of Deposit Agreement).
4(a)(8) Form of Second Supplemental Indenture
dated as of February 27, 1996 between J.P. Morgan & Co.
Incorporated and U.S. Bank Trust National Association
(formerly First Trust of New York, National Association),
as Trustee, (incorporated herein by reference to J.P.
Morgan's Current Report on Form 8-K, dated February 27,
1996, filed pursuant to Section 13 of the Act).
4(a)(9) Form of Third Supplemental Indenture
dated as of January 30, 1997 between J.P. Morgan & Co.
Incorporated and U.S. Bank Trust National Association
(formerly First Trust of New York, National Association),
as Trustee (incorporated herein by reference to J.P.
Morgan's Current Report on Form 8-K, dated January 30, 1997,
filed pursuant to Section 13 of the Act).
4(b)(1)* Form of Security (Subordinated Note).
4(b)(2)** Form of Security (Note).
4(c)(1)* Form of Security (Subordinated Debenture).
4(c)(2)** Form of Security (Debenture).
4(d)(1)* Form of Security (Discount Subordinated
Security).
4(d)(2)** Form of Security (Discount Security).
4(e)(1)* Form of Security (Zero Coupon Subordinated
Security).
4(e)(2)** Form of Security (Zero Coupon Security).
4(f)(1)* Form of Security (Extendible Subordinated
Note).
4(f)(2)** Form of Security (Extendible Note).
4(g)* Form of Debt Warrant Agreement.
4(h)* Form of Debt Warrant (included as
Exhibit A to form of Warrant Agreement).
4(i)+ Form of Preferred Stock Warrant
Agreement.
<PAGE 34>
4(j)+ Form of Preferred Stock Warrant
(included as Exhibit A to form of Preferred Stock Warrant
Agreement).
4(k)+ Form of Currency Warrant Agreement.
4(l)+ Form of Currency Warrant (included as
Exhibit A to form of Currency Warrant Agreement).
5 Opinion of Gene A. Capello
12.3 Computation of Consolidated Ratio of
Earnings to Fixed Charges and Consolidated Ratio of Earnings
to Combined Fixed Charges and Preferred Stock Dividends
(Incorporated by reference to J.P. Morgan's Form 8-K dated
May 5, 1998, filed pursuant to Section 13 of the Act)
23(a) Consent of Price Waterhouse LLP.
(b) Consent of Gene A. Capello (included in
Exhibit 5).
24 Power of Attorney.
25.1 Statement of Eligibility of Debt Trustee on
Form T-1.
25.2 Statement of Eligibility of Subordinated
Debt Trustee on Form T-1.
________________________________
* Previously filed as an exhibit to Registration Statement
No. 33-45651 and incorporated by reference herein.
** Previously filed as an exhibit to Registration
Statement No. 33-49049 and incorporated by reference herein.
+ Previously filed as an exhibit to Registration
Statement No. 33-49775 and incorporated by reference herein.
++ Previously filed as an exhibit to Registration
Statement No. 33-64193 and incorporated by reference
herein.
+++ Previously filed as an exhibit to Registration
Statement No. 33-55851 and incorporated by reference herein.
Item 17. Undertakings.
The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales
are being made, a post-effective amendment to this
Registration Statement:
(i) To include any prospectus required by Section
10(a)(3) of the Securities Act of 1933, as amended;
(ii) To reflect in the Prospectus any facts or events
arising after the effective date of the Registration
Statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent
a fundamental change in the information set forth in this
Registration Statement; and
<PAGE 35>
(iii) To include any material information with respect
to the plan of distribution not previously disclosed in this
Registration Statement or any material change to such
information in the Registration Statement.
provided, however, that subparagraphs (i) and (ii) do not
apply if the information required to be included in a post-
effective amendment by those paragraphs is contained in
periodic reports filed by the Registrant pursuant to Section
13 or Section 15(d) of the Securities Exchange Act of 1934
that are incorporated by reference in this Registration
Statement.
(2) That, for the purpose of determining any liability
under the Securities Act of 1933, as amended, each such post-
effective amendment shall be deemed to be a new registration
statement relating to the Securities offered herein, and the
offering of such Securities at that time shall be deemed to
be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-
effective amendment any of the Securities being registered
which remain unsold at the termination of the offering. The
undersigned Registrant hereby further undertakes that, for
purposes of determining any liability under the Securities
Act of 1933, as amended, each filing of the Registrant's
annual report pursuant to Section 13(a) or Section 15(d) of
the Securities and Exchange Act of 1934 that is incorporated
by reference in this Registration Statement shall be deemed
to be a new registration statement relating to the
Securities offered herein, and the offering of such
Securities at that time shall be deemed to be the initial
bona fide offering thereof.
Insofar as indemnification for liabilities arising under
the Securities Act of 1933, as amended, may be permitted to
directors, officers and controlling persons of the
Registrant pursuant to the provisions described under Item
15 of this Registration Statement, or otherwise, the
Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in such Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a
director, officer or controlling person of the Registrant in
the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person, in
connection with the Securities being registered, the
Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as
expressed in such Act and will be governed by the final
adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act of
1933, as amended, the Registrant certifies that it has
reasonable grounds to believe that it meets all the
requirements for filing on Form S-3 and has duly caused this
Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in The City of New
York and State of New York, on this 6th day of May, 1998.
J.P. Morgan & Co. Incorporated
By: James C.P. Berry/s/
--------------------------
(James C.P. Berry
Vice President, Assistant
General Counsel
and Assistant Secretary)
<PAGE 36>
Pursuant to the requirements of the Securities Act of
1933, as amended, this Registration Statement has been
signed below by the following persons in the capacities
indicated.
Signature Title Date
- --------- ----- -----
Douglas A. Warner III*
(Douglas A. Warner III) Chairman of the Board, May 6, 1998
President and Director
(Principal Executive Officer)
Paul A. Allaire*
(Paul A. Allaire) Director May 6, 1998
Riley P. Bechtel*
(Riley P. Bechtel) Director May 6, 1998
Lawrence A. Bossidy*
(Lawrence A. Bossidy) Director May 6, 1998
Martin Feldstein*
(Martin Feldstein) Director May 6, 1998
Ellen V. Futter*
(Ellen V. Futter) Director May 6, 1998
Hanna H. Gray*
(Hanna H. Gray) Director May 6, 1998
Walter A. Gubert*
(Walter A. Gubert) Vice Chairman of the May 6, 1998
Board and Director
James R. Houghton*
(James R. Houghton) Director May 6, 1998
James L. Ketelsen*
(James L. Ketelsen) Director May 6, 1998
John A. Krol*
(John A. Krol) Director May 6, 1998
Roberto G. Mendoza*
(Roberto G. Mendoza) Vice Chairman of the May 6, 1998
Board and Director
Michael E. Patterson*
(Michael E. Patterson) Vice Chairman of the May 6, 1998
Board and Director
<PAGE 37>
Lee R. Raymond*
(Lee R. Raymond) Director May 6, 1998
Richard D. Simmons*
(Richard D. Simmons) Director May 6, 1998
Kurt F. Viermetz*
(Kurt F. Viermetz) Retired Vice Chairman
of the Board and Director May 6, 1998
Douglas C. Yearley*
(Douglas C. Yearley) Director May 6, 1998
John A. Mayer, Jr.*
(John A. Mayer, Jr.) Chief Financial Officer May 6, 1998
(Principal Financial and
Accounting Officer)
David H. Sidwell* Managing Director and May 6, 1998
(David H. Sidwell) Controller
(Principal Accounting Officer)
*By: James C.P. Berry/s/ May 6, 1998
-------------------------------------
(James C.P. Berry, Attorney-in-Fact)
Exhibit 5
[Letterhead of J.P. Morgan & Co. Incorporated]
May 6, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: J.P. Morgan & Co. Incorporated
Registration Statement on Form S-3
----------------------------------
Dear Sir or Madame:
I am a Vice President and Assistant General Counsel of
J.P. Morgan & Co. Incorporated, a Delaware corporation
("J.P. Morgan") and in such capacity am acting as counsel in
connection with J.P. Morgan's Registration Statement on Form
S-3 being filed with the Securities and Exchange Commission
under the Securities Act of 1933, as amended (the "Act")
with respect to $10,000,000,000 aggregate amount of Debt
Securities, Warrants to Purchase Debt Securities, Series
Preferred Stock, Depositary Shares, Preferred Stock and
Depositary Share Warrants ("Preferred Stock Warrants"), and
Universal Warrants (the "Registration Statement").
Capitalized terms not defined herein have the meaning given
to them in the Registration Statement.
The Depositary Shares are issuable under a deposit
agreement (the "Deposit Agreement") between J.P. Morgan and
Morgan Guaranty Trust Company of New York.
I have examined such documents and made such other
investigations as I have deemed necessary or advisable for
purposes of this opinion. Based thereon, I am of the opinion
that:
1. J.P. Morgan is a corporation duly organized and validly
existing under the laws of the State of Delaware.
