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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April 13, 1995
BanPonce Corporation
(Exact name of registrant as specified in its charter)
Commonwealth of Puerto Rico No. 0-13818 No. 66-0416582
(State or other jurisdic- (Commission (IRS employer
tion of incorporation) File Number) Identification No.)
209 Munoz Rivera Avenue
Hato Rey, Puerto Rico 00918
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (809)765-9800
_____________________________________________________________
(Former name or former address, if changes since last report)
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Item 5. Other Events
The exhibits listed in Item 7 below are hereby incorporated
herein by reference.
Item 7. Financial Statements and Exhibits
(4)(a) Form of Fixed Rate Medium-Term Note, Series One of
BanPonce Corporation.
(4)(b) Form of Floating Rate Medium-Term Note, Series One of
BanPonce Corporation.
(4)(c) Indenture, dated as of February 15, 1995, between
BanPonce Corporation and The First National Bank of
Chicago as Trustee.
(8)(a) Tax opinion of Sullivan & Cromwell.
(8)(b) Tax opinion of McConnell Valdes.
(10)(a) Form of Administrative Procedures governing Medium-Term
Notes, Series 1, of BanPonce Corporation.
(10)(b) Form of Interest Calculation Agency Agreement, dated as
of February 15, 1995, between BanPonce Corporation and
The First National Bank of Chicago.
(23)(a) Consent of Sullivan & Cromwell (included in
Exhibit (8)(a)).
(23)(b) Consent of McConnell Valdes (included in Exhibit (8)(b)).
(25) Statement of Eligibility on Form T-1 of The First
National Bank of Chicago relating to debt securities of
BanPonce Corporation.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
BANPONCE CORPORATION
(Registrant)
Date: April 13, 1995 By: /s/ Jose Luis Lopez Calderon
Name: Jose Luis Lopez Calderon
Title: (Senior Vice President)
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Exhibit (4)(a)
[Include if this Note is a Global Note -- THIS NOTE IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS NOTE MAY
NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED
IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITORY OR A NOMINEE THEREOF
AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE. EVERY NOTE AUTHENTICATED AND DELIVERED UPON
REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS NOTE
SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED
CIRCUMSTANCES.]
REGISTERED NO. FXR- CUSIP NO.
BANPONCE CORPORATION
MEDIUM-TERM FIXED RATE NOTE, SERIES 1
Due Nine Months or More From Date of Issue
Payment of Principal, Premium, if any, and Interest
ORIGINAL ISSUE DATE: INITIAL DATE ON WHICH PRINCIPAL AMOUNT
THE NOTE IS REPAYABLE AT $
THE OPTION OF THE
HOLDER:
ISSUE PRICE: REDEEMABLE ON OR AFTER: MATURITY DATE:
(AT OPTION OF THE
COMPANY)
INTEREST RATE PER ANNUM: INITIAL REDEMPTION OID DEFAULT AMOUNT:
PERCENTAGE: (Only applicable if Note
issued at original issue
discount)
INTEREST PAYMENT DATES: ANNUAL REDEMPTION DEFAULT RATE:
PERCENTAGE REDUCTION: (Only applicable if Note
issued at original issue
discount)
Depository: REGULAR RECORD DATE(S):
(Only applicable if Note
is a Global Note)
OTHER PROVISIONS:
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BANPONCE CORPORATION, a corporation duly organized and
existing under the laws of the Commonwealth of Puerto Rico (herein called
the "Company", which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
_______________________________, or registered assigns, the principal sum
of ______________ at the office or agency of the Company maintained for
such purpose in the Borough of Manhattan, The City of New York (the "Paying
Agent"), on the maturity date specified above (the "Maturity Date"), or if
such date is not a Business Day (as defined below), the next succeeding
Business Day, in such coin or currency as at the time of payment shall be
legal tender for the payment of public and private debts, and to pay
interest on said principal sum at the rate per annum (computed on the basis
of a 360-day year of twelve 30-day months) specified above, in like coin or
currency, from and including the original issue date of this Note specified
above (the "Original Issue Date") or from and including the most recent
Interest Payment Date to which interest has been duly paid or provided for,
on the Interest Payment Date(s) specified above in each year (each an
"Interest Payment Date") and at Maturity, until the principal sum hereof
has been paid or duly provided for. The first payment of interest on a
Note originally issued between a Regular Record Date and an Interest
Payment Date will be due and payable on the Interest Payment Date following
the next succeeding Regular Record Date to the Holder on such next
succeeding Regular Record Date. The interest so payable on any Interest
Payment Date will be paid to the Holder at the close of business on the
Regular Record Date (specified above) next preceding such Interest Payment
Date and interest payable at Maturity will be paid to the Person to whom
said principal sum is payable. Any such interest not so punctually paid or
duly provided for ("Defaulted Interest") will forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Note (or one or more predecessor Notes) is
registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee referred to
on the reverse hereof, notice whereof shall be given to the Holder of this
Note not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner, all as more fully provided in the
Indenture (as defined on the reverse hereof).
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Payment of interest on this Note due on any Interest Payment
Date (other than interest on this Note due to the Holder hereof at
Maturity) shall be paid by check mailed to the Person entitled thereto at
his last address as it appears on the Security Register or, if a Depository
with respect to this Note is specified above or if $10,000,000 aggregate
principal amount of Notes of this series with the Interest Payment Dates
specified above are registered in the name of the Holder hereof, in
immediately available funds by wire transfer to such account as may have
been designated by the Person entitled thereto as set forth herein in time
for the paying agent (the "Paying Agent") under the Indenture to make such
payments in accordance with its normal procedures. Payment of the
principal of and any premium and interest on this Note due to the Holder
hereof at Maturity shall be paid in immediately available funds upon
presentation of this Note for surrender at the office or agency of the
Paying Agent in the Borough of Manhattan, The City of New York, provided
that this Note is presented for surrender in time for the Paying Agent to
make such payment in such funds in accordance with its normal procedures.
Any such designation for wire transfer purposes shall be made
by filing the appropriate information with the Trustee at its Corporate
Trust Office in the Borough of Manhattan, The City of New York and, unless
revoked by written notice to the Trustee received on or prior to the
Regular Record Date immediately preceding the applicable Interest Payment
Day or the fifteenth calendar day preceding Maturity shall remain in effect
with respect to any further payments with respect to this Note payable to
such Holder.
Any payment of principal, premium or interest on this Note due
on any day which is not a Business Day in The City of New York need not be
made on such day, but may be made on the next succeeding Business Day in
The City of New York with the same force and effect as if made on the due
date and no interest shall accrue for the period from and after such date.
"Business Day" shall mean, as used herein with respect to any particular
location, any day, other than Saturday and Sunday, which is not a day on
which banking institutions in such location are authorized or obligated by
law or executive order to close.
Additional provisions of this Note are contained on the reverse
hereof and such provisions shall for all purposes have the same effect as
though fully set forth at this place.
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This Note shall not be valid or become obligatory for any
purpose until the Certificate of Authentication hereon shall have been
signed by an authorized signatory of the Trustee or its duly authorized
agent under the Indenture referred to on the reverse hereof.
IN WITNESS WHEREOF, BANPONCE CORPORATION has caused this
instrument to be signed by its duly authorized officer, and has caused a
facsimile of its corporate seal to be affixed hereto or imprinted hereon.
Dated:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION BANPONCE CORPORATION
This Note is one of a designated series
of Debt Securities described in the
Indenture referred to on the reverse
hereof By:________________________
By:________________________
The First National Bank
of Chicago, as Trustee,
Attest:_____________________
By:_______________________
Authorized Signatory
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BANPONCE CORPORATION
MEDIUM-TERM FIXED RATE NOTE, SERIES 1
Due Nine Months or More From Date of Issue
This Note is one of a duly authorized issue of debentures,
notes and other evidences of indebtedness of the Company (hereinafter
called the "Debt Securities"), issued or to be issued under and pursuant to
an indenture dated as of February 15, 1995 (hereinafter called the
"Indenture"), duly executed and delivered by the Company to The First
National Bank of Chicago, as Trustee (hereinafter called the "Trustee"), to
which Indenture and all indentures supplemental thereto reference is hereby
made for a description of the rights, duties and immunities thereunder of
the Trustee and the rights thereunder of the Holders of the Debt
Securities. As provided in the Indenture, the Debt Securities may be
issued in one or more series, which different series may be issued in
various aggregate principal amounts, may mature at different times, may
bear interest, if any, at different rates, may be subject to different
redemption provisions, if any, may be subject to different sinking,
purchase or analogous funds, if any, may be subject to different covenants
and events of default, and may otherwise vary as provided or permitted in
the Indenture. This Note is one of a series of the Debt Securities, which
series is designated as the Medium-Term Notes, Series 1 (the "Notes") of
the Company and is limited in aggregate initial offering price of up to
$500,000,000, less the aggregate initial offering price of "Securities" (as
defined in the Prospectus, dated July 21, 1994, relating to debt securities
of the Company, Popular International Bank Inc. and BanPonce Financial
Corp., and preferred stock of the Company and Popular International Bank
Inc.) authenticated and delivered upon original issuance, other than the
Notes. The Notes may mature at different times, bear interest, if any, at
different rates, be redeemable at different times or not at all, be
repayable at the option of the Holder at different times or not at all, be
issued at an original issue discount, and be denominated in different
currencies.
In case an Event of Default, as defined in the Indenture, with
respect to the Notes shall have occurred and be continuing, the principal
hereof may be declared, and upon such declaration shall become, due and
payable in the manner, with the effect and subject to the conditions pro-
vided in the Indenture.
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The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Debt
Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of not less
than a majority in principal amount of the Debt Securities at the time
Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal
amount of the Debt Securities of each series at the time Outstanding, on
behalf of the Holders of all Debt Securities of such series, to waive
compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of
any Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.
If so provided on the face of this Note, this Note may also be
redeemed by the Company on and after the date so indicated on the face
hereof; provided, however, that the first two paragraphs of Section 1103 of
the Indenture shall not apply to this Note, and if less than all of the
Notes are to be redeemed, the Company may select, from Notes that are
subject to redemption pursuant to the terms thereof, the Note or Notes, or
portion or portions thereof, to be redeemed. On and after the date, if
any, from which this Note may be redeemed, this Note may be redeemed in
whole or in part, at the option of the Company at a redemption price equal
to the product of the principal amount of this Note to be redeemed
multiplied by the Redemption Percentage, together with accrued interest, if
any, to the date fixed for redemption. The Redemption Percentage shall
initially equal the Initial Redemption Percentage specified on the face of
this Note, and shall decline at each anniversary of the initial date that
this Note is redeemable by the amount of the Annual Redemption Percentage
Reduction specified on the face of this Note, until the Redemption
Percentage is equal to 100%.
If so provided on the face of this Note, this Note will be
repayable in whole or in part in increments of $1,000, provided that the
remaining principal amount of any Note surrendered for partial repayment
shall be at least $1,000, on any Business Day on or after the "Initial Date
on which the Note is Repayable at the Option of the Holder" (as stated on
the face hereof), at the option of the Holder, at 100% of the principal
amount to be repaid, plus accrued
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interest, if any, to the repayment date. In order for the exercise of the
option to be effective and the Note to be repaid, the Company must receive
at the applicable address of the Paying Agent set forth below or at such
other place or places of which the Company shall from time to time notify
the Holder of this Note, on or before the thirtieth, but not earlier than
the sixtieth calendar day, or, if such day is not a Business Day, the next
succeeding Business Day, prior to the repayment date, either (i) this Note,
with the form below entitled "Option to Elect Repayment" duly completed, or
(ii) a telegram, telex, facsimile transmission, or letter from a member of
a national securities exchange or the National Association of Securities
Dealers, Inc. or a commercial bank or a trust company in the United States
of America setting forth (a) the name, address, and telephone number of the
Holder of this Note, (b) the principal amount of this Note and the amount
of this Note to be repaid, (c) a statement that the option to elect
repayment is being exercised thereby, and (d) a guarantee stating that the
Paying Agent on behalf of the Company will receive this Note, with the form
below entitled "Option to Elect Repayment" duly completed, not later than
five Business Days after the date of such telegram, telex, facsimile
transmission, or letter (and this Note and form duly completed are received
by the Paying Agent on behalf of the Company by such fifth Business Day).
Any such election shall be irrevocable. The address to which such
deliveries are to be made is The First National Bank of Chicago, Attention:
Securities Processing Division, 14 Wall Street, Eighth Floor, New York, New
York 10005 (or, at such other places as the Company shall notify the
Holders of the Notes). All questions as to the validity, eligibility
(including time of receipt) and acceptance of any Note for repayment will
be determined by the Company, whose determination will be final and
binding.
If this Note is issued with an original issue discount, (i) if
an Event of Default with respect to the Notes shall have occurred and be
continuing, the amount of principal of this Note which may be declared due
and payable in the manner, with the effect and subject to the conditions
provided in the Indenture, shall be determined in the manner set forth
under "OID Default Amount" on the face hereof, and (ii) in the case of a
default of payment in principal upon acceleration, redemption, repayment at
the option of the Holder or at the Maturity Date hereof, in lieu of any
interest otherwise payable, the overdue principal of this Note shall bear
interest at a rate of interest per annum equal to the Default Rate stated
on the face hereof (to the extent that the payment of such interest shall
be legally enforceable), which shall accrue from the date of such acce-
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leration, redemption, repayment at the option of the Holder or Maturity
Date, as the case may be, to the date payment has been made or duly
provided for or such default has been waived in accordance with the terms
of the Indenture.
The Notes are issuable in definitive form without coupons in
denominations of $1,000 and integral multiples thereof. Upon due present-
ment for registration of transfer of this Note at the office or agency of
the Company maintained for such purpose in the Borough of Manhattan, The
City of New York, a new Note or Notes in authorized denominations for an
equal aggregate principal amount and like tenor will be issued to the
transferee in exchange therefor, subject to the limitations provided in the
Indenture and to the limitations described below if applicable, without
charge except for any tax or other governmental charge imposed in
connection therewith.
If this Note is a Global Note (as specified on the face
hereof), this Note is exchangeable only if (x) the Depository notifies the
Company that it is unwilling or unable to continue as Depository for this
Global Note or if at any time the Depository ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, (y) the
Company in its sole discretion determines that this Global Note shall be
exchangeable for definitive Notes in registered form or (z) an Event of
Default, or an event which with notice or lapse of time or both would
become an Event of Default, with respect to the Notes represented hereby
has occurred and is continuing. If this Note is exchangeable pursuant to
the preceding sentence, it shall be exchangeable for definitive Notes in
registered form, bearing interest (if any) at the same rate or pursuant to
the same formula, having the same date of issuance, redemption provisions,
if any, Maturity Date and other terms and of differing denominations
aggregating a like amount.
No reference herein to the Indenture and no provision of this
Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and
interest on this Note at the places, at the respective times, at the rate
and in the currency herein prescribed.
The Company, the Trustee and any paying agent may deem and
treat the Holder hereof as the absolute owner of this Note at such Holder's
address as it appears on the Security Register as kept by the Trustee or
duly authorized agent of the Company (whether or not this Note shall be
overdue), for the purpose of receiving payment of or on account hereof and
for all other purposes, and neither the
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Company nor the Trustee nor any Paying Agent shall be affected by any
notice to the contrary. All payments made to or upon the order of such
registered Holder shall, to the extent of the sum or sums paid, satisfy and
discharge liability for moneys payable on this Note.
Terms used herein which are defined in the Indenture and are
not defined herein shall have the respective meanings assigned thereto in
the Indenture.
This Note shall be governed by and construed in accordance with
the laws of the State of New York.
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OPTION TO ELECT REPAYMENT
TO BE COMPLETED ONLY IF THIS NOTE IS REPAYABLE
AT THE OPTION OF THE HOLDER AND THE HOLDER
ELECTS TO EXERCISE SUCH RIGHTS
The undersigned hereby irrevocably requests and instructs the
Company to repay the within Note (or portion thereof specified below)
pursuant to its terms at a price equal to the principal amount thereof,
together with interest to the repayment date, to the undersigned, at
___________________________________________________________________________
___________________________________________________________________________
(Please print or type name and address of the undersigned)
For this Note to be repaid the Company must receive at the
Corporate Trust Office of the Trustee in The City of New York or at such
other place or places of which the Company shall from time to time notify
the Holder of the within Note, on or before the thirtieth, but not earlier
than the sixtieth, calendar day, or, if such day is not a Business Day, the
next succeeding Business Day, prior to the repayment date, (i) this Note,
with this "Option to Elect Repayment" form duly completed, or (ii) a
telegram, telex, facsimile transmission, or letter from a member of a
national securities exchange or the National Association of Securities
Dealers, Inc. or a commercial bank or a trust company in the United States
of America setting forth (a) the name, address, and telephone number of the
Holder of the Note, (b) the principal amount of the Note and the amount of
the Note to be repaid, (c) a statement that the option to elect repayment
is being exercised thereby, and (d) a guarantee stating that the Note to be
repaid with this form duly completed will be received by the Paying Agent
on behalf of the Company not later than five Business Days after the date
of such telegram, telex, facsimile transmission, or letter (and such Note
and form duly completed are received by the Paying Agent on behalf of the
Company by such fifth Business Day). Exercise of the repayment option by
the Holder shall be irrevocable.
If less than the entire principal amount of the within Note is
to be repaid, specify the portion thereof (which shall be an integral
multiple of $1,000) which the Holder elects to have repaid:
__________________________; and specify the denomination or denominations
(which shall be $1,000 or an integral multiple thereof) of the Note or
Notes to be issued to the Holder for the portion of the within Note not
being repaid (in the absence of any specification, one such Note will be
issued for the portion not being repaid): ________________
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Date:___________________
________________________________________________________________________
Notice: The signature to this Option to Elect Repayment must correspond
with the name as written upon the face of the Note in every particular
without alteration or enlargement or any other change whatsoever.
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____________________
ABBREVIATIONS
The following abbreviations, when used in the inscription
on the face of this instrument, shall be construed as though they were
written out in full according to applicable laws or regulations:
TEN COM -- as tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right
of survivorship and not as
tenants in common
UNIF GIFT MIN ACT -- _____ Custodian ____________
(Cust) (Minor)
Under Uniform Gifts to Minors Act
_________________________________________
(State)
Additional abbreviations may also be used though not in
the above list.
FOR VALUE RECEIVED, the undersigned hereby sell(s),
assign(s) and transfer(s) unto
Please Insert Social Security or
Other Identifying Number of Assignee
_______________________________________________________________
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF
ASSIGNEE
___________________________________________________________________________
___________________________________________________________________________
the within Note of BANPONCE CORPORATION and does hereby irrevocably
constitute and appoint
___________________________________________________________________________
attorney to transfer the said Note on the books of the Company, with full
power of substitution in the premises.
Dated: ____________________ _________________________________
_________________________________
NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular, without
alteration or enlargement or any change whatsoever.
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Exhibit (4)(b)
[Include if this Note is a Global Note -- THIS NOTE IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS NOTE MAY
NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED
IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITORY OR A NOMINEE THEREOF
AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE. EVERY NOTE AUTHENTICATED AND DELIVERED UPON
REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS NOTE
SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED
CIRCUMSTANCES.]
REGISTERED NO. FLR- CUSIP NO.
BANPONCE CORPORATION
MEDIUM-TERM FLOATING RATE NOTE, SERIES 1
Due Nine Months or More From Date of Issue
Payment of Principal, Premium, if any, and Interest
ORIGINAL ISSUE DATE: INITIAL INTEREST RATE: PRINCIPAL AMOUNT
$
MATURITY DATE: INTEREST RATE BASIS: INDEX MATURITY:
IF LIBOR:
[ ] LIBOR REUTERS SPREAD: +
REDEEMABLE ON OR AFTER [ ] LIBOR TELERATE -
(AT OPTION OF
THE COMPANY): INDEX CURRENCY:
IF THE CMT RATE: INTEREST PAYMENT PERIOD:
INITIAL REDEMPTION [ ] 7055
PERCENTAGE: [ ] 7052 INTEREST RATE RESET
MATURITY INDEX: PERIOD:
MAXIMUM INTEREST RATE:
Depository:
INITIAL DATE ON WHICH SPREAD MULTIPLIER:
THE NOTE IS REPAYABLE (Only applicable if this
AT THE OPTION OF THE Note is a Global Note)
HOLDER: ANNUAL REDEMPTION
PERCENTAGE REDUCTION:
INTEREST PAYMENT
DATES:
MINIMUM INTEREST RATE:
INTEREST CALCULATION
DATES:
(If other than ten CALCULATION AGENT:
calendar days after
the Interest
Determination Date)
OTHER PROVISIONS:
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BANPONCE CORPORATION, a corporation duly organized and existing
under the laws of the Commonwealth of Puerto Rico (herein called the
"Company", which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
____________________________, or registered assigns, the principal sum of
_____________________________ at the office or agency of the Company
maintained for such purposes in the Borough of Manhattan, The City of New
York (the "Paying Agent"), on the maturity date shown above (the "Maturity
Date"), or if such date is not a Business Day, the next succeeding Business
Day, in such coin or currency as at the time of payment shall be legal
tender for the payment of public and private debts, and to pay interest
commencing with the first Interest Payment Date specified above following
the Original Issue Date specified above or from and including the most
recent Interest Payment Date to which interest has been duly paid or
provided for monthly, quarterly, semi-annually or annually as specified
above under "Interest Payment Period", on the Interest Payment Dates
specified above and at Maturity, on said principal sum at said offices or
agencies, in like coin or currency, at a rate per annum equal to the
Initial Interest Rate specified above until the first Interest Reset Date
following the Original Issue Date specified above and thereafter at a rate
per annum determined in accordance with the provisions on the reverse
hereof under the heading "Determination of Interest Rate Per Annum for
Certificate of Deposit Rate Notes", "Determination of Interest Rate Per
Annum for Commercial Paper Rate Notes", "Determination of Interest Rate Per
Annum for CMT Rate", "Determination of Interest Rate Per Annum for Eleventh
District Cost of Funds Rate Notes", "Determination of Interest Rate Per
Annum for Federal Funds Rate Notes", "Determination of Interest Rate Per
Annum for LIBOR Notes", "Determination of Interest Rate Per Annum for Prime
Rate Notes" or "Determination of Interest Rate Per Annum for Treasury Rate
Notes", depending upon whether the Interest Rate Basis specified above is
Certificate of Deposit Rate, Commercial Paper Rate, CMT Rate, Eleventh
District Cost of Funds Rate, Federal Funds Rate, LIBOR, Prime Rate or
Treasury Rate; provided, however, that if any Interest Payment Date
specified above would otherwise fall on a day that is not a Business Day
(as defined herein), such Interest Payment Date will be the next succeeding
Business Day, except that in the event that the Interest Rate Basis for
this Note is LIBOR, if such day falls in the next calendar month, such
Interest Payment Date will be the next preceding day that is a Business
Day. Interest on this Note shall accrue (a) if the rate at which interest
on this Note is payable shall be adjusted monthly, quarterly, semi-annually
or annually, as specified above under "Interest Rate Reset Period" and as
determined in accordance with the provisions on the reverse hereof, from
the Interest Payment Date next preceding the date of this Note
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<PAGE> 3
to which interest has been paid, unless the date hereof is an Interest
Payment Date to which interest has been paid, in which case from the date
of this Note, or unless no interest has been paid on this Note, in which
case from the Original Issue Date specified above, until the principal sum
hereof has been paid or duly provided for or (b) if the rate at which
interest on this Note is payable shall be adjusted daily or weekly, as
specified above under "Interest Rate Reset Period" and as determined in
accordance with the provisions on the reverse hereof, from the Regular
Record Date (as defined herein) next preceding the date of this Note
through which interest has been paid, unless the date hereof is a Regular
Record Date through which interest has been paid, in which case from the
day after the date of this Note, or unless no interest has been paid on
this Note, in which case from the Original Issue Date specified above,
until the principal sum hereof has been paid or duly provided for;
provided, however, that if the Original Issue Date is after any Regular
Record Date preceding any Interest Payment Date and before such Interest
Payment Date, interest on this Note shall accrue from such Interest Payment
Date unless the rate at which interest on this Note is payable shall be
adjusted daily or weekly, as provided above under "Interest Rate Reset
Period" and as determined in accordance with the provisions on the reverse
hereof, in which case interest on this Note shall accrue from such Regular
Record Date, or, in either case, if no interest has been paid on this Note,
from the Original Issue Date specified above. The interest so payable on
any Interest Payment Date will be paid to the Holder at the close of
business on the Regular Record Date next preceding such Interest Payment
Date, and interest payable at Maturity will be paid to the Person to whom
said principal sum is payable; provided, however, that the first payment of
interest on a Note originally issued between a Regular Record Date and an
Interest Payment Date will be made on the Interest Payment Date following
the next succeeding Regular Record Date to the Holder on such next
succeeding Regular Record Date. Any such interest not so punctually paid
or duly provided for ("Defaulted Interest") will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to
the Person in whose name this Note (or one or more predecessor Notes) is
registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee referred to
on the reverse hereof, notice whereof shall be given to the Holder of this
Note not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner, all as more fully provided in the
Indenture (as defined on the reverse hereof). "Regular Record Date" shall
mean the fifteenth day, whether or not such date shall be a Business Day,
prior to any Interest Payment Date. "Business Day" shall mean, as used
herein with respect to any particular location, any day, other than a
Saturday or Sunday, which is (a) not a day
<PAGE>
<PAGE> 4
on which banking institutions in such location are authorized or obligated
by law or executive order to close and (b), in the event that the Interest
Rate Basis for this Note is LIBOR, a London Banking Day. "London Banking
Day" shall mean any day on which dealings in deposits in U.S. dollars are
transacted in the London interbank market.
Payment of interest on this Note due on any Interest Payment
Date (other than interest on this Note due to the Holder hereof at
Maturity) shall be made by check mailed to the Person entitled thereto at
his last address as it appears on the Security Register or, if a Depository
with respect to this Note is specified above or if $10,000,000 aggregate
principal amount of Notes of this series with the Interest Payment Dates
specified above are registered in the name of the Holder hereof, in imme-
diately available funds by wire transfer to such account as may have been
appropriately designated by the Person entitled thereto as set forth herein
in time for the Paying Agent to make such payment in such funds in
accordance with its normal procedures. Payment of the principal of, and
any premium and interest on this Note due to the Holder hereof at Maturity
shall be made in immediately available funds upon presentation of this Note
at the office or agency of the Paying Agent in the Borough of Manhattan,
The City of New York, provided that this Note is presented for surrender in
time for the Paying Agent to make such payment in such funds in accordance
with its normal procedures.
Any such designation for wire transfer purposes shall be made
by filing the appropriate information with the Paying Agent at its
Corporate Trust Office or agency in the Borough of Manhattan, The City of
New York and, unless revoked by written notice to the Paying Agent received
on or prior to the Regular Record Date immediately preceding the applicable
Interest Payment Date or the fifteenth day preceding Maturity, shall remain
in effect with respect to any further payments with respect to this Note
payable to such Holder.
If any Interest Payment Date with respect to this Note would
otherwise fall on a day that is not a Business Day such Interest Payment
Date shall be postponed to the next day that is a Business Day provided,
however, that in the event that the Interest Rate Basis for this Note is
LIBOR, if such Business Day falls in the next succeeding calendar month,
such payment shall be made on the immediately preceding Business Day. If
the date of Maturity of this Note would fall on a day that is not a
Business Day, the payment of principal, premium, if any, and interest shall
be made on the next succeeding Business Day, and no interest on such
payment shall accrue for the period from and after Maturity.
<PAGE>
<PAGE> 5
Additional provisions of this Note are contained on the reverse
hereof and such provisions shall for all purposes have the same effect as
though fully set forth at this place.
This Note shall not be valid or become obligatory for any
purpose until the Certificate of Authentication hereon shall have been
signed by an authorized signatory of the Trustee or its duly authorized
agent under the Indenture referred to on the reverse hereof.
IN WITNESS WHEREOF, BANPONCE CORPORATION has caused this
instrument to be signed by its duly authorized officer, and has caused a
facsimile of its corporate seal to be affixed hereto or imprinted hereon.
Dated:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION BANPONCE CORPORATION
This Note is one of a designated series
of Debt Securities described in the
Indenture referred to on the reverse
hereof By:________________________
By:________________________
The First National Bank
of Chicago, as Trustee,
Attest:_____________________
By:_______________________
Authorized Signatory
<PAGE>
<PAGE> 6
BANPONCE CORPORATION
MEDIUM-TERM FLOATING RATE NOTE, SERIES 1
Due Nine Months or More From Date of Issue
This Note is one of a duly authorized issue of debentures,
notes or other evidences of indebtedness of the Company (hereinafter called
the "Debt Securities"), issued or to be issued under and pursuant to an
indenture dated as of February 15, 1995 (hereinafter called the "Inden-
ture"), duly executed and delivered by the Company to The First National
Bank of Chicago as Trustee (hereinafter called the "Trustee"), to which
Indenture and all indentures supplemental thereto reference is hereby made
for a description of the rights, duties and immunities thereunder of the
Trustee and the rights thereunder of the Holders of the Debt Securities.
As provided in the Indenture, the Debt Securities may be issued in one or
more series, which different series may be issued in various aggregate
principal amounts, may mature at different times, may bear interest, if
any, at different rates, may be subject to different redemption provisions,
if any, may be subject to different sinking, purchase or analogous funds,
if any, may be subject to different covenants and events of default, and
may otherwise vary as provided or permitted in the Indenture. This Note is
one of a series of the Debt Securities, which series is designated as the
Medium-Term Notes, Series 1 (the "Notes") of the Company and is limited in
aggregate initial offering price of up to $500,000,000, less the aggregate
initial offering price of "Securities" (as defined in the Prospectus, dated
July 21, 1994, relating to debt securities of the Company, Popular
International Bank Inc. and BanPonce Financial Corp., and preferred stock
of the Company and Popular International Bank Inc.) authenticated and
delivered upon original issuance, other than the Notes. The Notes may
mature at different times, bear interest, if any, at different rates, be
redeemable at different times or not at all, be repayable at the option of
the Holder at different times or not at all, and be denominated in
different currencies.
