SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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)
MAY 21, 1998
Structured Products Corp. on behalf of
TIERS CORPORATE BOND-BACKED CERTIFICATES TRUST C 1998-6
(Exact name of registrant as specified in charter)
DELAWARE 33-55860 13-3692801
(State or other (Commission File (IRS Employer Identification
jurisdiction of Number) Number)
incorporation)
Room 33-130, 33rd Floor
Seven World Trade Center
NEW YORK, NEW YORK 10048 10019
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 783-6645
NOT APPLICABLE
(Former name or former address, if changed since last report.)
<PAGE>
Item 5. Other Events
This Current Report on Form 8-K is being filed to report the issuance by
TIERS Corporate Bond-Backed Certificates Trust 1998-6 (the "Trust") of
$50,000,000.00 in aggregate principal amount of its ZTF Class Certificates and
$41,250,000.00 in aggregate principal amount of its Amortizing Class
Certificates (collectively, the "Certificates") on May 21, 1998. U.S. Bank Trust
National Association, a national banking association, is acting as Trustee (the
"Trustee") with respect to the Certificates pursuant to a Trust Agreement dated
as of May 21, 1998 (the "Base Trust Agreement") and the Series C 1998-6
Supplement to the Base Trust Agreement dated as of May 21, 1998 (the "Series
Supplement" and together with the Base Trust Agreement, the "Trust Agreement"),
each between Structured Products Corp., as depositor (the "Depositor"), and the
Trustee. Capitalized terms used herein, but not otherwise defined herein, shall
have the meaning assigned to such terms in the Trust Agreement. Pursuant to an
Underwriting Agreement dated May 21, 1998 (the "Underwriting Agreement") by and
between the Depositor and Salomon Brothers Inc (the "Underwriter"), the
Underwriter purchased the Certificates from the Depositor.
This Current Report on Form 8-K is being filed to file a copy of the
Underwriting Agreement, the Base Trust Agreement, and the Series Supplement.
<PAGE>
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS.
(c) Exhibits
EXHIBIT NO.
1.1 Underwriting Agreement
4.1 Base Trust Agreement
4.2 Series C 1998-6 Supplement to the Base Trust
Agreement
<PAGE>
SIGNATURES
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 thereunto duly authorized.
Structured Products Corp. on behalf of
TIERS CORPORATE BOND-BACKED CERTIFICATES TRUST C 1998-6
(Registrant)
Date: May 27, 1998 By: /S/ MATTHEW MAYERS
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Name:
Title:
<PAGE>
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
1.1 Underwriting Agreement
4.1 Base Trust Agreement
4.2 Series C 1998-6 Supplement to the Base Trust
Agreement
EXHIBIT 1.1
TIERS CORPORATE BOND-BACKED CERTIFICATES TRUST C 1998-6
TIERS CORPORATE BOND-BACKED CERTIFICATES, SERIES C 1998-6
UNDERWRITING AGREEMENT
May 21, 1998
Salomon Brothers Inc
Seven World Trade Center
New York, New York 10048
Ladies and Gentlemen:
1. INTRODUCTION. Structured Products Corp., a Delaware corporation
(the "Depositor"), proposes to sell to you (also referred to herein as the
"Underwriter") certain TIERS Corporate Bond-Backed Certificates, Series C 1998-6
(the "Certificates"), issued in two classes by TIERS Corporate Bond-Backed
Certificates Trust C 1998-6. The Certificates consist of $50,000,000 aggregate
Certificate Principal Balance of ZTF Class Certificates and $41,250,000
aggregate Certificate Principal Balance of Amortizing Class Certificates. The
property of the Trust will consist principally of $50,000,000 aggregate
principal amount of 7.40% due August 1, 2097 (the "Term Assets") issued by
Chrysler Corporation (the "Term Assets Issuer"), having the characteristics
described in a prospectus dated February 19, 1997 and a supplement thereto dated
July 15, 1997 (together, the "Term Assets Prospectus"). The Certificates will be
issued pursuant to the Base Trust Agreement dated as of May 21, 1998, as
supplemented by the Series C 1998-6 Supplement dated as of May 21, 1998
(collectively, as amended and supplemented from time to time, the "Trust
Agreement"), between the Depositor, as depositor, and U.S. Bank Trust National
Association, as trustee (the "Trustee"). Capitalized terms used and not
otherwise defined herein shall have the meanings given to them in the Trust
Agreement.
2. REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR. The Depositor
represents and warrants to, and agrees with you that:
(a) The Depositor meets the requirements for use of Form S-3 under the
Securities Act of 1933, as amended (the "Act"), and has filed with the
Securities and Exchange Commission (the "Commission") a registration statement
(Registration No. 33-55860) under the Act on such Form, including a related
preliminary prospectus and prospectus supplement. The Depositor may have filed
one or more amendments thereto, including the related preliminary prospectus,
each of which amendments has previously been furnished to you. The Depositor
will next file with the Commission either (i) a final prospectus in accordance
with Rules 430A and 424(b)(1) or 424(b)(4) under the Act or (ii) a final
prospectus in accordance with Rules 415 and 424(b)(2) or 424(b)(5) under the
Act. As filed, such final prospectus shall include all Rule 430A Information
and, except to the extent that you shall agree in writing to a modification,
shall be in all substantive respects in the form furnished to you prior to the
Execution Time (as defined herein) or, to the extent not completed at the
Execution Time, shall contain only such specific additional information and
other changes (beyond that contained in the latest Preliminary Prospectus (as
defined herein) which has previously been furnished to you) as the Depositor has
advised you, prior to the Execution Time, will be included or made therein. If
the Registration Statement (as defined herein) contains the undertaking
specified by Item 512(a) of Regulation S- K, the Registration Statement, at the
Execution Time, meets the requirements set forth in Rule 415(a)(1)(x).
For purposes of this Agreement, "Effective Time" means the date and
time as of which such registration statement, or the most recent post-effective
amendment thereto, if any, was declared effective by the Commission, and
"Effective Date" means the date of the Effective Time. Such registration
statement, as amended at the Effective Time, including all information deemed to
be a part of such registration statement as of the Effective Time pursuant to
Rule 430A(b) under the Act, and including the exhibits thereto and any material
incorporated by reference therein, is hereinafter referred to as the
"Registration Statement", and the form of prospectus relating to the
Certificates, as first filed with the Commission pursuant to and in accordance
with Rule 424(b) under the Act or, if no filing pursuant to Rule 424(b) is
required, as included in the Registration Statement at the Effective Date, is
hereinafter referred to as the "Prospectus". "Execution Time" shall mean the
date and time that this Agreement is executed and delivered by the parties
hereto. "Preliminary Prospectus" shall mean the preliminary prospectus referred
to in the preceding paragraph and the preliminary prospectus, if any, included
in the Registration Statement which at the Effective Date omits Rule 430A
Information. "Rule 430A Information" means information with respect to the
Certificates and the offering of the Certificates permitted to be omitted from
the Registration Statement when it becomes effective pursuant to Rule 430A.
"Rule 415", "Rule 424", "Rule 430A" and "Regulation S-K" refer to such rules or
regulations under the Act. Any reference herein to the Registration Statement, a
Preliminary Prospectus or the Prospectus shall be deemed to refer to and include
the documents incorporated by reference therein pursuant to Item 12 of Form S-3,
which were filed under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), on or before the Effective Date of the Registration Statement
or the issue date of such Preliminary Prospectus or the Prospectus, as the case
may be; and any reference herein to the terms "amend", "amendment" or
"supplement" with respect to the Registration Statement, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include the filing
of any document under the Exchange Act after the Effective Date of the
Registration Statement, or the issue date of any Preliminary Prospectus or the
Prospectus, as the case may be, deemed to be incorporated therein by reference.
(b) On the Effective Date and on the date of this Agreement, the
Registration Statement did or will, and, when the Prospectus is first filed (if
required) in accordance with Rule 424(b) and on the Closing Date, the Prospectus
(and any supplements thereto) will, comply in all material respects with the
applicable requirements of the Act and the Exchange Act and the respective rules
and regulations of the Commission thereunder (the "Rules and Regulations"); on
the Effective Date, the Registration Statement did not or will not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements therein not
misleading; and, on the Effective Date, the Prospectus, if not filed pursuant to
Rule 424(b), did not or will not, and on the date of any filing pursuant to Rule
424(b) and on the Closing Date, the Prospectus (together with any supplement
thereto) will not include any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statement therein, in light
of the circumstances under which they were made, not misleading; PROVIDED,
HOWEVER, that the Depositor makes no representation or warranty as to the
information contained in or omitted from the Registration Statement or the
Prospectus (or any supplement thereto) in reliance upon and in conformity with
information furnished in writing to the Depositor by you specifically for use in
connection with preparation of the Registration Statement or the Prospectus (or
any supplement thereto). As of the Closing Date, the Depositor's representations
and warranties in the Trust Agreement will be true and correct.
(c) This Agreement has been duly authorized, executed and delivered by
the Depositor.
(d) The assignment and delivery of the Term Assets to the Trust as of
the Closing Date will vest in the Trust all the right, title and interest
therein, subject to no prior lien, mortgage, security interest, pledge, adverse
claim, charge or other encumbrance, except as permitted by the Trust Agreement.
3. PURCHASE, SALE AND DELIVERY OF THE CERTIFICATES. On the basis of
the representations, warranties and agreements herein contained, but subject to
the terms and conditions herein set forth, the Depositor agrees to sell to you,
and you agree to purchase from the Depositor, the ZTF Class Certificates at
25.839% of the Certificate Principal Balance thereof, and the Amortizing Class
Certificates at 99.80% of the initial Certificate Principal Balance thereof plus
accrued interest, if any, calculated at an annual rate of 6.60% compounded
semiannually. The Depositor agrees to provide the Affiliate Exchange Right (as
such term is defined in the Trust Agreement) to you as additional underwriting
compensation. Delivery of and payment for the Certificates shall be made at the
office of Stroock & Stroock & Lavan LLP, 180 Maiden Lane, New York, New York
10038, on or about May 21, 1998, or such other date as the parties may agree
(the "Closing Date"). Delivery of the Certificates shall be made against payment
of the purchase price in immediately available funds drawn to the order of the
Depositor. The Certificates to be so delivered will be initially represented by
one or more Certificates registered in the name of CEDE & Co., the nominee of
The Depository Trust Company ("DTC"). The interests of beneficial owners of the
Certificates will be represented by book entries on the records of DTC and
participating members thereof. Definitive Certificates will be available only
under limited circumstances.
4. OFFERING BY THE UNDERWRITER. It is understood that, after the
Registration Statement becomes effective, you propose to offer the Certificates
for sale to the public (which may include selected dealers), as set forth in the
Prospectus.
5. COVENANTS OF THE DEPOSITOR. The Depositor covenants and agrees with
you that:
(a) The Depositor will use its best efforts to cause the Registration
Statement, and any amendment thereto, if not effective at the Execution Time, to
become effective. Prior to the termination of the offering of the Certificates,
the Depositor will not file any amendment of the Registration Statement or
supplement to the Prospectus unless the Depositor has furnished you a copy for
your review prior to filing and will not file any such proposed amendment or
supplement to which you reasonably object. Subject to the foregoing sentence, if
the Registration Statement has become or becomes effective pursuant to Rule
430A, or filing of the Prospectus is otherwise required under Rule 424(b), the
Depositor will file the Prospectus, properly completed, and any supplement
thereto, with the Commission pursuant to and in accordance with the applicable
paragraph of Rule 424(b) within the time period prescribed thereby and will
provide evidence satisfactory to you of such timely filing.
(b) The Depositor will advise you promptly of any proposal to amend or
supplement the Registration Statement as filed or the related Prospectus and
will not effect such amendment or supplement without your consent, which consent
will not unreasonably be withheld; the Depositor will also advise you promptly
of any request by the Commission for any amendment of or supplement to the
Registration Statement or the Prospectus or for any additional information; and
the Depositor will also advise you promptly of the effectiveness of the
Registration Statement, of any amendment of or supplement to the Registration
Statement or the Prospectus and of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement or the
institution or threat of any proceeding for that purpose, and the Depositor will
use its best efforts to prevent the issuance of any such stop order and to
obtain as soon as possible the lifting of any issued stop order.
(c) If, at any time when a prospectus relating to the Certificates is
required to be delivered under the Act, any event occurs as a result of which
the Prospectus as then amended or supplemented would include an untrue statement
of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, or if it is necessary at any time to amend the Registration
Statement or supplement the Prospectus to comply with the Act, the Exchange Act
or the Rules and Regulations, the Depositor promptly will notify you and will
prepare and file, or cause to be prepared and filed, with the Commission,
subject to the second sentence of paragraph (a) of this Section 5, an amendment
or supplement which will correct such statement or omission, or an amendment or
supplement which will effect such compliance. Any such filing shall not operate
as a waiver or limitation of any right of the Underwriter hereunder.
(d) As soon as practicable, but not later than sixteen months after
the original effective date of the Registration Statement, the Depositor will
cause the Trust to make generally available to Certificateholders an earnings
statement of the Trust covering a period of at least twelve months beginning
after the Effective Date of the Registration Statement which will satisfy the
provisions of Section 11(a) of the Act and Rule 158 under the Act.
(e) The Depositor will furnish to you copies of the Registration
Statement (one of which will include all exhibits), each related Preliminary
Prospectus, the Prospectus and all amendments and supplements to such documents,
in each case as soon as available and in such quantities as you request.
(f) The Depositor will arrange for the qualification of the
Certificates for sale under the laws of such jurisdictions in the United States
as you may reasonably designate and will continue such qualifications in effect
so long as required for the distribution.
(g) For a period from the date of this Agreement until the retirement
of the Certificates, or until such time as you shall cease to maintain a
secondary market in the Certificates, whichever occurs first, the Depositor will
deliver to you the annual statements of compliance and the annual independent
certified public accountants' reports furnished to the Trustee pursuant to the
Trust Agreement, as soon as such statements and reports are furnished to the
Trustee.
(h) So long as any of the Certificates is outstanding, the Depositor
will furnish to you (i) as soon as practicable after the end of the fiscal year
all documents required to be distributed to Certificateholders or filed with the
Commission pursuant to the Exchange Act, the Rules and Regulations thereunder or
any order of the Commission thereunder and (ii) from time to time, any other
information concerning the Depositor filed with any government or regulatory
authority which is otherwise publicly available, as you may reasonably request.
(i) On or before the Closing Date, the Depositor shall, to the extent
necessary, cause its records to be marked to show the Trust's absolute ownership
of the Term Assets, and from and after the Closing Date the Depositor shall not
take any action inconsistent with the Trust's ownership of such Term Assets,
other than as permitted by the Trust Agreement.
(j) To the extent, if any, that the rating provided with respect to
the Certificates by the rating agency or agencies that initially rate the
Certificates is conditional upon the furnishing of documents or the taking of
any other actions by the Depositor, the Depositor shall furnish such documents
and take any such other actions.
6. PAYMENT OF EXPENSES. The Depositor will pay all expenses incident
to the performance of its obligations under this Agreement, including (i) the
printing and filing of the Registration Statement as originally filed and of
each amendment thereto, (ii) the preparation of this Agreement, (iii) the
preparation, issuance and delivery of the Certificates to the Underwriter, (iv)
the fees and disbursements of the Depositor's counsel and accountants, (v) the
qualification of the Certificates under securities laws in accordance with the
provisions of Section 5(f) hereof, including filing fees and the fees and
disbursements of counsel for you in connection therewith and in connection with
the preparation of any blue sky or legal investment survey, (vi) the printing
and delivery to the Underwriter of copies of the Registration Statement as
originally filed and of each amendment thereto, (vii) the printing and delivery
to you of copies of any blue sky or legal investment survey prepared in
connection with the Certificates, (viii) any fees charged by rating agencies for
the rating of the Certificates and (ix) the fees and expenses of Stroock &
Stroock & Lavan LLP in its role as counsel to the Trust incurred as a result of
providing the opinions required by Section 7(g).
7. CONDITIONS OF THE OBLIGATIONS OF THE UNDERWRITER. Your obligation
to purchase and pay for the Certificates will be subject to the accuracy of the
representations and warranties on the part of the Depositor herein, to the
accuracy of the statements of officers of the Depositor made pursuant to the
provisions hereof, to the performance by the Depositor of its obligations
hereunder and to the following additional conditions precedent:
(a) If the Registration Statement has not become effective prior to
the Execution Time, unless you agree in writing to a later time, the
Registration Statement shall have become effective not later than (i) 6:00 p.m.
New York City time on the date of determination of the public offering price, if
such determination occurred at or prior to 3:00 p.m. New York City time on such
date, or (ii) 12:00 noon New York City time on the business day following the
day on which the public offering price was determined, if such determination
occurred after 3:00 p.m. New York City time on such date.