2. The Warrants to Purchase Debt Securities, when duly
authorized, executed, countersigned and delivered against
payment therefor, will be legally issued and will constitute
binding obligations of J.P. Morgan in accordance with their
terms.
3. The Debt Securities, when duly authorized, executed,
authenticated and delivered against payment therefor or upon
receipt of the exercise price of the Warrants to Purchase
Debt Securities, will be legally issued and will constitute
binding obligations of J.P. Morgan in accordance with their
terms.
4. The shares of Series Preferred Stock have been duly and
validly authorized and reserved for issuance and, when
issued, executed and paid for as contemplated in the
Registration Statement or upon receipt of the exercise price
of the Preferred Stock Warrants, will be validly issued,
fully paid and nonassessable.
5. The Depositary Shares have been duly authorized by J.P.
Morgan and, when the Registration Statement becomes
effective under the Act, when the Deposit Agreement has been
duly authorized, executed and delivered by the Depositary,
and when the Depositary Shares have been duly executed,
issued and paid for in accordance with the terms and
provisions of the Deposit Agreement and as contemplated in
the Registration Statement, the Depositary Shares will be
validly issued, fully paid and nonassessable.
6. The Preferred Stock Warrants, when duly authorized,
executed, countersigned and delivered against payment
thereof will be legally issued and will constitute binding
obligations of J.P. Morgan in accordance with their terms.
7. The Universal Warrants, when duly authorized, executed,
countersigned and delivered against payment thereof, will be
legally issued and will constitute binding obligations of
J.P. Morgan in accordance with their terms.
I hereby consent to the filing of this opinion as an
exhibit to the Registration Statement. I also consent to
the use of my name under the caption "Legal Opinions" in the
Prospectus contained in the Registration Statement.
Very truly yours,
/s/ Gene A. Capello
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the
Prospectus constituting part of this Registration Statement
on Form S-3 of J.P. Morgan & Co. Incorporated of our report
dated January 14, 1998 appearing on page 41 of the J.P.
Morgan & Co. Incorporated's 1997 Annual Report on Form 10-K
for the year ended December 31, 1997 (included in J.P.
Morgan & Co. Incorporated's Annual Report to Stockholders).
We also consent to the reference to us under the heading
"Experts" in such Prospectus.
PRICE WATERHOUSE LLP/s/
New York, New York
May 6, 1998
<PAGE 1>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Douglas A. Warner
___________________________
<PAGE 2>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Paul A. Allaire
___________________________
<PAGE 3>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Riley P. Bechtel
___________________________
<PAGE 4>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Lawrence A. Bossidy
___________________________
<PAGE 5>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Martin Feldstein
___________________________
<PAGE 6>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Ellen V. Futter
___________________________
<PAGE 7>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Hanna H. Gray
___________________________
<PAGE 8>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Walter A. Gubert
___________________________
<PAGE 9>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ James R. Houghton
___________________________
< PAGE 10>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ James L. Ketelsen
___________________________
<PAGE 11>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ John A. Krol
___________________________
<PAGE 12>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Roberto G. Mendoza
___________________________
<PAGE 13>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Michael E. Patterson
___________________________
<PAGE 14>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Lee R. Raymond
___________________________
<PAGE 15>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Richard D. Simmons
___________________________
<PAGE 16>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Kurt F. Viermetz
___________________________
<PAGE 17>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ Douglas C. Yearley
___________________________
<PAGE 18>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ John A. Mayer, Jr.
___________________________
<PAGE 19>
Exhibit 24
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned
constitutes and appoints Douglas A. Warner III, Roberto
G. Mendoza, Michael E. Patterson, Rachel F. Robbins,
James C. P. Berry and Gene A. Capello and each of them,
with full power to act without the others, as the
undersigned's true and lawful attorney-in-fact and agent,
with full and several power of substitution, for the
undersigned and in the undersigned's name, place and
stead, in any and all capacities, to sign any and all
Registration Statements under the Securities Act of 1933
as amended, for the purpose of registering the offering
of (i) securities of J.P. Morgan & Co. Incorporated in
connection with any public offering of such securities or
(ii) securities under, and interests in, any plan
established by J.P. Morgan & Co. Incorporated or Morgan
Guaranty Trust Company of New York for the benefit of
their employees or employees of affiliated companies; to
sign any and all amendments (including post-effective
amendments) to such Registration Statements; and to file
the same with all exhibits thereto, and other documents
in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and
agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully
to all intents and purposes as they or the undersigned
might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents or
any of them, or their or his or her substitute or
substitutes, may lawfully do or cause to be done by
virtue hereof.
IN WITNESS WHEREOF, the undersigned has executed
this Power of Attorney on the 6th day of May, 1998.
/s/ David H. Sidwell
___________________________
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM T - 1
STATEMENT OF ELIGIBILITY UNDER THE TRUST
INDENTURE ACT OF 1939 OF A CORPORATION
DESIGNATED TO ACT AS TRUSTEE
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY
OF A TRUSTEE PURSUANT TO SECTION 305 (b) (2) _________
U.S. BANK TRUST NATIONAL ASSOCIATION
(Exact name of trustee as specified in its charter)
13-3781471
(I. R. S. Employer
Identification No.)
100 Wall Street, New York, NY 10005
(Address of principal executive offices) (Zip Code)
For information, contact:
Dennis Calabrese, President
U.S. Bank Trust National Association
100 Wall Street, 16th Floor
New York, NY 10005
Telephone: (212) 361-2506
J.P. MORGAN & CO. INCORPORATED
(Exact name of obligor as specified in its charter)
Delaware 13-2625764
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
60 Wall Street 10260-0060
New York, New York
(Address of principal executive offices) (Zip Code)
DEBT SECURITIES
Item 1. General Information.
Furnish the following information as to the trustee - -
(a) Name and address of each examining or supervising
authority to which it is subject.
Name Address
Comptroller of the Currency Washington, D. C.
(b) Whether it is authorized to exercise corporate trust
powers.
Yes.
Item 2. Affiliations with the Obligor.
If the obligor is an affiliate of the trustee, describe each
such affiliation.
None.
Item 16. List of Exhibits.
Exhibit 1. Articles of Association of U.S. Bank Trust
National Association.
Exhibit 2. Certificate of Authority to Commence Business
for First Trust of New York, National Association now known as
U.S. Bank Trust National Association, incorporated herein by
reference to Exhibit 2 of Form T-1, Registration No. 33-83774.
Exhibit 3. Authorization to exercise corporate trust
powers for U.S. Bank Trust National Association.
Exhibit 4. By-Laws of U.S. Bank Trust National Association.
Exhibit 5. Not applicable.
Exhibit 6. Consent of First Trust of New York,
National Association now known as U.S. Bank Trust National
Association, required by Section 321(b) of the Act,
incorporated herein by reference to Exhibit 6 of Form T-1,
Registration No. 33-83774.
Exhibit 7. Report of Condition of First Trust of
New York, National Association now known as U.S. Bank Trust
National Association, as of the close of business on
December 31, 1997, published pursuant to law or the
requirements of its supervising or examining authority.
Exhibit 8. Not applicable.
Exhibit 9. Not applicable.
SIGNATURE
Pursuant to the requirements of the Trust Indenture
Act of 1939, as amended, the trustee, U.S.
Bank Trust National Association, a national banking association
organized and existing under the laws of the United States, has
duly caused this statement of eligibility to be signed on its
behalf by the undersigned, thereunto duly authorized, all in The
City of New York, and State of New York, on the 4th day of May,
1998.
U.S. BANK TRUST
NATIONAL ASSOCIATION
By: /s/Frank J. Gillhaus, Jr.
Frank J. Gillhaus, Jr.
Vice President
EXHIBIT 1
SECRETARY'S CERTIFICATE
I hereby certify that I am the Secretary of U.S. Bank Trust
National Association, formerly First Trust of New York National
Association, located in the City of New York, County of New York
and State of New York, and that I have been duly appointed and am
presently serving in that capacity in accordance with the bylaws
of U.S. Bank Trust National Association. I further certify that
the attached are a true and correct copy of Articles of
Association of U.S. Bank Trust National Association.
IN WITNESS WHEREOF, I have hereunto set my hand this 4th day
of May, 1998.
/s/ Patrick J. Crowley
Name: Patrick J. Crowley
Title:Secretary
U.S. BANK TRUST
NATIONAL ASSOCIATION
ARTICLES OF ASSOCIATION
For the purpose of organizing an association to perform
any lawful activities of national banks, the undersigned do enter
into the following Articles of Association:
FIRST. The title of this Association shall be "U.S.
Bank Trust National Association."
SECOND. The main office of this Association shall be
in the City, County and State of New York. The business of this
Association will be limited to that of a national trust bank, and
to support activities incidental thereto. This Association will
not amend these Articles of Association to expand the scope of or
alter its business beyond that stated in this Article Second
without the prior approval of the Comptroller of the Currency.
Prior to the transfer of any stock of the Association, the
Association will seek the prior approval of the appropriate
federal depository institution regulatory agency.