The interest rate in effect from the date of issue to the first
Interest Reset Date shall be the Initial Interest Rate specified on the
face hereof. Commencing with the first Interest Reset Date following the
Original Issue Date specified on the face hereof, the rate at which
interest on this Note is payable shall be adjusted daily, weekly, monthly,
quarterly, semi-annually or annually as specified on the face hereof under
"Interest Rate Reset
<PAGE>
<PAGE> 7
Period". Each such adjusted rate shall be applicable from and including
the Interest Reset Date to which it relates but not including the next
succeeding Interest Reset Date or until Maturity, as the case may be.
Subject to applicable provisions of law and except as specified herein, on
each Interest Reset Date, the rate of interest on this Note shall be the
rate determined with respect to the Interest Determination Date next
preceding such Interest Reset Date in accordance with the provisions of the
applicable heading below.
If the Interest Rate Basis specified on the face of this Note
is the Certificate of Deposit Rate, Commercial Paper Rate, CMT Rate,
Federal Funds Rate or Prime Rate, the Interest Determination Date with
respect to any Interest Reset Date shall be the second Business Day
immediately preceding such Interest Reset Date. If the Interest Rate Basis
specified on the face hereof is the Treasury Rate, the Interest
Determination Date with respect to any Interest Reset Date shall be the day
of the week in which such Interest Reset Date falls on which Treasury bills
are auctioned; provided, however, that if, as a result of a legal holiday,
an auction with respect to any week is held on the preceding Friday, such
Friday shall be the Interest Determination Date with respect to the
Interest Reset Date occurring in the next succeeding week. If the Interest
Rate Basis specified on the face of this Note is the Eleventh District Cost
of Funds Rate, the Interest Determination Date with respect to any Interest
Reset Date shall be the last Business Day of the month immediately
preceding such Interest Reset Date on which the Federal Home Loan Bank of
San Francisco publishes the Eleventh District Cost of Funds Index (as
defined below). If the Interest Rate Basis specified on the face of this
Note is LIBOR, the Interest Determination Date with respect to any Interest
Reset Date shall be the second London Banking Day preceding such Interest
Reset Date.
If the Interest Rate Reset Period specified on the face hereof
is daily, the Interest Reset Dates with respect to this Note shall be each
Business Day. If the Interest Rate Reset Period specified on the face of
this Note is weekly, the Interest Reset Dates with respect to this Note
shall be Wednesday of each week; provided, however, that if the Interest
Rate Basis specified on the face of this Note is the Treasury Rate, the
Interest Reset Dates with respect to this Note shall be Tuesday of each
week. If the Interest Rate Reset Period specified on the face of this Note
is monthly, the Interest Reset Dates with respect to this Note shall be the
third Wednesday of each month; provided, however, if the Interest Rate
Basis specified on the face of
<PAGE>
<PAGE> 8
this Note is the Eleventh District Cost of Funds Rate, the Interest Reset
Date with respect to this Note shall be the first Business Day of each
month. If the Interest Rate Reset Period specified on the face of this
Note is quarterly, the Interest Reset Dates with respect to this Note shall
be the third Wednesday of March, June, September and December of each year.
If the Interest Rate Reset Period specified on the face of this Note is
semi-annual, the Interest Reset Dates with respect to this Note shall be
the third Wednesday of the two months in each year specified on the face
hereof under Interest Rate Reset Period. If the Interest Rate Reset Period
specified on the face of this Note is annual, the Interest Rate Reset Dates
with respect to this Note shall be the third Wednesday of the month in each
year specified on the face hereof under Interest Rate Reset Period.
Notwithstanding the foregoing, if the Interest Rate Basis specified on the
face hereof is Treasury Rate and any Interest Reset Date with respect to
this Note falls on a day on which Treasury bills are to be auctioned, then
such Interest Reset Date shall be postponed to the next succeeding Business
Day. If any Interest Reset Date with respect to this Note would otherwise
be a day that is not a Business Day, such Interest Reset Date shall be
postponed to the next succeeding Business Day; provided, however, if the
Interest Rate Basis specified on the face hereof is LIBOR, if such next
succeeding Business Day is in the next succeeding calendar month, such
Interest Reset Date shall be the immediately preceding Business Day.
Unless otherwise specified on the face hereof, the Calculation Date with
respect to any Interest Determination Date shall be the earlier of (i) the
tenth calendar day after such Interest Determination Date, or if any such
day is not a Business Day (as defined in the Indenture) the next succeeding
Business Day or (ii) the Business Day preceding the applicable Interest
Payment Date or Maturity, as the case may be.
Determination of Interest Rate Per Annum for Certificate of
Deposit Rate Notes. If the Interest Rate Basis specified on the face
hereof is Certificate of Deposit Rate, the Interest Rate per annum deter-
mined with respect to any Interest Determination Date shall equal the rate
on such date, adjusted by the addition or subtraction of the Spread, if
any, specified on the face hereof, and/or by multiplication by the Spread
Multiplier, if any, specified on the face hereof and calculated to the
nearest one hundred-thousandth of a percentage point, with five one-
millionths of a percentage point rounded upwards, for negotiable certifi-
cates of deposit having the Index Maturity specified on the face hereof as
published by the Board of Governors of the Federal Reserve System in
"Statistical Release H.15(519), Selected Interest Rates" or any successor
publication of the
<PAGE>
<PAGE> 9
Board of Governors of the Federal Reserve System ("H.15(519)") under the
heading "CDs (Secondary Market)." In the event that such rate is not
published prior to 3:00 P.M., New York City time, on the Calculation Date
with respect to such Interest Determination Date, then the Certificate of
Deposit Rate with respect to such Interest Reset Date shall be the rate
(adjusted and/or multiplied and calculated as described above) on such
Interest Determination Date for negotiable certificates of deposit having
the Index Maturity specified on the face hereof as published by the Federal
Reserve Bank of New York in its daily statistical release, "Composite
3:30 P.M. Quotations for U.S. Government Securities," or any successor
publication of the Federal Reserve Bank of New York ("Composite
Quotations"), under the heading "Certificates of Deposit." If by 3:00
P.M., New York City time, on the Calculation Date with respect to such
Interest Determination Date such rate is not published in either H.15(519)
or Composite Quotations, the Certificate of Deposit Rate with respect to
such Interest Determination Date shall be calculated by the Calculation
Agent and shall be the arithmetic mean (adjusted and/or multiplied and
calculated as described above) of the secondary market offered rates, as of
10:00 A.M., New York City time, on such Interest Determination Date, of
three leading nonbank dealers of negotiable U.S. dollar certificates of
deposit in The City of New York selected by the Calculation Agent for
negotiable certificates of deposit of major United States money center
banks (in the market for negotiable certificates of deposit) with a
remaining maturity closest to the Index Maturity, specified on the face
hereof in denominations of U.S. $5,000,000; provided, however, that, if
fewer than three dealers selected as aforesaid by the Calculation Agent are
quoting as mentioned in this sentence, the Certificate of Deposit Rate with
respect to such Interest Determination Date will be the Certificate of
Deposit Rate in effect on such Interest Determination Date.
Determination of Interest Rate Per Annum for Commercial Paper
Rate Notes. If the Interest Rate Basis specified on the face hereof is
Commercial Paper Rate, the interest rate per annum determined with respect
to any Interest Determination Date shall equal (a) the Money Market Yield
(as defined herein) of the rate on such Interest Determination Date for
commercial paper having the Index Maturity specified on the face hereof,
(i) as such rate is published in H.15(519), under the heading "Commercial
Paper," or (ii) if such rate is not so published on or prior to 3:00 P.M.,
New York City time, on the Calculation Date pertaining to such Interest
Determination Date, as published in Composite Quotations, under the heading
"Commercial
<PAGE>
<PAGE> 10
Paper," or (b) if by 3:00 P.M., New York City time, on the Calculation Date
with respect to such Interest Determination Date, such rate is not
published in either of such publications, the Money Market Yield of the
arithmetic mean of the offered rates, as of 11:00 A.M., New York City
time, on such Interest Determination Date, of three leading dealers in
commercial paper in The City of New York selected by the Calculation Agent
for commercial paper having the Index Maturity specified on the face hereof
placed for industrial issuers whose bond rating is "AA," or the equivalent,
from a nationally recognized rating agency, in each of the above cases,
adjusted by the addition or subtraction of the Spread, if any, specified on
the face hereof, and/or by multiplication by the Spread Multiplier, if any,
specified on the face hereof and calculated to the nearest one
hundred-thousandth of a percentage point, with five one-millionths of a
percentage point rounded upwards; provided, however, that if fewer than
three dealers selected as aforesaid by the Calculation Agent are quoting
rates as described above, the interest rate per annum hereon with respect
to such Interest Determination Date shall be the Commercial Paper Rate in
effect hereon on such Interest Determination Date.
"Money Market Yield" shall be a yield (expressed as a
percentage) calculated in accordance with the following formula:
Money Market Yield = 100 x 360 x D/360 - (D x M)
where "D" refers to the per annum rate for commercial paper, quoted on a
bank discount basis and expressed as a decimal calculated to seven decimal
places, without rounding; and "M" refers to the actual number of days in
the interest period for which interest is being calculated.
Determination of Interest Rate Per Annum for CMT Rate Notes.
If the Interest Rate Basis specified on the face hereof is CMT Rate, the
Interest Rate per annum determined with respect to any Interest
Determination Date shall equal the rate displayed on the Designated CMT
Telerate Page (as defined herein) under the caption "...Treasury Constant
Maturities...Federal Reserve Board Release H.15...Mondays Approximately
3:45 P.M.," under the column for the Designated CMT Maturity Index (as
defined herein) for (i) if the Designated CMT Telerate Page is 7055, the
rate on such Interest Determination Date and (ii) if the Designated CMT
Telerate Page is 7052, the week, or the month, as applicable, ended
immediately preceding the week in which the related Interest Determination
Date occurs. If
<PAGE>
<PAGE> 11
such rate is no longer displayed on the relevant page, or if not displayed
by 3:00 P.M., New York City time, on the related Calculation Date, then the
CMT Rate for such Interest Determination Date will be such treasury
constant maturity rate for the Designated CMT Maturity Index as published
in the relevant H.15(519). If such rate is no longer published, or if not
published by 3:00 P.M., New York City time, on the related Calculation
Date, then the CMT Rate for the Interest Determination Date will be such
treasury constant maturity rate for the Designated CMT Maturity Index (or
other United States Treasury rate for the Designated CMT Maturity Index)
for the Interest Determination Date with respect to such Interest Reset
Date as may then be published by either the Board of Governors of the
Federal Reserve System or the United States Department of the Treasury that
the Calculation Agent determines to be comparable to the rate formerly
displayed on the Designated CMT Telerate Page and published in the relevant
H.15(519). If such information is not provided by 3:00 P.M., New York City
time, on the related Calculation Date, then the CMT Rate for such Interest
Determination Date will be calculated by the Calculation Agent and will be
a yield to maturity, based on the arithmetic mean of the secondary market
closing offer side prices as of approximately 3:30 P.M., New York City
time, on the Interest Determination Date reported, according to their
written records, by three leading primary United States government
securities dealers (each, a "Reference Dealer") in The City of New York
selected by the Calculation Agent (from five such Reference Dealers
selected by the Calculation Agent and eliminating the highest quotation
(or, in the event of equality, one of the highest) and the lowest quotation
(or, in the event of equality, one of the lowest)), for the most recently
issued direct noncallable fixed rate obligations of the United States
("Treasury Notes") with an original maturity of approximately the
Designated CMT Maturity Index and a remaining term to maturity of not less
than such Designated CMT Maturity Index minus one year. If the Calculation
Agent cannot obtain three such Treasury Note quotations, the CMT Rate for
such Interest Determination Date will be calculated by the Calculation
Agent and will be a yield to maturity based on the arithmetic mean of the
secondary market offer side prices as of approximately 3:30 P.M., New York
City time, on the Interest Determination Date of three Reference Dealers in
The City of New York (from five such Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation (or, in the event
of equality, one of the highest) and the lowest quotation (or, in the event
of equality, one of the lowest)), for Treasury Notes with an original
maturity of the number of years that is the next highest to the Designated
CMT Maturity Index and a remaining
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<PAGE> 12
term to maturity closest to the Designated CMT Maturity Index and in an
amount of at least $100 million. If three or four (and not five) of such
Reference Dealers are quoting as described above, then the CMT Rate will be
based on the arithmetic mean of the offer prices obtained and neither the
highest nor the lowest of such quotes will be eliminated; provided, however,
that if fewer than three Reference Dealers selected by the Calculation
Agent are quoting as described herein, the CMT Rate will be the CMT Rate in
effect on such Interest Determination Date. If two Treasury Notes with an
original maturity as described in the third preceding sentence have
remaining terms to maturity equally close to the Designated CMT Maturity
Index, the quotes for the Treasury Note with the shorter remaining term to
maturity will be used.
"Designated CMT Telerate Page" means the display on the Dow
Jones Telerate Service on the page designated above (or any other page as
may replace such page on that service for the purpose of displaying
Treasury Constant Maturities as reported in H.15(519)), for the purpose of
displaying Treasury Constant Maturities as reported in H.15(519). If no
such page is specified, the Designated CMT Telerate Page shall be 7052, for
the most recent week.
"Designated CMT Maturity Index" means the original period to
maturity of the U.S. Treasury securities (either 1, 2, 3, 5, 7, 10, 20 or
30 years) specified on the face hereof with respect to which the CMT Rate
will be calculated. If no such maturity is specified, the Designated CMT
Maturity Index shall be 2 years.
Determination of Interest Rate Per Annum for Eleventh District
Cost of Funds Notes. If the Interest Rate Basis specified on the face
hereof is Eleventh District Cost of Funds, the interest rate per annum
determined with respect to any Interest Determination Date shall be the
rate equal to the monthly weighted average cost of funds for the calendar
month immediately preceding the month in which such Interest Determination
Date falls, as set forth under the caption "11th District" on Telerate Page
7058 as of 11:00 A.M., San Francisco time, on such Interest Determination
Date. If such rate does not appear on Telerate Page 7058 on any related
Interest Determination Date, the Eleventh District Cost of Funds Rate for
such Interest Determination Date shall be the monthly weighted average cost
of funds paid by member institutions of the Eleventh Federal Home Loan Bank
District that was most recently announced (the "Index") by the FHLB of San
Francisco as such cost of funds for the calendar month immediately
preceding the date of such announcement. If the FHLB of San Francisco
fails to
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<PAGE> 13
announce such rate for the calendar month immediately preceding such
Interest Determination Date, then the Eleventh District Cost of Funds Rate
determined as of the Interest Determination Date will be the Eleventh
District Cost of Funds Rate in effect on such Interest Determination Date.
In determining that the Federal Home Loan Bank of San Francisco has failed
in any month to publish the Eleventh District Cost of Funds Index, the
Calculation Agent may conclusively rely on any written advice of the
Federal Home Loan Bank of San Francisco to such effect.
Determination of Interest Rate Per Annum for Federal Funds Rate
Notes. If the Interest Rate Basis specified on the face hereof is Federal
Funds Rate, the interest rate per annum determined with respect to any
Interest Determination Date shall equal the rate, adjusted by the addition
or subtraction of the Spread, if any, specified on the face hereof, and/or
by multiplication by the Spread Multiplier, if any, specified on the face
hereof and calculated to the nearest one hundred-thousandth of a percentage
point, with five one-millionths of a percentage point rounded upwards, on
such Interest Determination Date for Federal Funds as published in
H.15(519) under the heading "Federal Funds (Effective)." In the event that
such rate is not so published prior to 3:00 P.M., New York City time, on
the Calculation Date with respect to such Interest Determination Date, then
the Federal Funds Rate with respect to such Interest Determination Date
will be the rate (adjusted or multiplied and calculated as described above)
on such Interest Determination Date as published in Composite Quotations
under the heading "Federal Funds/Effective Rate." If by 3:00 P.M., New
York City time, on the Calculation Date with respect to such Interest
Determination Date such rate is not published in either H.15(519) or
Composite Quotations, the Federal Funds Rate with respect to such Interest
Reset Date shall be calculated by the Calculation Agent and shall be the
arithmetic mean (adjusted and/or multiplied and calculated as described
above) of the rates for the last transaction in overnight Federal Funds
arranged by three leading brokers of Federal Funds transactions in The City
of New York selected by the Calculation Agent as of 9:00 A.M., New York
City time, on such Interest Determination Date; provided, however, that if
fewer than three brokers selected as aforesaid by the Calculation Agent are
quoting rates as mentioned in this sentence, the Federal Funds Rate with
respect to such Interest Determination Date shall be the Federal Funds Rate
in effect on such Interest Determination Date.
Determination of Interest Rate Per Annum for LIBOR Notes.
If the Interest Rate Basis specified on the face
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<PAGE> 14
hereof is LIBOR, the interest rate per annum determined with respect to any
Interest Determination Date relating to a LIBOR Note (a "LIBOR Interest
Determination Date") shall equal LIBOR, adjusted by the addition or
subtraction of the Spread, if any, specified on the face hereof, and/or by
multiplication by the Spread Multiplier, if any, specified on the face
hereof and calculated to the nearest one hundred-thousandth of a percentage
point, with five one-millionths of a percentage point rounded upwards,
determined by the Calculation Agent in accordance with the following
provisions: (i) LIBOR will be determined as set forth on the face hereof,
as either (a) the arithmetic mean of the offered rates for deposits in U.S.
dollars having the Index Maturity specified on the face hereof, commencing
on the second London Banking Day immediately following such LIBOR Interest
Determination Date, that appear on the Reuters Screen LIBO Page as of
11:00 A.M., London time, on such LIBOR Interest Determination Date, if at
least two such offered rates appear on the Reuters Screen LIBO Page ("LIBOR
Reuters"), or (b) the rate for deposits in U.S. dollars having the Index
Maturity specified on the face hereof, commencing on the second London
Banking Day immediately following such LIBOR Interest Determination Date,
that appears on Telerate Page 3750 as of 11:00 A.M., London time, on such
LIBOR Interest Determination Date ("LIBOR Telerate"). "Reuters Screen LIBO
Page" means the display designated as page "LIBO" on the Reuters Monitor
Money Rates Service (or such other page as may replace page LIBO on that
service for the purpose of displaying London interbank offered rates of
major banks). "Telerate Page 3750" means the display designated as page
"3750" on the Telerate Service (or such other page as may replace the 3750
page on that service or such other service or services as may be nominated
by the British Bankers' Association for the purpose of displaying London
interbank offered rates for U.S. dollar deposits). If neither LIBOR
Reuters nor LIBOR Telerate is specified above, LIBOR will be determined if
LIBOR Telerate had been specified. If LIBOR Reuters is specified above and
at least two such offered rates appear on the Reuters Screen LIBO Page, the
rate in respect of such LIBOR Interest Determination Date will be the
arithmetic mean of such offered rates as determined by the Calculation
Agent. If fewer than two offered rates appear on the Reuters Screen LIBO
Page, or if no rate appears on Telerate Page 3750, as applicable, LIBOR in
respect of such LIBOR Interest Determination Date will be determined as if
the parties had specified the rate described in (ii) below.
(ii) With respect to a LIBOR Interest Determination Date
on which fewer than two offered rates for the applicable Index Maturity
appear on the Reuters Screen
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<PAGE> 15
LIBO Page, as specified in (i)(a) above, or on which no rate appears on
Telerate Page 3750, as specified in (i)(b) above, as applicable, LIBOR will
be determined on the basis of the rates at which deposits in U.S. dollars
having the Index Maturity specified above are offered at approximately
11:00 A.M., London time, on such LIBOR Interest Determination Date by four
major banks in the London interbank market selected by the Calculation
Agent (the "Reference Banks") to prime banks in the London interbank
market, commencing on the second London Banking Day immediately following
such LIBOR Interest Determination Date and in a principal amount equal to
an amount of not less than U.S. $1 million that is representative for a
single transaction in such market at such time. The Calculation Agent will
request the principal London office of each of the Reference Banks to
provide a quotation of its rates. If at least two such quotations are
provided, LIBOR for such LIBOR Interest Determination Date will be the
arithmetic mean of such quotations. If fewer than two quotations are
provided, LIBOR for such LIBOR Interest Determination Date will be the
arithmetic mean of the rates quoted by 11:00 A.M., New York City time, on
such LIBOR Interest Determination Date by three major banks in The City of
New York selected by the Calculation Agent for loans in U.S. dollars to
leading European banks, having the Index Maturity specified in the
applicable Pricing Supplement, commencing on the second London Banking Day
immediately following such LIBOR Interest Determination Date and in a
principal amount equal to an amount of not less than U.S. $1 million that
is representative for a single transaction in such market at such time;
provided, however, that if the banks selected as aforesaid by the
Calculation Agent are not quoting as mentioned in this sentence, LIBOR will
be LIBOR in effect on such LIBOR Interest Determination Date.
Determination of Interest Rate Per Annum for Prime Rate
Notes. If the Interest Rate Basis specified on the face hereof is Prime
Rate, Prime Rate determined with respect to any Interest Determination Date
shall equal the rate adjusted by the addition or subtraction of the spread,
if any, specified on the face hereof, and/or by multiplication by the
Spread Multiplier, if any, specified on the face hereof and calculated to
the nearest one hundred-thousandth of a percentage point, with five one-
millionths of a percentage point rounded upwards, set forth in H.15(519)
for such date opposite the caption "Bank Prime Loan." If such rate is not
yet published by 9:00 A.M., New York City time, on the Calculation Date,
the Prime Rate for such Prime Rate Interest Determination Date will be the
arithmetic mean of the rates of interest publicly announced by each bank
named on the Reuters screen NYMF Page as such bank's prime rate or
<PAGE>
<PAGE> 16
base lending rate as in effect for such Prime Rate Interest Determination
Date as quoted on the Reuters Screen NYMF Page on such Prime Rate Interest
Determination Date, or, if fewer than four such rates appear on the Reuters
Screen NYMF Page for such Prime Rate Interest Determination Date, the rate
shall be the arithmetic mean of the prime rates quoted on the basis of the
actual number of days in the year divided by 360 as of the close of
business on such Prime Rate Interest Determination Date by at least two of
the three major money center banks in The City of New York selected by the
Calculation Agent from which quotations are requested. If fewer than two
quotations are provided, the Prime Rate shall be calculated by the
Calculation Agent and shall be determined as the arithmetic mean of the
prime rates quoted in The City of New York on such date by the approximate
number of banks or trust companies organized and doing business under the
laws of the United States, or any State thereof, each having total equity
capital of at least $500 million and being subject to supervision or
examination by a Federal or State authority, selected by the Calculation
Agent to quote such rate or rates; provided, however, that if the Prime
Rate is not published in H.15(519) and the banks or trust companies
selected as aforesaid are not quoting as mentioned in this sentence, the
Prime Rate with respect to such Prime Rate Interest Determination Date will
be the interest rate otherwise in effect on such Prime Rate Interest
Determination Date. "Reuters Screen NYMF Page" means the display
designated as page "NYMF" on the Reuters Monitor Money Rates Service (or
such other page as may replace page NYMF on that service for the purpose of
displaying prime rates or base lending rates of major United States banks).
Determination of Interest Rate Per Annum for Treasury
Rate Notes. If the Interest Rate Basis specified on the face hereof is
Treasury Rate, the interest rate per annum determined with respect to any
Interest Determination Date shall equal the rate adjusted by the addition
or subtraction of the spread, if any, specified on the face hereof, and/or
by multiplication by the Spread Multiplier, if any, specified on the face
hereof and calculated to the nearest one hundred-thousandth of a percentage
point, with five one-millionths of a percentage point rounded upwards, for
the most recent auction of direct obligations of the United States
("Treasury bills") having the Index Maturity specified on the face hereof
as published in H.15(519), under the heading "Treasury bills -- Auction
Average (Investment)" or, if not so published by 3:00 P.M., New York City
time, on or prior to the Calculation Date pertaining to such Interest
Determination Date, the auction average rate for the aforementioned auction
for such Interest
<PAGE>
<PAGE> 17
Determination Date (expressed as a bond equivalent, calculated to the
nearest one hundred-thousandth of a percentage point, rounded upwards, on
the basis of a year of 365 or 366 days, as applicable, and applied on a
daily basis) for such auction as otherwise announced by the United States
Department of the Treasury, in either case, adjusted by the addition or
subtraction of the Spread, if any, specified on the face hereof, and/or by
multiplication by the Spread Multiplier, if any, specified on the face
hereof and calculated to the nearest one hundred-thousandth of a percentage
point, with five one-millionths of a percentage point rounded upwards. In
the event that the results of the auctions of Treasury bills having the
Index Maturity specified on the face hereof are not published or reported
as provided above by 3:00 P.M., New York City time, on the Calculation Date
pertaining to such Interest Determination Date or if no such auction is
held for a particular week, then the Treasury Rate with respect to such
Interest Determination Date shall be a yield to maturity (expressed as a
bond equivalent, calculated to one hundred-thousandth of a percentage
point, without rounding, on the basis of a year of 365 or 366 days, as
applicable, and applied on a daily basis) of the arithmetic mean (adjusted
and/or multiplied and calculated as described above) of the secondary
market bid rates, as of approximately 3:30 P.M., New York City time, on
such Interest Determination Date, of three leading primary United States
government securities dealers selected by the Calculation Agent, for the
issue of Treasury bills with a remaining maturity closest to the Index
Maturity specified on the face hereof; provided, however, that if fewer
than three dealers selected as aforesaid by the Calculation Agent are
quoting as mentioned in this sentence, the Treasury Rate with respect to
such Interest Determination Date shall be the Treasury Rate in effect on
such Interest Determination Date.
Notwithstanding the foregoing, the interest rate per
annum hereon shall not be greater than the Maximum Interest Rate, if any,
or less than the Minimum Interest Rate, if any, specified on the face
hereof. The Calculation Agent shall calculate the interest rate hereon in
accordance with the foregoing on or before each Interest Determination
Date.
The interest rate on this Note shall in no event be
higher than the maximum rate permitted by New York law as the same may be
modified by United States law of general application.
At the request of the Holder hereof, the Calculation
Agent will provide to the Holder hereof the
<PAGE>
<PAGE> 18
interest rate hereon then in effect and, if different, the interest rate
which will become effective as a result of a determination made on the most
recent Interest Determination Date with respect to this Note.
Interest payments hereon will include interest accrued to
but excluding the applicable Interest Payment Date. Accrued Interest
hereon from the Original Issue Date or from the last date to which interest
hereon has been paid, as the case may be, shall be an amount calculated by
multiplying the face amount hereof by an accrued interest factor. Such
accrued interest factor shall be computed by adding the interest factors
calculated for each day from the Original Issue Date or from the last date
to which interest shall have been paid or duly provided for, as the case
may be, up to but not including the date for which accrued interest is
being calculated. The interest factor for each such day shall be computed
by dividing the interest rate per annum applicable to such day by 360 if
the Interest Rate Basis specified on the face hereof is Certificate of
Deposit Rate, Commercial Paper Rate, Eleventh District Cost of Funds Rate,
Federal Funds Rate, LIBOR or Prime Rate or by the actual number of days in
the year if the Interest Rate Basis specified on the face hereof is
Treasury Rate or CMT Rate.
In case an Event of Default, as defined in the Indenture,
with respect to the Notes shall have occurred and be continuing, the
principal hereof may be declared, and upon such declaration shall become,
due and payable in the manner, with the effect and subject to the
conditions provided in the Indenture.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Debt
Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of not less
than a majority in principal amount of the Debt Securities at the time
Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal
amount of the Debt Securities of each series at the time Outstanding, on
behalf of the Holders of all Debt Securities of such series, to waive
compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of
any Note issued upon the registration of transfer hereof or
<PAGE>
<PAGE> 19
in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note.
If so provided on the face of this Note, this Note may be
redeemed by the Company on and after the date so indicated on the face
hereof; provided, however, that the first two paragraphs of Section 1103 of
the Indenture shall not apply to this Note, and if less than all of the
Notes are to be redeemed, the Company may select, from Notes that are
subject to redemption pursuant to the terms thereof, the Note or Notes, or
portion or portions thereof, to be redeemed. On and after the date, if
any, from which this Note may be redeemed, this Note may be redeemed in
whole or in part, at the option of the Company at a redemption price equal
to the product of the principal amount of this Note to be redeemed
multiplied by the Redemption Percentage together with accrued interest to
the date fixed for redemption. The Redemption Percentage shall initially
equal the Initial Redemption Percentage specified on the face of this Note,
and shall decline at each anniversary of the initial date that this Note is
redeemable by the amount of the Annual Redemption Percentage Reduction
specified on the face of this Note, until the Redemption Percentage is
equal to 100%.
If so provided on the face of this Note, this Note will
be repayable in whole or in part in increments of $1,000, provided that the
remaining principal amount of any Note surrendered for partial repayment
shall be at least $1,000, on any Business Day on or after the "Initial Date
on which the Note is Repayable at the Option of the Holder" (as stated on
the face hereof), at the option of the Holder, at 100% of the face amount
hereof, plus accrued interest, if any, to the repayment date. In order for
the exercise of the option to be effective and the Notes to be repaid, the
Company must receive at the applicable address of the Paying Agent set
forth below or at such other place or places of which the Company shall
from time to time notify the Holder of this Note, on or before the
thirtieth, but not earlier than the sixtieth day, or, if such day is not a
Business Day, the next succeeding Business Day, prior to the repayment
date, either (i) this Note, with the form below entitled "Option to Elect
Repayment" duly completed, or (ii) a telegram, telex, facsimile
transmission, or letter from a member of a national securities exchange or
the National Association of Securities Dealers, Inc., or a commercial bank
or a trust company in the United States of America setting forth (a) the
name, address and telephone number of the Holder of this Note, (b) the
principal amount of this Note and the amount of this Note to be repaid,
(c) a statement that the option to elect repayment is being exercised
thereby, and (d) a guarantee stating that the Paying
<PAGE>
<PAGE> 20
Agent on behalf of the Company will receive this Note, with the form below
entitled "Option to Elect Repayment" duly completed, not later than five
Business Days after the date of such telegram, telex, facsimile
transmission or letter (and this Note and form duly completed are received
by the Paying Agent on behalf of the Company by such fifth Business Day).