(b) The Prospectus and any supplements thereto shall have been filed
(if required) with the Commission in accordance with the Rules and Regulations
and Section 5(a) hereof, and prior to the Closing Date, no stop order suspending
the effectiveness of the Registration Statement shall have been issued and no
proceedings for that purpose shall have been instituted or, to the knowledge of
the Depositor or you, shall be contemplated by the Commission or by any
authority administering any state securities or blue sky law.
(c) The New York Stock Exchange, Inc. ("NYSE") shall have indicated in
writing that the Amortizing Class Certificates have been approved for listing on
the NYSE effective upon notice of issuance.
(d) Subsequent to the execution and delivery of this Agreement, there
shall not have occurred (i) any change, or any development involving a
prospective change, in or affecting particularly the business or properties of
the Trust or the Depositor which, in the judgment of the Underwriter, materially
impairs the investment quality of the Certificates or makes it impractical or
inadvisable to market the Certificates; (ii) any suspension or limitation of
trading in securities generally on the NYSE, or any setting of minimum prices
for trading on such exchange; (iii) any banking moratorium declared by Federal
or New York authorities; or (iv) any outbreak or escalation of major hostilities
in which the United States is involved, any declaration of war by Congress, or
any other substantial national or international calamity or emergency if, in the
judgment of the Underwriter, the effect of any such outbreak, escalation,
declaration, calamity or emergency makes it impractical or inadvisable to
proceed with completion of the sale of and payment for the Certificates.
(e) You shall have received an opinion of Stroock & Stroock & Lavan
LLP, counsel to the Depositor, addressed to you, dated the Closing Date and
substantially in the form of drafts to which you have previously agreed and
otherwise in form and substance satisfactory to you and your counsel.
(f) You shall have received an opinion addressed to you of Stroock &
Stroock & Lavan LLP, in its capacity as special tax counsel to the Depositor
confirming that the description of selected federal income tax consequences to
holders of the Certificates that appears in the Prospectus Supplement under the
heading "Federal Income Tax Consequences" conforms to the advice given to the
Depositor by Stroock & Stroock & Lavan LLP.
(g) You shall have received from Stroock & Stroock & Lavan LLP,
counsel to the Underwriter, such opinion or opinions, dated the Closing Date and
addressed to you, with respect to the validity of the Certificates and such
other related matters as you shall require and the Depositor shall have
furnished or caused to be furnished to such counsel such documents as they may
reasonably request for the purpose of enabling them to pass upon such matters.
(h) You shall have received an opinion addressed to you and the
Depositor of Dorsey & Whitney, counsel to the Trustee, dated the Closing Date
and satisfactory in form and substance to you and your counsel.
(i) You shall have received certificates dated the Closing Date of
such of the principal executive, financial and accounting officers of the
Depositor as you may request, dated the Closing Date, in which such officers
shall state that, to the best of their knowledge after reasonable investigation,
(i) the representations and warranties of the Depositor contained in this
Agreement and the Trust Agreement are true and correct, that the Depositor has
complied with all agreements and satisfied all conditions on its part to be
performed or satisfied under such agreements at or prior to the Closing Date,
that no stop order suspending the effectiveness of the Registration Statement
has been issued and no proceedings for that purpose have been instituted or are
contemplated by the Commission and (ii) subsequent to the respective dates as of
which information is given in the Registration Statement and the Prospectus, no
material adverse change, or any development involving a prospective material
adverse change, in or affecting particularly the business or properties of the
Trust or the Depositor has occurred, whether or not arising in the ordinary
course of business.
(j) The Certificates shall have been rated "A2" by Moody's Investors
Service, Inc. and "A" by Standard & Poor's Ratings Group.
(k) The issuance of the Certificates shall not have resulted in a
reduction or withdrawal by any Rating Agency of the current rating of any
outstanding securities issued or originated by the Trust or the Depositor.
(l) The Depositor will provide or cause to be provided to you such
conformed copies of such opinions, certificates, letters and documents as you
reasonably request.
8. INDEMNIFICATION AND CONTRIBUTION. (i) The Depositor agrees to
indemnify and hold harmless the Underwriter, the directors, officers, employees
and agents of the Underwriter and each person, if any, who controls the
Underwriter within the meaning of the Act or the Exchange Act against any and
all losses, claims, damages or liabilities, joint or several, to which they or
any of them may become subject under the Act, the Exchange Act or federal or
state statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement, the Prospectus or in any
amendment thereof or supplement thereto or any related Preliminary Prospectus,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and agrees to reimburse each such indemnified
party, as incurred, for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability or action; PROVIDED, HOWEVER, that the Depositor will not be liable in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or alleged untrue
statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Depositor by or on behalf
of the Underwriter specifically for use therein. This indemnity agreement will
be in addition to any liability which the Depositor may otherwise have.
(a) You agree to indemnify and hold harmless the Depositor, each of
the directors of the Depositor, each of the officers of the Depositor who shall
have signed the Registration Statement, and each other person, if any, who
controls the Depositor within the meaning of the Act or the Exchange Act, to the
same extent as the foregoing indemnity from the Depositor to the Underwriter,
but only with reference to written information relating to the Underwriter
furnished to the Depositor by or on behalf of the Underwriter specifically for
inclusion in the documents referred to in the foregoing indemnity. The indemnity
agreement will be in addition to any liability which the Underwriter may
otherwise have. The Depositor acknowledges that the statements set forth in the
last paragraph of the cover page and under the headings "Plan of Distribution"
in the Prospectus and "Method of Distribution" in the Prospectus Supplement
constitute the only information furnished in writing by or on behalf of the
Underwriter for inclusion in the Prospectus or the Prospectus Supplement and you
confirm that such statements are correct.
(b) Promptly after receipt by an indemnified party under this Section
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under this
Section 8, notify the indemnifying party in writing of the commencement thereof;
but the failure so to notify the indemnifying party (i) will not relieve it from
liability under paragraph (a) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses and (ii) will not, in any
event, relieve the indemnifying party from any obligations to any indemnified
party other than the indemnification obligation provided in paragraphs (a)
above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party's choice at the indemnifying party's expense to represent the
indemnified party in any action for which indemnification is sought (in which
case the indemnifying party shall not thereafter be responsible for the fees and
expenses of any separate counsel retained by the indemnified party or parties
except as set forth below); PROVIDED, HOWEVER, that such counsel shall be
satisfactory to the indemnified party. Notwithstanding the indemnifying party's
election to appoint counsel to represent the indemnified party in an action, the
indemnified party shall have the right to employ separate counsel (including
local counsel), and the indemnifying party shall bear the reasonable fees, costs
and expenses of such separate counsel if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel
with a conflict of interest, (ii) the actual or potential defendants in, or
targets of, any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the
indemnifying party, (iii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within
a reasonable time after notice of the institution of such action or (iv) the
indemnifying party shall authorize the indemnified party to employ separate
counsel at the expense of the indemnifying party. An indemnifying party will
not, without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect to which
indemnification or contribution may be sought thereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action,
suit or proceeding.
(c) In the event that the indemnity provided in paragraph (a) of this
Section 8 is unavailable to or insufficient to hold harmless an indemnified
party for any reason, the Depositor and the Underwriter agree to contribute to
the aggregate losses, claims, damages and liabilities (including legal or other
expenses reasonably incurred in connection with investigating or defending same)
(collectively "Losses") to which the Depositor and the Underwriter may be
subject in such proportion as is appropriate to reflect the relative benefits
received by the Depositor and by the Underwriter from the offering of the
Certificates; PROVIDED, HOWEVER, that in no case shall the Underwriter be
responsible for any amount in excess of the underwriting discount or commission
applicable to the Certificates purchased hereunder. If the allocation provided
by the immediately preceding sentence is unavailable for any reason, the
Depositor and the Underwriter shall contribute in such proportion as is
appropriate to reflect not only such relative benefits but also the relative
fault of the Depositor and the Underwriter. The benefits received by the
Depositor shall be deemed to be equal to the total net proceeds from the
offering (before deducting expenses), and the benefits received by the
Underwriter shall be deemed to be equal to the total underwriting discounts and
commissions. Relative fault shall be determined by reference to whether any
alleged untrue statement or omission relates to information provided by the
Depositor or the Underwriter. The Depositor and the Underwriter agree that it
would not be just and equitable if contribution were determined by pro rata
allocation or any other method of allocation which does not take account of the
equitable considerations referred to above. Notwithstanding the provisions of
this paragraph (d), no person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. For purposes of
this Section 8, each person who controls the Underwriter within the meaning of
either the Act or the Exchange Act and each director, officer, employee and
agent of the Underwriter shall have the same rights to contribution as the
Underwriter, and each person who controls the Depositor within the meaning of
either the Act or the Exchange Act, each officer of the Depositor who shall have
signed the Registration Statement and each director of the Depositor shall have
the same rights to contribution as the Depositor, subject in each case to the
applicable terms and conditions of this paragraph (c).
9. DEFAULTS OF THE UNDERWRITER. If the Underwriter defaults in its
obligations to purchase the Certificates hereunder on the Closing Date and
arrangements satisfactory to the Depositor for the purchase of such Certificates
by other persons are not made within 36 hours after such default, this Agreement
will terminate without liability on the part of the Depositor, except as
provided in Section 11. As used in this Agreement, the term "Underwriter"
includes any person substituted for the Underwriter under this Section. Nothing
herein will relieve a defaulting Underwriter from liability for its default.
10. NO BANKRUPTCY PETITION. The Underwriter covenants and agrees that,
prior to the date which is one year and one day after the payment in full of all
securities issued by the Depositor or by a trust for which the Depositor was the
depositor which securities were rated by any nationally recognized statistical
rating organization, it will not institute against, or join any other Person in
instituting against, the Depositor any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other proceedings under any Federal or
state bankruptcy or similar law.
11. SURVIVAL OF REPRESENTATIONS AND Obligations. The respective
indemnities, agreements, representations, warranties and other statements of the
Depositor or any of its officers and the Underwriter set forth in or made
pursuant to this Agreement or contained in certificates of officers of the
Depositor submitted pursuant hereto shall remain operative and in full force and
effect, regardless of any investigation or statement as to the results thereof,
made by or on behalf of the Underwriter or of the Depositor or any of their
respective representatives, officers or directors or any controlling person, and
will survive delivery of and payment for the Certificates. If for any reason the
purchase of the Certificates by the Underwriter is not consummated, the
Depositor shall remain responsible for the expenses to be paid or reimbursed by
the Depositor pursuant to Section 6 and the respective obligations of the
Depositor and the Underwriter pursuant to Section 8 shall remain in effect. If
for any reason the purchase of the Certificates by the Underwriter is not
consummated (other than because of a failure to satisfy the conditions set forth
in items (ii), (iii) and (iv) of Section 7(d)), the Depositor will reimburse the
Underwriter, upon demand, for all out-of-pocket expenses (including fees and
disbursements of counsel) reasonably incurred by it in connection with the
offering of the Certificates.
12. NOTICES. All communications hereunder will be in writing and, if
sent to the Underwriter, will be mailed, delivered or telegraphed and confirmed
to it at Seven World Trade Center, New York, N.Y. 10048; if sent to the
Depositor, will be mailed, delivered or telegraphed, and confirmed to it at
Structured Products Corp., Seven World Trade Center, Room 33-130, 33rd Floor,
New York, N.Y. 10048, Attention: Secretary. Any such notice will take effect at
the time of receipt.
13. SUCCESSORS. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the officers
and directors and controlling persons referred to in Section 8, and no other
person will have any right or obligations hereunder.
14. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.
15. APPLICABLE LAW. This Agreement will be governed by, and construed
in accordance with, the internal laws of the State of New York, without giving
effect to principles of conflict of laws.
<PAGE>
If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to us the enclosed duplicate hereof, whereupon
it will become a binding agreement between the Depositor and the Underwriter in
accordance with its terms.
Very truly yours,
STRUCTURED PRODUCTS CORP.
By: /S/ MATTHEW MAYERS
Authorized Signatory
The foregoing Underwriting
Agreement is hereby confirmed
and accepted as of the
date first written above.
SALOMON BROTHERS INC
By: /S/ TIMOTHY P. BEAULAC
Authorized Signatory
EXHIBIT 4.1
BASE TRUST AGREEMENT
between
STRUCTURED PRODUCTS CORP.
Depositor
and
U.S. BANK TRUST NATIONAL ASSOCIATION
Trustee
Dated as of May 21, 1998
<PAGE>
RECONCILIATION AND TIE BETWEEN TRUST INDENTURE
ACT OF 1939 AND AGREEMENT PROVISIONS*
TRUST INDENTURE
ACT SECTION AGREEMENT SECTION
310(a)(1)------------------------------------------------------- 8.6(a)
(a)(2)------------------------------------------------------- 8.6(a)
(a)(3)------------------------------------------------------- 8.10
(a)(4)------------------------------------------------------- 8.1(d)
(a)(5)------------------------------------------------------- 8.6(a)
(b)---------------------------------------------------------- 8.6(b), 8.7
(c)---------------------------------------------------------- Not Applicable
311(a)---------------------------------------------------------- 6.8
(b)---------------------------------------------------------- 6.8
312(a)---------------------------------------------------------- 3.19, 3.20(a)
(b)---------------------------------------------------------- 3.20(b)
(c)---------------------------------------------------------- 3.20(c)
313(a)---------------------------------------------------------- 3.21
(b)---------------------------------------------------------- 3.21
(c)---------------------------------------------------------- 3.21
(d)---------------------------------------------------------- 3.21
314(a)---------------------------------------------------------- 6.1(a), 6.1(b)
(b)---------------------------------------------------------- 6.1(c), 6.1(d)
(c)(1)------------------------------------------------------- 6.1(f)
(c)(2)------------------------------------------------------- 6.1(f)
(c)(3)------------------------------------------------------- 6.1(f)
(d)(1)------------------------------------------------------- 6.1(e)
(d)(2)------------------------------------------------------- 6.1(e)
(d)(3)------------------------------------------------------- Not Applicable
(e)---------------------------------------------------------- 6.1(f)
315(a)---------------------------------------------------------- 8.1(c)
(b)---------------------------------------------------------- 8.1(f)
(c)---------------------------------------------------------- 8.1(a)
(d)---------------------------------------------------------- 8.1(c)
(d)(1)------------------------------------------------------- 8.1(c)
(d)(2)------------------------------------------------------- 8.1(c)
(d)(3)------------------------------------------------------- 8.1(c)
(e)---------------------------------------------------------- 8.5(c)
316(a)(1)(A)---------------------------------------------------- 5.17
316(a)(1)(B)---------------------------------------------------- 5.18
316(a)(2)------------------------------------------------------- Not Applicable
316(b)---------------------------------------------------------- 5.6(f), 4.1
316(c)---------------------------------------------------------- 5.7
317(a)---------------------------------------------------------- 3.12
317(b)---------------------------------------------------------- 5.14
318(a)---------------------------------------------------------- 10.12
- --------
* This reconciliation and tie shall not, for any purpose, be deemed to be part
of the within agreement.
<PAGE>
This document is the draft of Trust Agreement to be used in the first
public transaction.
TRUST AGREEMENT dated as of May 21, 1998, between STRUCTURED
PRODUCTS CORP., a Delaware corporation, as Depositor, and
FIRST TRUST OF NEW YORK, NATIONAL ASSOCIATION, a national
banking association, as Trustee.
PRELIMINARY STATEMENT
The Depositor and the Trustee have duly authorized the execution and
delivery of this Trust Agreement to provide for one or more Series (and one or
more Classes within each such Series) of Trust Certificates, issuable from time
to time as provided in this Agreement. Each such Series (or each Class within
such Series) of Certificates will be issued only under a separate Series
Supplement to this Agreement duly executed and delivered by the Depositor, the
Administrative Agent, if any, specified in the applicable Series Supplement, and
the Trustee. All representations, covenants and agreements made herein by each
of the Depositor, the Administrative Agent, if any, and the Trustee are for the
benefit and security of the Certificateholders and, to the extent provided in
the applicable Series Supplement, for the benefit and security of any Credit
Support Provider. The Depositor is entering into this Agreement, and the Trustee
is accepting the trusts created hereby, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged.
ARTICLE I
DEFINITIONS AND ASSUMPTIONS
Section 1.1. DEFINITIONS. Except as otherwise specified herein or in
the applicable Series Supplement or as the context may otherwise require, the
following terms have the respective meanings set forth below for all purposes of
this Agreement.
"ACCOUNT": As defined in Section 3.10.
"ACCOUNTING DATE": With respect to any Series, if applicable, as
defined in the related Series Supplement.
"ADMINISTRATIVE AGENT": With respect to any Series of Certificates,
the Person, if any, specified in the applicable Series Supplement for such
Series (which Person shall have agreed pursuant to such Series Supplement to
assume all the duties, obligations, responsibilities and liabilities of the
Administrative Agent as set forth in this Agreement and such Series Supplement
with respect to such Series), until a successor Person shall have become the
Administrative Agent pursuant to the applicable provisions of this Agreement and
such Series Supplement, and thereafter "Administrative Agent" shall mean such
successor Person.