THIRD. The board of directors of the Association shall
consist of not less than five nor more than 25 persons, the exact
number to be fixed and determined from time to time by resolution
of a majority of the full board of directors or by resolution of
a majority of the shareholders at any annual or special meeting
thereof. Each director shall own common or preferred stock of
this Association with an aggregate par, fair market, or equity
value of not less than $1,000.00, as of either (i) the date of
purchase, (ii) the date the person became a director, whichever
is more recent. Any combination of common or preferred stock of
this Association or U.S. Bancorp may be used.
Any vacancy in the board of directors may be filled by
action of a majority of the remaining directors between meetings
of shareholders. The board of directors may not increase the
number of directors between meetings of shareholders to a number
that (1) exceeds by more than two the number of directors last
elected by shareholders where the number was fifteen or less; and
(2) exceeds by more than four the number of directors last
elected by shareholders where the number was sixteen or more, but
in no event shall the number of directors exceed twenty-five.
Terms of directors, including directors selected to
fill vacancies, shall expire at the next regular meeting of
shareholders at which directors are elected, unless the directors
resign or are removed from office.
Despite the expiration of a director's term, the
director shall continue to serve until his or her successor is
elected and qualifies or until there is a decrease in the number
of directors and his or her position is eliminated.
Honorary or advisory members of the board of directors,
without voting power or power of final decision in matters
concerning the business of this Association, may be appointed by
resolution of a majority of the full board of directors, or by
resolution of shareholders at any annual or special meeting.
Honorary or advisory directors shall not be counted for purposes
of determining the number of directors of this Association or the
presence of a quorum in connection with any board action, and
shall not be required to own qualifying shares.
FOURTH. There shall be an annual meeting of the
shareholders to elect directors and transact whatever other
business may be brought before the meeting. It shall be held at
the main office or any other convenient place the board of
directors may designate, on the day of each year specified
therefore in the bylaws, or if that day falls on a legal holiday
in the State in which this Association is located, on the next
following banking day. If no election is held on the day fixed,
or in event of a legal holiday, an election may be held on any
subsequent day within sixty days of the day fixed, to be
designated by the board of directors, or, if the directors fail
to fix the day, by shareholders representing two-thirds of the
shares issued and outstanding. In all cases at least ten-days
advance notice of the meeting shall be given to the shareholders
by first class mail.
A director may resign at any time by delivering written
or oral notice to the board of directors, its chairperson, or to
this Association, which resignation shall be effective when the
notice is delivered unless the notice specifies a later effective
date.
A director may be removed by shareholders at a meeting
called to remove him or her, when notice of the meeting stating
that the purpose or one of the purposes is to remove him or her
is provided, if there is a failure to fulfill one of the
affirmative requirements for qualification, or for cause;
provided, however, that a director may not be removed if the
number of votes sufficient to elect him or her under cumulative
voting is voted against his or her removal.
FIFTH. The authorized amount of capital stock of this
Association shall be 10,000 shares of common stock of the par
value of one-hundred dollars ($100.00) each; but said capital
stock may be increased or decreased from time to time, according
to the provisions of the laws of the United States.
No holder of shares of the capital stock of any class
of this Association shall have any preemptive or preferential
right of subscription to any shares of any class of stock of this
Association, whether now or hereafter authorized, or to any
obligations convertible into stock of this Association, issued,
or sold, nor any right of subscription to any thereof other than
such, if any, as the board of directors, in its discretion may
from time to time determine and at such price as the hoard of
directors may from time to time fix.
Unless otherwise specified in these Articles of
Association or required by law, (1) all matters requiring
shareholder action, including amendments to the articles of
Association must be approved by shareholders owning a majority
voting interest in the outstanding voting stock, and (2) each
shareholder shall be entitled to one vote per share.
Unless otherwise provided in the bylaws, the record
date for determining shareholders entitled to notice of and to
vote at any meeting is the close of business on the day before
the first notice is mailed or otherwise sent to the shareholders,
provided that in no event may a record date be more than seventy
days before the meeting.
SIXTH. The board of directors shall appoint one of its
members president of this Association and one of its members
chairperson of the board. The board of directors shall also have
the power to appoint one or more vice presidents, a secretary who
shall keep minutes of the directors' and shareholders' meetings
and be responsible for authenticating the records of this
Association, and such other officers and employees as may be
required to transact the business of this Association. A duly
appointed officer may appoint one or more officers or assistant
officers if authorized by the board of directors in accordance
with the bylaws.
The board of directors shall have the power to:
(1) Define the duties of the officers,
employees, and agents of this Association.
(2) Delegate the performance of its duties,
but not the responsibility for its duties, to
the officers, employees, and agents of this
Association.
(3) Fix the compensation and enter into
employment contracts with its officers and
employees upon reasonable terms and
conditions, consistent with applicable law.
(4) Dismiss officers and employees.
(5) Require bonds from officers and
employees and to fix the penalty thereof.
(6) Ratify written policies authorized by
this Association's management or committees of
the board.
(7) Regulate the manner in which any
increase or decrease of the capital of this
Association shall be made; provided, however,
that nothing herein shall restrict the power
of shareholders to increase or decrease the
capital of this Association in accordance with
law, and nothing shall raise or lower from two-
thirds the percentage required for shareholder
approval to increase or reduce the capital.
(8) Manage and administer the business and
affairs of this Association.
(9) Adopt bylaws, not inconsistent with law
or these Articles of Association, for managing
the business and regulating the affairs of
this Association.
(10) Amend or repeal bylaws, except to the
extent that the articles of Association
reserve this power in whole or in part to
shareholders.
(11) Make contracts.
(12) Generally to perform all acts that are
legal for a board of directors to perform.
SEVENTH. The board of directors shall have the power
to change the location of the main office to any other place
within the limits of the City of New York without the approval of
the shareholders, and shall have the power to establish or change
the location of any branch or branches of this Association to any
other location permitted under applicable law, without the
approval of the shareholders, subject to approval by the
Comptroller of the Currency.
EIGHTH. The corporate existence of this Association
shall continue until terminated according to the laws of the
United States.
NINTH. The board of directors of this Association, or
any three (3) or more shareholders owning, in the aggregate, not
less than twenty-five percent (25%) of the stock of this
Association, may call a special meeting of shareholders at any
time. Unless otherwise provided by the bylaws or the laws of the
United States, or waived by shareholders, a notice of the time,
place, and purpose of every annual and special meeting of the
shareholders shall be given by first-class mail, postage prepaid,
mailed at least ten, and no more than sixty, days prior to the
date of the meeting to each shareholder of record at his/her
address as shown upon the books of this Association. Unless
otherwise provided by these Articles of Association or the
bylaws, any action requiring approval of shareholders must be
effected at a duly called annual or special meeting.
TENTH. Any action required to be taken at a meeting of
the shareholders or directors or any action that may be taken at
a meeting of the shareholders or directors may be taken without a
meeting if consent in writing, setting forth the action as taken
shall be signed by all the shareholders or directors entitled to
vote with respect to the matter thereof. Such action shall be
effective on the date on which the last signature is placed on
the writing, or such earlier data as is set forth therein.
ELEVENTH. Meetings of the board of directors or
shareholders, regular or special, may be held by means of
conference telephone or similar communication equipment by means
of which all persons participating in the meeting can
simultaneously hear each other, and participation in such meeting
by such aforementioned means shall constitute presence in person
at such meeting.
TWELFTH: Any person, such person's heirs, executors, or
administrators, may be indemnified or reimbursed by the
Association for reasonable expenses actually incurred in
connection with any action, suit or proceeding, whether civil or
criminal or administrative, to which such person or such person's
heirs, executors, or administrators shall be made a party by
reason of such person being or having been a director, advisory
director, officer, employee, or agent of the Association or of
any firm, corporation, or organization which such person served
in any such capacity at the request of the Association.
Provided, however, that no person shall be so indemnified or
reimbursed in relation to any matter in such action, suit or
proceeding: (1) as to which such person shall finally be
adjudged to have been guilty of or liable for gross negligence,
willful misconduct or criminal acts in the performance of such
person's duties to the Association; or which has been made the
subject of a compromise settlement except with the approval of a
court of competent jurisdiction, or the holders of record of a
majority of the outstanding shares of the Association, or the
board of directors acting by vote of directors not parties to the
same or substantially the same action, suit or proceeding,
constituting a majority of the whole number of directors; or (3)
against expenses, penalties, or other payments incurred in an
administrative proceeding or action instituted by an appropriate
bank regulatory agency, which proceeding or action results in a
final order assessing civil money penalties or requiring
affirmative action by such person in the form of payment to this
Association. The foregoing right of indemnification or
reimbursement shall not be exclusive of other rights to which
such person, such person's heirs, executors, or administrators,
may be entitled as a matter of law.