Any such election shall be irrevocable. The address to which such
deliveries are to be made is The First National Bank of Chicago, Attention:
Securities Processing Division, 14 Wall Street, Eighth Floor, New York, New
York 10005 (or at such other places as the Company shall notify the Holders
of the Notes). All questions as to the validity, eligibility (including
time of receipt) and acceptance of any Note for repayment will be
determined by the Company, whose determination will be final and binding.
The Notes are issuable in definitive form without coupons
in denominations of $1,000 and integral multiples thereof. Upon due
presentment for registration of transfer of this Note at the office or
agency of the Company maintained for such purposes in the Borough of
Manhattan, The City of New York, a new Note or Notes in authorized
denominations for an equal aggregate principal amount and like tenor will
be issued to the transferee in exchange therefor, subject to the
limitations provided in the Indenture and to the limitations described
below, if applicable, without charge except for any tax or other
governmental charge imposed in connection therewith.
If this Note is a Global Note (as specified on the face
hereof), this Note is exchangeable only if (x) the Depository notifies the
Company that it is unwilling or unable to continue as Depository for this
Global Note or if at any time the Depository ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, (y) the
Company in its sole discretion determines that this Global Note shall be
exchangeable for definitive Notes in registered form or (z) an Event of
Default, or an event which with notice or lapse of time or both would be an
Event of Default, with respect to the Notes represented hereby has occurred
and is continuing. If this Note is exchangeable pursuant to the preceding
sentence, it shall be exchangeable for definitive Notes in registered form,
bearing interest (if any) at the same rate or pursuant to the same formula,
having the same date of issuance, redemption provisions, if any, Maturity
Date and other terms and of differing denominations aggregating a like
amount.
No reference herein to the Indenture and no provision of
this Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and
<PAGE>
<PAGE> 21
unconditional, to pay the principal of and interest on this Note at the
places, at the respective times, at the rate and in the currency herein
prescribed.
The Company, the Trustee and any paying agent may deem
and treat the registered Holder hereof as the absolute owner of this Note
at such Holder's address as it appears on the Security Register of the
Company as kept by the Trustee or duly authorized agent of the Company
(whether or not this Note shall be overdue), for the purpose of receiving
payment of or on account hereof and for all other purposes, and neither the
Company nor the Trustee nor any paying agent shall be affected by any
notice to the contrary. All payments made to or upon the order of such
registered Holder shall, to the extent of the sum or sums paid, effectually
satisfy and discharge liability for moneys payable on this Note.
Terms used herein which are defined in the Indenture and
not defined herein shall have the respective meanings assigned thereto in
the Indenture.
This Note shall be governed by and construed in
accordance with the laws of the State of New York.
<PAGE>
<PAGE> 22
OPTION TO ELECT REPAYMENT
TO BE COMPLETED ONLY IF THIS NOTE IS REPAYABLE
AT THE OPTION OF THE HOLDER AND THE HOLDER
ELECTS TO EXERCISE SUCH RIGHTS
The undersigned hereby irrevocably requests and instructs
the Company to repay the within Note (or portion thereof specified below)
pursuant to its terms at a price equal to the principal amount thereof,
together with interest to the repayment date, to the undersigned, at
_____________________________________________________________________
(please print or type name and address of the undersigned).
For this Note to be repaid the Company must receive at
the Corporate Trust Office of the Trustee in The City of New York or at
such other place or places of which the Company shall from time to time
notify the Holder of the within Note, on or before the thirtieth, but not
earlier than the sixtieth day, or, if such day is not a Business Day, the
next succeeding Business Day, prior to the repayment date, (i) this Note,
with this "Option to Elect Repayment" form duly completed, or (ii) a
telegram, telex, facsimile transmission, or letter from a member of a
national securities exchange or the National Association of Securities
Dealers, Inc. or a commercial bank or a trust company in the United States
of America setting forth (a) the name, address, and telephone number of the
Holder of the Note, (b) the principal amount of the Note and the amount of
the Note to be repaid, (c) a statement that the option to elect repayment
is being exercised thereby, and (d) a guarantee stating that the Note to be
repaid with this form duly completed will be received by the Paying Agent
on behalf of the Company not later than five Business Days after the date
of such telegram, telex, facsimile transmission or letter (and such Note
and form duly completed are received by the Paying Agent on behalf of the
Company by such fifth Business Day). Exercise of the repayment option by
the Holder is irrevocable.
If less than the entire principal amount of the within
Note is to be repaid, specify the portion thereof (which shall be an
integral multiple of $1,000) which the Holder elects to have repaid:
_____________________; and specify the denomination or denominations (which
shall be $1,000 or an integral multiple thereof) of the Note or Notes to be
issued to the Holder for the portion of the within Note not being repaid
(in the absence of any such specification, one such Note will be issued for
the portion not being repaid): _______________
<PAGE>
<PAGE> 23
Date:
____________________________________________________________
Notice: The signature to this Option to Elect Repayment must correspond
with the name as written upon the face of the Note in every particular
without alteration or enlargement or any other change whatsoever.
<PAGE>
<PAGE> 24
____________________
ABBREVIATIONS
The following abbreviations, when used in the inscription
on the face of this instrument, shall be construed as though they were
written out in full according to applicable laws or regulations:
TEN COM -- as tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right
of survivorship and not as
tenants in common
UNIF GIFT MIN ACT -- _____ Custodian ____________
(Cust) (Minor)
Under Uniform Gifts to Minors Act
_________________________________________
(State)
Additional abbreviations may also be used though not in
the above list.
FOR VALUE RECEIVED, the undersigned hereby sell(s),
assign(s) and transfer(s) unto
Please Insert Social Security or
Other Identifying Number of Assignee
_____________________________________________________________________
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF
ASSIGNEE
___________________________________________________________________________
___________________________________________________________________________
the within Note of BANPONCE CORPORATION and does hereby irrevocably
constitute and appoint
___________________________________________________________________________
attorney to transfer the said Note on the books of the Company, with full
power of substitution in the premises.
Dated: ____________________ _________________________________
_________________________________
NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular, without
alteration or enlargement or any change whatsoever.
<PAGE> 1
Exhibit (4)(c)
BANPONCE CORPORATION
TO
THE FIRST NATIONAL BANK OF CHICAGO
Trustee
__________
INDENTURE
Dated as of February 15, 1995
__________
<PAGE>
<PAGE> 2
BanPonce Corporation
Certain Sections of this Indenture relating to
Sections 310 through 318, inclusive, of the
Trust Indenture Act of 1939;
Trust Indenture
Act Section Indenture Section
sec. 310 (a)(1) . . . . . . . . . . . . . . 609
(a)(2) . . . . . . . . . . . . . . 609
(a)(3) . . . . . . . . . . . . . . Not Applicable
(a)(4) . . . . . . . . . . . . . . Not Applicable
(b) . . . . . . . . . . . . . . 608
610
sec. 311 (a) . . . . . . . . . . . . . . 613
(b) . . . . . . . . . . . . . . 613
sec. 312 (a) . . . . . . . . . . . . . . 701
702(a)
(b) . . . . . . . . . . . . . . 702(b)
(c) . . . . . . . . . . . . . . 702(c)
sec. 313 (a) . . . . . . . . . . . . . . 703(a)
(b) . . . . . . . . . . . . . . 703(a)
(c) . . . . . . . . . . . . . . 703(a)
(d) . . . . . . . . . . . . . . 703(b)
sec. 314 (a) . . . . . . . . . . . . . . 704
(a)(4) . . . . . . . . . . . . . . 101
1004
(b) . . . . . . . . . . . . . . Not Applicable
(c)(1) . . . . . . . . . . . . . . 102
(c)(2) . . . . . . . . . . . . . . 102
(c)(3) . . . . . . . . . . . . . . Not Applicable
(d) . . . . . . . . . . . . . . Not Applicable
(e) . . . . . . . . . . . . . . 102
sec. 315 (a) . . . . . . . . . . . . . . 601
(b) . . . . . . . . . . . . . . 602
(c) . . . . . . . . . . . . . . 601
(d) . . . . . . . . . . . . . . 601
(e) . . . . . . . . . . . . . . 514
sec. 316 (a) . . . . . . . . . . . . . . 101
(a)(1)(A) . . . . . . . . . . . . . . 502
512
(a)(1)(B) . . . . . . . . . . . . . . 513
(a)(2) . . . . . . . . . . . . . . Not Applicable
(b) . . . . . . . . . . . . . . 508
(c) . . . . . . . . . . . . . . 104(c)
sec. 317 (a)(1) . . . . . . . . . . . . . . 503
(a)(2) . . . . . . . . . . . . . . 504
(b) . . . . . . . . . . . . . . 1003
sec. 318 (a) . . . . . . . . . . . . . . 107
NOTE: This reconciliation and tie shall not, for any purpose, be
deemed to be a part of the Indenture.
<PAGE>
<PAGE> i
TABLE OF CONTENTS
Page
PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . 1
RECITALS OF THE COMPANY . . . . . . . . . . . . . . . . . . . . . 1
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 101. Definitions . . . . . . . . . . . . . . . . . . 1
Act . . . . . . . . . . . . . . . . . . . . . . 2
Additional Amounts . . . . . . . . . . . . . . 2
Affiliate; control . . . . . . . . . . . . . . 2
Authenticating Agent . . . . . . . . . . . . . 2
Banco Popular . . . . . . . . . . . . . . . . . 2
Board of Directors . . . . . . . . . . . . . . 2
Board Resolution . . . . . . . . . . . . . . . 2
Business Day . . . . . . . . . . . . . . . . . 2
Commission . . . . . . . . . . . . . . . . . . 3
Company . . . . . . . . . . . . . . . . . . . . 3
Company Request; Company Order . . . . . . . . 3
Controlled Subsidiary . . . . . . . . . . . . . 3
Corporate Trust Office . . . . . . . . . . . . 3
corporation . . . . . . . . . . . . . . . . . . 3
Defaulted Interest . . . . . . . . . . . . . . 3
Depositary . . . . . . . . . . . . . . . . . . 3
Event of Default . . . . . . . . . . . . . . . 3
Global Security . . . . . . . . . . . . . . . . 4
Holder . . . . . . . . . . . . . . . . . . . . 4
Indenture . . . . . . . . . . . . . . . . . . . 4
interest . . . . . . . . . . . . . . . . . . . 4
Interest Payment Date . . . . . . . . . . . . . 4
Material Banking Subsidiary . . . . . . . . . . 4
Maturity . . . . . . . . . . . . . . . . . . . 4
Officers' Certificate . . . . . . . . . . . . . 5
Opinion of Counsel . . . . . . . . . . . . . . 5
Original Issue Discount Security . . . . . . . 5
Outstanding . . . . . . . . . . . . . . . . . . 5
Paying Agent . . . . . . . . . . . . . . . . . 6
Person . . . . . . . . . . . . . . . . . . . . 6
Place of Payment . . . . . . . . . . . . . . . 6
NOTE: This table of contents shall not, for any purpose, be
deemed to be a part of the Indenture.
<PAGE>
<PAGE> ii
Predecessor Security . . . . . . . . . . . . . 6
Redemption Date . . . . . . . . . . . . . . . . 6
Redemption Price . . . . . . . . . . . . . . . 6
Regular Record Date . . . . . . . . . . . . . . 7
Securities . . . . . . . . . . . . . . . . . . 7
Security Register and Security
Registrar . . . . . . . . . . . . . . . . . 7
Special Record Date . . . . . . . . . . . . . . 7
Stated Maturity . . . . . . . . . . . . . . . . 7
Subsidiary . . . . . . . . . . . . . . . . . . 7
Taxes . . . . . . . . . . . . . . . . . . . . . 7
Trustee . . . . . . . . . . . . . . . . . . . . 7
Trust Indenture Act . . . . . . . . . . . . . . 7
Vice President . . . . . . . . . . . . . . . . 8
Voting Stock . . . . . . . . . . . . . . . . . 8
Section 102. Compliance Certificates and Opinions . . . . . 8
Section 103. Form of Documents Delivered to Trustee . . . . 9
Section 104. Acts of Holders; Record Dates . . . . . . . . . 9
Section 105. Notices, Etc., to Trustee and Company . . . . . 12
Section 106. Notice to Holders; Waiver . . . . . . . . . . . 12
Section 107. Conflict with Trust Indenture Act . . . . . . . 13
Section 108. Effect of Headings and
Table of Contents . . . . . . . . . . . . . 13
Section 109. Successors and Assigns . . . . . . . . . . . . 13
Section 110. Separability Clause . . . . . . . . . . . . . . 13
Section 111. Benefits of Indenture . . . . . . . . . . . . . 13
Section 112. Governing Law . . . . . . . . . . . . . . . . . 14
Section 113. Legal Holidays . . . . . . . . . . . . . . . . 14
Section 114. Appointment of Agent for Service . . . . . . . 14
ARTICLE TWO
SECURITY FORMS
Section 201. Forms Generally . . . . . . . . . . . . . . . . 15
Section 202. Form of Face of Security . . . . . . . . . . . 15
Section 203. Form of Reverse of Security . . . . . . . . . . 17
Section 204. Form of Trustee's Certificate of
Authentication . . . . . . . . . . . . . . . 22
Section 205. Additional Provisions Required
in Global Security . . . . . . . . . . . . . 22
ARTICLE THREE
THE SECURITIES
Section 301. Amount Unlimited; Issuable in Series . . . . . 22
Section 302. Denominations . . . . . . . . . . . . . . . . . 26
Section 303. Execution, Authentication, Delivery
and Dating . . . . . . . . . . . . . . . . . 26
<PAGE>
<PAGE> iii
Section 304. Temporary Securities . . . . . . . . . . . . . 28
Section 305. Registration, Registration of Transfer
and Exchange . . . . . . . . . . . . . . . . 29
Section 306. Mutilated, Destroyed, Lost and Stolen
Securities . . . . . . . . . . . . . . . . . 31
Section 307. Payment of Interest; Interest Rights
Preserved . . . . . . . . . . . . . . . . . 32
Section 308. Persons Deemed Owners . . . . . . . . . . . . . 33
Section 309. Cancellation . . . . . . . . . . . . . . . . . 34
Section 310. Computation of Interest . . . . . . . . . . . . 34
ARTICLE FOUR
SATISFACTION AND DISCHARGE
Section 401. Satisfaction and Discharge of
Indenture . . . . . . . . . . . . . . . . . 34
Section 402. Application of Trust Money . . . . . . . . . . 36
ARTICLE FIVE
REMEDIES
Section 501. Events of Default . . . . . . . . . . . . . . . 36
Section 502. Acceleration of Maturity; Rescission
and Annulment . . . . . . . . . . . . . . . 39
Section 503. Collection of Indebtedness and Suits
for Enforcement by Trustee . . . . . . . . . 40
Section 504. Trustee May File Proofs of Claims . . . . . . . 41
Section 505. Trustee May Enforce Claims Without
Possession of Securities . . . . . . . . . . 42
Section 506. Application of Money Collected . . . . . . . . 42
Section 507. Limitation on Suits . . . . . . . . . . . . . . 42
Section 508. Unconditional Right of Holders to
Receive Principal, Premium and
Interest . . . . . . . . . . . . . . . . . . 43
Section 509. Restoration of Rights and Remedies . . . . . . 43
Section 510. Rights and Remedies Cumulative . . . . . . . . 44
Section 511. Delay or Omission Not Waiver . . . . . . . . . 44
Section 512. Control by Holders . . . . . . . . . . . . . . 44
Section 513. Waiver of Past Defaults . . . . . . . . . . . . 45
Section 514. Undertaking for Costs . . . . . . . . . . . . . 45
Section 515. Waiver of Stay or Extension Laws . . . . . . . 45
<PAGE>
<PAGE> iv
ARTICLE SIX
THE TRUSTEE
Section 601. Certain Duties and Responsibilities . . . . . . 46
Section 602. Notice of Defaults . . . . . . . . . . . . . . 46
Section 603. Certain Rights of Trustee . . . . . . . . . . . 46
Section 604. Not Responsible for Recitals or
Issuance of Securities . . . . . . . . . . . 48
Section 605. May Hold Securities . . . . . . . . . . . . . . 48
Section 606. Money Held in Trust . . . . . . . . . . . . . . 48
Section 607. Compensation and Reimbursement . . . . . . . . 48
Section 608. Disqualification; Conflicting
Interest . . . . . . . . . . . . . . . . . . 49
Section 609. Corporate Trustee Required;
Eligibility . . . . . . . . . . . . . . . . 49
Section 610. Resignation and Removal; Appointment of
Successor . . . . . . . . . . . . . . . . . 50
Section 611. Acceptance of Appointment by Successor . . . . 51
Section 612. Merger, Conversion, Consolidation or
Succession to Business . . . . . . . . . . . 53
Section 613. Preferential Collection of Claims
Against the Company . . . . . . . . . . . . 53
Section 614. Appointment of Authenticating Agent . . . . . . 53
ARTICLE SEVEN
HOLDERS' LIST AND REPORTS BY TRUSTEE AND COMPANY
Section 701. Company to Furnish Trustee Names and
Addresses of Holders . . . . . . . . . . . . 56
Section 702. Preservation of Information;
Communications to Holders . . . . . . . . . 56
Section 703. Reports by Trustee . . . . . . . . . . . . . . 57
Section 704. Reports by Company . . . . . . . . . . . . . . 57
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
Section 801. Company May Consolidate, Etc., Only
Certain Terms . . . . . . . . . . . . . . . 57
Section 802. Successor Substituted . . . . . . . . . . . . . 58
ARTICLE NINE
SUPPLEMENTAL INDENTURES
Section 901. Supplemental Indentures Without Consent
of Holders . . . . . . . . . . . . . . . . . 59
<PAGE>
<PAGE> v
Section 902. Supplemental Indentures with Consent of
Holders . . . . . . . . . . . . . . . . . . 60
Section 903. Execution of Supplemental Indentures . . . . . 61
Section 904. Effect of Supplemental Indentures . . . . . . 62
Section 905. Conformity with Trust Indenture Act . . . . . . 62
Section 906. Reference in Securities to Supplemental
Indentures . . . . . . . . . . . . . . . . . 62
ARTICLE TEN
COVENANTS
Section 1001. Payment of Principal, Premium and
Interest . . . . . . . . . . . . . . . . . . 62
Section 1002. Maintenance of Office or Agency . . . . . . . . 62
Section 1003. Money for Securities Payments to Be
Held in Trust . . . . . . . . . . . . . . . 63
Section 1004. Statement by Offices as to Default . . . . . . 64
Section 1005. Existence . . . . . . . . . . . . . . . . . . . 65
Section 1006. Maintenance of Properties . . . . . . . . . . . 65
Section 1007. Payment of Taxes and Other Claims . . . . . . . 65
Section 1008. Limitation upon Disposition of Voting
Stock of, and Merger and Sale of
Assets of Banco Popular . . . . . . . . . . 66
Section 1009. Limitation upon Creation of Liens
on Voting Stock of Material
Banking Subsidiaries . . . . . . . . . . . . 66
Section 1010. Payment of Additional Amounts . . . . . . . . . 67
Section 1011. Waiver of Certain Covenants . . . . . . . . . . 68
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
Section 1101. Applicability of Article . . . . . . . . . . . 68
Section 1102. Election to Redeem; Notice to Trustee . . . . . 69
Section 1103. Selection by Trustee of Securities to
Be Redeemed . . . . . . . . . . . . . . . . 69
Section 1104. Notice of Redemption . . . . . . . . . . . . . 70
Section 1105. Deposit of Redemption Price . . . . . . . . . . 70
Section 1106. Securities Payable on Redemption Date . . . . . 71
Section 1107. Securities Redeemed in Part . . . . . . . . . . 71
ARTICLE TWELVE
SINKING FUNDS
Section 1201. Applicability of Article . . . . . . . . . . . 72
<PAGE>
<PAGE> vi
Section 1202. Satisfaction of Sinking Fund Payments
with Securities . . . . . . . . . . . . . . 72
Section 1203. Redemption of Securities for Sinking
Fund . . . . . . . . . . . . . . . . . . . . 72
TESTIMONIUM . . . . . . . . . . . . . . . . . . . . . . . 73
SIGNATURES AND SEALS . . . . . . . . . . . . . . . . . . . . . . 73
ACKNOWLEDGMENTS . . . . . . . . . . . . . . . . . . . . . . . 74
<PAGE>
<PAGE> 1
INDENTURE, dated as of February 15, 1995, between BANPONCE
CORPORATION, a corporation duly organized and existing under the laws of
the Commonwealth of Puerto Rico (herein called the "Company"), having its
principal office at 209 Munoz Rivera Avenue, Hato Rey, Puerto Rico 00918,
and THE FIRST NATIONAL BANK OF CHICAGO, a national banking association, as
Trustee (herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of its
unsecured debentures, notes or other evidences of indebtedness (herein
called the "Securities"), to be issued in one or more series as in this
Indenture provided.
All things necessary to make this Indenture a valid agreement
of the Company, in accordance with its terms, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of
the Securities by the Holders thereof, it is mutually agreed, for the equal
and proportionate benefit of all Holders of the Securities or of series
thereof, as follows:
ARTICLE ONE
Definitions and Other Provisions
of General Application
Section 101. Definitions.
For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:
(1) the terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well
as the singular;
(2) all other terms used herein which are defined in
the Trust Indenture Act, either directly or by reference
therein, have the meanings assigned to them therein;
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<PAGE> 2
(3) all accounting terms not otherwise defined herein
have the meanings assigned to them in accordance with generally
accepted accounting principles; and
(4) the words "herein", "hereof" and "hereunder" and
other words of similar import refer to this indenture as a
whole and not to any particular Article, Section or other sub-
division.
"Act" when used with respect to any Holder, has the meaning
specified in Section 104.
"Additional Amounts" has the meaning assigned thereto in
Section 1010.
"Affiliate" of any specified Persons means any other Person
directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of
this definition, "control" when used with respect to any specified Person
means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting Securities,
by contract or otherwise; and the terms "controlling" and "controlled" have
meanings correlative to the foregoing.
"Authenticating Agent" means any Person authorized by the
Trustee pursuant to Section 614 to act on behalf of the Trustee to
authenticate Securities of one or more series.
"Banco Popular" means Banco Popular de Puerto Rico and its
successors and assigns.
"Board of Directors" means either the board of directors of the
Company or any duly authorized committee of that board.
"Board Resolution" means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Company to have been duly
adopted by the Board of Directors and to be in full force and effect on the
date of such certification, and delivered to the Trustee.
"Business Day", except as may otherwise be provided herein or
in any Security, when used with respect to any Place of Payment or other
location, means each Monday, Tuesday, Wednesday, Thursday and Friday which
is not a day on which banking institutions in that Place of Payment are
authorized or obligated by law or executive order to close.
<PAGE>
<PAGE> 3
"Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Securities Exchange Act of
1934, or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it
under the Trust Indenture Act, then the body performing such duties at such
time.
"Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor Person shall have become
such pursuant to the applicable provisions of this Indenture, and
thereafter "Company" shall mean such successor Person.
"Company Request or "Company Order" means a written request or
order signed in the name of the Company by its Chairman of the Board, its
Vice Chairman of the Board, its President or a Vice President, and by its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary,
and delivered to the Trustee.
"Controlled Subsidiary" means any corporation more than 80
percent of the outstanding Voting Stock of which, except for directors'
qualifying shares, shall at the time be owned directly or indirectly by the
Company.
"Corporate Trust Office" means the principal corporate trust
office of the Trustee at which, at any particular time, its corporate trust
business shall be administered, which office at the date hereof is located
at One First National Plaza, Suite 0126, Chicago, Illinois 60670-0126,
Attention: Corporate Trust Services Division, except that for purposes of
Section 1002, such term shall mean the office or agency of the Trustee in
the Borough of Manhattan, the City of New York, which office at the date
hereof is located at 14 Wall Street, Eighth Floor, New York, New York
10005.
"corporation" means a corporation, association, company, joint-
stock company or business trust.
"Defaulted Interest" has the meaning specified in Section 307.
"Depositary" means, with respect to the Securities of any
series issuable or issued in whole or in part in the form of one or more
Global Securities, the Person designated as Depositary by the Company
pursuant to Section 301.
"Event of Default" has the meaning specified in Section 501.
<PAGE>
<PAGE> 4
"Global Security" means a Security bearing the legend
prescribed in Section 205 evidencing all or part of a series of Securities,
issued to the Depositary for such series or its nominee, and registered in
the name of such Depositary or nominee.
"Holder" means a Person in whose name a Security is registered
in the Security Register.
"Indenture" means this instrument as originally executed or as
it may from time to time be supplemented or amended by one or more
indentures supplemental hereto entered into pursuant to the applicable
provisions hereof, including, for all purposes of this instrument, and any
such supplemental indenture, the provisions of the Trust Indenture Act that
are deemed to be a part of and govern this instrument and any such
supplemental indenture, respectively. The term "Indenture" shall also
include the terms of particular series of Securities established as
contemplated by Section 301.
"interest", when used with respect to an Original Issue
Discount Security which by its terms bears interest only after Maturity,
means interest payable after Maturity.
"Interest Payment Date", when used with respect to any
Security, means the Stated Maturity of an instalment of interest on such
Security.
"Material Banking Subsidiary" means any Controlled Subsidiary
of the Company chartered as a banking corporation under United States
Federal, State, or Puerto Rico law which is a significant subsidiary of the
Company as defined in 1-02 of Regulation S-X of the rules and regulations
of the Securities and Exchange Commission under the Securities Act of 1933,
as amended.
"Maturity", when used with respect to any Security, means the
date on which the principal of such Security or an instalment of principal
becomes due and payable as therein or herein provided, whether at the
Stated Maturity or by declaration of acceleration, call for redemption or
otherwise.
"Officers' Certificate" means a certificate signed by the
Chairman of the Board, a Vice Chairman of the Board, the President or a
Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary
or an Assistant Secretary, of the Company, and delivered to the Trustee.
One of the officers signing an Officers' Certificate given pursuant to
Section 1004 shall be the principal executive, financial or accounting
officer of the Company.
<PAGE>
<PAGE> 5
"Opinion of Counsel" means a written opinion of counsel, who
may be an employee of or counsel for the Company, or other counsel who
shall be acceptable to the Trustee.
"Original Issue Discount Security" means any Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant
to Section 502.
"Outstanding", when used with respect to Securities, means, as
of the date of determination, all Securities theretofore authenticated and
delivered under this Indenture, except:
(i) Securities theretofore canceled by the Trustee or
delivered to the Trustee for cancellation;
(ii) Securities for whose payment or redemption money in
the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company) in trust
or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the Holders of
such Securities; provided that, if such Securities are to be
redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefor satisfactory
to the Trustee has been made; and
(iii) Securities which have been paid pursuant to
Section 306 or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to
this Indenture, other than any such Securities in respect of
which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide
purchaser in whose hands such Securities are valid obligations
of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, (i)
the principal amount of an Original Issue Discount Security that shall be
deemed to be Outstanding shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon
acceleration of the Maturity thereof pursuant to Section 502, (ii) the
principal amount of a Security denominated in one or more foreign
currencies or
<PAGE>
<PAGE> 6
currency units shall be the U.S. dollar equivalent, determined in the
manner provided as contemplated by Section 301 on the date of original
issuance of such Security, of the principal amount (or, in the case of an
Original Issue Discount Security, the U.S. dollar equivalent on the date of
original issuance of such Security of the amount determined as provided in
(i) above) of such Security, and (iii) Securities owned by the Company or
any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which the Trustee knows to be so owned
shall be so disregarded. Securities so owned which have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to
such Securities and that the pledgee is not the Company or any other
obligor upon the Securities or any Affiliate of the Company or of such
other obligor.
"Paying Agent" means any Person authorized by the Company to
pay the principal of or any premium or interest on any Securities on behalf
of the Company.
"Person" means any individual, corporation, partnership, joint
venture, trust, unincorporated organization or government or any agency or
political subdivision thereof.
"Place of Payment", when used with respect to the Securities of
any series, means the place or places where the principal of and any
premium and interest on the Securities of that series are payable as
specified as contemplated by Section 301.
"Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 306 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost
or stolen Security.
"Redemption Date", when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to
be redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
<PAGE>
<PAGE> 7
"Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for
that purpose as contemplated by Section 301.
"Securities" has the meaning stated in the first recital of
this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.
"Security Register" and "Security Registrar" have the
respective meanings specified in Section 305.
"Special Record Date" for the payment of any Defaulted Interest
means a date fixed by the Trustee pursuant to Section 307.
"Stated Maturity", when used with respect to any Security or
any instalment of principal thereof or interest thereon, means the date
specified in such Security as the fixed date on which the principal of such
Security or such instalment of principal or interest is due and payable.
"Subsidiary" means a corporation more than 50% of the
outstanding voting stock of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries, or by the Company and one or
more other Subsidiaries. For the purposes of this definition, "voting
stock" means stock which ordinarily has voting power for the election of
directors, whether at all times or only so long as no senior class of stock
has such voting power by reason of any contingency.
"Taxes has the meaning specified in Section 1010.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become
such pursuant to the applicable provisions of this Indenture, and
thereafter "Trustee" shall mean or include each Person who is then a
Trustee hereunder, and if at any time there is more than one such Person,
"Trustee" as used with respect to the Securities of any series shall mean
the Trustee with respect to Securities of that series.