"ACCRETED AMOUNT": With respect to each Series, if applicable, as
defined in the related Series Supplement.
"ADMINISTRATIVE AGENT": With respect to each Series, if applicable, as
defined in the related Series Supplement.
"ADMINISTRATIVE AGENT TERMINATION EVENT": As defined in Section 7.1.
"ADMINISTRATIVE FEE": With respect to each Series, if applicable, as
defined in the related Series Supplement.
"ADVANCE": As defined in Section 4.3.
"AFFILIATE": With respect to any specified Person, 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.
"AGREEMENT": With respect to any Series of Certificates, this Trust
Agreement and all amendments hereof and, unless the context otherwise requires,
the related Series Supplement.
"AUTHENTICATING AGENT": As defined in Section 5.15.
"AUTHORIZED NEWSPAPER": A newspaper in an official language of the
country of publication customarily published at least once a day, and
customarily published for at least five days in each calendar week, and of
general circulation in such city or cities specified pursuant to Section 5.1
with respect to the Certificates of any Series. Where successive publications
are required to be made in Authorized Newspapers, the successive publications
may be made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any Business Day in such city.
"AVAILABLE FUNDS": Unless otherwise specified in the applicable Series
Supplement, for any Distribution Date in respect of a given Series or Class, the
sum of (i) all amounts actually received on or with respect to the Term Assets
(including Liquidation Proceeds and investment income on amounts in the
Accounts) with respect to such Series during the related Collection Period, (ii)
all amounts received pursuant to any Credit Support Instruments with respect to
such Series for such Distribution Date and (iii) all other amounts, if any,
specified by the applicable Series Supplement.
"BASIC DOCUMENTS": With respect to any Series, if applicable, as
defined in the related Series Supplement.
"BOARD OF DIRECTORS": Either the Board of Directors of the Depositor
or any executive or committee of such Board duly authorized under applicable law
to act on behalf of such Board.
"BOARD RESOLUTION": A copy of a resolution certified by the Secretary
or an Assistant Secretary of the Depositor 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 delivery to the Trustee.
"BUSINESS DAY": With respect to any Place of Distribution specified
pursuant to Section 5.1, any day that is not a Saturday, a Sunday or a legal
holiday or a day on which banking institutions or trust companies in such Place
of Distribution are authorized or obligated by law, regulation or executive
order to close or any day which is not a business day with respect to the Term
Assets, except as otherwise specified pursuant to Section 5.1.
"CALCULATION AGENT": With respect to each Series, as defined in the
related Series Supplement.
"CALL PREMIUM PERCENTAGE": With respect to any Series (or Class within
such Series), if applicable, as defined in the related Series Supplement.
"CERTIFICATE ACCOUNT": As defined in Section 3.9.
"CERTIFICATE OWNERS": As defined in Section 5.9.
"CERTIFICATE PRINCIPAL BALANCE": With respect to an Outstanding
Certificate, as determined at any time, the maximum amount that the Holder
thereof is entitled to receive as distributions allocable to principal payments
on the Term Assets. The Certificate Principal Balance, if any, of any Class
within a given Series (other than those Classes, if any, specified in the
related Series Supplement), as of any date of determination, shall be equal to
the aggregate initial Certificate Principal Balance thereof less the sum of (i)
all amounts allocable to prior distributions made to such Class in respect of
principal of the Term Assets and (ii) any reductions attributable to
Certificates surrendered in exchange for Term Assets, as and to the extent
provided in the applicable Series Supplement.
"CERTIFICATE REGISTER" and "CERTIFICATE REGISTRAR": As respectively
defined in Section 5.4.
"CERTIFICATEHOLDER": Any Holder of a Certificate.
"CERTIFICATES": Any Trust Certificates authorized by, and
authenticated and delivered under, this Agreement.
"CLASS": With respect to any Series, any one of the classes of
Certificates of such Series, each consisting of Certificates having identical
terms.
"CLOSING DATE": With respect to any Series, the day on which
Certificates of such Series are first executed, authenticated and delivered.
"CODE": The Internal Revenue Code of 1986 and Treasury Regulations
promulgated thereunder.
"COLLECTION PERIOD": With respect to any Distribution Date for a
Series (or Class within such Series), the period specified in the related Series
Supplement.
"COMMISSION": The Securities and Exchange Commission, as from time to
time constituted, created under the Exchange Act or, if at any time after the
execution and delivery of this Agreement such Commission is not existing and
performing the duties now assigned to it, then the body then performing such
duties.
"CORPORATE TRUST OFFICE": The principal corporate trust office of the
Trustee located at the address set forth in the related Series Supplement or
such other addresses as the Trustee may designate from time to time by notice to
the Holders, the Administrative Agent, if any, and the Depositor, or the
principal corporate trust office of any successor Trustee (or such other
addresses as a successor Trustee may designate from time to time by notice to
the Holders, the Administrative Agent, if any, and the Depositor).
"CREDIT SUPPORT": With respect to any Series (or any Class within such
Series), a letter of credit, surety bond, swap agreement, put or call option or
other asset intended to support or ensure the timely or ultimate distributions
of amounts due in respect of all or certain of the Term Assets for such Series
or Class, which in each case is specified as such in the related Series
Supplement.
"CREDIT SUPPORT INSTRUMENT": The instrument or document pursuant to
which the Credit Support for a given Series (or any Class within such Series) is
provided, as specified in the applicable Series Supplement.
"CREDIT SUPPORT PROVIDER": With respect to any Series (or any Class
within such Series), the Person, if any, that will provide any Credit Support
with respect to all or a portion of the Term Assets for such Series or Class as
specified in the applicable Series Supplement.
"CURRENCY": Dollars or Foreign Currency.
"CUT-OFF DATE": With respect to any Series, the date specified as such
in the related Series Supplement. For purposes of this Agreement, any Term Asset
acquired by the Depositor after the applicable Cut-off Date but prior to the
applicable Closing Date and included in the related Trust as of such Closing
Date shall be deemed to have been Outstanding as of such Cut-off Date and
references to the principal balance of such Term Asset as of such Cut-off Date
shall be deemed to be to the principal balance of such Term Asset as of the date
on which it was acquired by the Depositor.
"DEFINITIVE CERTIFICATES": As defined in Section 5.9.
"DELETED TERM ASSET": A Term Asset replaced or to be replaced by a
Qualified Substitute Term Asset.
"DEPOSITARY": With respect to the Certificates of any Series (or Class
within such Series) issuable in whole or in part in the form of one or more
Global Securities, the Person designated as Depositary by the Depositor pursuant
to Section 5.1 until a successor Depositary shall have become such pursuant to
the applicable provisions of this Agreement, and thereafter "Depositary" shall
mean or include each Person who is then a Depositary hereunder, and if at any
time there is more than one such Person, "Depositary" as used with respect to
the Certificates of any such Series or Class shall mean the Depositary with
respect to the Certificates of that Series or Class.
"DEPOSITOR": Structured Products Corp., a Delaware corporation, and,
if a successor Person shall have become the Depositor pursuant to any applicable
provisions of this Agreement, "Depositor" shall mean such successor Person.
"DEPOSITOR ORDER" or "DEPOSITOR REQUEST": A written order or request,
respectively, signed in the name of the Depositor by any of its Chief Executive
Officer, Chief Financial Officer, Chief Operating Officer, President, a Vice
President, its Treasurer, an Assistant Treasurer, its Secretary or an Assistant
Secretary and delivered to the Trustee.
"DEPOSITORY AGREEMENT": If applicable, the agreement pursuant to which
the Depositary will agree to act as Depositary with respect to any Series (or
Class within such Series) of Certificates in accordance with Section 5.9.
"DISCOUNT CERTIFICATE": Any Certificate that is issued with "original
issue discount" within the meaning of Section 1273(a) of the Code and any other
Certificate designated by the Depositor as issued with original issue discount
for United States Federal income tax purposes.
"DISTRIBUTION DATE": With respect to any Series (or Class within such
Series) of Certificates, each date specified as a "Distribution Date" for such
Series (or Class) in the related Series Supplement.
"DOLLAR" or "$" or "USD": Such currency of the United States as at the
time of payment is legal tender for the payment of public and private debts.
"ELIGIBLE ACCOUNT": Either (i) an account or accounts maintained with
a Federal or State chartered depository institution or trust company the long
term unsecured debt obligations of which are rated by the Rating Agency the
higher of (x) at least the then current long-term rating of the Term Assets or
(y) in one of its two highest long-term rating categories (unless otherwise
specified in the Series Supplement) at the time any amounts are held in deposit
therein or (ii) a trust account or accounts maintained as a segregated account
or as segregated accounts and held by a Federal or State chartered depository
institution or trust company in trust for the benefit of the Certificateholders
PROVIDED, HOWEVER, that such depositary institution or trust company has a
long-term rating in one of the four highest categories by the Rating Agency.
"EVENT OF DEFAULT": With respect to any Series (or Class within such
Series) of Certificates, as specified in the related Series Supplement.
"EXCHANGE ACT": The Securities Exchange Act of 1934, as amended.
"EXCHANGE RATE AGENT": With respect to any Series (or Class within
such Series) of Certificates, if applicable, the Depositor or its agent so
specified in the related Series Supplement.
"EXECUTIVE OFFICER": With respect to any corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer, President,
any Vice President, the Secretary or the Treasurer of such corporation; with
respect to any partnership, any general partner thereof.
"EXTRAORDINARY TRUST EXPENSE": With respect to any Series, as
specified in the related Series Supplement.
"FINAL SCHEDULED DISTRIBUTION DATE": With respect to each Series, as
defined in the Series Supplement.
"FIXED PASS THROUGH RATE": With respect to any Fixed Rate Certificate,
as defined in the related Series Supplement.
"FIXED RATE CERTIFICATE": A Certificate that provides for a payment of
interest at a Fixed Pass Through Rate.
"FLOATING PASS THROUGH RATE": With respect to any Floating Rate
Certificate, as defined in the related Series Supplement.
"FLOATING RATE CERTIFICATE": A Certificate that provides for the
payment of interest at a Floating Pass Through Rate determined periodically by
reference to a formula specified pursuant to Section 5.1 and the related Series
Supplement.
"FOREIGN CURRENCY": A currency issued by the government of any country
other than the United States or a composite currency the value of which is
determined by reference to the values of the currencies of any group of
countries.
"GLOBAL SECURITY": A Certificate evidencing all or part of a Series
(or Class within such Series) of Certificates, issued to the Depositary for such
Series or Class in accordance with Section 5.9 and bearing the legend prescribed
therein.
"GRANT": To sell, convey, assign, transfer, create, grant a lien upon
and a security interest in and right of set-off against, deposit, set over and
confirm to the Trustee pursuant to this Agreement and a related Series
Supplement; and the terms "Granted" and "Granting" have the meanings correlative
to the foregoing. A Grant of any Term Assets or of any other instrument shall
include all rights, powers and options (but none of the obligations) of the
Granting party thereunder, including the immediate and continuing right to claim
for, collect, receive and give receipt for principal, premium, if any, and
interest payments in respect of such Term Assets and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the Granting party or otherwise, and generally to do
and receive anything that the Granting party is or may be entitled to do or
receive thereunder or with respect thereto.
"GUARANTEED INVESTMENT CONTRACT": With respect to any Series (or Class
within such Series), a guaranteed investment contract or surety bond provided
for in the related Series Supplement, Granted as part of the Trust or to the
Trustee for the benefit of the Certificateholders for such Series, providing for
the investment of funds in a related Account or related Accounts and insuring a
minimum or a fixed rate of return on the investment of such funds, which
contract or surety bond shall be an obligation of an insurance company or other
entity whose rating at the time of purchase of such guaranteed investment
contract or surety bond is no lower than the rating on the Term Assets and shall
satisfy any other requirements specified in such Series Supplement.
"HOLDER": The holder of a Certificate.
"INDEPENDENT": When used with respect to any specified Person means
that the Person specifies he or she (1) is in fact independent of the Depositor
and the Administrative Agent, if any, and of any Affiliate of any of the
foregoing Persons, (2) does not have any direct or indirect financial interest
in the Depositor or the Administrative Agent, if any, or in any Affiliate of
either of the foregoing Persons which is material with respect to such Person
and (3) is not connected with the Depositor or the Administrative Agent, if any,
as an officer, employee, promoter, underwriter, trustee, partner, director or
person performing similar functions.
"INDEPENDENT CERTIFICATE" means a certificate of an Independent
Person, as required by the TIA.
"LETTER OF CREDIT": With respect to any Series or Class within such
Series, the letter of credit, if any, providing for the payment of all or a
portion of amounts due in respect of such Series or Class, issued to the Trustee
for the benefit of the Holders of such Series or Class, issued by the related
Credit Support Provider, all as specified in the related Series Supplement.
"LIMITED GUARANTOR": With respect to the Term Assets relating to any
Series (or Class within such Series), a Person specified in the related Series
Supplement as providing a guarantee or insurance policy or other credit
enhancement supporting the distributions in respect of such Series (or Class) as
and to the extent specified in such Series Supplement.
"LIMITED GUARANTY": With respect to any Series or Class within such
Series, any guarantee of or insurance policy or other comparable form of credit
enhancement with respect to amounts required to be distributed in respect of
such Series or Class or payments under all or certain of the Term Assets
relating to such Series or Class, executed and delivered by a Limited Guarantor
in favor of the Trustee, for the benefit of the Certificateholders, as specified
in the related Series Supplement.
"LIQUIDATION PROCEEDS": The amounts received by the Administrative
Agent, if any, or the Trustee in connection with (i) the liquidation of a
defaulted Term Asset or collateral, if any, related thereto or (ii) the
repurchase, substitution or sale of a Term Asset.
"NOTIONAL AMOUNT": With respect to any Class of Certificates, if
applicable, the initial notional amount specified in the related Series
Supplement on which distributions of interest may be determined at the
applicable Pass Through Rate, as the same may be adjusted as specified in such
Series Supplement.
"OFFICER'S CERTIFICATE": A certificate signed by any one (or, if
specified in this Agreement or any Series Supplement, more than one) Executive
Officer of the Depositor or Administrative Agent, as applicable, or, in the case
of the Trustee, a Responsible Officer.
"OPINION OF COUNSEL": A written opinion of counsel, who may, except as
otherwise expressly provided in this Agreement, be counsel for the Depositor or
the Administrative Agent, if any, acceptable to the Trustee, except that any
opinion of counsel relating to the qualification of any account required to be
maintained pursuant to this Agreement as an Eligible Account must state that it
is an opinion of counsel who is in fact Independent of the Depositor and the
Administrative Agent, if any.
"OPTIONAL EXCHANGE DATE": With respect to any Series (or Class with
such Series), as defined, if applicable, in the related Series Supplement.
"OUTSTANDING": With respect to Certificates of a specified Series (or
Class within such Series), as of any date of determination, all such
Certificates theretofore authenticated and delivered under this Agreement and
the related Series Supplement except:
(i) Certificates theretofore cancelled by the
Certificate Registrar or delivered to the Certificate
Registrar for cancellation; and
(ii) Certificates in exchange for or in lieu of which other
Certificates have been authenticated and delivered pursuant to this
Agreement, unless proof satisfactory to the Trustee is presented that
any such Certificates are held by a bona fide purchaser in whose hands
such Certificates are valid obligations of the Trust;
PROVIDED, HOWEVER, that in determining whether the Holders of the required
percentage of the aggregate Voting Rights of the Certificates have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder, Certificates beneficially owned by the Depositor, or any Affiliate
thereof, shall be disregarded and deemed not to be Outstanding, and the Voting
Rights to which its Holder would otherwise be entitled shall not be taken into
account in determining whether the requisite percentage of aggregate Voting
Rights necessary to effect any such consent or take any such action has been
obtained except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Certificates with respect to which the Depositor has provided
the Trustee an Officer's Certificate stating that such Certificates are so owned
shall be so disregarded. Certificates so owned that have been pledged in good
faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee by certifying to such effect in an Officer's
Certificate the pledgee's right so to act with respect to such Certificates and
that the pledgee is not, to the actual knowledge of the Trustee without any duty
of investigation, the Depositor, the Administrative Agent, if any, or any
Affiliate of any thereof so owned. The principal amount or notional amount, as
applicable, of a Discount Certificate that shall be deemed to be Outstanding for
the determination referred to in the foregoing proviso shall be the Certificate
Principal Balance or Certificate Notional Amount, as applicable, with respect
thereto as of the date of such determination, and the principal amount or
notional amount, as applicable, of a Certificate denominated in a Foreign
Currency that shall be deemed to be Outstanding for purposes of the
determination referred to in the foregoing provision shall be the amount
calculated pursuant to Section 5.12(c).
"PARTICIPANT": A broker, dealer, bank, other financial institution or
other Person for whom from time to time a Depositary effects book-entry
transfers and pledges of securities deposited with the Depositary.