Such expenses actually incurred by such person in connection
with such action, suit or proceeding may be paid by this
Association in advance of the final disposition of such action,
suit or proceeding upon receipt of an undertaking by or on behalf
of such director or officer to repay such amount if it shall
ultimately be determined that such individual is not entitled to
be indemnified by the Association. Prior to the advancement of
any such expenses, the board of directors shall determine in
writing that all of the following conditions are met: (1) such
person has a substantial likelihood of prevailing on the merits;
(2) in the event such person does not prevail, such person will
have the financial capability to reimburse this Association; and
(3) payment of such expenses by this Association will not
adversely affect the soundness of this Association. If at any
time the board of directors believes, or should reasonably
believe, that any of the above conditions are not met, this
Association shall cease paying such person specifying the
conditions under which such person shall reimburse this
Association.
The Association may, upon the affirmative vote of a majority
of its board of directors, purchase insurance for the purpose of
indemnifying its directors, advisory directors, officers,
employees, or agents to the extent that such indemnification is
allowed in this Article Twelfth. Such insurance shall not
provide coverage of liability for any formal order issued by a
regulatory authority assessing civil money penalties against a
director, advisory director, officer, employee, or agent.
Further, such insurance may, but need not be, for the benefit of
all such directors, advisory directors, officers, employees or
agents.
THIRTEENTH. These Articles of Association may be
amended at any regular or special meeting of the shareholders by
the affirmative vote of the holders of a majority of the stock of
this Association, unless the vote of the holders of a greater
amount of stock is required by law, and in that case by the vote
of the holders of such greater amount. This Association's board
of directors may propose one or more amendments to these Articles
of Association for submission to the shareholders.
EXHIBIT 2
[LOGO]
_________________________________________________________________
Comptroller of the Currency
Administrator of National Banks
_________________________________________________________________
Washington, D.C. 20219
Certificate of Fiduciary Powers
I, Julie L. Williams, Acting Comptroller of the Currency, do
hereby certify that:
1. The Comptroller of the Currency, pursuant to Revised Statutes
324, et seq., as amended, 12 U.S.C. 1, et seq., as amended, has
possession, custody and control of all records pertaining to the
chartering of all National Banking Associations.
2. "U.S. Bank Trust National Association," New York, New York,
(Charter No. 22746), was granted, under the hand and seal of the
Comptroller, the right to act in all fiduciary capacities
authorized under the provisions of the Act of Congress approved
September 28, 1962, 76 Stat. 668, 12 U.S.C. 92a, and that the
authority so granted remains in full force and effect on the date
of this Certificate.
IN TESTIMONY WHEREOF, I have hereunto
subscribed my name and caused my seal of office
to be affixed to these presents at the Treasury
Department in the City of Washington and District
of Columbia, this 16th day of April, 1998.
[SEAL] /s/ Julie L. Williams
____________________________
Acting Comptroller of the Currency
EXHIBIT 4
U.S. BANK TRUST
NATIONAL ASSOCIATION
BYLAWS
ARTICLE I
Meetings of Shareholders
Section 1.1. Annual Meeting. The annual meeting of the
shareholders, for the election of directors and the transaction
of other business, shall be held at a time and place as the
Chairman or President may designate. Notice of such meeting shall
be given at least ten days prior to the date thereof, to each
shareholder of the Association. If, for any reason, an election
of directors is not made on the designated day, the election
shall be held on some subsequent day, as soon thereafter as
practicable, with prior notice thereof.
Section 1.2. Special Meetings. Except as otherwise
specially provided by law, special meetings of the shareholders
may be called for any purpose, at any time by a majority of the
board of directors, or by any shareholder or group of
shareholders owning at least ten percent of the outstanding
stock. Every such special meeting, unless otherwise provided by
law, shall be called upon not less than ten days prior notice
stating the purpose of the meeting.
Section 1.3. Nominations for Directors. Nominations for
election to the board of directors may be made by the board of
directors or by any shareholder.
Section 1.4. Proxies. Shareholders may vote at any meeting
of the shareholders by proxies duly authorized in writing.
Proxies shall be valid only for one meeting and any adjournments
of such meeting and shall be filed with the records of the
meeting.
Section 1.5. Quorum. A majority of the outstanding capital
stock, represented in person or by proxy, shall constitute a
quorum at any meeting of shareholders, unless otherwise provided
by law. A majority of the votes cast shall decide every question
or matter submitted to the shareholders at any meeting, unless
otherwise provided by law or by the Articles of Association.
ARTICLE II
Directors
Section 2.1. Board of Directors. The board of directors
(hereinafter referred to as the "board"), shall have power to
manage and administer the business and affairs of the
Association. All authorized corporate powers of the Association
shall be vested in and may be exercised by the board.
Section 2.2. Powers. In addition to the foregoing, the
board of directors shall have and may exercise all of the powers
granted to or conferred upon it by the Articles of Association,
the Bylaws and by law.
Section 2.3. Number. The board shall consist of a number of
members to be fixed and determined from time to time by
resolution of the board or the shareholders at any meeting
thereof, in accordance with the Articles of Association.
Section 2.4. Organization Meeting. The newly elected board
shall meet for the purpose of organizing the new board and
electing and appointing such officers of the Association as may
be appropriate. Such meeting shall be held on the day of the
election or as soon thereafter as practicable, and, in any event,
within thirty days thereafter. If, at the time fixed for such
meeting, there shall not be a quorum present, the directors
present may adjourn the meeting until a quorum is obtained.
Section 2.5. Regular Meetings. The regular meetings of the
board shall be held, without notice, as the Chairman or President
may designate and deem suitable.
Section 2.6. Special Meetings. Special meetings of the
board may be called by the Chairman or the President of the
Association, or at the request of two or more directors. Each
member of the board shall be given notice stating the time and
place of each such meeting.
Section 2.7. Quorum. A majority of the directors shall
constitute a quorum at any meeting, except when otherwise
provided by law; but fewer may adjourn any meeting. Unless
otherwise provided, once a quorum is established, any act by a
majority of those constituting the quorum shall be the act of the
board.
Section 2.8. Vacancies. When any vacancy occurs among the
directors, the remaining members of the board may appoint a
director to fill such vacancy at any regular meeting of the
board, or at a special meeting called for that purpose.
ARTICLE III
Committees
Section 3.1. Advisory Board of Directors. The board may
appoint persons, who need not be directors, to serve as advisory
directors on an advisory board of directors established with
respect to the business affairs of either this Association alone
or the business affairs of a group of affiliated organizations of
which this Association is one. Advisory directors, shall have
such powers and duties as may be determined by the board,
provided, that the board's responsibility for the business and
affairs of this Association shall in no respect be delegated or
diminished.
Section 3.2. Audit Committee. The board shall appoint an
Audit Committee which shall consist of at least two Directors of
the Association or of an affiliate of the Association. If
legally permissible, the Board may determine to name itself as
the Audit Committee. The Audit Committee shall direct and review
audits of the Association's fiduciary activities.
The members of the Audit Committee shall be appointed each
year and shall continue to act until their successors are named.
The Audit Committee shall have power to adopt its own rules and
procedures and to do those things which in the judgment of such
Committee are necessary or helpful with respect to the exercise
of its functions or the satisfaction of its responsibilities.
Section 3.3. Executive Committee. The board may appoint an
Executive Committee which shall consist of at least three
directors and which shall have, and may exercise, all the powers
of the board between meetings of the board or otherwise when the
board is not meeting.
Section 3.4. Other Committees. The board may appoint, from
time to time, committees of one or more persons who need not be
directors, for such purposes and with such powers as the board
may determine. In addition, either the Chairman or the President
may appoint, from time to time, committees of one or more
officers, employees, agents or other persons, for such purposes
and with such powers as either the Chairman or the President
deems appropriate and proper.
Whether appointed by the board, the Chairman, or the
President, any such Committee shall at all times be subject to
the direction and control of the board.
Section 3.5. Meetings. Minutes and Rules. An advisory board
of directors and/or committee shall meet as necessary in
consideration of the purpose of the advisory board of directors
or committee, and shall maintain minutes in sufficient detail to
indicate actions taken or recommendations made; unless required
by the members, discussions, votes or other specific details need
not be reported. An advisory board of directors or a committee
may, in consideration of its purpose, adopt its own rules for the
exercise of any of its functions or authority.
ARTICLE IV
Officers and Employees
Section 4.1. Chairman of the Board. The board may appoint
one of its members to be Chairman of the board to serve at the
pleasure of the board. The Chairman shall supervise the carrying
out of the policies adopted or approved by the board; shall have
general executive powers, as well as the specific powers
conferred by these Bylaws; shall also have and may exercise such
powers and duties as from time to time may be conferred upon or
assigned by the board.
Section 4.2. President. The board may appoint one of its
members to be President of the Association. In the absence of the
Chairman, the President shall preside at any meeting of the board
. The President shall have general executive powers, and shall
have and may exercise any and all other powers and duties
pertaining by law, regulation or practice, to the Office of
President, or imposed by these Bylaws. The President shall also
have and may exercise such powers and duties as from time to time
may be conferred or assigned by the Board.
Section 4.3. Vice President. The board may appoint one or
more Vice Presidents who shall have such powers and duties as may
be assigned by the board and to perform the duties of the
President on those occasions when the President is absent,
including presiding at any meeting of the board in the absence of
both the Chairman and President.