"Trust Indenture Act" means the Trust Indenture Act of 1939 as
in force at the date as of which this instrument was executed; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after
such date, "Trust Indenture Act" means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.
<PAGE>
<PAGE> 8
"Vice President", when used with respect to the Company or the
Trustee, means any vice president, whether or not designated by a number or
a word or words added before or after the title "vice president".
"Voting Stock" means, with respect to any Person, Capital Stock
(however designated) having general voting power for the election of a
majority of the members of the board of directors, managers or trustees of
such Person (irrespective of whether or not at the time Capital Stock of
any other class or classes shall have or might have voting power by reason
of the happening of any contingency).
Section 102. Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee
to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee such certificates and opinions as may be required
under the Trust Indenture Act. Each such certificate or opinion shall be
given in the form of an Officers' Certificate, if to be given by an officer
of the Company, or an opinion of Counsel, if to be given by counsel, and
shall comply with the requirements of the Trust Indenture Act and any other
requirements set forth in this Indenture.
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include
(1) a statement that each individual signing such
certificate or opinion has read such covenant or condition and
the definitions herein relating thereto;
(2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or
opinions contained in such certificate or opinion are based;
(3) a statement that, in the opinion of each such
individual, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to
whether or not such covenant or condition has been complied
with; and
(4) a statement as to whether, in the opinion of each
such individual, such condition or covenant has been complied
with.
<PAGE>
<PAGE> 9
Section 103. Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary
that all such matters be certified by, or covered by the opinion of, only
one such Person, or that they be so certified or covered by only one docu-
ment, but one such Person may certify or give an opinion with respect to
some matters and one or more other such Persons as to other matters, and
any such Person may certify or give an opinion as to such matters in one or
several documents.
Any certificate or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or
opinion of, or representations by, counsel, unless such officer knows, or
in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to the matters upon which his
certificate or opinion is based are erroneous. Any such certificate or
opinion of counsel may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representations by, an officer or
officers of the Company stating that the information with respect to such
factual matters is in the possession of the Company, unless such counsel
knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.
Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions
or other instruments under this Indenture, they may, but need not, be
consolidated and form one instrument.
Section 104. Acts of Holders; Record Dates.
(a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or
taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person
or by agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument
or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Company. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes
referred to as the "Act" of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this
Indenture and subject to Section 601)
<PAGE>
<PAGE> 10
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.
Without limiting the generality of the foregoing, a Holder,
including a Depositary that is a Holder of a Global Security, may make,
give or take, by a proxy, or proxies, duly appointed in writing, any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted in this Indenture to be made, given or taken
by Holders, and a Depositary that is a Holder of a Global Security may
provide its proxy or proxies to the beneficial owners of interest in any
such Global Security.
(b) The fact and date of the execution by any Person of any
such instrument or writing may be proved by the affidavit of a witness of
such execution or by a certificate of a notary public or other officer
authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the
execution thereof. Where such execution is by a signer acting in a
capacity other than his individual capacity, such certificate or affidavit
shall also constitute sufficient proof of his authority. The fact and date
of the execution of any such instrument or writing, or the authority of the
Person executing the same, may also be proved in any other manner which the
Trustee deems sufficient.
(c) Except as provided in the next paragraph, the Company
may, in the circumstances permitted by the Trust Indenture Act, set any day
as the record date for the purpose of determining the Holders of Securities
of any series entitled to give or take any request, demand, authorization,
direction, notice, consent, waiver or other action, or to vote on any
action, authorized or permitted to be given or taken by Holders of
Securities of such series. With regard to any record date set pursuant to
this paragraph, the Holders of Outstanding Securities of the relevant
series on such record date (or their duly appointed agents), and only such
Persons, shall be entitled to give or take the relevant action, whether or
not such Holders remain Holders after such record date. With regard to any
action that may be given or taken hereunder only by Holders of a requisite
principal amount of Outstanding Securities of any series (or their duly
appointed agents) and for which a record date is set pursuant to this
paragraph, the Company may, at its option, set an expiration date after
which no such action purported to be given or taken by any Holder shall be
effective hereunder unless given or taken on or prior to such expiration
date by Holders of the requisite principal amount of Outstanding Securities
of such series on such record date (or their duly appointed agents). On or
prior to any expiration date set pursuant to this paragraph, the Company
<PAGE>
<PAGE> 11
may, on one or more occasions at its option, extend such date to any later
date. Nothing in this paragraph shall prevent any Holder (or any duly
appointed agent thereof) from giving or taking, after any expiration date,
any action identical to, or, at any time, contrary to or different from any
action given or taken, or purported to have been given or taken, hereunder
by a Holder on or prior to such date, in which event the Company may set a
record date in respect hereof pursuant to this paragraph.
Notwithstanding the foregoing, upon receipt by the Trustee,
with respect to Securities of any Series, of (i) any Notice of Default
pursuant to Section 501 (ii) any declaration of acceleration, or any
rescission and annulment of any such declaration pursuant to Section 502 or
(iii) any direction given pursuant to Section 512 (any such notice,
declaration, rescission and annulment, or direction being referred to
herein as a "Direction"), a record date shall automatically and without any
other action by any Person be set for the purpose of determining the
Holders of Outstanding Securities of such series entitled to join in such
Direction, which record date shall be the close of business on the day the
Trustee receives such Direction. The Holders of Outstanding Securities of
such series on such record date (or their duly appointed agents), and only
such Persons, shall be entitled to join in such Direction whether or not
such Holders remain Holders after such record date; provided that, unless
such Direction shall have become effective by virtue of Holders of the
requisite principal amount of Outstanding Securities of such series on such
record date (or their duly appointed agents) having joined therein on or
prior to the 90th day after such record date, such Direction shall
automatically and without any action by any Person be canceled and of no
further effect. Nothing in this paragraph shall prevent a Holder (or a
duly appointed agent thereof) from giving, before or after the expiration
of such 90-day period, a Direction contrary to or different from, or, after
the expiration or such period, identical to, a Direction that has been
canceled pursuant to the proviso to the preceding sentence, in which event
a new record date in respect thereof shall be set pursuant to this
paragraph.
Without limiting the foregoing, a Holder entitled hereunder to
give or take any action hereunder with regard to any particular Security
may do so with regard to all or any part of the principal amount of such
Security or by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any different part of
such principal amount.
<PAGE>
<PAGE> 12
(d) The ownership of Securities shall be proved by the
Security Register.
(e) Any request, demand, authorization, direction, notice,
consent, waiver or other Act of the Holder of any Security shall bind every
future Holder of the same Security and the Holder of every Security issued
upon the registration of transfer thereof or in exchange therefor or in
lieu thereof in respect of anything done, omitted or suffered to be done by
the Trustee or the Company in reliance thereon, whether or not notation of
such action is made upon such Security.
Section 105. Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice, consent,
waiver or other Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,
(1) the Trustee by any Holder or by the Company shall be
sufficient for every purpose hereunder if made, given,
furnished or filed in writing to or with the Trustee at its
Corporate Trust Office, or
(2) the Company by the Trustee or by any Holder shall
be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at
the address of its principal office specified in the first
paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company.
Section 106. Notice to Holders; Waiver.
Where this Indenture provides for notice to Holders of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid,
to each Holder affected by such event, at his address as it appears in the
Security Register, not later than the latest date (if any), and not earlier
than the earliest date (if any), prescribed for the giving of such notice.
In any case where notice to Holders is given by mail, neither the failure
to mail such notice, nor any defect in any notice so sailed, to any
particular Holder shall affect the sufficiency of such notice with respect
to other Holders. Where this Indenture provides for notice in any manner,
such notice may be waived in writing by the Person entitled to receive such
notice, either before or after the event, and
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<PAGE> 13
such waiver shall be the equivalent of such notice. Waivers of notice by
Holders shall be filed with the Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon
such waiver.
In case by reason of the suspension of regular mail service or
by reason of any other cause it shall be impracticable to give such notice
by mail, then such notification as shall be made with the approval of the
Trustee shall constitute a sufficient notification for every purpose
hereunder.
Section 107. Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required under such Act to be
a part of and govern this Indenture, the latter provision shall control.
If any provision of this Indenture modifies or excludes any provision of
the Trust Indenture Act that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or to
be excluded, as the case may be.
Section 108. Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction
hereof.
Section 109. Successors and Assigns.
All covenants and agreements in this Indenture by the Company
shall bind its successors and assigns, whether so expressed or not.
Section 110. Separability Clause.
In case any provision in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.
Section 111. Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder and the Holders, any benefit or any legal or equitable
right, remedy or claim under this Indenture.
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<PAGE> 14
Section 112. Governing Law.
This Indenture and the Securities shall be governed by and
construed in accordance with the laws of the State of New York.
Section 113. Legal Holidays.
In any case where any Interest Payment Date, Redemption Date
or Stated Maturity of any Security shall not be a Business Day at any Place
of Payment, then (notwithstanding any other provision of this Indenture or
of the Securities (other than a Provision of the Securities of any series
which specifically states that such provision shall apply in lieu of this
Section)) payment of interest or principal (and premium, if any) need not
be made at such Place of Payment on such date, but may be made on the next
succeeding Business Day at such Place of Payment with the same force and
effect as if made on the Interest Payment Date or Redemption Date or at the
Stated Maturity, provided that no interest shall accrue on the amount so
payable for the period from and after such Interest Payment Date,
Redemption Date or Stated Maturity, as the case may be.
Section 114. Appointment of Agent for Service.
The Company hereby appoints Orlando Berges of Banco
Popular de Puerto Rico at the office of Banco Popular de Puerto Rico
located in The City of New York as the Company's authorized agent (the
"Authorized Agent") upon whom service of process may be served in any
action arising out of or based on the Securities, or this Indenture
(including any action based on or arising out of the United States federal
securities laws) that may be instituted in New York State or United States
Federal Courts sitting in The City of New York, by the Trustee or the
Holder of any Security, and the Company hereby expressly accepts the juris-
diction of any such court in respect of any such action. Such appointment
shall be irrevocable unless and until the appointment of a successor
authorized agent for service of process, and such successor's acceptance of
such appointment, shall have occurred, and the Company and Authorized Agent
will take any and all actions, including the filing of any and all
documents and instruments, that may be necessary to continue such
appointment or appointments in full force and effect as aforesaid. Service
of process upon an Authorized Agent will be deemed, in every respect
effective service of process upon the Company. Notwithstanding the
foregoing, any action against the Company arising out of or based on any
Security, or this Indenture may also be instituted by the Holder of such
<PAGE>
<PAGE> 15
Security in any court in the Commonwealth of Puerto Rico, and the Company
hereby expressly accepts the jurisdiction of any such court in respect of
any such action.
ARTICLE TWO
Security Forms
Section 201. Forms Generally.
The Securities of each series shall be in substantially the
form set forth in this Article, or in such other form as shall be
established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required
or permitted by this Indenture, and may have such letters, numbers or other
marks of identification and such legends or endorsements placed thereon as
may be required to comply with the rules of any securities exchange or as
may, consistently herewith, be determined by the officers executing such
Securities, as evidenced by their execution of the Securities. If the form
of Securities of any series is established by action taken pursuant to a
Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 303 for the authentication and delivery of such
Securities.
The definitive Securities shall be printed, lithographed or
engraved on steel engraved borders or may be produced in any other manner,
all as determined by the officers executing such Securities, as evidenced
by their execution of such Securities.
Section 202. Form of Face of Security.
[Insert any legend required by the Internal Revenue Code and
the regulations thereunder.]
BANPONCE CORPORATION
............................................
No. ............ $ ............
BANPONCE CORPORATION, a corporation duly organized and existing
under the laws of the Commonwealth of Puerto Rico (herein called the
"Company", which term includes any
<PAGE>
<PAGE> 16
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to
..............................................., or registered assigns, the
principal sum of ..................
................... Dollars on ............................
........................... [if the Security is to bear interest prior to
Maturity, insert -- , and to pay interest thereon from ............. or
from the most recent Interest Payment Date to which interest has been paid
or duly provided for, semi-annually on ............ and ..............
in each year, commencing ......., at the rate of ....% per annum,
until the principal hereof is paid or made available for payment. The
interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on the Regular Record Date for such
interest, which shall be the ........ or ....... (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any
such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said indenture].
[If the Security is not to bear interest prior to Maturity,
insert -- The principal of this Security shall not bear interest except in
the case of a default in payment of principal upon acceleration, upon
redemption or at Stated Maturity and in such case the overdue principal of
this Security shall bear interest at the rate of ....% per annum (to the
extent that the payment of such interest shall be legally enforceable),
which shall accrue from the date of such default in payment to the date
payment of such principal has been made or duly provided for. Interest on
any overdue principal shall be payable on demand. Any such interest on any
overdue principal that is not so paid on demand shall bear interest at the
rate of ......% per annum (to the extent that the payment of such interest
shall be legally enforceable), which shall accrue from the date of such
demand for payment to the date payment of such interest
<PAGE>
<PAGE> 17
has been made or duly provided for, and such interest shall also be payable
on demand.]
Payment of the principal of (and premium, if any) and [if
applicable, insert -- any such] interest on this Security will be made at
the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, The City of New York, in such coin or currency of the
United States of America as at the time of payment is legal tender for
payment of public and private debts [if applicable, insert -- ; provided,
however, that at the option of the Company payment of interest may be made
by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register].
Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual
signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed under its corporate seal.
Dated:
BANPONCE CORPORATION
By
Attest:
Section 203. Form of Reverse of Security.
This Security is one of a duly authorized issue of securities
of the Company (herein called the "Securities"), issued and to be issued in
one or more series under an Indenture, dated as of October 1, 1991 (herein
called the "Indenture"), between the Company and The First National Bank of
Chicago, as Trustee (herein called the "Trustee", which term includes any
successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitations of rights,
<PAGE>
<PAGE> 18
duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are,
and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof[, limited in aggregate principal
amount to $................].
[If applicable, insert -- The Securities of this series are
subject to redemption upon not less than 30 days' notice by mail, [if
applicable, insert -- (1) on ........... in any year commencing with the
year ...... and ending with the year ...... through operation of the
sinking fund for this series at a Redemption Price equal to 100% of the
principal amount, and (2)] at any time [on or after .........., 19..], as a
whole or in part, at the election of the Company, at the following
Redemption Prices (expressed as percentages of the principal amount): If
redeemed [on or before ...................., ___%, and if redeemed] during
the 12-month period beginning ............... of the years indicated,
Redemption Redemption
Year Price Year Price
and thereafter at a Redemption Price equal to .....% of the principal
amount, together in the case of any such redemption [if applicable,
insert -- (whether through operation of the sinking fund or otherwise)]
with accrued interest to the Redemption Date, but interest installments
whose Stated Maturity is on or prior to such Redemption Date will be
payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates
referred to on the face hereof, all as provided in the Indenture.]
[If applicable, insert -- The Securities of this series are
subject to redemption upon not less than 30 days' notice by mail, (1) on
............. in any year commencing with the year .... and ending with the
year .... through
<PAGE>
<PAGE> 19
operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages
of the principal amount) set forth in the table below, and (2) at any time
[on or after ............], as a whole or in part, at the election of the
Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below: If redeemed during the 12-month
period beginning ............. of the years indicated,
Redemption Price
For Redemption Redemption Price For
Through Operation Redemption Otherwise
of the Than Through Operation
Year Sinking Fund of the Sinking Fund
and thereafter at a Redemption Price equal to .....% of the principal
amount, together in the case of any such redemption (whether through
operation of the sinking fund or otherwise) with accrued interest to the
Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close
of business on the relevant Record Dates referred to on the face hereof,
all as provided in the Indenture.]
[Notwithstanding the foregoing, the Company may not, prior to
............., redeem any Securities of this series as contemplated by
[Clause (2) of] the preceding paragraph as a part of, or in anticipation
of, any refunding operation by the application, directly or indirectly, of
moneys borrowed having an interest cost to the Company (calculated in
accordance with generally accepted financial practice) of less than .....%
per annum.]
[The sinking fund for this series provides for the redemption
on ............. in each year beginning with the
<PAGE>
<PAGE> 20
year ....... and ending with the year ....... of [not less than $..........
("mandatory sinking fund") and not more than] $.......... aggregate
principal amount of Securities of this series. Securities of this series
acquired or redeemed by the Company otherwise than through [mandatory]
sinking fund payments may be credited against subsequent [mandatory]
sinking fund payments otherwise required to be made [in the inverse order
in which they become due].]
[If the Security is subject to redemption, insert -- In the
event of redemption of this Security in part only, a new Security or
Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancella-
tion hereof.]
[If the Security is not an Original Issue Discount Security,
insert -- If an Event of Default with respect to Securities of this series
shall occur and be continuing, the principal of the Securities of this
series may be declared due and payable in the manner and with the effect
provided in the Indenture.]
[If the Security is an Original Issue Discount Security, insert
- -- If an Event of Default with respect to Securities of this series shall
occur and be continuing, an amount of principal of the Securities of this
series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to -- insert formula
for determining the amount. Upon payment (i) of the amount of principal so
declared due and payable and (ii) of interest on any overdue principal and
overdue interest (in each case to the extent that the payment of such
interest shall be legally enforceable), all of the Company's obligations in
respect of the payment of the principal of and interest, if any, on the
Securities of this series shall terminate.]
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities
of each series to be affected under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of not less than a
majority in principal amount of the Securities at the time Outstanding of
each series to be affected. The Indenture also contains provisions
permitting the Holders of specified percentages in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain
<PAGE>
<PAGE> 21
past defaults under the Indenture and their consequences. Any such consent
or waiver by the Holder of this Security shall be conclusive and binding
upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Security.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and
any premium and interest on this Security at the times, place and rate, and
in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations
therein sat forth, the transfer of this Security is registrable in the
Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable,
duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Security Registrar duly executed
by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series and of like tenor, of
authorized denominations and for the same aggregate principal amount, will
be issued to the designated transferee or transferees.
The Securities of this series are issuable only in registered
form without coupons in denominations of $1,000 and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations
therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor
of a different authorized denomination, as requested by the Holder
surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in
connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Security is registered as
the owner hereof for all purposes, whether or not this Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected
by notice to the contrary.
<PAGE>
<PAGE> 22
All terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
Section 204. Form of Trustee's Certificate of
Authentication.
The Trustee's certificate of authentication shall be in
substantially the following form:
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
THE FIRST NATIONAL BANK OF CHICAGO
As Trustee
By ................................
Authorized Signatory
SECTION 205. Additional Provisions Required in Global
Security.
Any Global Security authenticated and delivered hereunder shall
bear a legend in substantially the following form:
"This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of a
Depositary or a nominee thereof. This Security may not be
transferred to, or registered or exchanged for Securities registered
in the name of, any Person other than the Depositary or a nominee
thereof and no such transfer may be registered, except in the limited
circumstances described in the Indenture. Every Security
authenticated and delivered upon registration or transfer of, or in
exchange for or in lieu of, this Security shall be a Global Security
subject to the foregoing, except in such limited circumstances."
ARTICLE THREE
The Securities
Section 301. Amount Unlimited; Issuable in Series.
<PAGE>
<PAGE> 23
The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series. There
shall be established, with respect to the Securities of any series, in or
pursuant to a Board Resolution and, subject to Section 303, set forth, or
determined in the manner provided, in an Officers' Certificate, or
established in one or more indentures supplemental hereto, prior to the
issuance of Securities of such series,
(1) the title of the Securities of the series
(which shall distinguish the Securities of the series
from Securities of any other series);
(2) any limit upon the aggregate principal amount
of the Securities of the series which may be
authenticated and delivered under this Indenture (except
for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in
lieu of, other Securities of the series pursuant to
Section 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed
never to have been authenticated and delivered here-
under);
(3) the Person to whom any interest on a Security
of the series shall be payable, if other than the Person
in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the
Regular Record Date for such interest;
(4) the date or dates in which the principal of
the Securities of the series is payable;
(5) the rate or rates at which the Securities of
the series shall bear interest, if any, the date or dates
from which such interest shall accrue, the Interest
Payment Dates on which any such interest shall be payable
and the Regular Record Date for any interest payable on
any Interest Payment Date and the basis upon which
interest shall be calculated, if other than in 360-day
year of twelve 30-day months;
<PAGE>
<PAGE> 24
(6) the place or places where the principal of and
any premium and interest on Securities of the series
shall be payable;
(7) the period or periods within which, the price
or prices at which and the terms and conditions upon
which Securities of the series may be redeemed, in whole
or in part, at the option of the Company;
(8) the obligation, if any, of the Company to
redeem or purchase Securities of the series pursuant to
any sinking fund or analogous provisions or at the option
of a Holder thereof and the period or periods within
which, the price or prices at which and the terms and
conditions upon which Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to
such obligation;
(9) if other than denominations of $1,000 and any
integral multiple thereof, the denominations in which
Securities of the series shall be issuable;
(10) the currency, currencies or currency units in
which payment of the principal of and any premium and
interest on any Securities of the series shall be payable
if other than the currency of the United States of
America and the manner of determining the equivalent
thereof in the currency of the United States of America
for purposes of the definition of "Outstanding" in
Section 101;
(11) if the amount of payments of principal of or
any premium or interest on any Securities of the series
may be determined with reference to an index, the manner
in which such amounts shall be determined;
(12) if the principal of or any premium or interest
on any Securities of the series is to be payable, at the
election of the Company or a Holder thereof, in one or
more currencies or currency units other than that or
those in which the Securities are stated to be payable,
the currency, currencies or currency units in which
payment of the principal of and any premium and interest
on
<PAGE>
<PAGE> 25
Securities of such series as to which such election is made shall be
payable, and the periods within which and the terms and conditions upon
which such election is to be made;
(13) if other than the principal amount thereof,
the portion of the principal amount of Securities of the
series which shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section
502;
(14) if and as applicable, that the Securities of
the series shall be issuable in whole or in part in the
form of one or more Global Securities and, in such case,
the Depositary or Depositaries for such Global Security
or Global Securities and any circumstances other than
those set forth in Section 305 in which any such Global
Security may be transferred to, and registered and
exchanged for Securities registered in the name of, a
Person other than the Depositary for such Global Security
or nominee thereof, and in which any such transfer may be
registered; and
(15) any other terms of the series (which terms
shall not be inconsistent with the provisions of this
Indenture, except as permitted by Section 901(5)).
All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided
in or pursuant to the Board Resolution referred to above and (subject to
Section 303) set forth, or determined in the manner provided, in the
Officers' Certificate referred to above or in any such indenture
supplemental hereto.
If any of the terms of the series are established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Secretary or an Assistant Secretary
of the Company and delivered to the Trustee at or prior to the delivery of
the Officers' Certificate setting forth the terms of the series.
The following indebtedness of the Company shall be issued
under, and entitled to the benefits of, this Indenture upon the
authentication and delivery by the Trustee of Securities evidencing such
indebtedness in accordance with the terms and provisions of this Indenture:
<PAGE>
<PAGE> 26
$50,000,000 aggregate principal amount floating rate notes issued
February 15, 1995 and due February 16, 1996;
$40,000,000 aggregate principal amount floating rate notes issued
February 16, 1995 and due February 3, 1997; and
$25,000,000 aggregate principal amount floating rate notes issued
February 28, 1995 and due February 28, 1996.
Section 302. Denominations.
The Securities of each series shall be issuable in registered
form without coupons in such denominations as shall be specified as
contemplated by Section 301. In the absence of any such provisions with
respect to the Securities of any series, the Securities of such series
shall be issuable in denominations of $1,000 and any integral multiple
thereof.
Section 303. Execution, Authentication, Delivery and
Dating.
The Securities shall be executed on behalf of the Company by
its Chairman of the Board, its Vice Chairman of the Board, its President or
one of its Vice Presidents, under its corporate seal reproduced thereon
attested by its Secretary or one of its Assistant Secretaries. The signa-
ture of any of these officers on the Securities may be manual or facsimile.
Securities bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall
bind the Company, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and delivery of
such Securities or did not hold such offices at the date of such
Securities.
At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities of any
series executed by the Company to the Trustee for authentication, together
with a Company order for the authentication and delivery of such Securi-
ties, and the Trustee in accordance with the Company Order shall
authenticate and deliver such Securities. If the form or terms of the
Securities of the series have been established in or pursuant to one or
more Board Resolutions as permitted by Sections 201 and 301, in
authenticating such
<PAGE>
<PAGE> 27
Securities, and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying
upon, an opinion of Counsel stating,
(a) if the form of such Securities has been
established by or pursuant to Board Resolution as
permitted by Section 201, that such form has been
established in conformity with the provisions of this
Indenture;
(b) if the terms of such Securities have been
established by or pursuant to Board Resolution as
permitted by Section 301, that such terms have been
established in conformity with the provisions of this
Indenture; and
(c) that such Securities, when authenticated and
delivered by the Trustee and issued by the Company in the
manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally
binding obligations of the Company enforceable in
accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability
relating to or affecting creditors' rights and to general
equity principles and, if applicable, to provisions of
law which may require that a judgment for money damages
rendered by a court in the United States be expressed in
United States dollars.
If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.
Notwithstanding the provisions of Section 301 and of the
preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officers'
Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding
paragraph at or prior to the time of authentication of each Security of
such series if such documents are
<PAGE>
<PAGE> 28
delivered at or prior to the authentication upon original issuance of the
first Security of such series to be issued.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this
Indenture or be valid or obligatory nor any purpose unless there appears on
such Security a certificate of authentication substantially in the form
provided for herein executed by the Trustee by manual signature, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the
Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 309, for all purposes of this Indenture
such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this
Indenture.
Section 304. Temporary Securities.
Pending the preparation of definitive Securities of any series,
the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Securities say determine, as evidenced by their execution of
such Securities.
If temporary Securities of any series are issued, the Company
will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of definitive Securities of such
series, the temporary Securities of such series of like tenor shall be
exchangeable for definitive Securities of such series upon surrender of the
temporary Securities of such series at the office or agency of the Company
in a Place of Payment for that series, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities of any
series the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor one or more definitive Securities of the same
series, of any authorized denominations and of a like aggregate principal
amount and tenor. Until so exchanged the temporary Securities of any
<PAGE>
<PAGE> 29
series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series and tenor.
Section 305. Registration, Registration of
Transfer and Exchange.
The Company shall cause to be kept at the Corporate Trust
Office of the Trustee a register (the register maintained in such office
and in any other office or agency of the Company in a Place of Payment
being herein sometimes collectively referred to as the "Security Register")
in which, subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Securities and of transfers
of Securities. The Trustee is hereby appointed "Security Registrar" for
the purpose of registering Securities and transfers of Securities as herein
provided.
Upon surrender for registration of transfer of any Security of
any series at the office or agency in a Place of Payment for that series,
the Company shall execute, and the Trustee shall authenticate and deliver,
in the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a
like aggregate principal amount and tenor and bearing a number not
contemporaneously outstanding.
At the option of the Holder, Securities of any series may be
exchanged for other Securities of the same series, of any authorized
denominations and of a like aggregate principal amount and tenor, upon
surrender of the Securities to be exchanged at such office or agency.
Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive.
All Securities issued upon any registration of transfer or
exchange of Securities shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such registration of transfer
or exchange.
Every Security presented or surrendered for registration of
transfer or for exchange shall (if so required by the Company or the
Trustee) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar
duly
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executed, by the Holder thereof or his attorney duly authorized in writing.
No service charge shall be made for any registration of
transfer or exchange of Securities, but the Company may require payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 906 or 1107 not
involving any transfer.
The Company shall not be required (i) to issue, register the
transfer of or exchange Securities of any series during a period beginning
at the opening of business 15 days before the day of the mailing of a
notice of redemption of Securities of that series selected for redemption
under Section 1103 and ending at the close of business on the date of such
mailing, or (ii) to register the transfer of or exchange any Security so
selected for redemption in whole or in part, except the unredeemed portion
of any Security being redeemed in part.
Notwithstanding the foregoing and except as otherwise specified
or contemplated by Section 301, no Global Security shall be exchangeable
pursuant to this Section 305 or Sections 304, 906 and 1107 for Securities
registered in the name of, and no transfer of a Global Security of any
series may be registered to, any Person other than the Depositary for such
Security or its nominee unless (1) such Depositary (A) notifies the Company
that it is unwilling or unable to continue as Depositary for such Global
Security or (B) ceases to be a clearing agency registered under the
Exchange Act, (2) the Company executes and delivers to the Trustee a
Company Order that such Global Security shall be so exchangeable and the
transfer thereof so registrable, or (3) there shall have occurred and be
continuing an Event of Default, or an event which with notice or lapse of
time or both would become an Event of Default, with respect to the
Securities evidenced by such Global Security. Upon the occurrence in
respect of any Global Security of any series of any one or more of the
conditions specified in clauses (1), (2) or (3) of the preceding sentence
or such other conditions as may be specified as contemplated by Section 302
for such series, such Global Security may be exchanged for Securities
registered in the names of, and the transfer of such Global Security may be
registered to, such Persons (including Persons other than the Depositary
with respect to such series and its nominees), as such Depositary shall
direct. Notwithstanding any other provision of this Indenture, any
Security authenticated and delivered upon registration of transfer of, or
in exchange for, or in lieu
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of, any Global Security shall also be a Global Security and shall bear the
legend specified in Section 205 except for any Security authenticated and
delivered in exchange for, or upon registration of transfer of, a Global
Security pursuant to the preceding sentence.
Section 306. Mutilated, Destroyed, Lost and Stolen
Securities.
If any mutilated Security is surrendered to the Trustee, the
Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any
Security and (ii) such Security or indemnity as may be required by them to
save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute and the
Trustee shall authenticate and deliver, in lieu of any such destroyed, lost
or stolen Security, a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security
has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay such Security.
Upon the issuance of any new Security under this Section, the
Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any
other expenses (including the fees and expenses of the Trustee) connected
therewith.