"PASS THROUGH RATE": With respect to any Series (or Class within such
Series) of Certificates (except certain Discount Certificates and Certificates
entitled to nominal or no interest distributions) the annual rate at which
interest accrues on the Certificates of such Series (or Class), which may be a
fixed rate or a floating rate of interest, determined upon the basis and in the
manner specified in the related Series Supplement.
"PAYING AGENT": As defined in Section 5.14.
"PERCENTAGE INTEREST": With respect to a Certificate of any Series or
Class within a Series, the portion of such Series or Class evidenced by such
Certificate, expressed as a percentage, equal to the product of (x) a fraction,
the numerator of which is the initial Certificate Principal Balance or Notional
Amount, as applicable, represented by such Certificate and the denominator of
which is the aggregate initial Certificate Principal Balance or Notional Amount,
as applicable, of all the Certificates of such Series or Class and (y) 100.
"PERMITTED INVESTMENTS": With respect to any Series, unless otherwise
specified in the related Series Supplement, any one or more of the following
obligations or securities, PROVIDED that the total return specified by the terms
of each such obligation or security is at least equal to the purchase price
thereof:
(i) direct obligations of, and obligations fully guaranteed by,
the United States, the Federal Home Loan Mortgage Corporation, the
Federal National Mortgage Association, the Federal Farm Credit System
or any agency or instrumentality of the United States the obligations
of which are backed by the full faith and credit of the United
States of America; provided that obligations of, or guaranteed by, the
Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association or the Federal Farm Credit System shall be Permitted
Investments only if, at the time of investment, it has the rating
specified in such Series Supplement for Permitted Investments;
(ii) demand and time deposits in, certificates of deposit of, or
banker's acceptances issued by any depository institution or trust
company (including the Trustee or any agent of the Trustee acting in
their respective commercial capacities) incorporated under the laws of
the United States or any State and subject to supervision and
examination by Federal and/or State banking authorities so long as the
commercial paper and/or the short-term debt obligations of such
depository institution or trust company (or, in the case of a
depository institution which is the principal subsidiary of a holding
company, the commercial paper or other short-term debt obligations of
such holding company) at the time of such investment or contractual
commitment providing for such investment have the rating specified in
such Series Supplement for Permitted Investments; PROVIDED, HOWEVER,
that such rating shall be no lower than the rating on the Term Assets
at the time of purchase of the investments;
(iii) repurchase agreements with respect to (a) any security
described in clause (i) above or (b) any other security issued or
guaranteed by an agency or instrumentality of the United States, with
an entity having the credit rating specified in such Series Supplement
for Permitted Investments;
(iv) securities bearing interest or sold at a discount issued by
any corporation incorporated under the laws of the United States or any
State that have the rating specified in such Series Supplement for
Permitted Investments at the time of such investment or contractual
commitment providing for such investment; PROVIDED, however, that such
rating shall be no lower than the rating on the Term Assets; PROVIDED,
FURTHER, that securities issued by any particular corporation will not
be Permitted Investments to the extent that investment therein will
cause the then outstanding principal amount of securities issued by
such corporation and held as part of the Trust for such Series to
exceed 10% of the aggregate outstanding principal balances and amounts
of all the Term Assets and Permitted Investments held as part of the
Trust for such Series;
(v) commercial paper having at the time of such investment the
rating specified in the Series Supplement for Permitted Investments;
and
(vi) a Guaranteed Investment Contract if and only if specified in
the related Series Supplement, provided that the Rating Agency
Condition is met.
"PERSON": Any individual, corporation, partnership, joint venture,
association, joint stock company, limited liability company, trust (including
any beneficiary thereof), unincorporated organization or government or any
agency or political subdivision thereof.
"PLACE OF DISTRIBUTION": With respect to any Series (or Class within
such Series) of Certificates, the place or places where the principal of (and
premium, if any) and interest on the Certificates of such Series (or Class) are
distributable as specified pursuant to Section 5.1.
"PREDECESSOR CERTIFICATE": With respect to any particular Certificate,
every previous Certificate evidencing all or a portion of the same interest as
that evidenced by such particular Certificate; and, for the purpose of this
definition, any Certificate authenticated and delivered under Section 5.5 in
lieu of a lost, destroyed or stolen Certificate shall be deemed to evidence the
same interest as the lost, destroyed or stolen Certificate.
"PROCEEDING": Any suit in equity, action at law or other judicial or
administrative proceeding.
"PURCHASE PRICE": With respect to any Term Asset required to be
repurchased by the Term Asset Provider pursuant to Section 2.3 and as confirmed
by an Officer's Certificate from the Administrative Agent, if any, or the
Depositor, as the case may be, to the Trustee, an amount equal to the sum of (i)
the greater of (x) 100% of the principal balance thereof as of the date of such
purchase or (y) if the Term Asset was purchased at a premium above face value
the price paid therefor, (ii) accrued and unpaid interest thereon from the
immediately preceding interest allocation date, or if no interest has been paid
to the Trust with respect thereto, from the Cut-Off Date, in each case at a rate
equal to the Fixed Pass Through Rate or the then applicable Floating Pass
Through Rate, as the case may be, as specified in the applicable Series
Supplement, on the principal balance of such Term Asset as of the close of
business on the Business Day immediately preceding the date of purchase or such
other day as may be specified in the applicable Series Supplement on which such
purchase is to occur, (iii) any unreimbursed Advances and any unpaid
Administrative Fees allocable to such Term Asset, (iv) expenses reasonably
incurred or to be incurred by the Administrative Agent, if any, or the Trustee
in respect of the breach or defect giving rise to the purchase obligation,
including any expenses arising out of the enforcement of the purchase obligation
and (v) any realized losses previously incurred with respect to such Term Asset
and allocated to Certificateholders on or before the date of purchase.
"QUALIFIED SUBSTITUTE TERM ASSET": With respect to any Series, as
defined, if applicable, in the related Series Supplement.
"RATING AGENCY": With respect to any Series (or Class within such
Series), as defined in the related Series Supplement.
"RATING AGENCY CONDITION": With respect to any action or occurrence,
unless otherwise specified in the applicable Series Supplement, that each Rating
Agency shall have been given 10 days (or such shorter period acceptable to each
Rating Agency) prior notice thereof and that each Rating Agency shall have
notified the Depositor, the Trustee and the Administrative Agent, if any, in
writing that such action or occurrence will not result in a reduction or
withdrawal of the then current rating of any Certificate of the applicable
Series.
"RECORD DATE": With respect to any Distribution Date for any Series
(or Class within such Series) of Certificates, the date specified in the related
Series Supplement.
"REQUIRED INTEREST": Unless otherwise specified in the related Series
Supplement, with respect to the Outstanding Certificates of any Series or any
Class thereof, the accrued and undistributed interest on the Certificate
Principal Balance or Notional Amount of such Outstanding Certificates computed
at the applicable Pass Through Rate.
"REQUIRED PERCENTAGE--AMENDMENT": Unless otherwise specified in the
related Series Supplement, 66-2/3% of the aggregate Voting Rights of
Certificates of such Series (or of a designated Class or group of Classes within
such Series) (either voting as separate Classes or as a single Class) applicable
to such matter, all as specified in the applicable Series Supplement.
"REQUIRED PERCENTAGE--DEFINITIVE CERTIFICATES": Unless otherwise
specified in the related Series Supplement, greater than 50% of the aggregate
Voting Rights of Certificates of such Series.
"REQUIRED PERCENTAGE--DIRECTION OF TRUSTEE": Unless otherwise
specified in the related Series Supplement, greater than 50% of the aggregate
Voting Rights of Certificates of such Series.
"REQUIRED PERCENTAGE--REMEDIES": Unless otherwise specified in the
related Series Supplement, 66-2/3% of the aggregate Voting Rights of
Certificates of such Series.
"REQUIRED PERCENTAGE--REMOVAL OF TRUSTEE": Unless otherwise specified
in the related Series Supplement, greater than 50% of the aggregate Voting
Rights of Certificates of such Series.
"REQUIRED PERCENTAGE--WAIVER": Unless otherwise specified in the
related Series Supplement, 66-2/3% of the aggregate Voting Rights of
Certificates of such Series.
"REQUIRED PREMIUM": If applicable, unless otherwise specified in the
related Series Supplement, with respect to the Certificates of any Series or any
Class thereof, an amount equal to the product, as determined on any Distribution
Date with respect to such Series or Class, of (i) the Required Principal for
such Series or Class and (ii) the Call Premium Percentage for such Series or
Class.
"REQUIRED PRINCIPAL": As determined for any Distribution Date for a
given Series (or Class within such Series), unless otherwise specified in the
related Series Supplement, the amounts on deposit in the Certificate Account
allocable to principal payments on the Term Assets (including from Credit
Support, if any, and Advances, if any, but excluding amounts in respect of
principal payments to the extent that Advances with respect thereto were
distributed as Required Principal on a prior Distribution Date) and required to
be distributed in respect of Certificates of such Series (or Class) in
accordance with the terms of such Certificates and such related Series
Supplement.
"REQUIRED RATING": With respect to any Series (or Class within such
Series), the rating category (or categories) specified in the Series Supplement
that, as a condition to the issuance of such Series or Class, is (or are) the
lowest category (or categories) in which the Certificates of such Series or
Class may be categorized by the Rating Agency.
"REQUISITE RESERVE AMOUNT": As of any date with respect to any Series
(or Class within such Series) of Certificates, the amount, if any, required to
be maintained in the Reserve Account, if any, for such Series or Class as
specified in or determined pursuant to the related Series Supplement.
"RESERVE ACCOUNT": An Eligible Account, if any, created and maintained
pursuant to Section 3.11.
"RESPONSIBLE OFFICER": With respect to the Trustee, any officer within
the Corporate Trust Office of the Trustee, including any Vice President,
Assistant Vice President, Assistant Treasurer, Assistant Secretary or any other
officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.
"RETAINED INTEREST": If applicable, with respect to any Term Asset, an
ownership interest in and a right to a portion of the payments thereon by the
obligor thereof, as specified in the Term Assets Schedule to the related Series
Supplement, held by the Person so specified in such Term Assets Schedule.
"SCHEDULED FINAL DISTRIBUTION DATE": With respect to any Certificate,
the date on which all the unpaid principal of (and premium, if any, on) such
Certificate is scheduled, without giving effect to any prepayment, exchange or
early termination, to become due and payable as provided therein and in the
applicable Series Supplement.
"SERIES": A separate series of Certificates issued pursuant to this
Agreement and a related Series Supplement, which series may be divided into two
or more Classes, as provided in such Series Supplement.
"SERIES SUPPLEMENT": An agreement supplemental to this Agreement that
authorizes the issuance of a particular Series (and each Class within such
Series) of Certificates.
"SPECIFIED CURRENCY": As defined in the related Series Supplement.
"STATE": Any one of the 50 states of the United States or the District
of Columbia.
"SUB-ADMINISTRATION ACCOUNT": As defined in Section 3.8.
"SUB-ADMINISTRATION AGREEMENT": The written contract, if any, between the
Administrative Agent, if any, specified in the applicable Series Supplement, or
Trustee and a Sub-Administrative Agent and any successor Administrative Agent or
Trustee or Sub- Administrative Agent relating to the administration of a Term
Asset or certain Term Assets as provided in Section 3.2.
"SUB-ADMINISTRATIVE AGENT": Any Person with which the Administrative
Agent, if any, specified in the applicable Series Supplement, or the Trustee has
entered into a Sub- Administration Agreement and which meets the qualifications
of a Sub-Administrative Agent pursuant to Section 3.2.
"SURETY BOND": If so specified in the Series Supplement, with respect
to any Series (or Class within such Series) of Certificates, the surety bond
providing for the distribution under certain circumstances specified in such
Series Supplement of amounts to the Certificateholders of such Series (or
Class), which surety bond will be issued to the Trustee for the benefit of such
Certificateholders by the related Credit Support Provider, all as specified in
such Series Supplement.
"TERM ASSET PROVIDER": With respect to any Term Asset purchased
pursuant to a Term Asset Purchase Agreement, each entity specified as such in
the applicable Series Supplement or its successor in interest.
"TERM ASSET PURCHASE AGREEMENT": With respect to certain Series of
Certificates, as designated in the applicable Series Supplement, the purchase
agreement providing for the purchase by the Depositor of one or more Term Assets
for such Series, substantially in the form acceptable to the Depositor,
PROVIDED, that if required by the applicable Series Supplement, such agreement
shall provide for the repurchase of such Term Assets on the terms set forth in
Section 2.3.
"TERM ASSETS": With respect to any Series, the asset or assets Granted
as part of the Trust for such Series or acquired (or, in the case of an
agreement, entered into) by the Trustee for the benefit of the Holders of such
Series and, if and to the extent provided in the applicable Series Supplement,
for the benefit of any Credit Support Provider, all as identified in the Term
Assets Schedule to the related Series Supplement. The Term Assets for any such
Series or the related Trust shall not constitute Term Assets for any other
Series or any other Trust.
"TERM ASSETS ISSUER": As defined in the related Series Supplement.
"TERM ASSETS SCHEDULE": With respect to any Series, a listing of the
Term Assets for such Series as of the Closing Date, including, with respect to
each Term Asset, the obligor and the principal balance thereof, which shall be
attached to such Series Supplement as Schedule A.
"TIA": The Trust Indenture Act of 1939, as amended.
"TRUST": With respect to any Series, the segregated asset or pool of
assets subject hereto, constituting the trust created hereby and by the related
Series Supplement and to be administered hereunder and thereunder, consisting of
those Term Assets and the Credit Support, if applicable, and all sums
distributed in respect thereof that are specified as being part of the Trust for
such Series in the related Series Supplement, all for the benefit of the
Certificateholders of such Series as of any particular time.
"TRUSTEE": With respect to any Series, the Person so specified in the
applicable Series Supplement (which Person shall have agreed pursuant to such
Series Supplement to assume all the duties, obligations, responsibilities and
liabilities of the Trustee as set forth in this Agreement and such Series
Supplement with respect to the related Series of Certificates) for such Series
or any co-trustee appointed pursuant to Section 8.10, until a successor Person
shall have become the Trustee pursuant to the applicable provisions of this
Agreement and the applicable Series Supplement, and thereafter "Trustee" shall
mean such successor Person.
"TRUST TERMINATION EVENT": With respect to any Series, as specified in
the related Series Supplement.
"UNIFORM COMMERCIAL CODE": The Uniform Commercial Code as in effect in
the relevant jurisdiction or, with respect to the State of Louisiana, the
equivalent body of statutory and common law.
"UNITED STATES": The United States of America (including the States),
its territories, its possessions and other areas subject to its jurisdiction.
"VOTING RIGHTS": With respect to any Series (or Class within such
Series) of Certificates, the portion of the aggregate voting rights of the
Certificates of such Series or Class which shall be allocated to any Certificate
as specified in the applicable Series Supplement.
Section 1.2. RULES OF CONSTRUCTION. Unless the context otherwise
requires:
(i) a term has the meaning assigned to it;
(ii) an accounting term not otherwise defined has the meaning
assigned to it in accordance with generally accepted accounting
principles as in effect in the United States from time to time;
(iii) "or" is not exclusive;
(iv) the words "herein", "hereof", "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any
particular Article, Section or other subdivision;
(v) "including" means including without limitation;
and
(vi) words in the singular include the plural and words in the
plural include the singular.
ARTICLE II
DECLARATION OF TRUSTS; ISSUANCE OF CERTIFICATES
Section 2.1. CREATION AND DECLARATION OF TRUSTS; ASSIGNMENT OF TERM
ASSETS. The Depositor, concurrently with the execution and delivery hereof, does
hereby agree to (i) Grant to the Trustee, on behalf and for the benefit of the
Certificateholders of each given Series of Certificates and without recourse,
all the right, title and interest of the Depositor, including any security
interest therein for the benefit of the Depositor, in, to and under the Term
Assets attributable to each such Series (except for the Term Assets attributable
to such Series which are not Granted by the Depositor, as specified in the Term
Assets Schedule to the applicable Series Supplement), now existing or hereafter
acquired, in each case as identified on the applicable Term Assets Schedule, and
all other assets included or to be included in the respective Trust for the
benefit of the Certificateholders of each such Series or (ii) deliver to the
Trustee for deposit in the Certificate Account an amount, in immediately
available funds in a form acceptable to the Trustee, sufficient to acquire the
Term Assets attributable to such Series, in each case as identified on the Term
Asset Schedule to the applicable Series Supplement, and all other assets to be
included in the respective trust for the benefit of the Certificateholders of
each such Series. Each such Grant will include all interest, premium (if any)
and principal received by or on behalf of the Depositor of, on or with respect
to any such Term Assets due after the applicable Cut-off Date, and, unless
otherwise specified in the Series Supplement, will exclude (i) all interest,
premium (if any) and principal of, on or with respect to any such Term Assets
due on or before the applicable Cut-off Date and (ii) any Retained Interest in
any such Term Asset.