Section 4.4. Secretary. The board shall appoint a
Secretary, or other designated officer who shall be Secretary of
the board and of the Association, and shall keep accurate minutes
of all meetings. The Secretary shall attend to the giving of all
notices required by these Bylaws to be given; shall be custodian
of the corporate seal, records, document and papers of the
Association; shall provide for the keeping of proper records of
all transactions of the Association; shall have and may exercise
any and all other powers and duties pertaining by law, regulation
or practice, to the Secretary, or imposed by these Bylaws; and
shall also perform such other duties as may be assigned from time
to time, by the Board.
Section 4.5. Other Officers. The board may appoint, and may
authorize the Chairman or the President to appoint, any officer
as from time to time may appear to the board, the Chairman or the
President to be required or desirable to transact the business of
the Association. Such officers shall exercise such powers and
perform such duties as pertain to their several offices, or as
may be conferred upon or assigned to them by these Bylaws, the
board, the Chairman or the President.
Section 4.6. Tenure of Office. The Chairman or the
President and all other officers shall hold office for the
current year for which the board was elected, unless they shall
resign, become disqualified, or be removed. Any vacancy occurring
in the Office of Chairman or President shall be filled promptly
by the board.
Any officer elected by the board or appointed by the
Chairman or the President may be removed at any time, with or
without cause, by the affirmative vote of a majority of the board
or, if such officer was appointed by the Chairman or the
President, by the Chairman or the President, respectively.
ARTICLE V
Stock
Section 5.1. Shares of stock shall be transferable on the
books of the Association, and a transfer book shall be kept in
which all transfers of stock shall be recorded. Every person
becoming a shareholder by such transfer shall, in proportion to
such person's shares, succeed to all rights of the prior holder
of such shares. Each certificate of stock shall recite on its
face that the stock represented thereby is transferable only upon
the books of the Association properly endorsed.
ARTICLE VI
Corporate Seal
Section 6.1. The Association shall have no corporate seal;
provided, however, that if the use of a seal is required by, or
is otherwise convenient or advisable pursuant to, the laws or
regulations of any jurisdiction, the following seal may be used,
and the Chairman, the President, the Secretary and any Assistant
Secretary shall have the authority to affix such seal.
ARTICLE VII
Miscellaneous Provisions
Section 7.1. Execution of Instruments. All agreements,
checks, drafts, orders, indentures, notes, mortgages, deeds,
conveyances, transfers, endorsements, assignments, certificates,
declarations, receipts, discharges, releases, satisfactions,
settlements, petitions, schedules, accounts, affidavits, bonds,
undertakings, guarantees, proxies and other instruments or
documents may be signed, countersigned, executed, acknowledged,
endorsed, verified, delivered or accepted on behalf of the
Association, whether in a fiduciary capacity or otherwise, by any
officer of the Association, or such employee or agent as may be
designated from time to time by the board by resolution, or by
the Chairman or the President by written instrument, which
resolution or instrument shall be certified as in effect by the
Secretary or an Assistant Secretary of the Association. The
provisions of this section are supplementary to any other
provision of the Articles of Association or Bylaws.
Section 7.2. Records. The Articles of Association, the
Bylaws and the proceedings of all meetings of the shareholders,
the board, and standing committees of the board, shall be
recorded in appropriate minute books provided for the purpose.
The minutes or each meeting shall be signed by the Secretary, or
other officer appointed to act as Secretary of the meeting.
Section 7.3. Trust Files. There shall be maintained in the
Association files all fiduciary records necessary to assure that
its fiduciary responsibilities have been properly undertaken and
discharged.
Section 7.4. Trust Investments. Funds held in a fiduciary
capacity shall be invested according to the instrument
establishing the fiduciary relationship and according to law.
Where such instrument does not specify the character and class of
investments to be made and does not vest in the Association a
discretion in the matter, funds held pursuant to such instrument
shall be invested in investments in which corporate fiduciaries
may invest under law.
Section 7.5. Notice. Whenever notice is required by the
Articles of Association, the Bylaws or law, such notice shall be
by mail, postage prepaid, telegram, in person, or by any other
means by which such notice can reasonably be expected to be
received, using the address of the person to receive such notice,
or such other personal data, as may appear on the records of the
Association. Prior notice shall be proper if given not more than
30 days nor less than 10 days prior to the event for which notice
is given.
ARTICLE VIII
Indemnification
Section 8.1. The association shall indemnify to the full
extent permitted by, and in the manner permissible under, the
Articles of Association and the laws of the United States of
America, as applicable and as amended from time to time, any
person made, or threatened to be made, a party to any action,
suit or proceeding, whether criminal, civil, administrative or
investigative, by reason of the fact that such person is or was a
director, advisory director, officer or employee of the
Association, or any predecessor of the Association, or served any
other enterprise as a director or officer at the request of the
Association or any predecessor of the Association.
Section 8.2. The board in its discretion may, on behalf of
the Association, indemnify any person, other than a director,
advisory director, officer or employee, made a party to any
action, suit or proceeding by reason of the fact that such person
is or was an agent of the Association or any predecessor of the
Association serving in such capacity at the request of the
Association or any predecessor of the Association.
ARTICLE IX
Bylaws: Interpretation and Amendment
Section 9.1. These Bylaws shall be interpreted in
accordance with and subject to appropriate provisions of law, and
may be amended, altered or repealed, at any regular or special
meeting of the board.
Section 9.2. A copy of the Bylaws, with all amendments,
shall at all times be kept in a convenient place at the main
office of the Association, and shall be open for inspection to
all shareholders during Association hours.
I, Patrick J. Crowley, hereby certify that: (i) I am the
duly constituted secretary of U.S. Bank Trust National
Association (the "Association"), and secretary of its board of
directors, and as such officer am the official custodian of its
records; and (ii) the foregoing bylaws are the bylaws of the
Association, and all of them are now lawfully in force and
effect.
I have hereunto affixed my official signature, in the City
of New York, on the 4th day of May, 1998.
/S/ Patrick J. Crowley
Name: Patrick J. Crowley
Title:Secretary
Exhibit 7
U.S. Bank Trust National Association
(Formerly First Trust of New York, National Association)
Statement of Financial Condition
As of 12/31/97
($000's)
12/31/97
Assets
Cash and Due From Depository
Institutions $37,537
Federal Reserve Stock 3,439
Fixed Assets 698
Intangible Assets 74,459
Other Assets 6,072
--------
Total Assets $122,205
Liabilities
Other Liabilities 8,020
Total Liabilities 8,020
Equity
Common and Preferred Stock 1,000
Surplus 120,932
Undivided Profits (7,747)
-------
Total Equity Capital 114,185
Total Liabilities and Equity Capital $122,205
To the best of the undersigned's determination, as of this date
the above financial information is true and correct.
U.S. Bank Trust National Association
By: /S/Frank J. Gillhaus, Jr.
Vice President
Date: May 4, 1998
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM T - 1
STATEMENT OF ELIGIBILITY UNDER THE TRUST
INDENTURE ACT OF 1939 OF A CORPORATION
DESIGNATED TO ACT AS TRUSTEE
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY
OF A TRUSTEE PURSUANT TO SECTION 305 (b) (2) _________
U.S. BANK TRUST NATIONAL ASSOCIATION
(Exact name of trustee as specified in its charter)
13-3781471
(I. R. S. Employer
Identification No.)
100 Wall Street, New York, NY 10005
(Address of principal executive offices) (Zip Code)
For information, contact:
Dennis Calabrese, President
U.S. Bank Trust National Association
100 Wall Street, 16th Floor
New York, NY 10005
Telephone: (212) 361-2506
J.P. MORGAN & CO. INCORPORATED
(Exact name of obligor as specified in its charter)
Delaware 13-2625764
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
60 Wall Street 10260-0060
New York, New York
(Address of principal executive offices) (Zip Code)
SUBORDINATED SECURITIES
Item 1. General Information.
Furnish the following information as to the trustee - -
(a) Name and address of each examining or supervising
authority to which it is subject.
Name Address
Comptroller of the Currency Washington, D.C.
(b) Whether it is authorized to exercise corporate trust
powers.
Yes.
Item 2. Affiliations with the Obligor.
If the obligor is an affiliate of the trustee, describe each
such affiliation.
None.
Item 16. List of Exhibits.
Exhibit 1. Articles of Association of U.S. Bank Trust
National Association.
Exhibit 2. Certificate of Authority to Commence Business
for First Trust of New York, National Association now known as
U.S. Bank Trust National Association, incorporated herein by
reference to Exhibit 2 of Form T-1, Registration No. 33-83774.
Exhibit 3. Authorization to exercise corporate trust
powers for U.S. Bank Trust National Association.
Exhibit 4. By-Laws of U.S. Bank Trust National Association.
Exhibit 5. Not applicable.
Exhibit 6. Consent of First Trust of New York,
National Association now known as U.S. Bank Trust
National Association, required by Section 321(b) of the Act,
incorporated herein by reference to Exhibit 6 of Form T-1,
Registration No. 33-83774.
Exhibit 7. Report of Condition of First Trust of
New York, National Association now known as U.S.