Every new Security of any series issued pursuant to this
Section in lieu of any destroyed, lost or stolen Security shall constitute
an original additional contractual obligation of the Company, whether or
not the destroyed, lost or stolen Security shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Securities of that
series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude
(to the extent lawful) all other rights and
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remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities.
Section 307. Payment of Interest; Interest Rights
Preserved.
Except as otherwise provided as contemplated by Section 301
with respect to any series of Securities, interest on any Security which is
payable, and is punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Person in whose name that Security (or
one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest.
Any interest on any Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment
Date (herein called "Defaulted Interest") shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of
having been such Holder, and such Defaulted Interest may be paid by the
Company, at its election in each case, as provided in Clause (1) or (2)
below:
(1) The Company may elect to make payment of any
Defaulted Interest to the Persons in whose names the
Securities of such series (or their respective
Predecessor Securities) are registered at the close of
business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing
of the amount of Defaulted Interest proposed to be paid
on each Security of such series and the date of the
proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the
date of the proposed payment, such money when deposited
to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this Clause
provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest
which shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not
less than 10 days after the receipt by the
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Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed,
first-class postage prepaid, to each Holder of Securities of such series at
his or her address as it appears in the Security Register, not less than 10
days prior to such Special Record Date. Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names
the Securities of such series (or their respective Predecessor Securities)
are registered at the close of business on such Special Record Date and
shall no longer be payable pursuant to the following Clause (2).
(2) The Company may make payment of any Defaulted
Interest on the Securities of any series in any other
lawful manner not inconsistent with the requirements of
any securities exchange on which such Securities may be
listed, and upon such notice as may be required by such
exchange, if, after notice given by the Company to the
Trustee of the proposed payment pursuant to this Clause,
such manner of payment shall be deemed practicable by the
Trustee.
Subject to the foregoing provisions of this Section, each
Security delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such
other Security.
Section 308. Persons Deemed Owners.
Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name such Security is registered as
the owner of such Security for the purpose of receiving payment of
principal of and any premium and (subject to Section 307) any interest on
such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and neither the Company,
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the Trustee nor any agent of the Company or the Trustee shall be affected
by notice to the contrary.
Section 309. Cancellation.
All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and shall be promptly canceled by it. The Company
may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee (or to
any other Person for delivery to the Trustee) for cancellation any
Securities previously authenticated hereunder which the Company has not
issued and sold, and all Securities so delivered shall be promptly canceled
by the Trustee. No Securities shall be authenticated in lieu of or in
exchange for any Securities canceled as provided in this Section, except as
expressly permitted by this Indenture. All canceled Securities held by the
Trustee shall be destroyed and the Trustee, upon request by the Company,
shall deliver a certificate of destruction to the Company.
Section 310. Computation of Interest.
Except as otherwise specified as contemplated by Section 301
for Securities of any series, interest on the Securities of each series
shall be computed on the basis of a 360-day year of twelve 30-day months.
ARTICLE FOUR
Satisfaction and Discharge
Section 401. Satisfaction and Discharge of
Indenture.
This Indenture shall upon Company Request cease to be of
further effect (except as to any surviving rights of registration of
transfer or exchange of Securities herein expressly provided for), and the
Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when
(1) either
(A) all Securities theretofore authenticated and
delivered (other than
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(i) Securities which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 306 and (ii) Securities for
whose payment money has theretofore been deposited in trust or segregated
and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 1003) have been
delivered to the Trustee for cancellation; or
(B) all such Securities not theretofore delivered
to the Trustee for cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated
Maturity within one year, or
(iii) are to be called for redemption within one
year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the
name, and at the expense, of the Company,
and the Company, in the case of (i), (ii) or (iii) above,
has deposited or caused to be deposited with the Trustee
as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness
on such Securities not theretofore delivered to the
Trustee for cancellation, for principal and any premium
and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the
Stated Maturity or Redemption Date, as the case may be;
(2) the Company has paid or caused to be paid all
other sums payable hereunder by the Company; and
(3) the Company has delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each
stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this
Indenture have been complied with.
Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the
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Trustee under Section 607, the obligations of the Trustee to any
Authenticating Agent under Section 614 and, if money shall have been
deposited with the Trustee pursuant to subclause (B) of Clause (1) of this
Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.
Section 402. Application of Trust Money.
Subject to provisions of the last paragraph of Section 1003,
all money deposited with the Trustee pursuant to Section 401 shall be held
in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through
any Paying Agent (including the Company acting as its own Paying Agent) as
the Trustee may determine, to the Persons entitled thereto, of the
principal and any premium and interest for whose payment such money has
been deposited with the Trustee.
ARTICLE FIVE
Remedies
Section 501. Events of Default.
"Event of Default", wherever used herein with respect to
Securities of any series, means any one of the following events (whatever
the reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):
(1) default in the payment of any interest upon any
Security of that series when it becomes due and payable,
and continuance of such default for a period of 30 days;
or
(2) default in the payment of the principal of (or
premium, if any, on) any Security of that series at its
Maturity; or
(3) default in the deposit of any sinking fund
payment, when and as due by the terms of a Security of
that series; or
(4) default in the performance, or breach, of any
covenant or warranty of the Company in this Indenture or
the Securities
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of such series (other than a covenant or warranty a default in whose
performance or whose breach is elsewhere in this Section specifically dealt
with or which has expressly been included in this Indenture solely for the
benefit of series of Securities other than that series), and continuance of
such default or breach for a period of 60 days after there has been given,
by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in principal amount
of the Outstanding Securities of that series a written notice specifying
such default or breach and requiring it to be remedied and stating that
such notice is a "Notice of Default" hereunder; or
(5) a default under any bond, debenture, note or
other evidence of indebtedness for money borrowed
(including a default with respect to Securities of any
series other than that series) or under any mortgage,
indenture or instrument under which there may be issued
or by which there may be secured or evidenced any
indebtedness for money borrowed by the Company or any
Material Banking Subsidiary in excess of $10,000,000,
whether such indebtedness now exists or shall hereafter
be created, which default shall have resulted in such
indebtedness becoming or being declared due and payable
prior to the date on which it would otherwise have become
due and payable, without such acceleration having been
rescinded or annulled within a period of 30 days after
there shall have been given, by registered or certified
mail, to the Company by the Trustee or to the Company and
the Trustee by the Holders of not less than 25% in
principal amount of the Outstanding Securities of that
series a written notice specifying such default and
requiring the Company or the Material Banking Subsidiary,
as the case may be, to cause such acceleration to be
rescinded or annulled and stating that such notice is a
"Notice of Default" hereunder; provided, however, that if
such default shall be remedied or cured by the Company or
the Material Banking Subsidiary or waived by the holders
of such indebtedness, then the Event of Default hereunder by
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reason thereof shall be deemed likewise to have been thereupon remedied,
cured or waived without any action on the part of the Trustee or any of the
Holders; or
(6) the entry by a court or, in the case of a
Material Banking Subsidiary, a governmental authority
having jurisdiction in the premises of (A) a decree or
order for relief in respect of the Company or any
Material Banking Subsidiary in an involuntary case or
proceeding under any applicable Federal, state or
Commonwealth of Puerto Rico bankruptcy, insolvency,
reorganization or other similar law or (B) a decree or
order adjudging the Company or any Material Banking
Subsidiary a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect
of the Company or any Material Banking Subsidiary under
any applicable Federal, state or Commonwealth of Puerto
Rico law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other
similar official of the Company or any Material Banking
Subsidiary or of any substantial part of its property, or
ordering the winding up or liquidation of its affairs,
and the continuance of any such decree or order for
relief or any such other decree or order unstayed and in
effect for a period of 60 consecutive days; or
(7) the commencement by the Company or any Material
Banking Subsidiary of a voluntary case or proceeding
under any applicable Federal, state or Commonwealth of
Puerto Rico bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by
it to the entry of a decree or order for relief in
respect of the Company or any Material Banking Subsidiary
in an involuntary case or proceeding under any applicable
Federal, state or Commonwealth of Puerto Rico bankruptcy,
insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or
proceeding against it, or the filing by it of a petition
or answer
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or consent seeking reorganization or relief under any applicable Federal,
state or Commonwealth of Puerto Rico law, or the consent by it to the
filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or of any substantial part of its property,
or the making by it of an assignment for the benefit of creditors, or the
admission by it in writing, of its inability to pay its debts generally as
they become due, or the taking of corporate action by the Company or any
Material Banking Subsidiary in furtherance of any such action; or
(8) any other Event of Default provided with
respect to Securities of that series.
Section 502. Acceleration of Maturity; Rescission
and Annulment.
If an Event of Default with respect to Securities of any series
at the time outstanding occurs and is continuing, then in every such case
the Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series may declare the principal amount (or,
if any of the Securities of that series are original Issue Discount
Securities, such portion of the principal amount of such Securities as may
be specified in the terms thereof) of all of the Securities of that series
to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration
such principal amount (or specified amount) shall become immediately due
and payable.
At any time after such a declaration of acceleration with
respect to Securities of any series has been made and before a judgement or
decree for payment of the money due has been obtained by the Trustee as
hereinafter in this Article provided, the Holders of a majority in
principal amount of the Outstanding Securities of that series, by written
notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if
(1) the Company has paid or deposited with the
Trustee a sum sufficient to pay
(A) all overdue interest on all Securities of
that series,
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(B) the principal of (and premium, if any,
on) any Securities of that series which have become
due otherwise than by such declaration of
acceleration and any interest thereon at the rate
or rates prescribed therefor in such Securities,
(C) to the extent that payment of such
interest is lawful, interest upon overdue interest
at the rate or rates prescribed therefor in such
Securities, and
(D) all sums paid or advanced by the Trustee
hereunder and the reasonable compensation,
expenses, disbursements and advances of the
Trustee, its agents and counsel;
and
(2) all Events of Default with respect to
Securities of that series, other than the non-payment of
the principal of Securities of that series which have
become due solely by such declaration of acceleration,
have been cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any right
consequent thereon.
Section 503. Collection of Indebtedness and Suits
for Enforcement by Trustee.
The Company covenants that if
(1) default is made in the payment of any interest
on any Security when such interest becomes due and
payable and such default continues for a period of 30
days, or
(2) default is made in the payment of the principal
of (or premium, if any, on) any Security at the Maturity
thereof,
the Company will, upon demand of the Trustee, pay to it, for the benefit of
the Holders of such Securities, the whole amount then due and payable on
such Securities for principal and any premium and interest and, to the
extent that payment of such interest shall be legally enforceable, interest
on
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any overdue principal and premium and on any overdue interest, at the rate
or rates prescribed therefor in such Securities, and, in addition thereto,
such further amount as shall be sufficient to cover the costs and expenses
of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.
If an Event of Default with respect to Securities of any series
occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders of Securities
of such series by such appropriate judicial proceedings as the Trustee
shall deem most effectual to protect and enforce any such rights, whether
for the specific enforcement of any covenant or agreement in this Indenture
or in aid of the exercise of any power granted herein, or to enforce any
other proper remedy.
Section 504. Trustee May File Proofs of Claim.
In case of any judicial proceeding relative to the Company (or
any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding
or otherwise, to take any and all actions authorized under the Trust
Indenture Act in order to have claims of the Holders and the Trustee
allowed in any such proceeding. In particular, the Trustee shall be
authorized to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section
607.
No provision of this Indenture shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding.
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Section 505. Trustee May Enforce Claims Without
Possession of Securities.
All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the
possession of any of the Securities or the production thereof in any
proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, be for the ratable benefit of the Holders
of the Securities in respect of which such judgment has been recovered.
Section 506. Application of Money Collected.
Any money collected by the Trustee pursuant to this Article
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of
principal or any premium or interest, upon presentation of the Securities
and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:
FIRST: To the payment of all amounts due the
Trustee under Section 607; and
SECOND: To the payment of the amounts then due and
unpaid for principal of and any premium and interest on
the Securities in respect of which or for the benefit of
which such money has been collected, ratably, without
preference or priority of any kind, according to the
amounts due and payable on such Securities for principal
and any premium and interest, respectively.
Section 507. Limitation on Suits.
No Holder of any Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless
(1) such Holder has previously given written notice
to the Trustee of a continuing Event of Default with
respect to the Securities of that series;
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(2) the Holders of not less than 25% in principal
amount of the outstanding Securities of that series shall
have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its
own name as Trustee hereunder;
(3) such Holder or Holders have offered to the
Trustee reasonable indemnity against the costs, expenses
and liabilities to be incurred in compliance with such
request;
(4) the Trustee for 60 days after its receipt of
such notice, request and offer of indemnity has failed to
institute any such proceeding; and
(5) no direction inconsistent with such written
request has been given to the Trustee during such 60-day
period by the Holders of a majority in principal amount
of the outstanding Securities of that series;
it being understood and intended that no one or more of such Holders shall
have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of
any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under
this Indenture, except in the manner herein provided and for the equal and
ratable benefit of all of such Holders.
Section 508. Unconditional Right of Holders to
Receive Principal, Premium and Interest.
Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of and any premium and
(subject to Section 307) any interest on such Security on the Stated
Maturity or Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.
Section 509. Restoration of Rights and Remedies.
If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has
been discontinued or abandoned
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for any reason, or has been determined adversely to the Trustee or to such
Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall
continue as though no such proceeding had been instituted.
Section 510. Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in the last
paragraph of Section 306, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder,
or otherwise, shall not prevent the concurrent assertion or employment of
any other appropriate right or remedy.
Section 511. Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of
Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein. Every right and remedy
given by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by
the Trustee or by the Holders, as the case may be.
Section 512. Control by Holders.
The Holders of a majority in principal amount of the
Outstanding Securities of any series shall have the right to direct the
time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee, with respect to the Securities of such series, provided that
(1) such direction shall not be in conflict with
any rule of law or with this Indenture, and
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(2) the Trustee may take any other action deemed proper
by the Trustee which is not inconsistent with such direction.
Section 513. Waiver of Past Defaults.
The Holders of not less than a majority in principal amount of
the Outstanding Securities of any series may on behalf of the Holders of
all the Securities of such series waive any past default hereunder with
respect to such series and its consequences, except a default
(1) in the payment of the principal of or any premium
or interest on any Security of such series, or
(2) in respect of a covenant or provision hereof which
under Article Nine cannot be modified or amended without the
consent of the Holder of each Outstanding Security of such
series affected.
Upon any such waiver, such default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been cured,
for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.
Section 514. Undertaking for Costs.
In any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, a court may require any party
litigant in such suit to file an undertaking to pay the costs of such suit,
and may assess costs against any such party litigant, in the manner and to
the extent provided in the Trust Indenture Act; provided that neither this
Section nor the Trust Indenture Act shall be deemed to authorize any court
to require such an undertaking or to make such an assessment in any suit
instituted by the Company.
Section 515. Waiver of Stay or Extension Laws.
The Company covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension
law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company
(to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law
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and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.
ARTICLE SIX
The Trustee
Section 601. Certain Duties and Responsibilities.
The duties and responsibilities of the Trustee shall be as
provided by the Trust Indenture Act. Notwithstanding the foregoing, no
provision of this Indenture shall require the Trustee to expend or risk its
own funds or otherwise incur any financial liability in the performance of
any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity against such risk or liability is not
reasonably assured to it. Whether or not therein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the
provisions of this Section.
Section 602. Notice of Defaults.
If a default occurs hereunder with respect to Securities of any
series, the Trustee shall give the Holders of Securities of such series
notice of such default as and to the extent provided in the Trust Indenture
Act; provided, however, that in the case of any default of the character
specified in Section 501(4) with respect to Securities of such series, no
such notice to Holders shall be given until at least 30 days after the
occurrence thereof. For the purpose of this Section, the term "default"
means any event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to Securities of such series.
Section 603. Certain Rights of Trustee.
Subject to the provisions of Section 601:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness
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or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties;
(b) any request or direction of the Company mentioned herein
shall be sufficiently evidenced by a Company Request or Company Order
and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution;
(c) whenever in the administration of this Indenture the
Trustee shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action
hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon
an Officers' Certificate;
(d) the Trustee may consult with counsel and the written
advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance
thereon;
(e) the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request
or direction of any of the Holders pursuant to this Indenture, unless
such Holders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction;
(f) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters
as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or
attorney; and
(g) the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or
through agents or attorneys and the Trustee shall not be responsible
for any misconduct or
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negligence an the part of any agent or attorney appointed with due care by
it hereunder.
Section 604. Not Responsible for Recitals or
Issuance of Securities.
The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication, shall be taken as the statements
of the Company, and the Trustee or any Authenticating Agent assumes no
responsibility for their correctness. The Trustee makes no representations
as to the validity or sufficiency of this Indenture or of the Securities.
The Trustee or any Authenticating Agent shall not be accountable for the
use or application by the Company of Securities or the proceeds thereof.
Section 605. May Hold Securities.
The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, in its individual or
any other capacity, may become the owner or pledgee of Securities and,
subject to Sections 608 and 613, may otherwise deal with the Company with
the same rights it would have if it were not Trustee, Authenticating Agent,
Paying Agent, Security Registrar or such other agent.
Section 606. Money Held in Trust.
Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The
Trustee shall be under no liability for interest on any money received by
it hereunder except as otherwise agreed with the Company.
Section 607. Compensation and Reimbursement.
The Company agrees
(1) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard
to the compensation of a trustee of an express trust);
(2) except as otherwise expressly provided herein, to
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the
reasonable
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compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to
its negligence or bad faith; and
(3) to indemnify the Trustee for, and to hold it harmless
against, any loss, liability or expense incurred without negligence
or bad faith on its part, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of
any of its powers or duties hereunder.
As security for the performance of the obligations of the
Company under this Section the Trustee shall have a lien prior to the
Securities upon all property or funds collected by the Trustee as such,
except funds held in trust for the benefit of the Holders of particular
Securities.
Section 608. Disqualification; Conflicting
Interests.
If the Trustee has or shall acquire a conflicting interest
within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided
by, and subject to the provisions of, the Trust Indenture Act and this
Indenture.
Section 609. Corporate Trustee Required;
Eligibility.
There shall at all times be a Trustee hereunder which shall be
a Person that is eligible pursuant to the Trust Indenture Act to act as
such and has a combined capital and surplus of at least $50,000,000 and a
Corporate Trust Office in the Borough of Manhattan, The City of New York.
If such Person publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of
such Person shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of
this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.
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Section 610. Resignation and Removal;
Appointment of Successor.
(a) No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.
(b) The Trustee may resign at any time with respect to the
Securities of one or more series by giving written notice thereof to the
Company. If the instrument of acceptance by a successor Trustee required
by Section 611 shall not have been delivered to the Trustee within 30 days
after the giving of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.
(c) The Trustee may be removed at any time with respect to
the Securities of any series by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series, delivered to
the Trustee and to the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with Section 609
after written request therefor by the Company or by any Holder who
has been a bona fide Holder of a Security for at least six months, or
(2) the Trustee shall cease to be eligible under
Section 609 and shall fail to resign after written request therefor
by the Company or by any such Holder, or
(3) the Trustee shall become incapable of acting or
shall be adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property shall be appointed or any public officer
shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or
liquidation,
then, in any such case, (i) the Company by a Board Resolution may remove
the Trustee with respect to all securities, or (ii) subject to Section 514,
any Holder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal
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of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.
(e) If the Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of Trustee
for any cause, with respect to the Securities of one or more series, the
Company, by a Board Resolution, shall promptly appoint a successor Trustee
or Trustees with respect to the Securities of that or those series (it
being understood that any such successor Trustee may be appointed with
respect to the Securities of one or more or all of such series and that at
any time there shall be only one Trustee with respect to the Securities of
any particular series) and shall comply with the applicable requirements of
Section 611. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of
such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 611,
become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the
Company. If no successor Trustee with respect to the Securities of any
series shall have been so appointed by the Company or the Holders and
accepted appointment in the manner required by Section 611, any Holder who
has been a bona fide Holder of a Security of such series for at least six
months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.
(f) The Company shall give notice of each resignation and
each removal of the Trustee with respect to the Securities of any series
and each appointment of a successor Trustee with respect to the Securities
of any series to all Holders of Securities of such series in the manner
provided in Section 106. Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the
address of its Corporate Trust Office.
Section 611. Acceptance of Appointment by
Successor.
(a) In case of the appointment hereunder of a successor
Trustee with respect to all Securities, every such successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an
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instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Trustee shall become effective and such successor
Trustee, without any further act, deed or conveyance, shall become vested
with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers
and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such
retiring Trustee hereunder.
(b) In case of the appointment hereunder of a successor
Trustee with respect to the Securities of one or more (but not all) series,
the Company, the retiring Trustee and each successor Trustee with respect
to the Securities of one or more series shall execute and deliver an
indenture supplemental hereto wherein each successor Trustee shall accept
such appointment and which (1) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee
is not retiring with respect to all Securities, shall contain such
provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series as to which the retiring Trustee
is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall
be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein
or in such supplemental indenture shall constitute such Trustees cotrustees
of the same trust and that each such Trustee shall be trustee of a trust or
trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee; and upon the execution and delivery
of such supplemental indenture the resignation or removal of the retiring
Trustee shall become effective to the extent provided therein and each such
successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates; but, on request of
the Company or any successor Trustee, such retiring Trustee shall duly
assign, transfer and deliver to such successor Trustee all property and
money
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held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates.
(c) Upon request of any such successor Trustee, the Company
shall execute any and all instruments for more fully and certainly vesting
in and confirming to such successor Trustee all such rights, powers and
trusts referred to in paragraph (a) or (b) of this Section, as the case
may be.
(d) No successor Trustee shall accept its appointment unless
at the time of such acceptance such successor Trustee shall be qualified
and eligible under this Article.
Section 612. Merger, Conversion, Consolidation
or Succession to Business.
Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all
the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, provided such corporation shall be otherwise qualified
and eligible under this Article, without the execution or filing of any
paper or any further act on the part of any of the parties hereto. In case
any Securities shall have been authenticated, but not delivered, by the
Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication
and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.
Section 613. Preferential Collection of Claims
Against the Company.
If and when the Trustee shall be or become a creditor of the
Company (or any other obligor upon the Securities), the Trustee shall be
subject to the provisions of the Trust Indenture Act regarding the
collection of claims against the Company (or any such other obligor).
Section 614. Appointment of Authenticating Agent.
The Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to
act on behalf of the Trustee to authenticate Securities of such series
issued upon original
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issue and upon exchange, registration of transfer or partial redemption
thereof or pursuant to Section 306, and Securities so authenticated shall
be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder.
Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee's certificate of
authentication, such reference shall be deemed to include authentication
and delivery on behalf of the Trustee by an Authenticating Agent and a
certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing
business under the laws of the United States of America, any State thereof
or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less
than $50,000,000 and subject to supervision or examination by Federal or
State authority. If such Authenticating Agent publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purpose of this Section,
the combined capital and surplus of such Authenticating Agent shall be
deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time an Authenticating
Agent shall cease to be eligible in accordance with the provisions of this
Section, such Authenticating Agent shall resign immediately in the manner
and with the effect specified in this Section.
Any corporation into which an Authenticating Agent may be
merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which
such Authenticating Agent shall be a party, or any corporation succeeding
to the corporate agency or corporate trust business of an Authenticating
Agent, shall continue to be an Authenticating Agent, provided such
corporation shall be otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the
Trustee or the Authenticating Agent.
An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Trustee may
at any time terminate the agency of an Authenticating Agent by giving
written notice thereof to such Authenticating Agent and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or
in case at any time such Authenticating Agent shall cease to be eligible in
accordance with the
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provisions of this Section, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall
mail written notice of such appointment by first-class mail, postage
prepaid, to all Holders of Securities of the series with respect to which
such Authenticating Agent will serve, as their names and addresses appear
in the Security Register. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as
if originally named as an Authenticating Agent. No successor
Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.
The Trustee agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section,
and the Trustee shall be entitled to be reimbursed for such payments,
subject to the provisions of Section 607.
If an appointment with respect to one or more series is made
pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee's certificate of authentication, an
alternative certificate of authentication in the following form:
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
THE FIRST NATIONAL BANK OF
CHICAGO
As Trustee
By ,
As Authenticating Agent
By ,
Authorized Officer
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ARTICLE SEVEN
Holders' Lists and Reports by Trustee and Company
Section 701. Company to Furnish Trustee
Names and Addresses of Holders.
The Company will furnish or cause to be furnished to the
Trustee
(a) semi-annually, not later than June 30 and December
30 in each year, a list, in such form as the Trustee may
reasonably require, of the names and addresses of the Holders
as of the preceding June 15 or December 15, as the case may be,
and
(b) at such other times as the Trustee may request in
writing, within 30 days after the receipt by the Company of any
such request, a list of similar form and content as of a date
not more than 15 days prior to the time such is furnished.
excluding from any such list names and addresses received by the Trustee in
its capacity as Security Registrar.
Section 702. Preservation of Information;
Communications to Holders.
(a) The Trustee shall preserve, in as current a form as
is reasonably practicable, the names and addresses of Holders contained in
the most recent list furnished to the Trustee as provided in Section 701
and the names and addresses of Holders received by the Trustee in its
capacity as Security Registrar. The Trustee may destroy any list furnished
to it as provided in Section 701 upon receipt of a new list so furnished.
(b) The rights of the Holders to communicate with other
Holders with respect to their rights under this Indenture or under the
Securities, and the corresponding rights and privileges of the Trustee,
shall be as provided by the Trust Indenture Act.
(c) Every Holder of Securities, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and
addresses of Holders made pursuant to the Trust Indenture Act.
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Section 703. Reports by Trustee.
(a) The Trustee shall transmit to Holders such reports
concerning the Trustee and its actions under this Indenture as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant thereto.
(b) A copy of each such report shall, at the time of
such transmission to Holders, be filed by the Trustee with each stock
exchange upon which any Securities are listed, with the Commission and with
the Company. The Company will notify the Trustee when any Securities are
listed on any stock exchange.
Section 704. Reports by Company.
The Company shall file with the Trustee and the
Commission, and transmit to Holders, such information, documents and other
reports, and such summaries thereof, as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant to
such Act; provided that any such information, documents or reports required
to be filed with the Commission pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 shall be filed with the Trustee within 15
days after the same is so required to be filed with the Commission.
ARTICLE EIGHT
Consolidation, Merger, Conveyance, Transfer or Lease
Section 801. Company May Consolidate, Etc.,
Only on Certain Terms.
The Company shall not consolidate with or merge into any
other Person or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, and the Company shall not
permit any Person to consolidate with or merge into the Company or convey,
transfer or lease its properties and assets substantially as an entirety to
the Company, unless:
(1) in case the Company shall consolidate with or merge
into another Person or convey, transfer or lease its properties
and assets substantially as an entirety to any Person, the
Person formed by such consolidation or into which the Company
is merged or the Person which acquires by conveyance or
transfer, or which leases, the properties and assets of the
Company substantially
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as an entirety shall, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, expressly
assume the due and punctual payment of the principal and any premium and
interest on all the Securities and the performance or observance of every
covenant of this Indenture on the part of the Company to be performed or
observed;
(2) immediately after giving effect to such transaction
and treating any indebtedness which becomes an obligation of
the Company or a Subsidiary as a result of such transaction as
having been incurred by the Company or such Subsidiary at the
time of transaction, no Event of Default shall have happened
and be continuing;
(3) if, as a result of any such consolidation or merger
or such conveyance, transfer or lease, properties or assets of
the Company would become subject to a mortgage, pledge, lien,
security interest or other encumbrance which would not be
permitted by this Indenture, the Company or such successor
Person, as the case may be, shall take such steps as shall be
necessary effectively to secure the Securities equally and
ratably with (or prior to) all indebtedness secured thereby;
and
(4) the Company has delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating
that such consolidation, merger, conveyance or transfer or
lease and, if a supplemental indenture is required in
connection with such transaction, such supplemental indenture
comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been
complied with.
Section 802. Successor Substituted.
Upon any consolidation of the Company with, or merger of
the Company into, any other Person or any conveyance, transfer or lease of
the properties and assets of the Company substantially as an entirety in
accordance with Section 801, the successor Person formed by such
consolidation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named
as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all
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obligations and covenants under this Indenture and the Securities.
ARTICLE NINE
Supplemental Indentures
Section 901. Supplemental Indentures Without
Consent of Holders.
Without the consent of any Holders, the Company, when
authorized by a Board Resolution, and the Trustee, at any time and from
time to time, may enter into one or more indentures supplemental hereto, in
form satisfactory to the Trustee, for any of the following purposes:
(1) to evidence the succession of another Person to the
Company and the assumption by any such successor of the cove-
nants of the Company herein and in the Securities; or
(2) to add to the covenants of the Company for the
benefit of the Holders of all or any series of Securities (and
if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly
being included solely for the benefit of such series) or to
surrender any right or power herein conferred upon the Company;
or
(3) to add any additional Events of Default; or
(4) to add to or change any of the provisions of this
Indenture to such extent as shall be necessary to permit or
facilitate the issuance of Securities in bearer form,
registrable or not registrable as to principal, and with or
without interest coupons, or to permit or facilitate the
issuance of Securities in uncertificated form; or
(5) to add or change any of the provisions of this
Indenture in respect of one or more series of Securities,
provided that any such addition, change or elimination (i)
shall neither (A) apply to any Security of any series created
prior to the execution of such supplemental indenture and
entitled to the benefit of such provision nor (B) modify the
rights of the Holder of any such Security with respect to such
provision or (ii) shall become effective only when there is no
such Security Outstanding; or
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(6) to secure the Securities; or
(7) to establish the form or terms of Securities of any
series as permitted by Sections 201 and 301; or
(8) to evidence and provide for the acceptance of
appointment hereunder by a successor Trustee with respect to
the Securities of one or more series and to add to or change
any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, pursuant to the
requirements of Section 611(b); or
(9) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other
provision herein, or to make any other provisions with respect
to matters or questions arising under this Indenture, provided
that such action pursuant to this clause (9) shall not
adversely affect the interests of the Holders of Securities of
any series in any material respect.