(b) In connection with each Grant referred to in the preceding
paragraph, the Depositor shall, not later than the applicable Closing Date, (i)
deposit the Term Assets for a given Series (except for the Term Assets
attributable to such Series which are to be acquired from a Person other than
the Depositor, as specified on the Term Assets Schedule to the applicable Series
Supplement) with the Trustee by physical delivery of such Term Assets, duly
endorsed, to the Trustee or by causing such Term Assets to be registered by book
entry in the name of the Trustee and (ii) with respect to each such Term Asset,
deliver or cause to be delivered to the Trustee all documents necessary to
transfer ownership of each such Term Asset to the Trustee.
(c) Unless otherwise specified in the applicable Series Supplement,
the Grant of such Term Assets by the Depositor for a given Series accomplished
hereby and by such Series Supplement is absolute and is intended by the parties
hereto as a sale. The Depositor represents and covenants that the Term Assets as
of the respective Closing Dates will be free and clear of any right, charge,
security interest or lien or claim in favor of the Depositor and, with respect
to any Grant of Term Assets, that the Depositor will as of such respective
Closing Date have the right to Grant the applicable Term Assets to the Trustee.
Section 2.2. ACCEPTANCE BY TRUSTEE. With respect to each Series, the
Trustee will acknowledge receipt by it, or by a custodian on its behalf, of the
related Term Assets and the related documents referred to in Section 2.1, now
existing or hereafter acquired, and declares that it will hold such Term Assets
and documents and all other documents delivered to it pursuant to this
Agreement, and that it will hold all such assets and such other assets
(including Term Assets acquired from a Person other than the Depositor)
comprising the Trust for a given Series of Certificates, in trust for the
exclusive use and benefit of all present and future Certificateholders of such
Series and for the purposes and subject to the terms and conditions set forth in
this Agreement.
(b) The Trustee, or a custodian on its behalf, shall review all
documents received by it pursuant to Section 2.1 within 45 days after receipt
thereof. If in the process of reviewing such documents the Trustee or such
custodian discovers any document or documents to be missing or defective, the
Trustee shall promptly (but in any event within 10 Business Days) so notify the
Depositor and the Administrative Agent, if any. In addition, upon the discovery
by the Depositor, the Administrative Agent, if any, or the Trustee of a breach
of any of the representations and warranties made by any Term Asset Provider in
the related Term Asset Purchase Agreement, if any, in respect of any Term Asset
that materially and adversely affects the interests of the Certificateholders,
the party discovering such breach shall give prompt written notice to the other
parties hereto (but in any event within 10 Business Days).
Section 2.3. REPURCHASE OR SUBSTITUTION OF CERTAIN TERM ASSETS BY THE
TERM ASSET PROVIDER. If and to the extent provided for in a Series Supplement
relating to a given Series of Certificates, upon discovery or receipt of notice
pursuant to Section 2.2 that a document is missing or defective, the Trustee
shall immediately notify the Depositor, the Administrative Agent, if any, and
the Rating Agency that such document is defective or missing and, unless the
Depositor provides to the Trustee an Officer's Certificate stating such missing
or defective document will not have a materially adverse effect on the related
Trust, the Administrative Agent, if any, or the Trustee shall immediately so
notify the Term Asset Provider and require that the Term Asset Provider deliver
such missing document or cure such defect within 60 days from the date on which
such Term Asset Provider was first notified of such missing document or defect,
and if such Term Asset Provider does not deliver such missing document or cure
such defect in all material respects during such period, the Administrative
Agent, if any, or the Trustee shall use its best efforts to enforce the Term
Asset Provider's obligation, if any, under the related Term Asset Purchase
Agreement to repurchase such Term Asset from the Trustee at the applicable
Purchase Price within 90 days after the date on which the Term Asset Provider
was first notified of such missing document or defect. The Purchase Price for
the repurchased Term Asset shall be delivered to the Administrative Agent, if
any, or to the Trustee directly for deposit in the Certificate Account and the
Trustee, upon receipt either of certification by the Administrative Agent, if
any, of such deposit or of such deposit directly, shall release to the Term
Asset Provider the related documents in its possession and shall execute and
deliver such instruments of transfer or assignment, in each case without
recourse, as shall be necessary to vest in the Term Asset Provider any Term
Asset released pursuant hereto, and the Trustee shall have no further
obligations with regard to such documents. The foregoing notwithstanding, if and
to the extent the Series Supplement provides, the Term Asset Provider may, as an
alternative to repurchasing any such Term Asset as provided above, if and to the
extent so provided in the Term Asset Purchase Agreement, cause such Term Asset
to be removed from the Trust (in which case it shall become a Deleted Term
Asset) by agreeing to substitute one or more Qualified Substitute Term Assets in
the manner and subject to the limitations set forth in Section 2.3(b) and the
related Series Supplement. It is understood and agreed that the obligation of
the Term Asset Provider to repurchase or substitute for any Term Asset as to
which a constituent document is missing or a defect in a constituent document
exists shall, if such defect is not cured or such missing document is not
provided, constitute (unless otherwise specified in the applicable Series
Supplement) the sole remedy respecting such omission or defect available to the
Certificateholders or the Trustee on behalf of the Certificateholders. It is
further understood and agreed that, unless otherwise provided in the related
Series Supplement, in no event shall either the Depositor or the Administrative
Agent, if any, be obligated to repurchase or substitute for such a Term Asset,
regardless of whether the Term Asset Provider defaults on its obligation to
repurchase or substitute for such a Term Asset.
(b) If and to the extent provided for in a Series Supplement relating
to a given Series of Certificates, with respect to any Deleted Term Asset for
which the Depositor or the Term Asset Provider substitutes a Qualified
Substitute Term Asset or Assets, such substitution shall be effected by the
Depositor or Term Asset Provider delivering to the Trustee or a custodian on its
behalf such Qualified Substitute Term Asset or Assets and such documents and
agreements, with all necessary endorsements thereon, as would be required under
the terms of Section 2.1, together with an Officer's Certificate of the
Depositor or relevant Term Asset Provider certifying that each such Qualified
Substitute Term Asset satisfies the definition thereof and the requirements
under this Section. The Trustee or such custodian shall acknowledge receipt of
such Qualified Substitute Term Asset or Assets and, within five Business Days
thereafter, review such documents in the manner specified in Section 2.2. The
Depositor shall give or cause to be given written notice to the
Certificateholders of such Series and the Rating Agency that such substitution
has taken place and shall amend the Term Asset Schedule to reflect the removal
of such Deleted Term Asset from the terms of this Agreement and the substitution
of the Qualified Substitute Term Asset or Assets. Upon such substitution, such
Qualified Substitute Term Asset or Assets shall be subject to the terms of this
Agreement in all respects, including those related to the representations and
warranties included in the Term Asset Purchase Agreement as of the date of
substitution. The terms upon which such substitution may be effected shall be
specified in the applicable Series Supplement.
Section 2.4. REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR AND
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE ADMINISTRATIVE AGENT. The
Depositor hereby represents and warrants to the Trustee that as of the Closing
Date or as of such other date specifically provided herein or in the applicable
Series Supplement:
(i) the Depositor is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware;
(ii) with respect to each Series Supplement, to the Depositor's
knowledge, the information set forth in the Term Asset Schedule with
respect to each Term Asset is true and correct in all material
respects at the date or dates respecting which such information is
furnished;
(iii) the execution and delivery of this Agreement by the
Depositor and its performance of and compliance with the terms of this
Agreement will not violate the Depositor's articles of incorporation or
by-laws or constitute a default (or an event which, with notice or
lapse of time, or both, would constitute a default) under, or result in
the breach or acceleration of, any material contract, agreement or
other instrument to which the Depositor is a party or which may be
applicable to the Depositor or any of its assets;
(iv) the Depositor has the full power and authority to enter into
and consummate all transactions contemplated by this Agreement, has
duly authorized the execution, delivery and performance of this
Agreement and has duly executed and delivered this Agreement. This
Agreement, upon its execution and delivery by the Depositor and
assuming due authorization, execution and delivery by the Trustee, will
constitute a valid, legal and binding obligation of the Depositor,
enforceable against it in accordance with the terms hereof, except as
such enforcement may be limited by bankruptcy, insolvency,
reorganization, receivership, moratorium or other laws relating to or
affecting the rights of creditors generally, and by general equity
principles (regardless of whether such enforcement is considered a
proceeding in equity or at law);
(v) the Depositor is not in violation, and the execution and
delivery of this Agreement by the Depositor and its performance and
compliance with the terms of this Agreement will not constitute a
violation, of any order or decree of any court or any order or
regulation of any Federal, State, municipal or governmental agency
having jurisdiction over the Depositor or its properties, which
violation would reasonably be expected to have a material and adverse
effect on the condition (financial or otherwise) or operations of the
Depositor or its properties or on the performance of its duties
hereunder; and
(vi) any additional representations and warranties, if any, that
may be specified in the applicable Series Supplement.
It is understood and agreed that the representations and warranties of
the Depositor set forth in this Section 2.4(a) shall survive delivery of the
respective documents to the Trustee and shall inure to the benefit of the
Trustee on behalf of the Certificateholders notwithstanding any restrictive or
qualified endorsement or assignment. Upon discovery by any of the Depositor, the
Administrative Agent, if any, or the Trustee of a breach of any of the foregoing
representations and warranties which materially and adversely affects the
interests of the Certificateholders, the party discovering such breach shall
give prompt written notice thereof to the other parties.
(b) The Administrative Agent, if any, shall make such representations,
warranties, if any, and covenants that may be specified in the applicable Series
Supplement.
Upon discovery by any of the Depositor, the Administrative Agent, if
any, or the Trustee of a breach of any of the foregoing representations,
warranties and covenants which materially and adversely affects the interests of
the Certificateholders, the party discovering such breach shall give prompt
written notice thereof to the other parties.
Section 2.5. BREACH OF REPRESENTATION, WARRANTY OR COVENANT. Within 90
days of the earlier of discovery by the Depositor or receipt of notice by the
Depositor of a breach of any representation or warranty of the Depositor set
forth in Section 2.4(a) that materially and adversely affects the interests of
the Certificateholders of a given Series of Certificates, the Depositor shall
cure such breach in all material respects.
(b) With respect to an Administrative Agent appointed pursuant to the
applicable Series Supplement, within 90 days of the earlier of discovery by such
Administrative Agent or receipt of notice by such Administrative Agent of a
breach of any representation, warranty or covenant of such Administrative Agent
set forth in the applicable Series Supplement that materially and adversely
affects the interests of the Certificateholders, such Administrative Agent shall
cure such breach in all material respects.
Section 2.6. AGREEMENT TO AUTHENTICATE AND DELIVER CERTIFICATES. With
respect to each Series of Certificates and the related Trust, the Trustee hereby
agrees and acknowledges that it will, concurrently with the Grant to and receipt
by it of the related Term Assets and delivery to it by the Depositor of executed
Certificates of such Series, cause to be authenticated and delivered to or upon
the order of the Depositor, in exchange for the Term Assets and such other
assets constituting the Trust for a given Series, Certificates duly
authenticated by or on behalf of the Trustee in authorized denominations
evidencing ownership of the entire Trust for such Series, all in accordance with
the terms and subject to the conditions of Sections 5.2 and 5.13.
Section 2.7. STATEMENT OF INTENT. It is the intention of the parties
hereto that, for purposes of federal income taxes, state and local income and
franchise taxes and any other taxes imposed upon, measured by or based upon
gross or net income, the Trust shall be treated as a grantor trust, but failing
that, as a partnership. The terms of this Agreement shall be interpreted to
further this intention of the parties. The parties hereto agree that, unless
otherwise required by appropriate tax authorities, the Trust shall file or cause
to be filed annual or other necessary returns, reports and other forms
consistent with such intended characterization. Each Certificateholder and each
beneficial owner of a Certificate by acceptance of its Certificate (or its
beneficial interest therein) agrees, unless otherwise required by appropriate
tax authorities, to file its own tax returns and reports in a manner consistent
with such characterization.
ARTICLE III
ADMINISTRATION OF EACH TRUST
Section 3.1. ADMINISTRATION OF EACH TRUST. The Trustee (and, to the
extent required in the applicable Series Supplement, any Administrative Agent)
shall administer the Term Assets for each given Trust for the benefit of the
Certificateholders of the related Series. In engaging in such activities, the
Trustee (or the Administrative Agent, if applicable) shall, subject to the
provisions of Article VI hereof, follow or cause to be followed collection
procedures in accordance with the terms of this Agreement and the applicable
Series Supplement, the respective Term Assets and any applicable Credit Support
Instruments. With respect to each Trust, and subject only to the above-described
standards and the terms of this Agreement, the related Series Supplement and the
respective Term Assets and applicable Credit Support Instruments, if any, the
Trustee (or the Administrative Agent, if applicable) shall have full power and
authority, acting alone or through Sub-Administrative Agents as provided in
Section 3.2, to do or cause to be done any and all things in connection with
such administration which it deems necessary to comply with the terms of this
Agreement and the applicable Series Supplement.
(b) Without limiting the generality of the terms of paragraph (a) of
this Section 3.1, with respect to any Series of Certificates, the Administrative
Agent, if any, specified in the applicable Series Supplement shall be hereby
authorized and empowered by the Depositor, when such Administrative Agent
believes it appropriate in its reasonable judgment and when otherwise required
by a Series Supplement, in its own name or in the name of a Sub-Administrative
Agent, (i) to instruct the Trustee to make distributions or payments from the
Certificate Account or any other Account for such Series, as set forth herein or
in the related Series Supplement, and (ii) to the extent specified in the
related Series Supplement, to execute and deliver, on behalf of the
Certificateholders of such Series and the Trustee or any of them, and upon
notice to the Trustee, any and all instruments of satisfaction or cancellation,
or of partial or full release or discharge, and all other comparable
instruments, with respect to any of the Term Assets relating to such Series.
(c) The duties of the Trustee and the Administrative Agent, if any,
shall be performed in accordance with applicable local, State and Federal law,
and the Trustee (or, if specified in the applicable Series Supplement, the
Administrative Agent) shall at the direction of the Administrative Agent or, if
none, as specified in the applicable Series Supplement and/or by the Depositor,
make any and all filings, reports, notices or applications with, and seek any
comments and authorizations from, the Commission and any State securities
authority on behalf of the Trust for each Series to the extent it is provided
with appropriate information, materials and responses by the Administrative
Agent or, if none, as specifically set forth in the applicable Series Supplement
and/or by the Depositor. If the applicable Series Supplement appoints an
Administrative Agent, the Trustee, in its capacity as Trustee, shall execute, at
the direction of such Administrative Agent, any powers of attorney and other
documents necessary or appropriate to enable the Administrative Agent to carry
out any of its administrative duties hereunder; PROVIDED, HOWEVER, that the
Trustee, in its capacity as Trustee, shall not be accountable for the actions of
the Administrative Agent or any Sub-Administrative Agents under such powers of
attorney.
Section 3.2. SUB-ADMINISTRATION AGREEMENTS BETWEEN ADMINISTRATIVE
AGENT OR TRUSTEE AND SUB-ADMINISTRATIVE AGENTS.
(a) Unless otherwise provided in a Series Supplement, an
Administrative Agent specified in the applicable Series Supplement and the
Trustee may enter into Sub-Administration Agreements with one or more
Sub-Administrative Agents in order to delegate their administrative obligations
with respect to a related Series under this Agreement to such Sub-
Administrative Agents; PROVIDED, HOWEVER, that (i) such delegation shall not
release either such Administrative Agent or the Trustee, as applicable, from the
duties, obligations, responsibilities or liabilities arising under this
Agreement; (ii) the Rating Agency Condition shall have been satisfied with
respect to the entering into of any such agreement and (iii) such agreements are
consistent with the terms of this Agreement and, with respect to Certificates of
any Series, the related Series Supplement. With respect to any Series (or Class
within such Series) of Certificates, each Sub-Administration Agreement shall
impose on the Sub-Administrative Agent requirements conforming to the provisions
set forth in Section 3.1 and provide for administration of the related Trust and
all or certain specified Term Assets for such Series consistent with the terms
of this Agreement. Additional requirements relating to the scope and contents of
any Sub- Administration Agreement may be provided in the applicable Series
Supplement. Such Administrative Agent shall deliver to the Trustee and the
Depositor copies of all Sub- Administration Agreements which it enters into, and
any amendments or modifications thereof, promptly upon the Administrative
Agent's execution and delivery of any such instruments.