Bank Trust National Association, as of the close of
business on December 31, 1997, published pursuant to
law or the requirements of its supervising or
examining authority.
Exhibit 8. Not applicable.
Exhibit 9. Not applicable.
SIGNATURE
Pursuant to the requirements of the Trust Indenture
Act of 1939, as amended, the trustee, U.S.
Bank Trust National Association, a national banking association
organized and existing under the laws of the United States, has
duly caused this statement of eligibility to be signed on its
behalf by the undersigned, thereunto duly authorized, all in The
City of New York, and State of New York, on the 4th day of May,
1998.
U.S. BANK TRUST
NATIONAL ASSOCIATION
By: /s/Frank J. Gillhaus, Jr.
Frank J. Gillhaus, Jr.
Vice President
EXHIBIT 1
SECRETARY'S CERTIFICATE
I hereby certify that I am the Secretary of U.S. Bank Trust
National Association, formerly First Trust of New York National
Association, located in the City of New York, County of New York
and State of New York, and that I have been duly appointed and am
presently serving in that capacity in accordance with the bylaws
of U.S. Bank Trust National Association. I further certify that
the attached are a true and correct copy of Articles of
Association of U.S. Bank Trust National Association.
IN WITNESS WHEREOF, I have hereunto set my hand this 4th day
of May, 1998.
/s/ Patrick J. Crowley
Name: Patrick J. Crowley
Title: Secretary
U.S. BANK TRUST
NATIONAL ASSOCIATION
ARTICLES OF ASSOCIATION
For the purpose of organizing an association to perform
any lawful activities of national banks, the undersigned do enter
into the following Articles of Association:
FIRST. The title of this Association shall be "U.S.
Bank Trust National Association."
SECOND. The main office of this Association shall be
in the City, County and State of New York. The business of this
Association will be limited to that of a national trust bank, and
to support activities incidental thereto. This Association will
not amend these Articles of Association to expand the scope of or
alter its business beyond that stated in this Article Second
without the prior approval of the Comptroller of the Currency.
Prior to the transfer of any stock of the Association, the
Association will seek the prior approval of the appropriate
federal depository institution regulatory agency.
THIRD. The board of directors of the Association shall
consist of not less than five nor more than 25 persons, the exact
number to be fixed and determined from time to time by resolution
of a majority of the full board of directors or by resolution of
a majority of the shareholders at any annual or special meeting
thereof. Each director shall own common or preferred stock of
this Association with an aggregate par, fair market, or equity
value of not less than $1,000.00, as of either (i) the date of
purchase, (ii) the date the person became a director, whichever
is more recent. Any combination of common or preferred stock of
this Association or U.S. Bancorp may be used.
Any vacancy in the board of directors may be filled by
action of a majority of the remaining directors between meetings
of shareholders. The board of directors may not increase the
number of directors between meetings of shareholders to a number
that (1) exceeds by more than two the number of directors last
elected by shareholders where the number was fifteen or less; and
(2) exceeds by more than four the number of directors last
elected by shareholders where the number was sixteen or more, but
in no event shall the number of directors exceed twenty-five.
Terms of directors, including directors selected to
fill vacancies, shall expire at the next regular meeting of
shareholders at which directors are elected, unless the directors
resign or are removed from office.
Despite the expiration of a director's term, the
director shall continue to serve until his or her successor is
elected and qualifies or until there is a decrease in the number
of directors and his or her position is eliminated.
Honorary or advisory members of the board of directors,
without voting power or power of final decision in matters
concerning the business of this Association, may be appointed by
resolution of a majority of the full board of directors, or by
resolution of shareholders at any annual or special meeting.
Honorary or advisory directors shall not be counted for purposes
of determining the number of directors of this Association or the
presence of a quorum in connection with any board action, and
shall not be required to own qualifying shares.
FOURTH. There shall be an annual meeting of the
shareholders to elect directors and transact whatever other
business may be brought before the meeting. It shall be held at
the main office or any other convenient place the board of
directors may designate, on the day of each year specified
therefore in the bylaws, or if that day falls on a legal holiday
in the State in which this Association is located, on the next
following banking day. If no election is held on the day fixed,
or in event of a legal holiday, an election may be held on any
subsequent day within sixty days of the day fixed, to be
designated by the board of directors, or, if the directors fail
to fix the day, by shareholders representing two-thirds of the
shares issued and outstanding. In all cases at least ten-days
advance notice of the meeting shall be given to the shareholders
by first class mail.
A director may resign at any time by delivering written
or oral notice to the board of directors, its chairperson, or to
this Association, which resignation shall be effective when the
notice is delivered unless the notice specifies a later effective
date.
A director may be removed by shareholders at a meeting
called to remove him or her, when notice of the meeting stating
that the purpose or one of the purposes is to remove him or her
is provided, if there is a failure to fulfill one of the
affirmative requirements for qualification, or for cause;
provided, however, that a director may not be removed if the
number of votes sufficient to elect him or her under cumulative
voting is voted against his or her removal.
FIFTH. The authorized amount of capital stock of this
Association shall be 10,000 shares of common stock of the par
value of one-hundred dollars ($100.00) each; but said capital
stock may be increased or decreased from time to time, according
to the provisions of the laws of the United States.
No holder of shares of the capital stock of any class
of this Association shall have any preemptive or preferential
right of subscription to any shares of any class of stock of this
Association, whether now or hereafter authorized, or to any
obligations convertible into stock of this Association, issued,
or sold, nor any right of subscription to any thereof other than
such, if any, as the board of directors, in its discretion may
from time to time determine and at such price as the hoard of
directors may from time to time fix.
Unless otherwise specified in these Articles of
Association or required by law, (1) all matters requiring
shareholder action, including amendments to the articles of
Association must be approved by shareholders owning a majority
voting interest in the outstanding voting stock, and (2) each
shareholder shall be entitled to one vote per share.
Unless otherwise provided in the bylaws, the record
date for determining shareholders entitled to notice of and to
vote at any meeting is the close of business on the day before
the first notice is mailed or otherwise sent to the shareholders,
provided that in no event may a record date be more than seventy
days before the meeting.
SIXTH. The board of directors shall appoint one of its
members president of this Association and one of its members
chairperson of the board. The board of directors shall also have
the power to appoint one or more vice presidents, a secretary who
shall keep minutes of the directors' and shareholders' meetings
and be responsible for authenticating the records of this
Association, and such other officers and employees as may be
required to transact the business of this Association. A duly
appointed officer may appoint one or more officers or assistant
officers if authorized by the board of directors in accordance
with the bylaws.
The board of directors shall have the power to:
(1) Define the duties of the officers,
employees, and agents of this Association.
(2) Delegate the performance of its duties,
but not the responsibility for its duties, to
the officers, employees, and agents of this
Association.
(3) Fix the compensation and enter into
employment contracts with its officers and
employees upon reasonable terms and
conditions, consistent with applicable law.
(4) Dismiss officers and employees.
(5) Require bonds from officers and
employees and to fix the penalty thereof.
(6) Ratify written policies authorized by
this Association's management or committees of
the board.
(7) Regulate the manner in which any
increase or decrease of the capital of this
Association shall be made; provided, however,
that nothing herein shall restrict the power
of shareholders to increase or decrease the
capital of this Association in accordance with
law, and nothing shall raise or lower from two-
thirds the percentage required for shareholder
approval to increase or reduce the capital.
(8) Manage and administer the business and
affairs of this Association.
(9) Adopt bylaws, not inconsistent with law
or these Articles of Association, for managing
the business and regulating the affairs of
this Association.
(10) Amend or repeal bylaws, except to the
extent that the articles of Association
reserve this power in whole or in part to
shareholders.
(11) Make contracts.
(12) Generally to perform all acts that are
legal for a board of directors to perform.
SEVENTH. The board of directors shall have the power
to change the location of the main office to any other place
within the limits of the City of New York without the approval of
the shareholders, and shall have the power to establish or change
the location of any branch or branches of this Association to any
other location permitted under applicable law, without the
approval of the shareholders, subject to approval by the
Comptroller of the Currency.
EIGHTH. The corporate existence of this Association
shall continue until terminated according to the laws of the
United States.
NINTH. The board of directors of this Association, or
any three (3) or more shareholders owning, in the aggregate, not
less than twenty-five percent (25%) of the stock of this
Association, may call a special meeting of shareholders at any
time. Unless otherwise provided by the bylaws or the laws of the
United States, or waived by shareholders, a notice of the time,
place, and purpose of every annual and special meeting of the
shareholders shall be given by first-class mail, postage prepaid,
mailed at least ten, and no more than sixty, days prior to the
date of the meeting to each shareholder of record at his/her
address as shown upon the books of this Association. Unless
otherwise provided by these Articles of Association or the
bylaws, any action requiring approval of shareholders must be
effected at a duly called annual or special meeting.
TENTH. Any action required to be taken at a meeting of
the shareholders or directors or any action that may be taken at
a meeting of the shareholders or directors may be taken without a
meeting if consent in writing, setting forth the action as taken
shall be signed by all the shareholders or directors entitled to
vote with respect to the matter thereof. Such action shall be
effective on the date on which the last signature is placed on
the writing, or such earlier data as is set forth therein.