Section 902. Supplemental Indentures with Consent
of Holders.
With the consent of the Holders of not less than a
majority in principal amount of the Outstanding Securities of each series
affected by such supplemental indenture, by Act of said Holders delivered
to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of Securities of such
series under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding
Security affected thereby,
(1) change the Stated Maturity of the principal of, or
any installment of principal of or interest on, any Security,
or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue
Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to
Section 502, or change any Place of Payment where, or the coin
or currency in which, any Security or any premium or interest
thereon is payable, or impair the
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right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date), or
(2) reduce the percentage in principal amount of the
Outstanding Securities of any series, the consent of whose
Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver of
compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences provided for in this
Indenture, or
(3) modify any of the provisions of this Section,
Section 513 or Section 1011, except to increase any such
percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of
the Holder of each Outstanding Security affected thereby,
provided, however, that this clause shall not be deemed to
require the consent of any Holder with respect to changes in
the references to the Trustee" and concomitant changes in this
Section and Section 1011, or the deletion of this proviso, in
accordance with the requirements of Sections 611(b) and 901(8).
A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for
the benefit of one or more particular series of Securities, or which
modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect
the rights under this Indenture of the Holders of Securities of any other
series.
It shall not be necessary for any Act of Holders under
this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the
substance thereof.
Section 903. Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created
by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 601) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution
of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture
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which affects the Trustee's own rights, duties or immunities under this
Indenture or otherwise.
Section 904. Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under
this Article, this Indenture shall be modified in accordance therewith, and
such supplemental indenture shall form a part of this indenture for all
purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby.
Section 905. Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this
Article shall conform to the requirements of the Trust Indenture Act.
Section 906. Reference in Securities to
Supplemental Indentures.
Securities of any series authenticated and delivered
after the execution of any supplemental indenture pursuant to this Article
may, and shall if required by the Trustee, bear a notation in form approved
by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities of any series
so modified as to conform, in the opinion of the Trustee and the Company,
to any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series.
ARTICLE TEN
Covenants
Section 1001. Payment of Principal, Premium and Interest.
The Company covenants and agrees for the benefit of each
series of Securities that it will duly and punctually pay the principal of
and any premium and interest on the Securities of that series in accordance
with the terms of the Securities and this Indenture.
Section 1002. Maintenance of Office or Agency.
The Company will maintain in each Place of Payment for
any series of Securities an office or agency where Securities of that
series may be presented or surrendered
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for payment, where Securities of that series may be surrendered for
registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities of that series and this
Indenture may be served. The Company will give prompt written notice to
the Trustee of the location, and any change in the location, of such office
or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee, and the
Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.
The Company may also from time to time designate one or
more other offices or agencies where the Securities of one or more series
may be presented or surrendered for any or all such purposes and may from
time to time rescind such designations; that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in each Place of Payment for Securities of any
series for such purposes. The Company will give prompt written notice to
the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.
Section 1003. Money for Securities Payments to
Be Held in Trust.
If the Company shall at any time act as its own Paying
Agent with respect to any series of Securities, it will, on or before each
due date of the principal of or any premium or interest on any of the
Securities of that series, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay the principal and
interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the
Trustee of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents
for any series of Securities, it will, prior to each due date of the
principal of or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay such amount, such sum to be held as
provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.
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The Company may at any time, for the purpose of obtaining
the satisfaction and discharge of this Indenture or for any other purpose,
pay, or by Company Order direct any Paying Agent to pay, to the Trustee all
sums held in trust by the Company or such Paying Agent, such sums to be
held by the Trustee upon the same trusts as those upon which such sums were
held by the Company or such Paying Agent; and, upon such payment by any
Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.
Any money deposited with the Trustee or any Paying Agent,
or then held by the Company, in trust for the payment of the principal of
and any premiums or interest on any Security of any series and remaining
unclaimed for two years after such principal and any premium or interest
has become due and payable shall be paid to the Company on Company Request,
or (if then held by the Company) shall be discharged from such trust; and
the Holder of such Security or any coupon appertaining thereto shall
thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published
in the English language, customarily published on each Business day and of
general circulation in The City of New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such publication, any unclaimed balance of
such money then remaining will be repaid to the Company.
Section 1004. Statement by Officers as to Default.
The Company will deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company ending after the date
hereof, an Officers' Certificate, stating whether or not to the best
knowledge of the signers thereof the Company is in default in the
performance and observance of any of the terms, provisions and conditions
of this Indenture (without regard to any period of grace or requirement of
notice provided hereunder) and, if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which
they may have knowledge.
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Section 1005. Existence.
Subject to Article Eight, the Company will do or cause to
be done all things necessary to preserve and keep in full force and effect
its existence, rights (charter statutory) and franchises; provided,
however, that the Company shall not be required to preserve any such right
or franchise if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business
of the Company and that the loss thereof is not disadvantageous in any
material respect to the Holders.
Section 1006. Maintenance of Properties.
The Company will cause all properties used or useful in
the conduct of its business or the business of any Subsidiary to be
maintained and kept in good condition, repair and working order and
supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Company may be necessary so that the
business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in
this Section shall prevent the Company from discontinuing the operation or
maintenance of any of such properties if such discontinuance is, in the
judgment of the Company, desirable in the conduct of its business or the
business of any Subsidiary and not disadvantageous in any material respect
to the Holders.
Section 1007. Payment of Taxes and Other Claims.
The Company will pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (1) all taxes,
assessments and governmental charges levied or imposed upon the Company or
any Subsidiary or upon the income, profits or property of the Company or
any Subsidiary, and (2) all lawful claims for labor, materials and supplies
which, if unpaid, might by law become a lien upon the property of the
Company or any Subsidiary; provided, however, that the Company shall not be
required to pay or discharge or cause to be paid or discharged any such
tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings.
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Section 1008. Limitation upon Disposition of Voting Stock of, and Merger
and Sale of Assets of, Banco Popular.
Subject to the provisions of Article Eight, the Company
will not
(1) sell, assign, transfer or otherwise dispose of any
shares of Voting Stock of Banco Popular or permit Banco Popular
to issue, sell, assign, transfer or otherwise dispose of any
shares of, or securities convertible into or options, warrants
or rights to subscribe for, its Voting Stock, unless, after
giving effect to any such transaction, Banco Popular remains a
Controlled Subsidiary; or
(2) permit Banco Popular to
(a) merge or consolidate, unless the surviving
corporation is a Controlled Subsidiary; or
(b) convey, transfer, lease or sell its
properties and assets substantially as an entirety to any
Person, except to a Controlled Subsidiary.
Section 1009. Limitation Upon Creation of Liens on Voting Stock of
Material Banking Subsidiaries.
The Company will not, and it will not permit any Material
Banking Subsidiary at any time directly or indirectly to, create, assume,
incur or permit to exist any indebtedness for borrowed money secured by a
pledge, lien or other encumbrance (any pledge, lien or other encumbrance
being hereinafter in this Section referred to as a "lien") on the Voting
Stock of any Material Banking Subsidiary without making effective provision
whereby the Outstanding Securities (and, if the Company so elects, any
other indebtedness ranking on a parity with the Securities) shall be
secured equally and ratably with such secured indebtedness so long as such
other indebtedness shall be so secured; provided, however, that the
foregoing covenant shall not be applicable to liens for taxes or
assessments or governmental charges or levies not then due and delinquent
or the validity of which is being contested in good faith or which are less
than $10,000,000 in amount, liens created by or resulting from any
litigation or legal proceeding which is currently being contested in good
faith by appropriate proceedings or which involve claims of less than
$10,000,000, or deposits to secure (or in lieu of) surety, stay, appeal or
customs bands.
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If the company shall hereafter be required to secure the
Securities equally and ratably with any other indebtedness pursuant to this
Section, (i) the Company will promptly deliver to the Trustee an Officers'
Certificate stating that the foregoing covenant has been complied with, and
an Opinion of Counsel stating that in the opinion of such counsel the
foregoing covenant has been complied with and that any instruments executed
by the Company or any Subsidiary in the performance of the foregoing
covenant comply with the requirements of the foregoing covenant and (ii)
the Trustee is hereby authorized to enter into an indenture or agreement
supplemental hereto and to take such action, if any, as it may deem
advisable to enable it to enforce the rights of the holders of the
Securities so secured.
Section 1010. Payment of Additional Amounts.
All payments of principal, premium, if any, and interest
on Securities of any series shall be made without set-off, counterclaim,
fees, liabilities or similar deductions, and free and clear of, and without
deduction or withholding for, taxes, levies, imposts, duties, charges or
fees of whatsoever nature now or hereafter imposed, levied, collected,
deducted, withheld or assessed by or on behalf of the Commonwealth of
Puerto Rico or any political subdivision or taxing authority thereof or
therein ("Taxes"). If the Company or any agent thereof is required by law
or regulation to make any deduction or withholding for or on account of
Taxes, the Company shall pay such additional amounts ("Additional Amounts")
as shall be necessary in order that the net amounts received by the Holders
of the Securities of any series or the holders or beneficial owners of any
interest therein or rights in respect thereof after such deduction or
withholding shall equal the amount that would have been receivable
thereunder in the absence of such deduction or withholding, except that no
such Additional Amounts shall be payable:
(a) to any Holder of a Security or any interest therein
or rights in respect thereof where such deduction or
withholding is required by reason of such Holder having some
connection with the Commonwealth of Puerto Rico or any
political subdivision or taxing authority thereof or thereon
other than the mere holding of a payment in respect of such
security;
(b) in respect of any deduction or withholding that
would not have been required but for the presentation by the
Holder of a Security for payment on a date more than 30 days
after the Date of Maturity or
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the date on which payment thereof is duly provided for, whichever occurs
later; or
(c) in respect of any deduction or withholding that
would not have been required but for the failure to comply with
any certification, identification or other reporting
requirements concerning the nationality, residence, identity or
connection with the Commonwealth of Puerto Rico, or any
political subdivision or taxing authority thereof or therein,
of the Holder of a Security or any interest therein or rights
in respect thereof, if compliance is required by the
Commonwealth of Puerto Rico, or any political subdivision or
taxing authority thereof or therein, as a precondition to
exemption from such deduction or withholding.
Any reference in the Indenture to principal or interest
shall be deemed also to refer to any Additional Amounts that may be payable
under this Section 1010.
Section 1011. Waiver of Certain Covenants.
The Company may omit in any particular instance to comply
with any term, provision or condition set forth in Sections 1006 to 1009,
inclusive, with respect to the Securities of any series if before the time
for such compliance the Holders of at least 66-2/3% in principal amount of
the Outstanding Securities of such series shall, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance
with such term, provision or condition, but no such waiver shall extend to
or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any
such term, provision or condition shall remain in full force and effect.
ARTICLE ELEVEN
Redemption of Securities
Section 1101. Applicability of Article.
Securities of any series which are redeemable before
their Stated Maturity shall be redeemable in accordance with their terms
and (except as otherwise specified as contemplated by Section 301 for
Securities of any series) in accordance with this Article.
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Section 1102. Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities
shall be evidenced by or pursuant to a Board Resolution. In case of any
redemption at the election of the Company of less than all the Securities
of any series, the Company shall, at least 60 days prior to the Redemption
Date fixed by the Company (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee of such Redemption Date, of the principal
amount of Securities of such series to be redeemed and, if applicable, of
the tenor of the Securities to be redeemed. In the case of any redemption
of Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture,
the Company shall furnish the Trustee with an Officers' Certificate
evidencing compliance with such restriction.
Section 1103. Selection by Trustee of Securities
to Be Redeemed.
If less than all the Securities of any series are to be
redeemed (unless all of the Securities of such series and of a specified
tenor are to be redeemed), the particular Securities to be redeemed shall
be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the outstanding Securities of such series not previously
called for redemption, by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of
portions (equal to the minimum authorized denomination for Securities of
that series or any integral multiple thereof) of the principal amount of
Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series. If less than all of
the Securities of such series and of a specified tenor are to be redeemed,
the particular Securities to be redeemed shall be selected not more than 60
days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series and specified tenor not previously called for
redemption in accordance with the preceding sentence.
The Trustee shall promptly notify the Company in writing
of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to
be redeemed.
For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Securities redeemed or to be redeemed only
in part, to the
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portion of the principal amount of such Securities which has been or is to
be redeemed.
Section 1104. Notice of Redemption.
Notice of redemption shall be given by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the
Redemption Date, unless a shorter period is specified in the Securities to
be redeemed, to each Holder of Securities to be redeemed, at his address
appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price,
(3) if less than all the Outstanding Securities of any
series are to be redeemed, the identification (and, in the case
of partial redemption of any Securities, the principal amounts)
of the particular Securities to be redeemed,
(4) that on the Redemption Date the Redemption Price will
become due and payable upon each such Security to be redeemed
and, if applicable, that interest thereon will cease to accrue
on and after said date,
(5) the place or places where such Securities are to be
surrendered for payment of the Redemption Price, and
(6) that the redemption is for a sinking fund, if such is
the case.
Notice of Redemption of Securities to be redeemed at the
election of the Company shall be given by the Company or, at the Company's
request, by the Trustee in the name and at the expense of the Company.
Section 1105. Deposit of Redemption Price.
Prior to any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as
its own Paying Agent, segregate and hold in trust as provided in Section
1003) an amount of money sufficient to pay the Redemption Price of, and
(except if the Redemption Date shall be an Interest Payment Date) accrued
interest on, all the Securities which are to be redeemed on that date.
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Section 1106. Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid,
Securities so to be redeemed shall, on the Redemption Date, become due and
payable at the Redemption Price therein specified, and from and after such
date (unless the Company shall default in the payment of the Redemption
Price and accrued interest) such Securities shall cease to bear interest.
Upon surrender of any such Security for redemption in accordance with said
notice, such Security shall be paid by the Company at the Redemption Price,
together with accrued interest to the Redemption Date; provided, however,
that, unless otherwise specified as contemplated by Section 301,
installments of interest whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Securities, or one
or more Predecessor Securities, registered as such at the close of business
on the relevant Record Dates according to their terms and the provisions of
Section 307.
If any Security called for redemption shall not be so
paid upon surrender thereof for redemption, the principal and any premium
shall, until paid, bear interest from the Redemption Date at the rate
prescribed therefor in the Security.
Section 1107. Securities Redeemed in Part.
Any Security which is to be redeemed only in part shall
be surrendered at a Place of Payment therefor (with, if the Company or the
Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or his attorney duly authorized in writing), and the
Company shall execute, and the Trustee shall authenticate and deliver to
the Holder of such Security without service charge, a new Security or
Securities of the same series and of like tenor, of any authorized
denomination as requested by such Holder, in aggregate principal amount
equal to and in exchange for the unredeemed portion of the principal of the
Security so surrendered.
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ARTICLE TWELVE
Sinking Funds
Section 1201. Applicability of Article.
The provisions of this Article shall be applicable to any
sinking fund for the retirement of Securities of a series except as
otherwise specified as contemplated by Section 301 for Securities of such
series.
The minimum amount of any sinking fund payment provided
for by the terms of Securities of any series is herein referred to as a
"mandatory sinking fund payment", and any payment in excess of such minimum
amount provided for by the terms of Securities of any series is herein
referred to as an "optional sinking fund payment". If provided for by the
terms of Securities of any series, the cash amount of any sinking fund
payment may be subject to reduction as provided in Section 1202. Each
sinking fund payment shall be applied to the redemption of Securities of
any series as provided for by the terms of Securities of such series.
Section 1202. Satisfaction of Sinking Fund Payments
with Securities.
The Company (1) may deliver Outstanding Securities of a
series (other than any previously called for redemption) and (2) may apply
as a credit Securities of a series which have been redeemed and so
delivered either at the election of the Company pursuant to the terms of
such Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to
the Securities of such series required to be made pursuant to the terms of
such securities as provided for by the terms of such series; provided that
such Securities have not been previously so credited. Such Securities
shall be received and credited for such purpose by the Trustee at the
Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment
shall be reduced accordingly.
Section 1203. Redemption of Securities for Sinking Fund.
Not less than 45 days prior to each sinking fund payment
date for any series of Securities, the Company will deliver to the Trustee
an Officers' Certificate specifying the amount of the next ensuing sinking
fund payment for that
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<PAGE> 73
series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting Securities of
that series pursuant to Section 1202 and will also deliver to the Trustee
any Securities to be so delivered. Not less than 30 days before each such
sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in
Section 1103 and cause notice of the redemption thereof to be given in the
name of and at the expense of the Company in the manner provided in Section
1104. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in
Sections 1106 and 1107.
This instrument may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above
written.
BANPONCE CORPORATION
By /s/ David H. Chafey, Jr.
David H. Chafey, Jr.
Executive Vice President
By /s/ Roberto R. Herencia
Roberto R. Herencia
Senior Vice President
Attest: /s/ Brunilda Santos de Alvarez
THE FIRST NATIONAL BANK
OF CHICAGO
By /s/ Melissa Weisman
Melissa Weisman
Assistant Vice President
Affidavit No. 2565
Sworn and subscribed to before me by David H. Chafey, Jr. of legal age,
married and resident of San Juan, Puerto Rico as Executive Vice President of
BanPonce Corporation and by Roberto R. Herencia, of legal age, married and
resident of the state of Illinois, as Senior Vice President of BanPonce
Corporation, both of whom are personally known to me, in San Juan, Puerto Rico
this 12th day of April, 1995.
By /s/ Brunilda Santos de Alvarez
Brunilda Santos de Alvarez
Notary Public
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<PAGE> 75
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the 13th day of April, 1995, before me personally
came Melissa G. Weisman, to me known, who, being by me duly sworn, did
depose and say that she is an Assistant Vice President of The First
National Bank of Chicago, one of the corporations described in and which
executed the foregoing instrument; that she knows the seal of said corpo-
ration; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that she signed her name thereto by like authority.
/s/ Edith M. Marino
Edith M. Marino
Notary Public, State of New York
<PAGE> 1
Exhibit (8)(a)
SULLIVAN & CROMWELL
125 Broad Street
New York, New York 10004
April 13, 1995
BanPonce Corporation,
209 Munoz Rivera Avenue,
Hato Rey, Puerto Rico 00918.
Dear Sirs:
We have acted as your counsel in connection with the
registration under the Securities Act of 1933 (the "Act") of up to
$500,000,000 aggregate initial offering price, or the equivalent thereof in
other currencies or currency units, of Medium Term Notes, Series 1 (the
"Notes") of BanPonce Corporation, and hereby confirm to you our opinion as
set forth under the heading "United States Taxation" in the Prospectus
Supplement relating to the Notes filed under the Act on April 13, 1995.
We hereby consent to the filing with the Securities and
Exchange Commission of this letter as an exhibit to the Registration
Statement and the reference to us in the above-mentioned Prospectus
Supplement under the heading "United States Taxation". In giving such
consent, we do not thereby admit that we are in the category of
persons whose consent is required under Section 7 of the Act.
Very truly yours,
/s/ SULLIVAN & CROMWELL
<PAGE> 1
Exhibit (8)(b)
McConnell Valdes
P.O. Box 364225, San Juan, Puerto Rico 00936-4225
Telephone (809) 759-9292 - Fax (809) 759-9225
April 13, 1995
BanPonce Corporation
209 Munoz, Rivera Avenue
Hato Rey, Puerto Rico 00918
Dear Sirs:
We have acted as your counsel in connection with the registration
under the Securities Act of 1933 (the "Act") of up to $500,000,000
aggregate initial offering price, or the equivalent thereof in other
currencies or currency units, of Medium Term Notes, Series 1 (the "Notes")
of BanPonce Corporation, and hereby confirm to you our opinion as set forth
under the heading "Certain Puerto Rico Tax Considerations" in the
Prospectus Supplement relating to the Notes filed under the Act on April
13, 1995.
We hereby consent to the filing with the Securities and Exchange
Commission of this letter as an exhibit to the Registration Statement and
the reference to us in the above-mentioned Prospectus Supplement under the
heading "Certain Puerto Rico Tax Considerations". In giving such consent,
we do not thereby admit that we are in the category of persons whose
consent is required under Section 7 of the Act.
Very truly yours,
/s/ McCONNELL VALDES
<PAGE> 1
Exhibit (10)(a)
BANPONCE CORPORATION
MEDIUM-TERM NOTE ADMINISTRATIVE PROCEDURES
(Dated as of February 15, 1995)
Medium-Term Notes (collectively, the "Notes") in the aggregate
principal amount of up to $500,000,000 are to be offered on a continuous
basis by BanPonce Corporation (the "Company") directly to purchasers and/or
through such agents as the Company may from time to time appoint (each, an
"Agent"). The Agents, if any, also may purchase Notes as principal for
resale.
The Notes will be issued pursuant to the Indenture (the "Indenture"),
dated as of February 15, 1995, between the Company and The First National
Bank of Chicago, as trustee (the "Trustee"). A Registration Statement (the
"Registration Statement", which term shall include any additional
registration statements filed in connection with the Notes) with respect to
the Notes has been filed with the Securities and Exchange Commission (the
"Commission"). The most recent base Prospectus included in the
Registration Statement, as supplemented with respect to the Notes, is
herein referred to as the "Prospectus." The most recent supplement to the
Prospectus with respect to the specific terms of the Notes is herein
referred to as the "Pricing Supplement."
The Notes will either be issued (a) in book-entry form and repre-
sented by one or more fully registered Notes (each, a "Book-Entry Note")
delivered to the appropriate Trustee, as agent for The Depository Trust
Company ("DTC"), and recorded in the book-entry system maintained by DTC,
or (b) in certificated form (each, a "Certificated Note") delivered to the
purchaser thereof or a person designated by such purchaser. Owners of
beneficial interests in Book-Entry Notes will be entitled to physical
delivery of Certificated Notes equal in principal amount to their
respective beneficial interests only upon certain limited circumstances
described in the Prospectus.
General procedures relating to the issuance of all Notes are set
forth in Part I hereof. Additionally, Book-Entry Notes will be issued in
accordance with the procedures set forth in Part II hereof and Certificated
Notes will be issued in accordance with the procedures set forth in Part
III hereof. Capitalized terms used but not otherwise defined herein shall
have the meanings ascribed thereto in the Indenture or the Notes, as the
case may be.
<PAGE>
<PAGE> 2
Part I: Procedures of General Applicability
Date of Issuance/
Authentication: Each Note will be dated as of the
date of its authentication by the
Trustee or its duly appointed
authenticating agent. Each Note
shall also bear an original issue
date (the "Original Issue Date").
The Original Issue Date shall
remain the same for all Notes
subsequently issued upon
transfer, exchange or
substitution of an original Note
regardless of their dates of
authentication.
Maturities: Each Note will mature on a date
selected by the purchaser and
agreed to by the Company which is
not less than nine months nor
more than thirty years from its
Original Issue Date; provided,
however, that Notes bearing
interest at rates determined by
reference to selected indices
("Floating Rate Notes") will
mature on an Interest Payment
Date.
Currencies: Each Note shall be denominated in
one of the currencies or currency
units, as specified in the
relevant Pricing Supplement, or
in such other currency or
currency unit as may be agreed
from time to time between the
Company and each purchaser (or
each Agent) and as specified in
the relevant Pricing Supplement,
or, if no currency or currency
unit is specified therein, in
U.S. dollars. Notes denominated
in one or more currencies or
currency units other than in U.S.
dollars are herein referred to as
"Multi-Currency Notes." Notes
that have the amount of principal
payments determined by reference
to an index currency are herein
referred to as "Indexed Notes."
Denominations: The Notes will be issued in
denominations of $1,000 and
integral
<PAGE>
<PAGE> 3
multiples thereof. Any Notes
denominated other than in U.S.
dollars will be issuable in
denominations as set forth in the
relevant Multi-Currency and
Indexed Note Prospectus
Supplement. For special
provisions relating to Multi-
Currency Notes and Indexed Notes,
see the related Multi-Currency
and Indexed Note Supplement.
Registration: Notes will be issued only in
fully registered form.
Redemption/Repayment: The Notes will be subject to
repayment at the option of the
Holders thereof in accordance
with the terms of the Notes on
their respective Optional
Repayment Dates, if any.
Optional Repayment Dates, if any,
will be fixed at the time of sale
and set forth in the applicable
Pricing Supplement and in the
applicable Note. If no Optional
Repayment Dates are indicated
with respect to a Note, such Note
will not be repayable at the
option of the Holder prior to
Maturity.
The Notes will be subject to
redemption by the Company on and
after their respective Initial
Redemption Dates, if any. Initial
Redemption Dates, if any, will be
fixed at the time of sale and set
forth in the applicable Pricing
Supplement and in the applicable
Note. If no Initial Redemption
Dates are indicated with respect
to a Note, such Note will not be
redeemable prior to Maturity.
Calculation of
Interest: In the case of Fixed Rate Notes,
interest (including payments for
partial periods) will be calcu-
lated and paid on the basis of a
360-day year of twelve 30-day
months. In the case of Floating
Rate Notes, interest will be
calculated and
<PAGE>
<PAGE> 4
paid on the basis of the actual
number of days in the interest
period divided by 360 with the
exception of Treasury Rate Notes
for which interest will be calcu-
lated on the basis of the actual
number of days in the interest
period divided by the actual
number of days in the year. If
an Interest Payment Date with
respect to any Fixed Rate Note
falls on a day that is not a
Business Day (as hereinafter
defined), the payment of interest
required to be made on such
Interest Payment Date need not be
made on such day, but may be made
on the next succeeding Business
Day with the same force and
effect as if made on such
Interest Payment Date and no
interest shall accrue on such
payment for the period from and
after such Interest Payment Date.
If an Interest Payment Date with
respect to any Floating Rate Note
would otherwise fall on a day
that is not a Business Day, such
Interest Payment Date will be the
following day that is a Business
Day, except that in the case of a
LIBOR Note, if such day falls in
the next calendar month, such
Interest Payment Date will be the
preceding day that is a Business
Day. If the Stated Maturity, or
date of earlier redemption or
repayment, as the case may be, of
a Note is not a Business Day, the
payment of principal and interest
due on such day shall be made on
the next succeeding Business Day
and no interest shall accrue on
such payment for the period from
and after such Stated Maturity,
or date of earlier redemption or
repayment. For special
provisions relating to Multi-
Currency Notes and Indexed Notes,
see the related Multi-Currency
and Indexed Note Prospectus
Supplement.
<PAGE>
<PAGE> 5
Acceptance and
Rejection of Offers: The Company shall have the sole
right to accept offers to
purchase Notes from the Company
and may reject any such offer in
whole or in part. Each Agent
shall communicate to the Company,
orally or in writing, each
reasonable offer to purchase
Notes from the Company received
by it. Each Agent shall have the
right, in its discretion
reasonably exercised, without
notice to the Company, to reject
any offer to purchase Notes
through it in whole or in part.
Preparation of
Pricing Supplement: If any offer to purchase a Note
is accepted by the Company, the
Company, with the approval of the
Agent which presented the order,
if any (the "Presenting Agent"),
will prepare a Pricing Supplement
reflecting the terms of such Note
and file 10 Pricing Supplements
relating to the Notes with the
Commission in accordance with
Rule 424 under the Act. Infor-
mation to be included in the
Pricing Supplement shall include:
1. the name of the
Company;
2. the title of the
securities, including series
designation, if any;
3. the date of the
Pricing Supplement and the date
of the Prospectus Supplement to
which the Pricing Supplement
relates;
4. the Price to Public
(but only if (a) the trade is
being made by an Agent on an
agency basis or directly by the
Company and (b) such Price to
Public is other than 100%);
5. Net Proceeds to the
Company (but only if (a) the
trade
<PAGE>
<PAGE> 6
is being made on a principal
basis by an Agent and (b) the Net
Proceeds to the Company is other
than 100%), less what would have
been the applicable agency
commission;
6. the information with
respect to the terms of the Notes
set forth below (whether or not
the applicable Note is a Book-
Entry Note) under "Procedures for
Notes Issued in Book-Entry Form
-- Settlement Procedures", items
2, 3, 7, 8 and 9; and
7. any other terms of the
Notes not otherwise specified in
the Prospectus or Prospectus
Supplement.
One copy of such filed document
will be sent by telecopy or over-
night express (for delivery not
later than 11:00 A.M. on the
Business Day next following the
trade date) to the applicable
Presenting Agent, if any, at the
address previously notified to
the Company in writing by such
Presenting Agent.
The Company or Presenting Agent,
if any, will cause a stickered
supplemented Prospectus with the
trade confirmation to be
delivered to the purchaser of the
Note.
For record keeping purposes, one
copy of each Pricing Supplement
shall also be mailed or
telecopied to each Agent at the
address previously notified to
the Company in writing by such
Agent, and to
<PAGE>
<PAGE> 7
the Trustee at the following
address:
The First National Bank of
Chicago
One First National Plaza
Suite 0126
Chicago, Illinois 60670-0126
Attention: Corporate Trust
Administration
In each instance that a Pricing
Supplement is prepared, the
Company or the Presenting Agent,
if any, will affix the Pricing
Supplement to supplemented
Prospectuses prior to its use.
Outdated Pricing Supplements and
the Prospectuses to which they
are attached (other than those
retained for files) will be
destroyed.
Settlement: The receipt of immediately avail-
able funds by the Company in
payment for a Note and the
authentication and delivery of
such Note shall, with respect to
such Note, constitute
"settlement." Offers accepted by
the Company will be settled at a
time as the purchaser and the
Company shall agree and pursuant
to the timetable for settlement
set forth in Parts II and III
hereof under "Settlement
Procedures" with respect to
Book-Entry Notes and Certificated
Notes, respectively (each such
date fixed for settlement, a
"Settlement Date"). If
procedures A and B of the
applicable Settlement Procedures
with respect to a particular
offer are not completed on or
before the time set forth under
the applicable "Settlement
Procedures Timetable", such offer
shall not be settled until the
Business Day following the
completion of Settlement
Procedures A and B or such later
date as the purchaser and the
Company shall agree.