(b) As part of its duties hereunder, an Administrative Agent specified
in the applicable Series Supplement shall enforce the obligations of each
Sub-Administrative Agent under any related Sub-Administration Agreement which it
enters into and of the Term Asset Provider, if any, under any Term Asset
Purchase Agreement, for the benefit of the Trustee and the Certificateholders of
a given Series. Such enforcement, including the legal prosecution of claims, the
termination of Sub-Administration Agreements or Term Asset Purchase Agreements,
as appropriate, and the institution of Proceedings and the pursuit of other
appropriate remedies, shall be in such form and carried out to such an extent
and at such time as the Administrative Agent, in its good faith business
judgment, deems necessary or advisable, subject in all cases to the provisions
of Article VI hereof.
Section 3.3. SUCCESSOR SUB-ADMINISTRATIVE AGENTS. An Administrative
Agent specified in the applicable Series Supplement and the Trustee shall each
be entitled to terminate any Sub-Administration Agreement which it enters into
and the rights and obligations of any Sub-Administrative Agent under any
Sub-Administration Agreement in accordance with the terms and conditions of any
such Sub-Administration Agreement. In the event of a termination of any
Sub-Administration Agreement, the Administrative Agent or the Trustee, as
applicable, shall simultaneously reassume direct responsibility for all
obligations delegated in such Sub- Administration Agreement without any act or
deed on the part of the applicable Sub- Administrative Agent, the Trustee or the
Administrative Agent, and the Administrative Agent or the Trustee, as
applicable, either shall administer directly the related Term Assets or shall
enter into a Sub-Administration Agreement with a successor Sub-Administrative
Agent which so qualifies under Section 3.2.
Section 3.4. LIABILITY OF THE ADMINISTRATIVE AGENT. Notwithstanding
any Sub-Administration Agreement or any of the provisions of this Agreement
relating to agreements or arrangements between an Administrative Agent, if any,
or the Trustee and a Sub-Administrative Agent or references to actions taken
through a Sub-Administrative Agent or otherwise, the Administrative Agent, if
any is specified in the applicable Series Supplement, or the Trustee, as
applicable, shall remain obligated and primarily liable to the Trustee and the
Certificateholders for the administering of the Trust and the Term Assets for
each related Series of Certificates to the extent provided herein and in the
related Series Supplement in accordance with the provisions of Section 3.1
without diminution of such obligation or liability by virtue of any such Sub-
Administration Agreements or arrangements or by virtue of indemnification from
the Sub- Administrative Agent and to the same extent and under the same terms
and conditions as if the Administrative Agent or the Trustee, as applicable,
alone were administering the Term Assets, and the Administrative Agent or the
Trustee, as applicable, shall not thereby be released from any duties or
responsibilities set forth in this Agreement or the related Series Supplement.
The Administrative Agent and the Trustee shall be entitled to enter into any
agreement with a Sub- Administrative Agent for indemnification of the
Administrative Agent or the Trustee by such Sub-Administrative Agent for any
liability or obligation sustained by the Administrative Agent or the Trustee in
connection with any act or failure to act by the Sub-Administrative Agent, and
nothing contained in this Agreement shall be deemed to limit or modify such
indemnification.
Section 3.5. NO CONTRACTUAL RELATIONSHIP BETWEEN CERTAIN
SUB-ADMINISTRATIVE AGENTS AND TRUSTEE OR CERTIFICATEHOLDERS. Any
Sub-Administration Agreement between an Administrative Agent specified in the
applicable Series Supplement and a Sub-Administrative Agent that may be entered
into and any transactions or services relating to the Term Assets pursuant to
such an agreement shall be deemed to be between the Sub-Administrative Agent and
the Administrative Agent alone, and the Trustee and Certificateholders shall not
be deemed parties thereto and shall have no claims, rights, obligations, duties
or liabilities with respect to the Sub-Administrative Agent except as set forth
in Section 3.6. Except as set forth in Section 3.6, the Administrative Agent
shall be solely liable for all fees owed by it to any Sub- Administrative Agent,
irrespective of whether the Administrative Agent's compensation pursuant to this
Agreement is sufficient to pay such fees; PROVIDED, HOWEVER, that if so provided
in the applicable Series Supplement, a Sub-Administrative Agent shall be
entitled to a Retained Interest in certain Term Assets as and to the extent
specified in the Term Assets Schedule to such Series Supplement. Each such
Sub-Administrative Agent shall be reimbursed by the Administrative Agent for
expenditures made by such Sub-Administrative Agent to the same extent the
Administrative Agent would be reimbursed for such expenditures pursuant to the
terms of this Agreement.
Section 3.6. ASSUMPTION OR TERMINATION OF SUB-ADMINISTRATION
AGREEMENTS BY TRUSTEE. Except as and to the extent otherwise provided in a
Series Supplement, in the event an Administrative Agent specified in the
applicable Series Supplement shall for any reason no longer be acting in such
capacity with respect to any Series, the Trustee or its designee shall thereupon
assume all the rights and obligations of the Administrative Agent under each
Sub- Administration Agreement that the Administrative Agent may have entered
into with respect to any Term Asset or Assets related to such Series, PROVIDED
that the Trustee may elect to terminate any such Sub-Administration Agreement in
accordance with its terms. Except as otherwise provided in such a Series
Supplement, the Trustee, its designee or any successor Administrative Agent
shall be deemed to have assumed all the Administrative Agent's interest therein
and to have replaced the Administrative Agent as a party to each
Sub-Administration Agreement to the same extent as if each Sub-Administration
Agreement had been assigned to the assuming party; PROVIDED, HOWEVER, that the
Administrative Agent shall not thereby be relieved of any liability or
obligations under any Sub-Administration Agreement and PROVIDED FURTHER, that
the Administrative Agent shall in no event be obligated to make any Advances if
it is prohibited by law or regulation from doing so or from obligating itself to
do so. The Administrative Agent at its expense shall, upon request of the
Trustee, deliver to such assuming party all documents and records relating to
each Sub-Administration Agreement and the Term Assets then being administered by
it and an accounting of amounts collected and held by it and otherwise use its
best efforts to effect the orderly and efficient transfer of the
Sub-Administration Agreements to the assuming party.
Section 3.7. COLLECTION OF CERTAIN TERM ASSET PAYMENTS. With respect
to any Series or Class of Certificates, the Trustee (or the Administrative Agent
if specified in the related Series Supplement) shall make reasonable efforts to
collect all payments required to be made pursuant to the terms of the Term
Assets or any related Credit Support Instruments in a manner consistent with the
terms of this Agreement, such Term Assets and any related Credit Support
Instruments.
Section 3.8. COLLECTIONS BY SUB-ADMINISTRATIVE Agent. Unless otherwise
provided in the applicable Series Supplement, in the event a Sub-Administrative
Agent is administering one or more Term Assets pursuant to a Sub-Administration
Agreement, the Sub- Administrative Agent shall be required to immediately direct
the Trustee to deposit into an Eligible Account established by such
Sub-Administrative Agent (a "Sub-Administration Account") any amounts collected
with respect thereto, and not later than the Business Day after receipt thereof,
all such amounts shall be deposited into the related Certificate Account.
Section 3.9. CERTIFICATE ACCOUNT. For each Series of Certificates, the
Trustee shall establish and maintain one or more Eligible Accounts
(collectively, the "Certificate Account"), held in trust for the benefit of the
Certificateholders of such Series. The Trustee on behalf of such
Certificateholders shall possess all right, title and interest in all funds on
deposit from time to time in each Certificate Account and in all proceeds
thereof. With respect to each Series of Certificates, the Certificate Account
shall be under the sole dominion and control of the Trustee for the benefit of
the related Certificateholders. With respect to each Series of Certificates, the
Trustee shall deposit or the Administrative Agent, if any, specified in the
applicable Series Supplement shall direct the Trustee to deposit or cause to be
deposited in the Certificate Account no later than the Business Day after
receipt thereof all amounts collected with respect to the Term Assets, any
Credit Support and all Liquidation Proceeds related to such Series including:
(i) all payments on account of principal of such Term Assets;
(ii) all payments on account of interest on such Term Assets;
(iii) all payments on account of premium (if any) on such Term
Assets;
(iv) any payments in respect of any such Credit Support;
(v) any Advances made as required pursuant to Section 4.3; and
(vi) any interest or investment income earned on funds deposited
in the related Accounts.
Unless otherwise specified in the applicable Series Supplement, it is
understood and agreed that payments in the nature of prepayment or redemption
penalties, late payment charges or assumption fees which may be received by the
Trustee or any Administrative Agent shall be deposited by the Trustee or the
Administrative Agent, as applicable, in the Certificate Account and shall not be
retained by the Trustee or the Administrative Agent for its own account.
If, at any time, the Certificate Account for any Series ceases to be
an Eligible Account, the Trustee shall within 10 Business Days (or such longer
period, not to exceed 30 calendar days, as to which the Rating Agency Condition
is met) establish a new Certificate Account meeting the conditions specified
above and transfer any cash and any investments on deposit in the Certificate
Account to such new Certificate Account, and from the date such new Certificate
Account is established, it shall be the Certificate Account for such Series.
(b) The Trustee shall give notice to the Administrative Agent, if any,
the Depositor and the Rating Agency of the location of each Eligible Account
constituting the Certificate Account and prior to any change thereof.
(c) The Administrative Agent, if any, shall instruct the Trustee as
to, or otherwise the Trustee shall determine, the appropriate application of
Available Funds with respect to any Distribution Date for which application is
to be made on any such Distribution Date in accordance with the terms of Section
4.1 and the related Series Supplement.
Section 3.10. INVESTMENT OF FUNDS IN THE ACCOUNTS. The Depositor (or,
if so specified in the applicable Series Supplement, the Administrative Agent),
on behalf of the Trust, may direct the Trustee to direct any depository
institution maintaining the Certificate Account or the Reserve Account, if any,
for the applicable Series and any other segregated Eligible Account the contents
of which are held for the benefit of Certificateholders of such Series (each, an
"Account") to invest the funds therein in one or more Permitted Investments
bearing interest or sold at a discount, which shall be held to maturity unless
payable on demand and which funds shall not be reinvested upon the maturity or
demand for payment of such Permitted Investment. If the Depositor (or the
Administrative Agent, if applicable) does not provide any investment directions
to the Trustee, funds held in any Account will be invested in the Permitted
Investments specified in clause (ii) of the definition thereof. Investments of
such funds shall be invested in Permitted Investments that will mature so that
such funds will be available for distribution on the Distribution Date on which
such amounts are to be applied as distributions to Certificateholders. In the
event amounts on deposit in an Account are at any time invested in a Permitted
Investment payable on demand, the Trustee shall:
(x) consistent with any notice required to be given thereunder, demand
that payment thereon be made on the last day such Permitted Investment may
otherwise mature hereunder in an amount equal to the lesser of (1) all amounts
then payable thereunder and (2) the amount required to be withdrawn on such
date; and
(y) demand same day payment of all amounts due thereunder upon a
determination by the Trustee that such Permitted Investment would not constitute
a Permitted Investment in respect of funds thereafter on deposit in any Account.
Section 3.11. MAINTENANCE OF CREDIT SUPPORT. On the applicable Closing
Date, the Trustee or, if so specified in the applicable Series Supplement, the
Depositor or the Administrative Agent, shall, to the extent specified in the
applicable Series Supplement, establish and maintain, or enter into, as
applicable, in the name of the Trustee, either as a part of the related Trust or
outside it, for the benefit of the Certificateholders of the related Series, the
Credit Support specified in the applicable Series Supplement. To the extent
specified in the applicable Series Supplement, the Depositor or the
Administrative Agent, as the case may be, will make or cause to be made any
initial deposit to the Certificate Account or any Reserve Account for the
related Series as of the Closing Date. Unless the Series Supplement for a given
Series provides otherwise, if a Reserve Account exists for such Series,
collections with respect to the Term Assets for such Series not distributed to
the Certificateholders of such Series shall be deposited in the Reserve Account.
The Reserve Account, if any, will not be a part of or otherwise includible in
the Trust but will be held for the benefit of the Credit Support Provider.
Amounts on deposit in the Reserve Account and amounts available
pursuant to any other Credit Support for such Series shall be applied by the
Trustee to make distributions of principal of and premium (if any) and interest
on the Certificates of such Series as required pursuant to Section 4.1 and the
applicable Series Supplement to the extent that funds are not otherwise
available for such purpose. If specified in such Series Supplement, immediately
after each Distribution Date, amounts on deposit in the Reserve Account for such
Series in excess of a specified amount shall be paid to the Person so specified
in such Series Supplement.
Section 3.12. REALIZATION UPON DEFAULTED TERM ASSETS. If:
(i) default is made in the payment of any installment of interest
on any Term Asset when the same becomes due and payable, and such
default continues unremedied for the period specified in the indenture
or other authorizing document for such Term Asset (or, if no such
period is specified, five days) after receipt by the Term Assets Issuer
of notice thereof from the Trustee or receipt by the Term Assets Issuer
and the Trustee of notice thereof from the Holders of Outstanding
Certificates representing at least 25% of the Voting Rights; or
(ii) default is made in the payment of the principal of or any
installment of the principal of any Term Asset when the same becomes
due and payable, and such default continues unremedied for the period
specified in the indenture or other authorizing document for such Term
Asset (or, if no such period is specified, thirty (30) days) after
receipt by the Term Assets Issuer of notice thereof from the Trustee or
receipt by the Term Assets Issuer and the Trustee of notice thereof
from the Holders of Outstanding Certificates representing at least 25%
of the Voting Rights;
and the Term Assets Issuer shall, upon demand of the Trustee, fail to pay
forthwith to the Trustee, for the benefit of the Holders, the whole amount then
due and payable on such Term Assets for principal and interest, with interest
upon the overdue principal, at the rate borne by the Term Assets 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 and its agents and counsel, to the
extent permitted by law (such event, an "Issuer Payment Default"), then the
Trustee, in its own name and as trustee of an express trust, subject to
provision being made for indemnification against costs, expenses and liabilities
in a form satisfactory to the Trustee, shall institute a Proceeding for the
collection of the sums so due and unpaid, and shall prosecute such Proceeding to
judgment or final decree or settlement, and shall enforce the same against the
Term Assets Issuer or other obligor upon the Term Assets and collect in the
manner provided by law out of the property of the Term Assets Issuer or other
obligor upon the Term Assets wherever situated, the moneys adjudged or decreed
to be payable, unless otherwise directed by Holders of the Required Percentage
- -- Direction of the Trustee. In connection therewith, the Trustee shall use its
best reasonable efforts in accordance with such normal and customary procedures
it shall deem necessary or advisable, and shall have the power and authority,
acting alone, to do any and all things in connection therewith and the
administration of the Trust as it may deem necessary or advisable.
(b) In the event that the Trustee receives money or other property in
respect of the Term Assets (other than a scheduled interest or principal payment
or the payment of any redemption premium on or with respect to the earlier
redemption of the Term Assets) as a result of a payment default on the Term
Assets or actual notice that such moneys or other property will be paid to the
Trustee, the Trustee shall promptly give notice (as provided in Section 10.5
hereof) to the Depository or, if the Certificates are not then held by the
Depository, directly to the Holders of the Certificates then outstanding and
unpaid. Such notice shall state that, not later than thirty (30) days after the
receipt of such moneys or other property, the Trustee shall allocate and
distribute such moneys or other property to the Holders of the Outstanding
Certificates then unpaid, in proportion to the Certificate Principal Balance or
Accreted Amount, as applicable, of each class of Outstanding Certificates,
together with accrued interest to the date of distribution, if applicable, and
within each class pro rata by Certificate Principal Balance. Property received,
other than cash, shall be liquidated by the Trustee in a commercially reasonable
manner and the proceeds thereof, after deduction of all reasonable costs of such
liquidation, distributed in cash, only to the extent necessary to avoid
distribution of fractional securities.
(c) The Trustee (or, if and under the circumstances specified in the
applicable Series Supplement, the Administrative Agent), on behalf of the
Certificateholders, shall assert claims under each applicable Credit Support
Instrument, and shall take such reasonable steps, in addition to those described
in Section 3.12(a), as are necessary to receive payment or to permit recovery
thereunder with respect to any defaulted Term Assets, subject in all cases to
the provisions of Article VI hereof in the case of the Administrative Agent and
Article VIII hereof in the case of the Trustee.
(d) Unless otherwise provided in a Series Supplement, if the
Administrative Agent or the Trustee, as applicable, is unable to obtain full
recovery in respect of a defaulted Term Asset and any related Credit Support
Instrument pursuant to Section 3.12(c), the Administrative Agent or the Trustee,
as applicable, shall follow or cause to be followed such normal practices and
procedures as it deems necessary or advisable to realize upon such defaulted
Term Asset and such Credit Support Instrument, subject in all cases to the
provisions of Article VI hereof in the case of the Administrative Agent and
Article VIII hereof in the case of the Trustee.