ELEVENTH. Meetings of the board of directors or
shareholders, regular or special, may be held by means of
conference telephone or similar communication equipment by means
of which all persons participating in the meeting can
simultaneously hear each other, and participation in such meeting
by such aforementioned means shall constitute presence in person
at such meeting.
TWELFTH: Any person, such person's heirs, executors, or
administrators, may be indemnified or reimbursed by the
Association for reasonable expenses actually incurred in
connection with any action, suit or proceeding, whether civil or
criminal or administrative, to which such person or such person's
heirs, executors, or administrators shall be made a party by
reason of such person being or having been a director, advisory
director, officer, employee, or agent of the Association or of
any firm, corporation, or organization which such person served
in any such capacity at the request of the Association.
Provided, however, that no person shall be so indemnified or
reimbursed in relation to any matter in such action, suit or
proceeding: (1) as to which such person shall finally be
adjudged to have been guilty of or liable for gross negligence,
willful misconduct or criminal acts in the performance of such
person's duties to the Association; or which has been made the
subject of a compromise settlement except with the approval of a
court of competent jurisdiction, or the holders of record of a
majority of the outstanding shares of the Association, or the
board of directors acting by vote of directors not parties to the
same or substantially the same action, suit or proceeding,
constituting a majority of the whole number of directors; or (3)
against expenses, penalties, or other payments incurred in an
administrative proceeding or action instituted by an appropriate
bank regulatory agency, which proceeding or action results in a
final order assessing civil money penalties or requiring
affirmative action by such person in the form of payment to this
Association. The foregoing right of indemnification or
reimbursement shall not be exclusive of other rights to which
such person, such person's heirs, executors, or administrators,
may be entitled as a matter of law.
Such expenses actually incurred by such person in connection
with such action, suit or proceeding may be paid by this
Association in advance of the final disposition of such action,
suit or proceeding upon receipt of an undertaking by or on behalf
of such director or officer to repay such amount if it shall
ultimately be determined that such individual is not entitled to
be indemnified by the Association. Prior to the advancement of
any such expenses, the board of directors shall determine in
writing that all of the following conditions are met: (1) such
person has a substantial likelihood of prevailing on the merits;
(2) in the event such person does not prevail, such person will
have the financial capability to reimburse this Association; and
(3) payment of such expenses by this Association will not
adversely affect the soundness of this Association. If at any
time the board of directors believes, or should reasonably
believe, that any of the above conditions are not met, this
Association shall cease paying such person specifying the
conditions under which such person shall reimburse this
Association.
The Association may, upon the affirmative vote of a majority
of its board of directors, purchase insurance for the purpose of
indemnifying its directors, advisory directors, officers,
employees, or agents to the extent that such indemnification is
allowed in this Article Twelfth. Such insurance shall not
provide coverage of liability for any formal order issued by a
regulatory authority assessing civil money penalties against a
director, advisory director, officer, employee, or agent.
Further, such insurance may, but need not be, for the benefit of
all such directors, advisory directors, officers, employees or
agents.
THIRTEENTH. These Articles of Association may be
amended at any regular or special meeting of the shareholders by
the affirmative vote of the holders of a majority of the stock of
this Association, unless the vote of the holders of a greater
amount of stock is required by law, and in that case by the vote
of the holders of such greater amount. This Association's board
of directors may propose one or more amendments to these Articles
of Association for submission to the shareholders.
EXHIBIT 2
[LOGO]
_________________________________________________________________
Comptroller of the Currency
Administrator of National Banks
_________________________________________________________________
Washington, D.C. 20219
Certificate of Fiduciary Powers
I, Julie L. Williams, Acting Comptroller of the Currency, do
hereby certify that:
1. The Comptroller of the Currency, pursuant to Revised Statutes
324, et seq., as amended, 12 U.S.C. 1, et seq., as amended, has
possession, custody and control of all records pertaining to the
chartering of all National Banking Associations.
2. "U.S. Bank Trust National Association," New York, New York,
(Charter No. 22746), was granted, under the hand and seal of the
Comptroller, the right to act in all fiduciary capacities
authorized under the provisions of the Act of Congress approved
September 28, 1962, 76 Stat. 668, 12 U.S.C. 92a, and that the
authority so granted remains in full force and effect on the date
of this Certificate.
IN TESTIMONY WHEREOF, I have hereunto
subscribed my name and caused my seal of office
to be affixed to these presents at the Treasury
Department in the City of Washington and District
of Columbia, this 16th day of April, 1998.
[SEAL] /s/ Julie L. Williams
____________________________
Acting Comptroller of the Currency
EXHIBIT 4
U.S. BANK TRUST
NATIONAL ASSOCIATION
BYLAWS
ARTICLE I
Meetings of Shareholders
Section 1.1. Annual Meeting. The annual meeting of the
shareholders, for the election of directors and the transaction
of other business, shall be held at a time and place as the
Chairman or President may designate. Notice of such meeting shall
be given at least ten days prior to the date thereof, to each
shareholder of the Association. If, for any reason, an election
of directors is not made on the designated day, the election
shall be held on some subsequent day, as soon thereafter as
practicable, with prior notice thereof.
Section 1.2. Special Meetings. Except as otherwise
specially provided by law, special meetings of the shareholders
may be called for any purpose, at any time by a majority of the
board of directors, or by any shareholder or group of
shareholders owning at least ten percent of the outstanding
stock. Every such special meeting, unless otherwise provided by
law, shall be called upon not less than ten days prior notice
stating the purpose of the meeting.
Section 1.3. Nominations for Directors. Nominations for
election to the board of directors may be made by the board of
directors or by any shareholder.
Section 1.4. Proxies. Shareholders may vote at any meeting
of the shareholders by proxies duly authorized in writing.
Proxies shall be valid only for one meeting and any adjournments
of such meeting and shall be filed with the records of the
meeting.
Section 1.5. Quorum. A majority of the outstanding capital
stock, represented in person or by proxy, shall constitute a
quorum at any meeting of shareholders, unless otherwise provided
by law. A majority of the votes cast shall decide every question
or matter submitted to the shareholders at any meeting, unless
otherwise provided by law or by the Articles of Association.
ARTICLE II
Directors
Section 2.1. Board of Directors. The board of directors
(hereinafter referred to as the "board"), shall have power to
manage and administer the business and affairs of the
Association. All authorized corporate powers of the Association
shall be vested in and may be exercised by the board.
Section 2.2. Powers. In addition to the foregoing, the
board of directors shall have and may exercise all of the powers
granted to or conferred upon it by the Articles of Association,
the Bylaws and by law.
Section 2.3. Number. The board shall consist of a number of
members to be fixed and determined from time to time by
resolution of the board or the shareholders at any meeting
thereof, in accordance with the Articles of Association.
Section 2.4. Organization Meeting. The newly elected board
shall meet for the purpose of organizing the new board and
electing and appointing such officers of the Association as may
be appropriate. Such meeting shall be held on the day of the
election or as soon thereafter as practicable, and, in any event,
within thirty days thereafter. If, at the time fixed for such
meeting, there shall not be a quorum present, the directors
present may adjourn the meeting until a quorum is obtained.
Section 2.5. Regular Meetings. The regular meetings of the
board shall be held, without notice, as the Chairman or President
may designate and deem suitable.
Section 2.6. Special Meetings. Special meetings of the
board may be called by the Chairman or the President of the
Association, or at the request of two or more directors. Each
member of the board shall be given notice stating the time and
place of each such meeting.
Section 2.7. Quorum. A majority of the directors shall
constitute a quorum at any meeting, except when otherwise
provided by law; but fewer may adjourn any meeting. Unless
otherwise provided, once a quorum is established, any act by a
majority of those constituting the quorum shall be the act of the
board.
Section 2.8. Vacancies. When any vacancy occurs among the
directors, the remaining members of the board may appoint a
director to fill such vacancy at any regular meeting of the
board, or at a special meeting called for that purpose.
ARTICLE III
Committees
Section 3.1. Advisory Board of Directors. The board may
appoint persons, who need not be directors, to serve as advisory
directors on an advisory board of directors established with
respect to the business affairs of either this Association alone
or the business affairs of a group of affiliated organizations of
which this Association is one. Advisory directors, shall have
such powers and duties as may be determined by the board,
provided, that the board's responsibility for the business and
affairs of this Association shall in no respect be delegated or
diminished.
Section 3.2. Audit Committee. The board shall appoint an
Audit Committee which shall consist of at least two Directors of
the Association or of an affiliate of the Association. If
legally permissible, the Board may determine to name itself as
the Audit Committee. The Audit Committee shall direct and review
audits of the Association's fiduciary activities.
The members of the Audit Committee shall be appointed each
year and shall continue to act until their successors are named.
The Audit Committee shall have power to adopt its own rules and
procedures and to do those things which in the judgment of such
Committee are necessary or helpful with respect to the exercise
of its functions or the satisfaction of its responsibilities.