<PAGE>
<PAGE> 8
In the event of a purchase of
Notes by a Presenting Agent as
principal, appropriate settlement
details will be set forth in the
applicable Terms Agreement to be
entered into between the
Presenting Agent and the Company
pursuant to the applicable
Distribution Agreement.
Procedure for Changing
Rates or Other
Variable Terms: When a decision has been reached
to change the interest rate or
any other variable term on any
Notes being offered by the
Company, the Company will
promptly advise the Agents, if
any, and such Agents will
forthwith suspend solicitation of
offers to purchase such Notes.
Each Agent will telephone the
Company with recommendations as
to the changed interest rates or
other variable terms. At such
time as the Company advises the
Agents of the new interest rates
or other variable terms, the
Agents may resume solicitation of
offers to purchase such Notes.
Until such time, only
"indications of interest" may be
recorded. Immediately after
acceptance by the Company of an
offer to purchase at a new
interest rate or new variable
term, the Company, any Agents and
the Trustee shall follow the
procedures set forth under the
applicable "Settlement
Procedures."
Suspension of
Solicitation;
Amendment or
Supplement: The Company may instruct the
Agents, if any, to suspend
solicitation of purchases at any
time. Upon receipt of such
instructions, the Agents will
forthwith suspend solicitation of
offers to purchase from the
Company until such time as the
Company has advised them that
solicitation of offers to
purchase may be resumed.
<PAGE>
<PAGE> 9
If the Company decides to amend
the Registration Statement
(including incorporating any
documents by reference therein)
or supplement any of such
documents (other than to change
rates or other variable terms),
they will promptly advise the
Agents, if any, and, except in
the case of an amendment by the
filing of a document incorporated
by reference in the Registration
Statement, will furnish each
Agent and its counsel with copies
of the proposed amendment or
supplement. One copy of such
filed document, along with a copy
of the cover letter sent to the
Commission, will be delivered or
mailed to the Agents at the
addresses previously notified to
the Company in writing by each
Agent.
In the event that at the time the
solicitation of offers to
purchase from the Company is
suspended (other than to change
interest rates or other variable
terms) there shall be any offers
to purchase Notes that have been
accepted by the Company which
have not been settled, the
Company will promptly advise any
Agents and the Trustee whether
such offers may be settled and
whether copies of the Prospectus
as theretofore amended and/or
supplemented as in effect at the
time of the suspension may be
delivered in connection with the
settlement of such orders. The
Company will have the sole
responsibility for such decision
and for any arrangements which
may be made in the event that the
Company determines that such
orders may not be settled or that
copies of such Prospectus may not
be so delivered.
Delivery of Prospectus: A copy of the most recent
Prospectus and Pricing Supplement
must accompany or precede the
earlier of (a) the written
confirmation of a
<PAGE>
<PAGE> 10
sale sent to a customer or his
agent and (b) the delivery of
Notes to a customer or his agent.
Authenticity of
Signatures: The Agents, if any, will have no
obligation or liability to the
Company or the Trustee in respect
of the authenticity of the
signature of any officer,
employee or agent of the Company
or the Trustee on any Note.
Documents Incorporated
by Reference: The Company shall supply each
Agent with an adequate supply of
all documents incorporated by
reference in the Registration
Statement.
Business Day: "Business Day" means any day
other than a Saturday, Sunday, or
other day on which banks in The
City of New York (and, with
respect to LIBOR Notes, the City
of London) are authorized or
obligated by law or executive
order to close. For the
definition of "Business Day" with
respect to Multi-Currency Notes
or Indexed Notes, see the
Prospectus Supplement.
<PAGE>
<PAGE> 11
PART II: PROCEDURES FOR NOTES ISSUED
IN BOOK-ENTRY FORM
In connection with the qualification of Book-Entry Notes for
eligibility in the book-entry system maintained by DTC, the Trustee will
perform the custodial, document control and administrative functions
described below, in accordance with its obligations under a Letter of
Representations from the Company and the Trustee to DTC, dated April 12,
1995, and a Medium-Term Note Certificate Agreement between the Trustee and
DTC, dated May 26, 1989 (the "Certificate Agreement"), and its obligations
as a participant in DTC, including DTC's Same-Day Funds Settlement System
("SDFS").
Issuance: All Fixed Rate Book-Entry Notes
having the same Original Issue
Date, interest rate, terms of
redemption or repayment, if any,
and Stated Maturity
(collectively, the "Fixed Rate
Terms") will be represented
initially by a single global
security in fully registered form
without coupons; and all Floating
Rate Book-Entry Notes having the
same Original Issue Date,
interest rate basis or bases upon
which interest may be determined
(each, an "Interest Rate Basis"),
which may be one or more of the
Commercial Paper Rate, the
Treasury Rate, LIBOR, the CD
Rate, the CMT Rate, the Federal
Funds Rate, the Prime Rate, the
Eleventh District Cost of Funds
Rate, any other rate set forth by
the Company, Initial Interest
Rate, Index Maturity, Spread
and/or Spread Multiplier, if any,
Minimum Interest Rate, if any,
Maximum Interest Rate, if any,
terms of redemption or repayment,
if any, and Stated Maturity (col-
lectively, "Floating Rate Terms")
will be represented initially by
a single Book-Entry Note.
Each Book-Entry Note will be
dated and issued as of the date
of its authentication by the
Trustee or its duly appointed
authenticating
<PAGE>
<PAGE> 12
agent. Each Book-Entry Note will
bear interest from a date (the
"Interest Accrual Date") which
will be (a) with respect to an
original Book-Entry Note (or any
portion thereof), its Original
Issue Date and (b) with respect
to any Book-Entry Note (or
portion thereof) issued
subsequently upon exchange or
transfer of a Book-Entry Note or
in lieu of a destroyed, lost or
stolen Book-Entry Note, the most
recent Interest Payment Date (or,
in the case of Floating Rate
Notes with interest rates which
reset daily or weekly, the day
following the most recent Record
Date) to which interest has been
paid or duly provided for on the
predecessor Book-Entry Note or
Notes (or if no such payment or
provision has been made, the
Original Issue Date of the
predecessor Book-Entry Note or
Notes), regardless of the date of
authentication of such
subsequently issued Book-Entry
Note. No Book-Entry Note shall
represent any Certificated Note.
Identification: The Company has arranged with the
CUSIP Service Bureau (the "CUSIP
Service Bureau") of Standard &
Poor's Corporation ("Standard &
Poor's") for the reservation of
approximately 900 CUSIP numbers
for each rank of Notes which have
been reserved for future
assignment to Book-Entry Notes
representing Notes issued in
book-entry form and has delivered
to the Trustee and DTC an initial
written list of such CUSIP
numbers. The Trustee will assign
CUSIP numbers to Book-Entry Notes
as described below under
Settlement Procedure B. DTC will
notify the CUSIP Service Bureau
periodically of the CUSIP numbers
that the Trustee has assigned to
Book-Entry Notes. The Trustee
will notify the Company at any
time when fewer than
<PAGE>
<PAGE> 13
100 of the respective reserved
CUSIP numbers remain unassigned
to Book-Entry Notes, and, if it
deems necessary, the Company will
reserve additional CUSIP numbers
for assignment to Book-Entry
Notes representing Notes issued
in book-entry form. Upon
obtaining such additional CUSIP
numbers, the Company will deliver
a list of such additional numbers
to the Trustee and DTC. Book-
Entry Notes having an aggregate
principal amount in excess of
$150,000,000 and otherwise
required to be represented by the
same Global Certificate will
instead be represented by two or
more Global Certificates which
shall be assigned the same CUSIP
number.
Registration: Each Book-Entry Note will be
registered in the name of CEDE &
Co., as nominee for DTC, on the
register maintained by the
Trustee under the Indenture. The
beneficial owner of a Book-Entry
Note (i.e., an owner of a
beneficial interest in a Book-
Entry Note), or one or more
indirect participants in DTC
designated by such owner, will
designate one or more
participants in DTC (with respect
to such Book-Entry Note, the
"Participants") to act as agent
for such beneficial owner in
connection with the book-entry
system maintained by DTC, and DTC
will record in book-entry form,
in accordance with instructions
provided by such Participants, a
credit balance with respect to
such Book-Entry Note in the
account of such Participants.
The ownership interest of such
beneficial owner in such Book-
Entry Note will be recorded
through the records of such
Participants or through the
separate records of such Partici-
pants and one or more indirect
participants in DTC.
<PAGE>
<PAGE> 14
Transfers: Transfers of beneficial interests
in a Book-Entry Note will be
accomplished by book entries made
by DTC and, in turn, by
Participants (and in certain
cases, one or more indirect
participants in DTC) acting on
behalf of beneficial transferors
and transferees of such Book-
Entry Note.
Exchanges: The Trustee may deliver to DTC
and the CUSIP Service Bureau at
any time a written notice
specifying (a) the CUSIP numbers
of two or more Book-Entry Notes
Outstanding on such date that
represent Book-Entry Notes having
the same Fixed Rate Terms or
Floating Rate Terms, as the case
may be, other than Original Issue
Dates, and for which interest has
been paid to the same date; (b) a
date, occurring at least 30 days
after such written notice is
delivered and at least 30 days
before the next Interest Payment
Date for the related Book-Entry
Notes, on which such Book-Entry
Notes shall be exchanged for a
single replacement Book-Entry
Note; and (c) a new CUSIP number
to be assigned to such
replacement Book-Entry Note.
Upon receipt of such a notice,
DTC will send to its Participants
(including the Trustee) a written
reorganization notice to the
effect that such exchange will
occur on such date. Prior to the
specified exchange date, the
Trustee will deliver to the CUSIP
Service Bureau written notice
setting forth such exchange date
and the new CUSIP number and
stating that, as of such exchange
date, the CUSIP numbers of the
Book-Entry Notes to be exchanged
will no longer be valid. On the
specified exchange date, the
Trustee will exchange such Book-
Entry Notes for a single Book-
Entry Note bearing the new CUSIP
number and the CUSIP numbers of
the
<PAGE>
<PAGE> 15
exchanged Book-Entry Notes will,
in accordance with CUSIP Service
Bureau procedures, be cancelled
and not immediately reassigned.
Notwithstanding the foregoing, if
the Book-Entry Notes to be
exchanged exceed $150,000,000 in
aggregate principal amount, one
replacement Book-Entry Note will
be authenticated and issued to
represent each $150,000,000 of
principal amount of the exchanged
Book-Entry Notes and an
additional Book-Entry Note will
be authenticated and issued to
represent any remaining principal
amount of such Book-Entry Notes
(see "Denominations" below).
Denominations: All Book-Entry Notes will be
denominated in U.S. dollars and
will be issued in denominations
of $1,000 and integral multiples
thereof. Book-Entry Notes will
be denominated in principal
amounts not in excess of
$150,000,000. If one or more
Book-Entry Notes having an
aggregate principal amount in
excess of $150,000,000 would, but
for the preceding sentence, be
represented by a single Book-
Entry Note, then one Book-Entry
Note will be issued to represent
each $150,000,000 principal
amount of such Note or Notes
issued in book-entry form and an
additional Book-Entry Note will
be issued to represent any
remaining principal amount of
such Note or Notes issued in
book-entry form. In such a case,
each of the Book-Entry Notes
shall be assigned the same CUSIP
number.
Interest: General. Interest on each Note
issued in book-entry form will
accrue from the Interest Accrual
Date of the Book-Entry Note
representing such Note. Each
payment of interest on a Book-
Entry Note will include interest
accrued through the day
preceding, as the case may
<PAGE>
<PAGE> 16
be, the Interest Payment Date
(provided that in the case of
Floating Rate Notes with interest
rates which reset daily or weekly
interest payments will include
interest accrued to and including
the Regular Record Date
immediately preceding the
Interest Payment Date), the
Stated Maturity Date, Redemption
Date or Repayment Date. Interest
payable at Maturity of a Book-
Entry Note will be payable to the
Person to whom the principal of
such Note is payable. DTC will
arrange for each pending deposit
message described under
Settlement Procedure C below to
be transmitted to Standard &
Poor's Corporation ("S&P"), which
will use the information in the
message to include certain terms
of the related Book-Entry Note in
the appropriate daily bond report
published by S&P.
Interest Payment Dates. Interest
payments will be made on each
Interest Payment Date commencing
with the first Interest Payment
Date following the Original Issue
Date; provided, however, the
first payment of interest on any
Book-Entry Note originally issued
between a Regular Record Date and
an Interest Payment Date will
occur on the Interest Payment
Date following the next Regular
Record Date.
Fixed Rate Notes. Interest pay-
ments on Fixed Rate Book-Entry
Notes will be made semiannually
on June 15 and December 15 of
each year and at Maturity.
Floating Rate Notes. Except as
provided in Part I under "Calcu-
lation of Interest", the Interest
Payment Date for a Floating Rate
Note will be, in the case of
Floating Rate Notes which reset
<PAGE>
<PAGE> 17
daily, weekly or monthly, on the
third Wednesday of each month or
on the third Wednesday of March,
June, September and December of
each year as specified in the
applicable Pricing Supplement; in
the case of Floating Rate Notes
which reset quarterly, on the
third Wednesday of March, June,
September and December of each
year; in the case of Floating
Rate Notes which reset
semiannually, on the third
Wednesday of the two months of
each year specified in the
applicable Pricing Supplement;
or, in the case of Eleventh
District Cost of Funds Rate
Notes, on the first Business Day
of each month or the first
Business Day of each March, June,
September or December as
specified in the applicable
Pricing Supplement and in the
case of Floating Rate Notes which
reset annually, on the third
Wednesday of the month specified
in the applicable Pricing
Supplement; and, in each case, at
Maturity. For additional special
provisions relating to Floating
Rate Notes, see the Prospectus
Supplement.
Regular Record Dates. The
Regular Record Date with respect
to any Interest Payment Date for
a Fixed Rate Note shall be the
May 31 or November 30 preceding
such Interest Payment Date. The
Regular Record Date with respect
to any Interest Payment Date for
any Floating Rate Note shall be
the date 15 calendar days
(whether or not a Business Day)
preceding such Interest Payment
Date.
Notice of Interest Payments and
Regular Record Dates. On the
first Business Day of January,
April, July and October of each
year, the Trustee will deliver to
the Company and DTC a written
list of Regular Record Dates and
Interest Payment
<PAGE>
<PAGE> 18
Dates that will occur during the
six-month period beginning on
such first Business Day with
respect to Floating Rate Book-
Entry Notes. Promptly after each
Interest Determination Date for
Floating Rate Book-Entry Notes,
the Company will notify S&P of
the interest rates determined on
such Interest Determination Date.
Payments of Principal
and Interest: Payments of Interest Only.
Promptly after each Regular
Record Date, the Trustee will
deliver to the Company and DTC a
written notice specifying by
CUSIP number the amount of
interest to be paid on each Book-
Entry Note issued under the
Indenture on the following
Interest Payment Date (other than
an Interest Payment Date coin-
ciding with Maturity) and the
total of such amounts. DTC will
confirm the amount payable on
each Book-Entry Note on such
Interest Payment Date by
reference to the daily bond
reports published by Standard &
Poor's. On such Interest Payment
Date, the Company will pay to the
Trustee, and the Trustee in turn
will pay to DTC, such total
amount of interest due (other
than at Maturity), at the times
and in the manner set forth below
under "Manner of Payment."
Payments at Maturity. On or
about the first Business Day of
each month, the Trustee will
deliver to the Company and DTC a
written list of principal,
interest and premium, if any, to
be paid on each Book-Entry Note
issued under the Indenture having
a Maturity in the following
month. The Trustee and DTC will
confirm the amounts of such
principal, premium and interest
payments with respect to a Book-
Entry Note on or about the fifth
Business Day preceding the
<PAGE>
<PAGE> 19
Maturity of such Book-Entry Note.
At such maturity, the Company
will pay to the Trustee, and the
Trustee in turn will pay to DTC,
the principal amount of such
Note, together with interest and
premium, if any, due at such
Maturity, at the times and in the
manner set forth below under
"Manner of Payment." Promptly
after payment to DTC of the
principal, interest and premium,
if any, due at the Maturity of
such Book-Entry Note, the Trustee
will cancel and destroy such
Book-Entry Note and deliver to
the Company a certificate of
destruction therefor.
Manner of Payment. The total
amount of any principal, premium,
if any, and interest due on Book-
Entry Notes on any Interest
Payment Date or at Maturity shall
be paid by the Company to the
Trustee in funds available for
use as of 9:30 a.m., New York
City time, on such date. The
Company will make such payment on
such Book-Entry Notes by
instructing the Trustee to
withdraw funds from an account
maintained by the Company with
the Trustee. The Company will
confirm such instructions in
writing to the Trustee. Prior to
10:00 a.m., New York City time,
on such date or as soon as
possible thereafter, the Trustee
will pay by separate wire
transfer (using Fedwire message
entry instructions in a form
previously specified by DTC) to
an account at the Federal Reserve
Bank of New York previously
specified by DTC, in funds
available for immediate use by
DTC, each payment of principal
(together with interest and
premium, if any) due on a Book-
Entry Note on such date. There-
after on such payment date, DTC
will pay, in accordance with its
SDFS operating procedures then in
effect, such amounts in funds
<PAGE>
<PAGE> 20
available for immediate use to
the respective Participants in
whose names such Notes are
recorded in the book-entry system
maintained by DTC. Neither the
Company nor the Trustee shall
have any responsibility or
liability for the payment by DTC
of the principal of, or interest
on, the Book-Entry Notes to such
Participants.
Withholding Taxes. The amount of
any taxes required under
applicable law to be withheld
from any interest payment on a
Note will be determined and
withheld by the Participant,
indirect participant in DTC or
other Person responsible for
forwarding payments and materials
directly to the beneficial owner
of such Note.
Settlement Procedures: Settlement Procedures with regard
to each Book-Entry Note sold will
be as follows:
A. The Presenting Agent, if
any, will advise the
Company by telephone of the
following Settlement infor-
mation:
1. Taxpayer
identification number
of the purchaser.
2. Principal amount of
the Note.
3. Fixed Rate Notes:
(a) interest rate
4. Floating Rate Notes:
(a) interest rate
basis;
(b) initial interest
rate;
(c) spread and/or
spread-multiplier,
if any;
(d) initial interest
reset dates;
(e) interest reset
dates;
<PAGE>
<PAGE> 21
(f) interest payment
dates;
(g) index maturity;
(h) calculation
agent;
(i) maximum interest
rate, if any;
(j) minimum interest
rate, if any;
(k) alternate rate
event spread; and
(l) interest rate
reset dates.
5. Price to public of
the Note.
6. Trade date.
7. Settlement Date
(Original Issue
Date).
8. Stated Maturity.
9. Redemption
provisions, if any:
(a) Initial
Redemption Date
(b) Initial
Redemption
Percentage
(c) Annual
Redemption
Percentage
Reduction
10. Optional Repayment
Date(s), if any.
11. Net proceeds to the
Company.
12. Presenting Agent's
commission.
B. The Company will advise the
Trustee by telecopy or
other method acceptable to
the Trustee of the above
settlement information with
respect to each Note and
shall confirm to the
Trustee that the principal
amount of Notes,
<PAGE>
<PAGE> 22
including such Note, issued
as of the relevant
Settlement Date shall not
exceed the limit with
respect to the principal
amount of Notes specified
in the most recent Company
Order delivered to the
Trustee pursuant to Section
303 of the Indenture.
C. The Trustee will assign a
CUSIP Number to the Book-
Entry Note and will
telephone and advise the
Company and the Presenting
Agent, if any, of such
CUSIP Number. The Trustee
will communicate to DTC and
the Presenting Agent
through DTC's Participant
Terminal System a pending
deposit message specifying
the following settlement
information:
1. The information set
forth in Settlement
Procedure A.
2. Identification
numbers of the
participant accounts
maintained by DTC on
behalf of the Trustee
and the Presenting
Agent, if any.
3. Identification as a
Fixed Rate Book-Entry
Note or Floating Rate
Book-Entry Note.
4. Initial Interest
Payment Date for such
Note, number of days
by which such date
succeeds the related
record date for DTC
purposes (or, in the
case of Floating Rate
Notes which reset
daily or weekly, the
date five calendar
days preceding the
Interest Payment
<PAGE>
<PAGE> 23
Date) and, if then
calculable, the
amount of interest
payment on such
Interest Payment Date
(which amount shall
have been confirmed
by the Trustee).
5. CUSIP number of the
Book-Entry Note
representing such
Note.
6. Whether such Book-
Entry Note represents
any other Notes
issued or to be
issued in book-entry
form.
D. The Company will deliver to
the Trustee a Book-Entry
Note representing such Note
in a form that has been
approved by the Company,
any Agents and the Trustee.
E. The Trustee will complete
and authenticate the Book-
Entry Note.
F. DTC will credit such Note
to the participant account
of the Trustee maintained
by DTC.
G. The Trustee will enter an
SDFS deliver order through
DTC's Participant Terminal
System instructing DTC (i)
to debit such Note to the
Trustee's participant
account and credit such
Note to the participant
account of the Presenting
Agent, if any, or the
purchaser or its agent
maintained by DTC and (ii)
to debit the settlement
account of the Presenting
Agent, if any, or the
purchaser or its agent and
credit the settlement
account of the Trustee
maintained by DTC, in an
amount equal to the initial
<PAGE>
<PAGE> 24
public offering price of
such Note less the
Presenting Agent's
commission, if applicable.
Any entry of such a deliver
order shall be deemed to
constitute a representation
and warranty by the Trustee
to DTC that (i) the Book-
Entry Note has been issued
and authenticated and (ii)
the Trustee is holding such
Book-Entry Note pursuant to
the Certificate Agreement
between the Trustee and
DTC.
H. The Presenting Agent, if
any, will enter an SDFS
deliver order through DTC's
Participant Terminal System
instructing DTC (i) to
debit such Note to the
Presenting Agent's parti-
cipant account and credit
such Note to the
participant account of the
Participants maintained by
DTC and (ii) to debit the
settlement accounts of such
Participants and credit the
settlement account of the
Presenting Agent maintained
by DTC, in an amount equal
to the initial public
offering price of such
Note.
I. Transfers of funds in
accordance with SDFS
deliver orders described
in Settlement Procedures G
and H will be settled in
accordance with SDFS opera-
ting procedures in effect
on the Settlement Date.
J. The Trustee will credit to
an account of the Company
maintained by the Trustee
funds available for
immediate use in the amount
transferred to the Trustee
in accordance with
Settlement Procedure G.
<PAGE>
<PAGE> 25
K. The Trustee will send a
copy of the Book-Entry Note
to the Company together
with a statement setting
forth the principal amount
of Notes Outstanding as of
the related Settlement Date
after giving effect to such
transaction and all other
offers to purchase Notes of
which the Company has
advised the Trustee but
which have not been
settled.
L. The Presenting Agent, if
any, or the Company will
confirm the purchase of
such Note to the purchaser
either by transmitting to
the Participant with
respect to such Note a con-
firmation order through
DTC's Participant Terminal
System or by mailing a
written confirmation to
such purchaser.
Settlement Procedures
Timetable: For offers to purchase Notes
accepted by the Company,
Settlement Procedures "A" through
"L" set forth above shall be
completed as soon as possible but
not later than the respective
times (New York City time) set
forth below:
Settlement
Procedure Time
A 11:00 a.m. on the
trade date
B 12:00 noon on the
trade date
C 2:00 p.m. on the
trade date
D 3:00 p.m. on the
Business Day before
Settlement Date
E 9:00 a.m. on
Settlement Date
F 10:00 a.m. on
Settlement Date
G-H No later than 2:00
p.m. on Settlement
Date
<PAGE>
<PAGE> 26
I 4:45 p.m. on
Settlement Date
J-L 5:00 p.m. on
Settlement Date
If a sale is to be settled more
than one Business Day after the
trade date, Settlement Procedures
A, B, and C may, if necessary, be
completed at any time prior to
the specified times on the first
Business Day after such trade
date. In connection with a sale
which is to be settled more than
one Business Day after the trade
date, if the initial interest
rate for a Floating Rate Note is
not known at the time that
Settlement Procedure A is
completed, Settlement Procedures
B and C shall be completed as
soon as such rates have been
determined, but no later than
11:00 a.m. and 2:00 p.m., New
York City time, respectively, on
the second Business Day before
the Settlement Date. Settlement
Procedure I is subject to
extension in accordance with any
extension of Fedwire closing
deadlines and in the other events
specified in the SDFS operating
procedures in effect on the
Settlement Date.
If settlement of a Book-Entry
Note is rescheduled or cancelled,
the Company shall notify the
Trustee and the Trustee will
deliver to DTC, through DTC's
Participant Terminal System, a
cancellation message to such
effect by no later than 2:00
p.m., New York City time, on the
Business Day immediately
preceding the scheduled
Settlement Date.
Failure to Settle: If the Trustee has not entered an
SDFS deliver order with respect
to a Book-Entry Note pursuant to
Settlement Procedure G, then upon
written request (which may be
evidenced by facsimile transmis-
<PAGE>
<PAGE> 27
sion) of the Company the Trustee
shall deliver to DTC, through
DTC's Participant Terminal
System, as soon as practicable a
withdrawal message instructing
DTC to debit such Note to the
participant account of the
Trustee maintained at DTC. DTC
will process the withdrawal
message, provided that such
participant account contains a
principal amount of the Book-
Entry Note representing such Note
that is at least equal to the
principal amount to be debited.
If withdrawal messages are
processed with respect to all the
Notes represented by a Book-Entry
Note, the Trustee will mark such
Book-Entry Note "cancelled", make
appropriate entries in its
records and send such cancelled
Book-Entry Note to the Company.
The CUSIP number assigned to such
Book-Entry Note shall, in
accordance with CUSIP Service
Bureau procedures, be cancelled
and not immediately reassigned.
If withdrawal messages are
processed with respect to a
portion of the Notes represented
by a Book-Entry Note, the Trustee
will exchange such Book-Entry
Note for two Book-Entry Notes,
one of which shall represent the
Book-Entry Notes for which
withdrawal messages are processed
and shall be cancelled
immediately after issuance, and
the other of which shall repre-
sent the other Notes previously
represented by the surrendered
Book-Entry Note and shall bear
the CUSIP number of the
surrendered Book-Entry Note.
If the purchase price for any
Book-Entry Note is not timely
paid to the Participants with
respect to such Note by the
beneficial purchaser thereof (or
a person, including an indirect
participant in DTC, acting on
behalf of such purchaser), such
Participants and,
<PAGE>
<PAGE> 28
in turn, the Presenting Agent, if
any, may enter SDFS deliver
orders through DTC's Participant
Terminal System reversing
Settlement Procedures G and H,
respectively. Thereafter, the
Trustee will deliver the
withdrawal message and take the
related actions described in the
preceding paragraph. If such
failure shall have occurred for
any reason other than default by
the relevant Presenting Agent to
perform its obligations hereunder
or under the Distribution
Agreement, the Company will
reimburse such Presenting Agent
on an equitable basis for its
loss of the use of funds during
the period when the funds were
credited to the account of the
Company.
Notwithstanding the foregoing,
upon any failure to settle with
respect to a Book-Entry Note, DTC
may take any actions in
accordance with its SDFS
operating procedures then in
effect. In the event of a
failure to settle with respect to
a Note that was to have been
represented by a Book-Entry Note
also representing other Notes,
the Trustee will provide, in
accordance with Settlement
Procedures D and E, for the
authentication and issuance of a
Book-Entry Note representing such
remaining Notes and will make
appropriate entries in its
records.
PART III: PROCEDURES FOR NOTES ISSUED
IN CERTIFICATED FORM
Denominations: The Certificated Notes, other
than Index Notes and Multi-
Currency Notes, will be issued in
denominations of $1,000 and
integral multiples thereof.
Index Notes and Multi-Currency
Notes will be issued in the
denominations specified in a
related Multi-Currency and
Indexed
<PAGE>
<PAGE> 29
Note Prospectus Supplement and
Pricing Supplement.
Interest: Each Certificated Note will bear
interest in accordance with its
terms. Interest will begin to
accrue on the Original Issue Date
of a Certificated Note for the
first Interest Payment Period and
on the most recent Interest
Payment Date to which interest
has been paid for all subsequent
Interest Payment Periods. Each
payment of interest shall include
interest accrued to, but
excluding, the date of such
payment. Interest payments in
respect of Fixed Rate Certifi-
cated Notes will be made
semiannually on June 15 and
December 15 of each year and at
Maturity. However, the first
payment of interest on any
Certificated Note issued between
a Regular Record Date and an
Interest Payment Date will be
made on the Interest Payment Date
following the next succeeding
Regular Record Date. The Regular
Record Date with respect to any
Interest Payment Date for a Fixed
Rate Certificated Note shall be
the May 31 or November 30
preceding such Interest Payment
Date. Interest at Maturity will
be payable to the person to whom
the principal is payable.
Except as provided in Part I
under "Calculation of Interest",
the Interest Payment Date for a
Floating Rate Certificated Note
will be, in the case of Floating
Rate Notes which reset daily,
weekly or monthly, on the third
Wednesday of each month or on the
third Wednesday of March, June,
September and December of each
year as specified in the
applicable Pricing Supplement; in
the case of Floating Rate Notes
which reset quarterly, on the
third Wednesday of March, June,
September and December of each
<PAGE>
<PAGE> 30
year; in the case of Floating
Rate Notes which reset
semiannually, on the third
Wednesday of the two months of
each year specified in the
applicable Pricing Supplement;
or, in the case of Eleventh
District Cost of Funds Rate
Notes, on the first Business Day
of each month or the first
Business Day of each March, June,
September or December as
specified in the applicable
Pricing Supplement and in the
case of Floating Rate Notes which
reset annually, on the third
Wednesday of the month specified
in the applicable Pricing
Supplement; and, in each case, at
Maturity. The Regular Record
Date with respect to a Floating
Rate Note shall be the date 15
calendar days (whether or not a
Business Day) preceding an
Interest Payment Date.