Section 3.13. RETAINED INTEREST. The Retained Interest, if any, in any
Term Asset shall initially be held by the Person so specified in the related
Series Supplement as and to the extent specified in Schedule A thereof. With
respect to each Term Asset, the Retained Interest shall be deducted by the
Trustee, at the written direction of the Administrative Agent, if any, or the
Depositor from applicable collections in respect of such Term Asset. Unless
otherwise provided in the applicable Series Supplement, collections in respect
of Retained Interest shall not be deposited in the Certificate Account for the
applicable Series and shall not constitute a part of the Trust for such Series,
but shall instead be distributed to the holder of such Retained Interest,
PROVIDED that the Series Supplement for any Series with respect to which there
is a Retained Interest may provide that, notwithstanding the terms contained
herein, commingled amounts received in respect of assets inclusive of Term
Assets and Retained Interest may initially be deposited in a separate and
discrete Eligible Account established by the Trustee at the direction of the
Administrative Agent, if any, or the Depositor and such Series Supplement may
provide for additional terms relating thereto. Unless otherwise provided in the
applicable Series Supplement, after deduction of all applicable fees as provided
for in this Agreement, on each Distribution Date the Trustee shall allocate on a
PARI PASSU basis any partial recovery on a Term Asset between (a) the Retained
Interest, if any, and (b) distributions to Certificateholders of the applicable
Series.
Section 3.14. ADMINISTRATIVE AGENT'S COMPENSATION AND REIMBURSEMENT.
As compensation for its activities, the Administrative Agent, if any, specified
in the applicable Series Supplement shall be entitled to the Administrative Fee,
which shall be paid on the dates, in the amounts, under the circumstances and in
the manner specified in the applicable Series Supplement.
(b) If, and only to the extent, provided in a Series Supplement, the
Administrative Agent, if any, shall be required to pay from its compensation
hereunder or otherwise all expenses incurred in connection with the Trust for
the related Series and its administration of the Term Assets for the related
Series, including payment of the fees and disbursements of the Trustee
(including the reasonable fees and expenses of its counsel and independent
accountants allocable to such Series), payment of expenses incurred in
connection with distributions and reports to Certificateholders of such Series,
payment of premiums on Credit Support Instruments related to such Series and
other expenses specified in such Series Supplement; provided, HOWEVER, that
neither the Administrative Agent, if any, nor the Trustee will be responsible
for any Federal, State, local or foreign income and franchise taxes, if any, and
any interest or penalties with respect thereto, assessed on the Trust for such
Series.
Section 3.15. STATEMENT AS TO COMPLIANCE. An Administrative Agent
appointed pursuant to the applicable Series Supplement, if any, will deliver to
the Trustee, the Depositor and the Rating Agency not later than 90 days
following the end of each fiscal year of the Administrative Agent an Officer's
Certificate executed by two of its Executive Officers stating, as to each
signatory thereof, that (i) a review of the activities of the Administrative
Agent during the preceding year and of performance under this Agreement has been
made under such officer's supervision and (ii) to the best of such officer's
knowledge, based on such review, the Administrative Agent has fulfilled all its
obligations under this Agreement throughout such year, or, if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to such officer and the nature and status thereof. Copies of such
statement received by the Trustee shall be provided by the Trustee to any
Certificateholder upon request at the Certificateholder's expense.
Section 3.16. INDEPENDENT PUBLIC ACCOUNTANTS' ADMINISTRATION REPORT.
Unless otherwise specified in the Series Supplement, within four months from the
end of each 12-month period beginning with the period specified in the Series
Supplement for a given Series of Certificates, either the Administrative Agent,
if any, specified in the Series Supplement, or otherwise the Trustee shall cause
a firm of nationally recognized independent public accountants (who may also
render other services to the Administrative Agent, if any, the Trustee or the
Depositor) to furnish a report addressed to the Trustee, the Depositor, the
Rating Agency and each Credit Support Provider for such Series, if any, to the
effect that such firm has examined certain documents and records relating to the
administration of the Term Assets and related Credit Support deposited in or
held by the applicable Trust during the preceding 12-month period (or, in the
case of the first such report, during the period from the Closing Date to the
date specified in the applicable Series Supplement), which report should enable
the recipients thereof to determine whether such administration was conducted in
accordance with the terms of this Agreement and the related Series Supplement.
Such report shall identify any exceptions found during the examination.
Such report will also indicate that the firm is independent of the
Administrative Agent, if any, and the Trustee within the meaning of the Code of
Professional Ethics of the American Institute of Certified Public Accountants.
Copies of such statement received by the Trustee shall be provided by
the Trustee to any Certificateholder of such Series upon request without charge
to the requesting Certificateholder.
The firm of independent public accountants shall be entitled to
compensation in consideration for its duties hereunder in the manner specified
in the applicable Series Supplement.
Section 3.17. ACCESS TO CERTAIN DOCUMENTATION. The Trustee and the
Administrative Agent, if any, shall provide to any Federal, State or local
regulatory authority that may exercise authority over any Certificateholder
access to the documentation regarding the Term Assets required by applicable
laws and regulations. Such access shall be afforded without charge, but only
upon reasonable request and during normal business hours at the offices of the
Trustee and Administrative Agent, if any, designated by each of them. In
addition, access to the documentation regarding the Term Assets related to a
given Series (or Class within such Series) will be provided to any
Certificateholder of such Series (or Class) upon reasonable request during
normal business hours at the offices of the Trustee and Administrative Agent
designated by each of them at the expense of the Certificateholder requesting
such access.
Section 3.18. DUTIES OF THE ADMINISTRATIVE AGENT. Notwithstanding any
other provision of this Agreement, with respect to any Series, the applicable
Series Supplement may provide that any Administrative Agent appointed pursuant
to such Series Supplement shall have no rights and no duties, obligations or
liabilities except as provided in such Series Supplement and herein.
Section 3.19. DEPOSITOR TO FURNISH NAMES AND ADDRESSES OF HOLDERS TO
TRUSTEE. The Depositor shall furnish or cause to be furnished to the Trustee not
more than five days before each Distribution Date, and at such other times as
the Trustee may request in writing, a list, in such form as the Trustee may
reasonably require, to the extent such information is in the possession or
control of the Depositor or any of its paying agents, of the Holders of
Certificates as of the close of business on the applicable record date of the
Term Assets; provided, however, that so long as the Trustee maintains the
Certificate Register, no such list shall be required to be furnished.
Section 3.20. 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 the Holders of Certificates contained in
the most recent list furnished to the Trustee as provided in Section 3.19 and
the names and addresses of Holders of Certificates received by the Trustee in
its capacity as Certificate registrar. The Trustee may destroy any list
furnished to it as provided in such Section 3.19 upon receipt of a new list so
furnished.
(b) Holders shall have the right to communicate pursuant to TIA
Section 312(b) with other Holders with respect to their rights under this
Agreement or under the Certificates.
(c) The Depositor, the Trustee and the Certificate registrar shall
have the protection of TIA Section 312(c).
Section 3.21. REPORTS BY TRUSTEE. If required by TIA Section 313(a),
within 60 days after December 31 of each year, the Trustee shall mail to (i)
each Holder as required by TIA Section 313(c) and (ii) the Depositor, a brief
report dated as of such date that complies with TIA Section 313(a). The Trustee
also shall comply with TIA Section 313(b). A copy of any report delivered
pursuant to this Section 3.21 shall, at the time of its mailing to Holders and
the Depositor, be filed by the Trustee with the Commission and each stock
exchange, if any, on which the Certificates are listed. The Depositor shall
notify the Trustee if and when the Certificates are listed on any stock
exchange.
ARTICLE IV
DISTRIBUTIONS AND REPORTS TO CERTIFICATEHOLDERS
Section 4.1. DISTRIBUTIONS. On each Distribution Date for a given
Series of Certificates, the Trustee shall apply funds in the Certificate Account
for such Series in the manner and priority set forth in the Series Supplement
for such Series. Notwithstanding any other provisions in this Agreement, the
right of the Holder of any Certificate to receive any such distributions in the
manner and priority set forth in the Series Supplement for such Series and to
institute suit for the enforcement of any such payment on or after the date such
payment is payable, shall not be impaired without the consent of such Holder.
Section 4.2. REPORTS TO CERTIFICATEHOLDERS. Unless otherwise specified
in the applicable Series Supplement, on the next Business Day following each
such Distribution Date the Trustee or the Administrative Agent, if any, as
specified in such Series Supplement, shall forward or cause to be forwarded to
the Depositor, each Certificateholder of such Series and such other Persons as
may be specified in such Series Supplement, a statement setting forth:
(i) the amount of the distribution on such Distribution Date to
Certificateholders of each Class of such Series allocable to principal
of and premium, if any, and interest on the Certificates of each such
Class; and the amount of aggregate unpaid interest accrued or accreted
as of such Distribution Date;
(ii) in the case of each Class of Floating Rate Certificates of
such Series, the respective Floating Pass Through Rate applicable to
each such Class on such Distribution Date, as calculated in accordance
with the method specified in such Certificates and the related Series
Supplement;
(iii) the amount of compensation received by any Administrative
Agent and such other customary information as the Trustee or
Administrative Agent, as applicable, deems necessary or desirable, or
that any such Certificateholder reasonably requests, to enable such
Certificateholders to prepare their tax returns;
(iv) if the Series Supplement provides for Advances, the aggregate
amount of Advances, if any, included in such distribution, and the
aggregate amount of unreimbursed Advances, if any, at the close of
business on such Distribution Date;
(v) the aggregate stated principal amount and, if applicable,
notional amount of the Term Assets related to such Series, the current
rating assigned by the Rating Agency thereon and the current interest
rate or rates thereon at the close of business on such Distribution
Date;
(vi) the aggregate Certificate Principal Balance (or Notional
Amount, if applicable) of each Class of such Series at the close of
business on such Distribution Date; and
(vii) as to any Series (or any Class within such Series) for which
Credit Support has been obtained, the amount or notional amount of
coverage of each element of Credit Support (and rating, if any,
thereof) included therein as of the close of business on such
Distribution Date.
In the case of information furnished pursuant to subclauses (i) and
(iii) above, the amounts shall be expressed as a Dollar amount (or the
equivalent thereof in any other Specified Currency) per minimum denomination of
Certificates or for such other specified portion thereof. Within a reasonable
period of time after the end of each calendar year, the Trustee shall furnish to
each person who at any time during each such calendar year was a
Certificateholder a statement containing the information set forth in subclauses
(i) and (iii) above, aggregated for such calendar year or the applicable portion
thereof during which such person was a Certificateholder. Such obligation of the
Trustee shall be deemed to have been satisfied to the extent that substantially
comparable information shall be provided by the Trustee pursuant to any
requirements of the Code as are from time to time in effect.
Section 4.3. ADVANCES. Unless otherwise specified in the applicable
Series Supplement, an Administrative Agent appointed pursuant to the Series
Supplement shall have no obligation to make Advances (as defined below) with
respect to the Term Assets or in favor of the Holders of any Series (or Class
within such Series) of Certificates. However, as and to the extent provided in
the Series Supplement for a given Series, and subject to the terms of paragraphs
(b) and (c) of this Section 4.3, on or prior to each Distribution Date, such
Administrative Agent shall advance or cause to be advanced in immediately
available funds to the Trustee for deposit in the Certificate Account for such
Series an advance (each, an "Advance") in an amount equal, unless otherwise
specified in the related Series Supplement, to the aggregate of distributions of
principal, premium (if any) and interest due on the Term Assets for such Series
(or Class) during the related Collection Period, to the extent remaining unpaid
at the time of such Advance. In satisfaction of its obligation to make such
Advances, the Administrative Agent shall make such Advances from either (i) its
own funds or (ii) funds with respect to the Term Assets for such Series or Class
on deposit in the Certificate Account for such Series, if any, that do not
constitute Available Funds with respect to such Distribution Date; PROVIDED,
HOWEVER, that, to the extent the Administrative Agent shall have made Advances
from funds on deposit in the applicable Certificate Account, the Administrative
Agent shall immediately deposit funds equal to the aggregate amount of such
Advances into such Certificate Account on any subsequent Distribution Date to
the extent that amounts on deposit in such Certificate Account on such
Distribution Date are less than the amount of distributions required to be made
on such Distribution Date pursuant to Section 4.1 and the related Series
Supplement. The Administrative Agent may recover Advances from late collections
received by the Trustee on the applicable Term Assets, proceeds from any
applicable Credit Support, if any, and Liquidation Proceeds with respect to the
Term Assets for such Series or Class, as specified in the related Series
Supplement, as to which any such unreimbursed Advance was made.
(b) Notwithstanding any provision herein to the contrary, no Advance
shall be required to be made hereunder if the Administrative Agent reasonably
believes that it will be unable to recover such Advance from related late
collections, Credit Support proceeds, if any, or Liquidation Proceeds with
respect to the applicable Term Assets. It is further understood and agreed that
the Administrative Agent shall not be obligated to make any Advances in respect
of reductions in the amount of collections on the Term Assets due to bankruptcy
proceedings with respect to the Term Assets or the obligors thereof.
(c) Notwithstanding any provision herein to the contrary, unless
otherwise provided in the Series Supplement for a given Series, any Advances
made in respect of any Term Assets related to such Series (or Class within such
Series) that are subsequently deemed by the Administrative Agent to be
nonrecoverable from related late collections, Credit Support proceeds, if any,
or Liquidation Proceeds may be reimbursed to the Administrative Agent through
the application of amounts on deposit in the Certificate Account for such Series
allocable to any of such Term Assets prior to the distributions of interest,
premium (if any) and principal with respect to the Certificates of such Series
or Class.
Section 4.4. COMPLIANCE WITH WITHHOLDING REQUIREMENTS. If any
withholding tax is imposed on the payment (or allocations of income) to any
Certificateholder, such tax shall reduce the amount otherwise distributable to
such Holder. The Trustee is hereby authorized and directed to retain from
amounts otherwise distributable to any Holder sufficient funds for the payment
of any tax that is legally owed by the Trust (but such authorization shall not
prevent the Trustee from contesting any such tax in appropriate proceedings and
withholding payment of such tax, if permitted by law, pending the outcome of
such proceedings), or that the Trustee may otherwise determine it is obligated
to withhold under applicable law or regulation. The amount of any withholding
tax imposed with respect to any Holder shall be treated as cash distributed to
such Holder at the time it is withheld by the Trustee and remitted to the
appropriate taxing authority. If there is a possibility that withholding tax is
payable with respect to a distribution, the Trustee may in its sole discretion
withhold such amounts in accordance with this Section 4.4. If any Holder wishes
to apply for a refund of any such withholding tax, the Trustee shall reasonably
cooperate with such Holder in making such claim so long as such Holder agrees to
reimburse the Trustee for any out-of-pocket expenses incurred. The Trustee shall
use reasonable efforts to give notice to each Holder of any such withholding
requirement at least 10 days prior to the date of the payment from which amounts
are required to be withheld.
Section 4.5. OPTIONAL EXCHANGE. The terms and conditions, if any, upon
which Certificates of any Series (or Class within such Series) may be exchanged
for a PRO RATA portion of the Term Assets of the related Trust will be specified
in the related Series Supplement; PROVIDED that any right of exchange shall be
exercisable only to the extent that the Depositor provides upon the Trustee's
request an Opinion of Counsel that (i) such exchange would not be inconsistent
with the Depositor's and the Trust's continued satisfaction of the applicable
requirements for exemption under Rule 3a-7 (or other applicable rule or
exemption) under the Investment Company Act of 1940, as amended, and all
applicable rules, regulations and interpretations thereunder and (ii) such
exchange would not cause the Trust to fail to qualify as a grantor trust for
federal income tax purposes. Such terms may relate to, but are not limited to,
the following:
(1) a requirement that the exchanging Holder tender to the Trustee
Certificates of each Class within such Series;
(2) a minimum Certificate Principal Balance or Notional Amount, as
applicable, with respect to Certificates being tendered for exchange by
a single Holder;
(3) a requirement that the Certificate Principal Balance or
Notional Amount, as applicable, of each Certificate tendered for
exchange be an integral multiple of an amount specified in such Series
Supplement;
(4) specified dates during which a Holder may effect such an
exchange (each, an "Optional Exchange Date");
(5) limitations on the right of an exchanging Holder to receive
any benefit upon exchange from any Credit Support or Term Assets which
are not debt securities; and
(6) adjustments to the value of the proceeds of any exchange based
upon required prepayment of future expense allocations and if provided
for in the applicable Series Supplement the establishment of a reserve
for any anticipated Extraordinary Trust Expenses.