Section 3.3. Executive Committee. The board may appoint an
Executive Committee which shall consist of at least three
directors and which shall have, and may exercise, all the powers
of the board between meetings of the board or otherwise when the
board is not meeting.
Section 3.4. Other Committees. The board may appoint, from
time to time, committees of one or more persons who need not be
directors, for such purposes and with such powers as the board
may determine. In addition, either the Chairman or the President
may appoint, from time to time, committees of one or more
officers, employees, agents or other persons, for such purposes
and with such powers as either the Chairman or the President
deems appropriate and proper.
Whether appointed by the board, the Chairman, or the
President, any such Committee shall at all times be subject to
the direction and control of the board.
Section 3.5. Meetings. Minutes and Rules. An advisory board
of directors and/or committee shall meet as necessary in
consideration of the purpose of the advisory board of directors
or committee, and shall maintain minutes in sufficient detail to
indicate actions taken or recommendations made; unless required
by the members, discussions, votes or other specific details need
not be reported. An advisory board of directors or a committee
may, in consideration of its purpose, adopt its own rules for the
exercise of any of its functions or authority.
ARTICLE IV
Officers and Employees
Section 4.1. Chairman of the Board. The board may appoint
one of its members to be Chairman of the board to serve at the
pleasure of the board. The Chairman shall supervise the carrying
out of the policies adopted or approved by the board; shall have
general executive powers, as well as the specific powers
conferred by these Bylaws; shall also have and may exercise such
powers and duties as from time to time may be conferred upon or
assigned by the board.
Section 4.2. President. The board may appoint one of its
members to be President of the Association. In the absence of the
Chairman, the President shall preside at any meeting of the board
. The President shall have general executive powers, and shall
have and may exercise any and all other powers and duties
pertaining by law, regulation or practice, to the Office of
President, or imposed by these Bylaws. The President shall also
have and may exercise such powers and duties as from time to time
may be conferred or assigned by the Board.
Section 4.3. Vice President. The board may appoint one or
more Vice Presidents who shall have such powers and duties as may
be assigned by the board and to perform the duties of the
President on those occasions when the President is absent,
including presiding at any meeting of the board in the absence of
both the Chairman and President.
Section 4.4. Secretary. The board shall appoint a
Secretary, or other designated officer who shall be Secretary of
the board and of the Association, and shall keep accurate minutes
of all meetings. The Secretary shall attend to the giving of all
notices required by these Bylaws to be given; shall be custodian
of the corporate seal, records, document and papers of the
Association; shall provide for the keeping of proper records of
all transactions of the Association; shall have and may exercise
any and all other powers and duties pertaining by law, regulation
or practice, to the Secretary, or imposed by these Bylaws; and
shall also perform such other duties as may be assigned from time
to time, by the Board .
Section 4.5. Other Officers. The board may appoint, and may
authorize the Chairman or the President to appoint, any officer
as from time to time may appear to the board, the Chairman or the
President to be required or desirable to transact the business of
the Association. Such officers shall exercise such powers and
perform such duties as pertain to their several offices, or as
may be conferred upon or assigned to them by these Bylaws, the
board, the Chairman or the President.
Section 4.6. Tenure of Office. The Chairman or the
President and all other officers shall hold office for the
current year for which the board was elected, unless they shall
resign, become disqualified, or be removed. Any vacancy occurring
in the Office of Chairman or President shall be filled promptly
by the board.
Any officer elected by the board or appointed by the
Chairman or the President may be removed at any time, with or
without cause, by the affirmative vote of a majority of the board
or, if such officer was appointed by the Chairman or the
President, by the Chairman or the President, respectively.
ARTICLE V
Stock
Section 5.1. Shares of stock shall be transferable on the
books of the Association, and a transfer book shall be kept in
which all transfers of stock shall be recorded. Every person
becoming a shareholder by such transfer shall, in proportion to
such person's shares, succeed to all rights of the prior holder
of such shares. Each certificate of stock shall recite on its
face that the stock represented thereby is transferable only upon
the books of the Association properly endorsed.
ARTICLE VI
Corporate Seal
Section 6.1. The Association shall have no corporate seal;
provided, however, that if the use of a seal is required by, or
is otherwise convenient or advisable pursuant to, the laws or
regulations of any jurisdiction, the following seal may be used,
and the Chairman, the President, the Secretary and any Assistant
Secretary shall have the authority to affix such seal.
ARTICLE VII
Miscellaneous Provisions
Section 7.1. Execution of Instruments. All agreements,
checks, drafts, orders, indentures, notes, mortgages, deeds,
conveyances, transfers, endorsements, assignments, certificates,
declarations, receipts, discharges, releases, satisfactions,
settlements, petitions, schedules, accounts, affidavits, bonds,
undertakings, guarantees, proxies and other instruments or
documents may be signed, countersigned, executed, acknowledged,
endorsed, verified, delivered or accepted on behalf of the
Association, whether in a fiduciary capacity or otherwise, by any
officer of the Association, or such employee or agent as may be
designated from time to time by the board by resolution, or by
the Chairman or the President by written instrument, which
resolution or instrument shall be certified as in effect by the
Secretary or an Assistant Secretary of the Association. The
provisions of this section are supplementary to any other
provision of the Articles of Association or Bylaws.
Section 7.2. Records. The Articles of Association, the
Bylaws and the proceedings of all meetings of the shareholders,
the board, and standing committees of the board, shall be
recorded in appropriate minute books provided for the purpose.
The minutes or each meeting shall be signed by the Secretary, or
other officer appointed to act as Secretary of the meeting.
Section 7.3. Trust Files. There shall be maintained in the
Association files all fiduciary records necessary to assure that
its fiduciary responsibilities have been properly undertaken and
discharged.
Section 7.4. Trust Investments. Funds held in a fiduciary
capacity shall be invested according to the instrument
establishing the fiduciary relationship and according to law.
Where such instrument does not specify the character and class of
investments to be made and does not vest in the Association a
discretion in the matter, funds held pursuant to such instrument
shall be invested in investments in which corporate fiduciaries
may invest under law.
Section 7.5. Notice. Whenever notice is required by the
Articles of Association, the Bylaws or law, such notice shall be
by mail, postage prepaid, telegram, in person, or by any other
means by which such notice can reasonably be expected to be
received, using the address of the person to receive such notice,
or such other personal data, as may appear on the records of the
Association. Prior notice shall be proper if given not more than
30 days nor less than 10 days prior to the event for which notice
is given.
ARTICLE VIII
Indemnification
Section 8.1. The association shall indemnify to the full
extent permitted by, and in the manner permissible under, the
Articles of Association and the laws of the United States of
America, as applicable and as amended from time to time, any
person made, or threatened to be made, a party to any action,
suit or proceeding, whether criminal, civil, administrative or
investigative, by reason of the fact that such person is or was a
director, advisory director, officer or employee of the
Association, or any predecessor of the Association, or served any
other enterprise as a director or officer at the request of the
Association or any predecessor of the Association.
Section 8.2. The board in its discretion may, on behalf of
the Association, indemnify any person, other than a director,
advisory director, officer or employee, made a party to any
action, suit or proceeding by reason of the fact that such person
is or was an agent of the Association or any predecessor of the
Association serving in such capacity at the request of the
Association or any predecessor of the Association.
ARTICLE IX
Bylaws: Interpretation and Amendment
Section 9.1. These Bylaws shall be interpreted in
accordance with and subject to appropriate provisions of law, and
may be amended, altered or repealed, at any regular or special
meeting of the board.
Section 9.2. A copy of the Bylaws, with all amendments,
shall at all times be kept in a convenient place at the main
office of the Association, and shall be open for inspection to
all shareholders during Association hours.
I, Patrick J. Crowley, hereby certify that: (i) I am the
duly constituted secretary of U.S. Bank Trust National
Association (the "Association"), and secretary of its board of
directors, and as such officer am the official custodian of its
records; and (ii) the foregoing bylaws are the bylaws of the
Association, and all of them are now lawfully in force and
effect.
I have hereunto affixed my official signature, in the City
of New York, on the 4th day of May, 1998.
/S/ Patrick J. Crowley
Name: Patrick J. Crowley
Title:Secretary
Exhibit 7
U.S. Bank Trust National Association
(Formerly First Trust of New York, National Association)
Statement of Financial Condition
As of 12/31/97
($000's)
12/31/97
Assets
Cash and Due From Depository
Institutions $37,537
Federal Reserve Stock 3,439
Fixed Assets 698
Intangible Assets 74,459
Other Assets 6,072
--------
Total Assets $122,205
Liabilities
Other Liabilities 8,020
Total Liabilities 8,020
Equity
Common and Preferred Stock 1,000
Surplus 120,932
Undivided Profits (7,747)
-------
Total Equity Capital 114,185
Total Liabilities and Equity Capital $122,205
To the best of the undersigned's determination, as of this date
the above financial information is true and correct.
U.S. Bank Trust National Association
By: /S/Frank J. Gillhaus, Jr.
Vice President
Date: May 4, 1998