Notwithstanding the above, in the
case of Floating Rate
Certificated Notes having
interest rates which reset daily
or weekly, interest payments
shall include accrued interest
from, and including, the date of
issue or from, but excluding, the
last date in respect of which
interest has been accrued and
paid, as the case may be,
through, and including, the
Regular Record Date, except that
at Maturity the interest payable
will include interest accrued to,
but excluding, the date of
Maturity. For additional special
provisions relating to Floating
Rate Certificated Notes, see the
Prospectus Supplement.
Payments of Principal
and Interest: Upon presentment and delivery of
the Certificated Note, the
Trustee or the Company's duly
authorized agent will pay the
principal amount of each
Certificated Note at Maturity and
the final installment of interest
in immediately avail-
<PAGE>
<PAGE> 31
able funds. All interest
payments in U.S. dollars on a
Certificated Note, other than
interest due at Maturity, will be
made by check drawn on the
Trustee or the Company's duly
authorized agent and mailed by
such Trustee or agent to the
person entitled thereto as
provided in the Certificated
Note. However, the Registered
Owners (as hereinafter defined)
of ten million dollars or more in
aggregate principal amount of the
same series of Certificated Notes
(whether having identical or
different terms and provisions)
shall be entitled to receive
payments of interest, other than
at Maturity, by wire transfer of
immediately available funds if
appropriate wire transfer
instructions have been received
in writing by the appropriate
Trustee or such agent not less
than 16 days prior to the
applicable Interest Payment Date.
For special provisions relating
to Multi-Currency Notes and
Indexed Notes, see the related
Multi-Currency and Indexed Note
Prospectus Supplement.
The Trustee will provide monthly
to the Company a list of the
principal and interest in each
currency to be paid on
Certificated Notes maturing in
the next succeeding month. Such
Trustee or agent will be respon-
sible for withholding taxes on
interest paid as required by
applicable law, but shall be
relieved from any such
responsibility if it acts in good
faith and in reliance upon an
opinion of counsel.
Certificated Notes presented to
the Trustee or the Company's duly
authorized agent at Maturity for
payment will be cancelled by such
Trustee or agent. All cancelled
Certificated Notes held by such
<PAGE>
<PAGE> 32
Trustee shall be destroyed, and
the Trustee shall furnish to the
Company a certificate with
respect to such destruction.
Settlement Procedures: Settlement Procedures with regard
to each Certificated Note
purchased shall be as follows:
A. The Agent, if any, will
advise the Company by
telephone of the following
Settlement information with
regard to each Certificated
Note:
1. Exact name in which
the Certificated Note
is to be registered
(the "Registered
Owner").
2. Exact address or
addresses of the
Registered Owner for
delivery, notices and
payments of
principal, premium,
if any, and interest.
3. Taxpayer
identification number
of the Registered
Owner.
4. Principal amount of
the Certificated
Note.
5. Denomination of the
Certificated Note.
6. Fixed Rate Notes:
(a) interest rate
Floating Rate Notes:
(a) interest rate
basis or bases;
(b) initial
interest rate;
(c) spread or
spread
multiplier, if
any;
(d) initial
interest reset
date;
<PAGE>
<PAGE> 33
(e) interest reset
dates;
(f) interest
payment dates;
(g) index maturity;
(h) calculation
agent;
(i) maximum
interest rates,
if any;
(j) minimum
interest rate,
if any;
(k) alternate rate
event spread;
and
(l) interest deter-
mination dates
Indexed Notes:
(a) specified
currency;
(b) indexed
currency; and
(c) base rate of
exchange.
8. Currency or currency
unit in which the
Certificated Note is
to be denominated.
9. Price to public of
the Certificated
Note.
10. Settlement Date
(Original Issue
Date).
11. Stated Maturity.
12. Redemption
provisions, if any:
(a) Initial
Redemption Date
(b) Initial
Redemption
Percentage
(c) Annual
Redemption
Percentage
Reduction
13. Optional Repayment
Date(s), if any.
14. Net proceeds to the
Company.
<PAGE>
<PAGE> 34
15. Presenting Agent's
commission.
B. The Company shall provide
to the Trustee by telecopy
or other method acceptable
to the Trustee the above
Settlement information with
respect to each
Certificated Note and shall
confirm to the Trustee that
the principal amount of
Notes, including such
Certificated Note, issued
as of the relevant
Settlement Date shall not
exceed the limit with
respect to the principal
amount of Notes specified
in the most recent Company
Order delivered to the
Trustee pursuant to
Section 303 of the
Indenture. The Company
also shall cause the
Trustee or its duly
appointed agent to issue,
authenticate and deliver
Certificated Notes in
accordance with the
Settlement Procedures
Timetable set forth below.
The Company also shall
provide to the Trustee and
the Presenting Agent, if
any, a copy of the
applicable Pricing
Supplement. The Company
also shall provide to the
Trustee and the Presenting
Agent, if any, a copy of a
Multi-Currency and Indexed
Note Supplement, if
applicable.
C. The Trustee or its duly
appointed agent will
complete and authenticate
the Certificated Notes,
including the Guarantee, in
forms approved by the
Company.
D. With respect to each trade,
the Trustee will deliver
the Certificated Notes and
one photocopy thereof to
the applicable Presenting
Agent at
<PAGE>
<PAGE> 35
the address previously notified
in writing to the Company and the
Trustee by such Presenting Agent,
or to the Company at the
following address:
BanPonce Corporation
209 Munoz Rivera Avenue
3d Floor
Hato Rey, Puerto Rico 00918
Attn: David H. Chafey, Jr.
The Trustee will keep
Stub 1. The Presenting
Agent, if any, or the
Company will acknowledge
receipt of the Certificated
Note through a broker's
receipt and will keep the
photocopy. Delivery of the
Certificated Note will be
made only against such
acknowledgment of receipt.
Upon determination that the
Certificated Note has been
authorized, delivered and
completed as
aforementioned, the
Presenting Agent, if any,
will wire the net proceeds
of the Certificated Note
after deduction of its
applicable commission to
the Company pursuant to
standard wire instructions
given by the Company.
E. The Presenting Agent, if
any, or the Company will
deliver the Certificated
Note, as well as a copy of
the Prospectus and any
applicable Pricing
Supplement or Supplements
received from the Trustee,
to the purchaser against
payment in immediately
available funds.
F. If issued through a
Presenting Agent, the
Trustee will send a
<PAGE>
<PAGE> 36
photocopy of the Certified Note
to the Company.
Settlement Procedures
Timetable: For offers to purchase
Certificated Notes accepted by
the Company, Settlement
Procedures "A" through "F" set
forth above shall be completed on
or before the respective times
set forth below:
Settlement
Procedure Time
A-B 3:00 PM on
Business Day
prior to
Settlement
C-D 2:15 PM on
Settlement Date
E 3:00 PM on
Settlement Date
F 5:00 PM on
Settlement Date
Failure to Settle: In the event that a purchaser of
a Certificated Note from the
Company shall either fail to
accept delivery of or make
payment for a Certificated Note
on the date fixed for settlement,
the Presenting Agent, if any,
will forthwith notify the Trustee
and the Company or the Company
will forthwith notify the Trustee
by telephone, confirmed in
writing, and return the Certifi-
cated Note to the Trustee.
The Trustee or the Company's duly
authorized agent, upon receipt of
a Certificated Note from a
Presenting Agent, will
immediately advise the Company,
and the Company will promptly
arrange to credit the account of
such Presenting Agent in an
amount of immediately available
funds equal to the amount
previously paid by such
Presenting Agent in settlement
for the Certificated Note. Such
credits will be made on the
Settlement Date
<PAGE>
<PAGE> 37
if possible, and in any event not
later than the Business Day
following the Settlement Date;
provided that the Company has
received notice on the same day.
If such failure shall have
occurred for any reason other
than failure by the Presenting
Agent to perform its obligations
hereunder or under the
Distribution Agreement, the
Company will reimburse the
Presenting Agent on an equitable
basis for its loss of the use of
funds during the period when the
funds were credited to the
account of the Company.
Immediately upon receipt of the
Certificated Note in respect of
which the failure occurred, the
Trustee or the Company's duly
authorized agent will cancel and
destroy the Certificated Note,
make appropriate entries in its
records to reflect the fact that
the Certificated Note was never
issued, and accordingly notify in
writing the Company.
<PAGE> 1
Exhibit (10)(b)
INTEREST CALCULATION AGENCY AGREEMENT
INTEREST CALCULATION AGENCY AGREEMENT between BanPonce
Corporation, a Puerto Rico corporation (the "Issuer"), and The First
National Bank of Chicago, dated as of February 15, 1995.
PRELIMINARY STATEMENT
1. The Issuer proposes to issue and sell Medium-Term Notes,
Series 1 (the "Notes") from time to time under, and pursuant to, the terms
of an Indenture, dated as of February 15, 1995 (the "Indenture," the terms
defined being used herein as defined therein or in the Notes), between the
Issuer and The First National Bank of Chicago, trustee under the Indenture
(acting in such capacity, the "Trustee").
2. The Issuer desires to appoint an agent of the Issuer to
calculate the base rates applicable to those Notes on which interest is to
accrue at a variable or floating rate ("Floating Rate Notes"), determined
by references to LIBOR, the Eleventh District Cost of Funds Rate, the
Commercial Paper Rate, the Treasury Rate, the Certificate of Deposit Rate,
the CMT Rate, the Prime Rate or the Federal Funds Rate (collectively, the
"Base Rates") as are specified and described in the Floating Rate Notes, a
copy of which is attached hereto as Exhibit A.
NOW, THEREFORE, the Issuer and The First National Bank of
Chicago hereby agree as follows:
<PAGE>
<PAGE> 2
Section 1. Appointment of Calculation Agent. The Issuer
hereby appoints The First National Bank of Chicago as Calculation Agent (in
such capacity, the "Calculation Agent") of the Issuer with respect to any
Floating Rate Notes to be issued by the Issuer under and pursuant to the
terms of the Indenture, and the Calculation Agent hereby accepts its
obligations as set forth in this Agreement upon the terms and conditions
set forth herein.
Section 2. Calculation of Base Rates. Unless otherwise
specified to the Calculation Agent with respect to any particular note, the
calculation date for each applicable Interest Determination Date for any
Note shall be the earlier of (i) the tenth calendar day after such Interest
Determination Date, or if any such day is not a Business Day (as defined in
the Indenture) the next succeeding Business Day or (ii) the Business Day
preceding the applicable Interest Payment Date or Maturity, as the case may
be. The Calculation Agent shall notify the Issuer and the Trustee of such
Base Rate on such calculation date. If at any time the Calculation Agent
is not also acting as Trustee under the Indenture, the Issuer shall, upon
the issuance of each Floating Rate Note having a different Base Rate or
different Interest Determination Dates than the Base Rate or Interest
Determination Dates for any prior Floating Rate Note, notify such
Calculation Agent of such Interest
<PAGE>
<PAGE> 3
Determination Dates and Base Rate for such Floating Rate Note.
Section 3. New Base Rates. If the Issuer proposes to issue
Floating Rate Notes whose interest rate will be determined on a basis or
formula not referred to above (a "New Base Rate"), the Issuer shall give a
description of such New Base Rate to the Calculation Agent. The
Calculation Agent shall determine if it is able and willing to calculate
the New Base Rate and upon its agreement in writing to do so the term "Base
Rate" shall be deemed to include the New Base Rate. If the Calculation
Agent notifies the Issuer that it is not able or willing to calculate the
New Base Rate, or that it is only willing to do so on the basis of an
increase of its fees not acceptable to the Issuer, the Calculation Agent
shall have no responsibility with respect to such New Base Rate and the
Issuer shall appoint a different calculation agent to determine the New
Base Rate.
Section 4. Fees and Expenses. The Calculation Agent shall
be entitled to such compensation for its services under this Agreement as
may be agreed upon with the Issuer, and the Issuer shall pay such
compensation and shall reimburse the Calculation Agent for all reasonable
expenses, disbursements and advances incurred or made by the Calculation
Agent in connection with the services rendered by it under this Agreement,
including reasonable legal fees
<PAGE>
<PAGE> 4
and expenses, upon receiving an accounting therefor from the Calculation
Agent.
Section 5. Right and Liabilities of Calculation Agent. The
Calculation Agent shall incur no liability for, or in respect of, any
action taken, omitted to be taken or suffered by it in reliance upon any
Floating Rate Note, certificate, affidavit, instruction, notice, request,
direction, order, statement or other paper, document or communication
reasonably believed by it to be genuine. Any order, certificate,
affidavit, instruction, notice, request, direction, statement or other
communication from the Issuer made or given by it and sent, delivered or
directed to the Calculation Agent under, pursuant to or as permitted by any
provision of this Agreement shall be sufficient for purposes of this
Agreement if such communication is in writing and signed by any officer of
the Issuer. The Calculation Agent may consult with counsel satisfactory to
it and the opinion of such counsel shall constitute full and complete
authorization and protection of the Calculation Agent with respect to any
action taken, omitted to be taken or suffered by it hereunder in good faith
and in accordance with and in reliance upon the opinion of such counsel.
In acting under this Agreement, the Calculation Agent (in its capacity as
such) does not assume any obligation towards, or any relationship of agency
or trust for or with the holders of the Notes.
<PAGE>
<PAGE> 5
Section 6. Right of Calculation Agent to Own Floating Rate
Notes. The Calculation Agent may act as Trustee under the Indenture and
it, its officers, employees and shareholders may become owners of, or
acquire any interests in, Floating Rate Notes, with the same rights as if
the Calculation Agent were not the Calculation Agent, and may engage in, or
have an interest in, any financial or other transaction with the Issuer as
if the Calculation Agent were not the Calculation Agent.
Section 7. Duties of Calculation Agent. The Calculation
Agent shall be obliged only to perform such duties as are specifically set
forth herein and no other duties or obligations on the part of the
Calculation Agent, in its capacity as such, shall be implied by this
Agreement.
Section 8. Termination, Resignation or Removal of
Calculation Agent. The Calculation Agent may at any time terminate this
Agreement by giving no less than 90 days' written notice to the Issuer
unless the Issuer consents in writing to a shorter time. Upon receipt of
notice of termination by the Calculation Agent, the Issuer agrees promptly
to appoint a successor Calculation Agent. The Issuer may terminate this
Agreement at any time by giving written notice to the Calculation Agent and
specifying the date when the termination shall become effective; provided,
however, that termination by the Calculation Agent or by the Issuer shall
not become effective prior to the date of the
<PAGE>
<PAGE> 6
appointment by the Issuer, as provided in Section 9 hereof, of a successor
Calculation Agent and the acceptance of such appointment by such successor
Calculation Agent. If an instrument of acceptance by a successor
Calculation Agent shall not have been delivered to the Calculation Agent
within 30 days after the giving of such notice of resignation, the
resigning Calculation Agent may petition any court of competent
jurisdiction for the appointment of a successor Calculation Agent. Upon
termination by either party pursuant to the provisions of this Section, the
Calculation Agent shall be entitled to the payment of any compensation owed
to it by the Issuer hereunder and to the reimbursement of all reasonable
expenses, disbursements and advances incurred or made by the Calculation
Agent in connection with the services rendered by it hereunder, as provided
by Section 4 hereof.
Section 9. Appointment of Successor Calculation Agent. Any
successor Calculation Agent appointed by the Issuer or by a court following
termination of this Agreement pursuant to the provisions of Section 8
hereof shall execute and deliver to the Calculation Agent and to the Issuer
an instrument accepting such appointment, and thereupon such successor
Calculation Agent shall, without any further act or instrument, become
vested with all the rights, immunities, duties and obligations of the
Calculation Agent, with like effect as if originally named as Calculation
Agent
<PAGE>
<PAGE> 7
hereunder, and the Calculation Agent shall thereupon be obligated to
transfer and deliver, and such successor Calculation Agent shall be
entitled to receive and accept, copies of any available records maintained
by the Calculation Agent in connection with performance of its obligations
hereunder.
Section 10. Indemnification. The Issuer shall indemnify
and hold harmless the Calculation Agent, its officers and employees from
and against all actions, claims, damages, liabilities, losses and expenses
(including reasonable legal fees and expenses) relating to or arising out
of actions or omissions in any capacity hereunder, except actions, claims,
damages, liabilities, losses and expenses caused by the gross negligence or
wilful misconduct of the Calculation Agent, its officers or employees.
This Section 10 shall survive the payment in full of all obligations under
the Notes, whether by redemption, repayment or otherwise.
Section 11. Merger, Consolidation or Sale of Business by
Calculation Agent. Any corporation into which the Calculation Agent may be
merged, converted or consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Calculation Agent may be a
party, or any corporation to which the Calculation Agent may sell or
otherwise transfer all or substantially all of its corporate trust
business, shall, to the extent
<PAGE>
<PAGE> 8
permitted by applicable law, become the Calculation Agent under this
Agreement without the execution of any paper or any further act by the
parties hereto.
Section 12. Notices. Any notice or other communication
given hereunder shall be delivered in person, sent by letter, telecopy or
telex or communicated by telephone (subject, in the case of communication
by telephone, to written confirmation dispatched within 24 hours) to the
addresses given below or such other address as the party to receive such
notice may have previously specified:
To the Issuer:
BanPonce Corporation
209 Munoz Rivera Avenue
Hato Rey, Puerto Rico 00918
Attention: Chief Financial Officer
Facsimile: (809) 767-8948
To the Calculation Agent:
The First National Bank of Chicago
153 W. 51st Street
Suite 4011
New York, New York 10019
Attention: Corporate Trust Administration
Facsimile: (212) 373-1383
To the Trustee:
The First National Bank of Chicago
One First National Plaza
Suite 0126
Chicago, Illinois 60670-0126
Attention: Corporate Trust Administration
Facsimile: (312) 407-1708
Any notice hereunder given by letter, telecopy or telex shall be deemed to
have been received when it would have
<PAGE>
<PAGE> 9
been received in the ordinary course of post or transmission, as the case
may be.
Section 13. Benefit of Agreement. Except as provided
herein, this Agreement is solely for the benefit of the parties hereto and
their successors and assigns and no other persons shall acquire or have any
rights under or by virtue hereof.
Section 14. Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of the State of New
York.
IN WITNESS WHEREOF, this Agreement has been entered into the
day and year first above written.
BANPONCE CORPORATION
By:
Title:
THE FIRST NATIONAL BANK
OF CHICAGO
By:
Title:
<PAGE> 1
Exhibit (25)
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)_______
THE FIRST NATIONAL BANK OF CHICAGO
(Exact name of trustee as specified in its charter)
A National Banking Association 36-0899825
(I.R.S. employer
identification number)
One First National Plaza, Chicago, Illinois 60670-0126
(Address of principal executive offices) (Zip Code)
The First National Bank of Chicago
One First National Plaza, Suite 0286
Chicago, Illinois 60670-0286
Attn: Lynn A. Goldstein, Law Department (312) 732-6919
(Name, address and telephone number of agent for service)
BANPONCE CORPORATION
(Exact name of co-registrant as specified in its charter)
Puerto Rico
(State or other jurisdiction of 66-0416582
incorporation or organization) (IRS Employer Identification No.)
209 Munoz Rivera Avenue 00918
Hato Rey, Puerto Rico (Zip Code)
(Address of Principal Executive Offices)
Debt Securities
(Title of the indenture securities)
<PAGE>
<PAGE> 2
Item 1. General Information. Furnish the following information as to
the trustee:
(a) Name and address of each examining or supervision
authority to which it is subject.
Comptroller of Currency, Washington, D.C., Federal
Deposit Insurance Corporation, Washington, D.C., The
Board of Governors of the Federal Reserve System,
Washington, D.C.
(b) Whether it is authorized to exercise corporate trust
powers.
The trustee is authorized to exercise corporate trust
powers.
Item 2. Affiliations with the Obligor. If the obligor is an affiliate
of the trustee, describe each such affiliation.
No such affiliation exists with the trustee.
Item 16. List of Exhibits. List below all exhibits filed as a part of
this Statement of Eligibility.
1. A copy of the articles of association of the trustee now
in effect.*
2. A copy of the certificates of authority of the trustee to
commence business.*
3. A copy of the authorization of the trustee to exercise
corporate trust powers.*
4. A copy of the existing by-laws of the trustee.*
5. Not applicable.
6. The consent of the trustee required by Section 321(b) of
the Act.
7. A copy of the latest report of condition of the trustee
published pursuant to law or the requirements of its
supervising or examining authority.
8. Not applicable.
9. Not applicable.
* Exhibits 1,2,3 and 4 are herein incorporated by reference to Exhibits
bearing identical numbers in Item 12 of the Form T-1 of The First National
Bank of Chicago, filed as Exhibit 26 to the Registration Statement on Form
S-3 of The CIT Group Holdings, Inc., filed with the Securities and Exchange
Commission on February 16, 1993 (Registration No. 33-58418).
<PAGE>
<PAGE> 3
Pursuant to the requirements of the Trust Indenture Act of 1939, as
amended, the trustee, The First National Bank of Chicago, a national
banking association organized and existing under the laws of the United
States of America, has duly caused this Statement of Eligibility to be
signed on its behalf by the undersigned, thereunto duly authorized, all in
the City of Chicago, and State of Illinois, on the 11th day of April,
1995.
The First National Bank of Chicago,
Trustee,
By: /s/ Steven M. Wagner
Steven M. Wagner
Vice President & Senior Counsel
Corporate Trust Services Division
<PAGE>
<PAGE> 4
EXHIBIT 6
THE CONSENT OF THE TRUSTEE REQUIRED
BY SECTION 321(b) OF THE ACT
April 11, 1995
Securities and Exchange Commission
Washington, D. C. 20549
Gentlemen:
In connection with the qualification of an indenture between BanPonce
Corporation and The First National Bank of Chicago, as trustee, the
undersigned, in accordance with Section 321(b) of the Trust Indenture Act of
1939, as amended, hereby consents that the reports of examinations of the
undersigned, made by Federal or State Authorities authorized to make such
examinations, may be furnished by such authorities to the Securities and
Exchange Commission upon its request therefor.
Very truly yours,
THE FIRST NATIONAL BANK OF CHICAGO
By: /s/Steven M. Wagner
Steven M. Wagner
Vice President and Senior Counsel
Corporate Trust Services Division
<PAGE>
<PAGE> 5
EXHIBIT 7
A copy of the latest report of condition of the trustee published
pursuant to law or the requirements of its supervising or examining
authority.
<PAGE>
<PAGE> 6
<TABLE>
<CAPTION>
Legal Title of Bank: The First National Bank of Chicago Call Date: 12/31/94 ST-BK: 17-1630 FFIEC 031
Address: One First National Plaza, Suite 0460 Page RC-1
City, State Zip: Chicago, IL 60670-0460
FDIC Certificate No.: 0/3/6/1/8
Consolidated Report of Condition for Insured Commercial
and State-Chartered Savings Banks for December 31, 1994
All schedules are to be reported in thousands of dollars. Unless otherwise
indicated, report the amount outstanding of the last business day of the quarter.
Schedule RC--Balance Sheet
Dollar Amounts C400 <-
in Thousands RCFD BIL MIL THOU
<S> <C> <C> <C> <C>
ASSETS
1. Cash and balances due from
depository institutions
(from Schedule RC-A):
a. Noninterest-bearing balances
and currency and coin(1) . . . . 0081 3,776.149 1.a.
b. Interest-bearing balances(2) . . 0071 7,670,634 1.b.
2. Securities
a. Held-to-maturity securities
(from Schedule RC-B, column A) . 1754 163,225 2.a.
b. Available-for-sale securities
(from Schedule RC-B, column D) . 1773 533,857 2.b.
3. Federal funds sold and securities
purchased under agreements to
resell in domestic offices of the
bank and its Edge and Agreement
subsidiaries, and in IBFs:
a. Federal Funds sold . . . . . . . 0276 4,037,205 3.a.
b. Securities purchased under
agreements to resell . . . . . . 0277 423,381 3.b.
4. Loans and lease financing receivables:
a. Loans and leases, net of unearned
income (from Schedule RC-C) . . . RCFD 2122 15,617,618 4.a.
b. LESS: Allowance for loan and lease
losses . . . . . . . . . . . . . RCFD 3123 351,191 4.b.
c. LESS: Allocated transfer risk
reserve . . . . . . . . . . . . . RCFD 3128 0 4.c.
d. Loans and leases, net of unearned
income, allowance, and reserve
(item 4.a minus 4.b and 4.c) . . 2125 15,266,427 4.d.
5. Assets held in trading accounts . . 3545 8,227,304 5.
6. Premises and fixed assets
(including capitalized leases) . . . 2145 512,222 6.
7. Other real estate owned
(from Schedule RC-M) . . . . . . . . 2150 46,996 7.
8. Investments in unconsolidated
subsidiaries and associated
companies (from Schedule RC-M) . . . 2130 7,571 8.
9. Customers' liability to this
bank on acceptances outstanding . . 2155 507,151 9.
10. Intangible assets
(from Schedule RC-M) . . . . . . . . 2143 120,504 10.
11. Other assets (from Schedule RC-F) . 2160 1,250,306 11.
12. Total assets (sum of items 1
through 11) . . . . . . . . . . . . 2170 42,542,932 12.
(1) Includes cash items in process of collection and unposted debits.
(2) Includes time certificates of deposit not held in trading accounts.
</TABLE>
<PAGE>
<PAGE> 7
<TABLE>
<CAPTION>
Legal Title of Bank: The First National Bank of Chicago Call Date: 12/31/94 ST-BK: 17-1630 FFIEC 031
Address: One First National Plaza, Suite 0460 Page RC-2
City, State Zip: Chicago, IL 60670-0460
FDIC Certificate No.: 0/3/6/1/8
Schedule RC-Continued
Dollar Amounts
in Thousands BIL MIL THOU
<S> <C> <C> <C> <C>
LIABILITIES
13. Deposits:
a. In domestic offices (sum of
totals of columns A and C
from Schedule RC-E, part 1) . . RCON 2200 15,103,504 13.a.
(1) Noninterest-bearing(1) . . . RCON 6631 6,129,078 13.a.(1)
(2) Interest-bearing . . . . . . RCON 6636 8,974,426 13.a.(2)
b. In foreign offices, Edge and
Agreement subsidiaries, and
IBFs (from Schedule RC-E,
part II) . . . . . . . . . . . . RCFN 2200 10,633,999 13.b.
(1) Noninterest bearing . . . . RCFN 6631 460,916 13.b.(1)
(2) Interest-bearing RCFN 6636 10,173,083 13.b.(2)
14. Federal funds purchased and
securities sold under agreements
to repurchase in domestic offices
of the bank and of its Edge and
Agreement subsidiaries, and in IBFs:
a. Federal funds purchased . . . . RCFD 0278 2,883,499 14.a.
b. Securities sold under agreements
to repurchase . . . . . . . . . RCFD 0279 502,401 14.b.
15. a. Demand notes issued to the U.S.
Treasury . . . . . . . . . . . . RCON 2840 112,289 15.a.
b. Trading Liabilities................. RCFD 3548 4,798,720 15.b.
16. Other borrowed money:
a. With original maturity of one year
or less . . . . . . . . . . . . RCFD 2332 2,355,421 16.a.
b. With original maturity of more
than one year . . . . . . . . . RCFD 2333 382,801 16.b.
17. Mortgage indebtedness and obligations
under capitalized leases . . . . . RCFD 2910 275,794 17.
18. Bank's liability on acceptance
executed and outstanding . . . . . RCFD 2920 507,151 18.
19. Subordinated notes and debentures . RCFD 3200 1,225,000 19.
20. Other liabilities (from Schedule
RC-G) . . . . . . . . . . . . . . . RCFD 2930 860,989 20.
21. Total liabilities (sum of items
13 through 20) . . . . . . . . . . RCFD 2948 39,641,568 21.
22. Limited-Life preferred stock and
related surplus . . . . . . . . . . RCFD 3282 0 22.
EQUITY CAPITAL
23. Perpetual preferred stock and
related surplus . . . . . . . . . . RCFD 3838 0 23.
24. Common stock . . . . . . . . . . . RCFD 3230 200,858 24.
25. Surplus (exclude all surplus
related to preferred stock) . . . . RCFD 3839 2,273,657 25.
26. a. Undivided profits and capital
reserves . . . . . . . . . . . . RCFD 3632 431,545 26.a.
b. Net unrealized holding gains
(losses) on available-for-sale
securities . . . . . . . . . . . RCFD 8434 ( 4,184) 26.b.
27. Cumulative foreign currency
translation adjustments . . . . . . RCFD 3284 (512) 27.
28. Total equity capital (sum of items
23 through 27) . . . . . . . . . . RCFD 3210 2,901,364 28.
29. Total liabilities, limited-life
preferred stock, and equity capital
(sum of items 21, 22, and 28) . . . RCFD 3300 42,542,932 29.
Memorandum
To be reported only with the March
Report of Condition.
1. Indicate in the box at the right the number
of the statement below that best describes
the most comprehensive level of auditing work
performed for the bank by independent Number
external auditors as of any date during 1993.............. RCFD 6724 N/A M.1.
1 = Independent audit of the bank conducted in accordance 4 = Directors' examination of the bank performed by other
with generally accepted auditing standards by a certified external auditors (may be required by state chartering
public accounting firm which submits a report on the bank authority)
2 = Independent audit of the bank's parent holding company 5 = Review of the bank's financial statements by external
conducted in accordance with generally accepted auditing auditors
standards by a certified public accounting firm which 6 = Compilation of the bank's financial statements by external
submits a report on the consolidated holding company auditors
(but not on the bank separately) 7 = Other audit procedures (excluding tax preparation work)
3 = Directors' examination of the bank conducted in 8 = No external audit work
accordance with generally accepted auditing standards
by a certified public accounting firm (may be required by
state chartering authority)
(1) Includes total demand deposits and noninterest-bearing time and savings deposits.
</TABLE>