(b) Unless otherwise provided in the applicable Series Supplement, no
Certificate may be exchanged pursuant to the preceding paragraph unless the
Trustee has received at least 30 days but not more than 45 days prior to an
Optional Exchange Date in accordance with delivery instructions specified in the
applicable Series Supplement (i) such Certificate with the form entitled "Option
to Elect Exchange" on the reverse thereof 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., the Depositary
(in accordance with its normal procedures) or a commercial bank or trust company
in the United States setting forth the name of the Holder of such Certificate,
the Certificate Principal Balance or Notional Amount of such Certificate to be
exchanged and the Certificate number or a description of the tenor and the terms
of such Certificate, a statement that the option to elect exchange is being
exercised thereby and an assurance that the Certificate to be exchanged with the
form entitled "Option to Elect Exchange" on the reverse of the Certificate duly
completed will be received by such Trustee not later than five Business Days
after the date of such telegram, telex, facsimile transmission or letter, and
such Certificate and form duly completed must be received by such Trustee by
such fifth Business Day. Any tender of a Certificate by the Holder thereof for
exchange shall be irrevocable. Unless otherwise provided in the applicable
Series Supplement, the exchange option may be exercised pursuant to this Section
by the Holder of a Certificate for less than the Certificate Principal Balance
or Notional Amount of such Certificate as long as the Certificate Principal
Balance or Notional Amount remaining Outstanding after such exchange is an
authorized denomination and all other exchange requirements set forth in the
related Series Supplement are satisfied. Upon such partial exchange, such
Certificate shall be cancelled and a new Certificate or Certificates for the
remaining Certificate Principal Balance or Notional Amount thereof shall be
issued (which, in the case of any Certificate, shall be in the name of the
Holder of such exchanged Certificate).
(c) Upon the completion of any such Optional Exchange, the Trustee
shall give prompt written notice thereof to the Rating Agency.
ARTICLE V
THE CERTIFICATES
Section 5.1. THE CERTIFICATES. The Certificates of any Series (or
Class within such Series) will be issued in fully registered form as
Certificates and shall be substantially in the form of the exhibits with respect
thereto attached to the applicable Series Supplement. The aggregate Certificate
Principal Balance or Notional Amount of Certificates which may be authenticated
and delivered under this Agreement is unlimited.
The Certificates may be issued in one or more Series, each of which
Series may be issued in one or more Classes, with such further particular
designations added or incorporated in such title for the Certificates of any
particular Series or Class within such Series as the Board of Directors may
determine. Each Certificate shall bear upon its face the designation so selected
for the Series and Class to which it belongs. All Certificates of the same
Series and Class shall be identical in all respects except for the denominations
thereof. All Certificates of all Classes within any one Series at any time
Outstanding shall be identical except for differences among the Certificates of
the different Classes within such Series specified in the applicable Series
Supplement. Except as otherwise provided in a Series Supplement, all
Certificates of a particular Series (and all Classes within such Series) issued
under this Agreement shall be in all respects equally and ratably entitled to
the benefits hereof without preference, priority or distinction on account of
the actual time or times of authentication and delivery, all in accordance with
the terms and provisions of this Agreement.
Each Series (and all Classes within such Series) of Certificates shall
be created by a Series Supplement authorized by the Board of Directors and
establishing the terms and provisions of such Series. The several Series may
differ as between Series and any Class may vary as between the other Classes
within any given Series in respect of any of the following matters:
(1) designation of such Series and Class;
(2) the dates on which or periods during which the Certificates of
such Series and Class may be issued;
(3) the number of Classes, the maximum Certificate Principal
Balance or Notional Amount of Certificates of each Class that may be
issued and any priorities or subordination among Classes of a Series
with respect to distributions from the Trust;
(4) for each Class of Certificates, the Pass Through Rate and, in
the case of each Class of Floating Rate Certificates, the method for
calculating such Pass Through Rate;
(5) the terms of the Letter of Credit, if any, or of the Surety
Bond, if any, or of any other Credit Support for the benefit of the
Certificateholders of such Series or Class or group of Classes;
(6) the places, if any, in addition to or instead of the Corporate
Trust Office of the Trustee (in the case of Certificates), where the
principal of (and premium, if any) and interest on Certificates of such
Series and Class shall be distributable;
(7) the authorized denominations (if other than $100,000 and
integral multiples of $1,000 in excess thereof) with respect to such
Series or Class;
(8) the Collection Periods, the Distribution Dates and the
Scheduled Final Distribution Dates for such Series and Class;
(9) the types of Term Assets that will be included in the Trust
for such Series and the manner and priorities of allocating
distributions with respect to collections of principal (and premium, if
any) and interest payments allocable to such Term Assets among Holders
of Certificates of different Classes (including whether the
Certificates of any such Class are to be entitled to receive principal
distributions with disproportionate, nominal or no interest
distributions, or interest distributions with disproportionate, nominal
or no principal distributions, and, in each case, the applicable terms
thereof);
(10) the amount, if any, to be deposited on the Closing Date in
the Certificate Account for such Series;
(11) the manner in which the Reserve Account, if any, is to be
funded, the amount, if any, to be deposited therein on the Closing Date
and the Requisite Reserve Amount, if any, for such Series or Class;
(12) the terms of any Guaranteed Investment Contract Granted as
part of the related Trust;
(13) the provisions, if any, for the optional exchange of the
Certificates of such Series by the Certificateholders of such Series
and the periods within which or the dates on which, and the terms and
conditions on which, such Certificates may be exchanged in whole or in
part for a PRO RATA portion of the Term Assets related to such Series;
(14) whether the Certificates of such Series or Class are to be
issued as Discount Certificates and the amount of discount with which
such Certificates may be issued;
(15) whether the Certificates of such Series or Class are to be
issued in whole or in part in the form of one or more Global Securities
and, in such case, the Depositary for such Global Security or
Securities and the terms and conditions, if any, upon which interests
in such Global Security or Securities may be exchanged in whole or in
part for the individual Certificates represented thereby;
(16) [reserved.];
(17) [reserved.];
(18) if other than Dollars, the Currency in which Certificates of
such Series or Class shall be denominated or in which distributions of
the principal of (and premium, if any) and interest on such
Certificates may be made and any other terms concerning such payment;
(19) if the principal of (and premium, if any) or interest on
Certificates of such Series or Class are to be distributable, at the
election of the Depositor or a Holder thereof, in a Currency other than
that in which such Certificates are denominated or distributable
without such election, the periods within which and the terms and
conditions upon which such election may be made and the time and the
manner of determining the exchange rate between the Currency in which
such Certificates are denominated or distributable without such
election and the Currency in which such Certificates are to be
distributed if such election is made;
(20) any additional Administrative Agent Termination Events or
representations, warranties or covenants provided for with respect to
Certificates of such Series;
(21) provisions with respect to the terms for which the
definitions set forth in Article I permit or require further
specification in the related Series Supplement, including:
(a) "Accounting Date";
(b) "Accreted Amount";
(c) "Administrative Agent";
(d) "Administrative Fee";
(e) "Available Funds";
(f) "Basic Documents";
(g) "Calculation Agent";
(h) "Call Premium Percentage";
(i) "Closing Date";
(j) "Collection Period";
(k) "Corporate Trust Office";
(l) "Credit Support";
(m) "Credit Support Instrument";
(n) "Credit Support Provider";
(o) "Cut-off Date";
(p) "Depositary";
(q) "Depository Agreement";
(r) "Discount Certificates";
(s) "Distribution Date";
(t) "Event of Default";
(u) "Extraordinary Trust Expense";
(v) "Final Scheduled Distribution Date";
(w) "Fixed Pass Through Rate";
(x) "Floating Pass Through Rate";
(y) "Floating Rate Certificate";
(z) "Global Securities";
(aa) "Grant";
(bb) "Guaranteed Investment Contract";
(cc) "Letter of Credit";
(dd) "Limited Guarantor";
(ee) "Limited Guaranty";
(ff) "Notional Amount";
(gg) "Optional Exchange Date";
(hh) "Pass Through Rate";
(ii) "Permitted Investments";
(jj) "Place of Distribution";
(kk) "Purchase Price";
(ll) "Qualified Substitute Term Asset";
(mm) "Rating Agency";
(nn) "Rating Agency Condition";
(oo) "Record Date";
(pp) "Required Interest";
(qq) "Required Premium";
(rr) "Required Principal";
(ss) "Required Percentage";
(tt) "Required Rating";
(uu) "Requisite Reserve Amount";
(vv) "Retained Interest";
(ww) "Scheduled Final Distribution Date";
(xx) "Specified Currency";
(yy) "Surety Bond";
(zz) "Term Asset Provider";
(aaa) "Term Asset Purchase Agreement";
(bbb) "Term Assets";
(ccc) "Term Assets Issuer";
(ddd) "Term Assets Schedule";
(eee) "Trust";
(fff) "Trustee";
(ggg) "Trust Termination Event";
(hhh) "Voting Rights";
(22) rights and remedies provided to any Credit Support Provider
with respect to all or a portion of the Trust for such Series or Class;
(23) any restrictions on the sale and transfer of the
Certificates, including restrictions arising out of the Employee
Retirement Income Security Act of 1974, as amended, or the Code; and
(24) any other provisions expressing or referring to the terms and
conditions upon which the Certificates of such Series or Class are to
be issued under this Agreement that do not prevent such Certificates
from receiving the Required Rating.
In the absence of any specification pursuant to this Section 5.1 with
respect to Certificates of any Series, the Certificates of such Series shall be
issuable only as Certificates in denominations of $1,000 and in integral
multiples thereof and shall be payable only in Dollars.
A different Trustee and an Administrative Agent may be appointed by
the Depositor for each Series of Certificates prior to the issuance of such
Series provided that the Rating Agency Condition is met. If the initial Trustee
is to be other than First Trust of New York, National Association, or there is
to be an Administrative Agent, then such Series Supplement shall provide for the
appointment of such Trustee or such Administrative Agent or both, as applicable,
of such Series and shall add or change any of the provisions of this Agreement
as shall be necessary to provide for or facilitate the administration of the
trusts hereunder and of the Term Assets; it being understood that nothing
contained herein or in such Series Supplement shall constitute the Trustees for
different Series as co-trustees for the same Series or the administrative agents
for different Series as co-administrative agents for the same Series, and that
each Trustee shall be a trustee of a trust or trusts separate and apart from any
trust or trusts hereunder of any other Trustee, and that each Administrative
Agent shall be an administrative agent of a Trust separate and apart from any
other Trust. Upon final appointment of any new Trustee or Administrative Agent,
the Trustee shall provide a notice of such appointment to the Rating Agency not
later than 15 days following such appointment.
Section 5.2. EXECUTION, AUTHENTICATION AND DELIVERY. The Certificates
shall be executed by the Depositor by its President, its Treasurer, one of its
Vice Presidents, or one of its Finance Officers. The signature of any of these
officers may be manual or facsimile. Certificates bearing the manual or
facsimile signature of individuals who were at any time the proper officers of
the Depositor shall be binding, notwithstanding that such individuals or any of
them have ceased to hold such offices prior to the authentication and delivery
of such Certificates or did not hold such offices at the date of such
Certificates.
(b) Each Certificate shall be dated as of the later of the date
specified in the related Series Supplement and the date of its authentication.
(c) No Certificate shall be entitled to any benefit under this
Agreement or be valid or obligatory for any purpose, unless there appears on
such Certificate a certificate of authentication substantially in one of the
forms provided for herein executed by the Trustee by the manual signature of one
of its authorized signatories, and such certificate upon any Certificate shall
be conclusive evidence, and the only evidence, that such Certificate has been
duly authenticated and delivered hereunder and is entitled to the benefits of
this Agreement.
Section 5.3. TEMPORARY CERTIFICATES. Pending the preparation of
Definitive Certificates of any Series (or Class within such Series), the
Depositor may execute, and upon receipt of a Depositor Order, the Trustee shall
authenticate and deliver temporary Certificates which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the Definitive Certificates in lieu of which they
are issued, in registered form and with such appropriate insertions, omissions,
substitutions and other variations as may be authorized by such Depositor Order.
Any such temporary Certificate may be in global form, representing all or a
portion of the Outstanding Certificates of such Series or Class. Every such
temporary Certificate shall be executed by the Depositor and shall be
authenticated and delivered by the Trustee upon the same conditions and in
substantially the same manner, and with the same effect, as the Definitive
Certificate or Definitive Certificates in lieu of which it is issued.
If temporary Certificates of any Series (or Class within such Series)
are issued, the Depositor will cause Definitive Certificates of such Series or
Class to be prepared without unreasonable delay and (a) after the preparation of
Definitive Certificates of such Series or Class, the temporary Certificates of
such Series or Class shall be exchangeable for Definitive Certificates of such
Series or Class upon surrender of the temporary Certificates of such Series or
Class at the office of the Trustee in a Place of Distribution for such Series or
Class, without charge to the Holder, except as provided in Section 5.4 in
connection with a transfer and (b) upon surrender for cancellation of any one or
more temporary Certificates of any Series or Class within such Series the
Depositor shall execute and the Trustee shall authenticate and deliver in
exchange therefor Definitive Certificates with a like Certificate Principal
Balance or Notional Amount, as applicable, of the same Series (or Class within
such Series) of authorized denominations and of like tenor. Until so exchanged,
temporary Certificates of any Series (or Class within such Series) shall in all
respects be entitled to the same benefits under this Agreement as Definitive
Certificates of such Series or Class, except as otherwise specified in the
applicable Series Supplement with respect to the payment of interest on Global
Securities in temporary form.
Upon any exchange of a portion of a temporary Global Security for a
definitive Global Security or for the individual Definitive Certificates
represented thereby pursuant to this Section 5.3 or Section 5.4, the temporary
Global Security shall be endorsed by the Trustee to reflect the reduction of the
aggregate Certificate Principal Balance or Notional Amount, as applicable,
evidenced thereby, whereupon the aggregate Certificate Principal Balance or
Notional Amount, as applicable, of such temporary Global Security shall be
reduced for all purposes by the amount so exchanged and endorsed.
Section 5.4. REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE. The
Trustee shall cause to be kept a register for each Series of Certificates (the
registers maintained in such office and in any other office or agency of the
Trustee in a Place of Distribution being herein sometimes collectively referred
to as the "Certificate Register") in which a transfer agent and registrar (which
may be the Trustee) (the "Certificate Registrar") shall provide for the
registration of Certificates and the registration of transfers and exchanges of
Certificates. The Trustee is hereby initially appointed Certificate Registrar
for the purpose of registering Certificates and transfers and exchanges of
Certificates as herein provided; PROVIDED, HOWEVER, that the Trustee may appoint
one or more co-Certificate Registrars. Upon any resignation of any Certificate
Registrar, the Depositor shall promptly appoint a successor or, in the absence
of such appointment, assume the duties of Certificate Registrar.
If a Person other than the Trustee is appointed by the Depositor as
Certificate Registrar, the Depositor will give the Trustee prompt written notice
of the appointment of a Certificate Registrar and of the location, and any
change in the location, of the Certificate Register, and the Trustee shall have
the right to rely upon a certificate executed on behalf of the Certificate
Registrar by an Executive Officer thereof as to the names and addresses of the
Holders of the Certificates and the principal amounts and numbers of such
Certificates.
Upon surrender for registration of transfer of any Certificate of any
Series (or Class within such Series) at the office or agency of the Trustee, if
the requirements of Section 8-401(1) of the Uniform Commercial Code are met to
the Depositor's satisfaction, the Depositor shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Certificates of any authorized denominations, of a
like Series, Class and aggregate Certificate Principal Balance or Notional
Amount, as applicable.
Notwithstanding any other provision of this Section, unless and until
it is exchanged in whole or in part for the individual Certificates represented
thereby, a Global Security representing all or a portion of the Certificates of
a Series (or Class within such Series) may not be transferred except as a whole
by the Depositary for such Series or Class to a nominee of such Depositary or by
a nominee of such Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a successor Depositary
for such Series or Class or a nominee of such successor Depositary.
At the option of the Holder, Certificates of any Series (or Class
within such Series) (other than a Global Security, except as set forth below)
may be exchanged for other Certificates of the same Series or Class of any
authorized denomination or denominations of like tenor and aggregate Certificate
Principal Balance or Notional Amount, as applicable, upon surrender of the
Certificates to be exchanged at the office or agency of the Trustee maintained
for such purpose.
Whenever any Certificates are so surrendered for exchange, the
Depositor shall execute and the Trustee shall authenticate and deliver the
Certificates that the Holder making the exchange is entitled to receive.
If at any time the Depositary for the Certificates of a Series (or
Class within such Series) notifies the Depositor that it is unwilling or unable
to continue as Depositary for the Certificates of such Series or Class or if at
any time the Depositary for the Certificates of such Series or Class shall no
longer be eligible under Section 5.9(b), the Depositor shall appoint a successor
Depositary with respect to the Certificates of such Series or Class. If a
successor Depositary for the Certificates of such Series or Class is not
appointed by the Depositor within 90 days after the Depositor receives such
notice or becomes aware of such ineligibility, the Depositor's election pursuant
to Section 5.1 shall no longer be effective with respect to the Certificates of
such Series or Class and the Depositor will execute, and the Trustee, upon
receipt of a Depositor Order for the authentication and delivery of individual
Certificates of such Series or Class, will authenticate and deliver individual
Certificates of such Series or Class in an aggregate Certificate Principal
Balance or Notional Amount, as applicable, equal to the aggregate Certificate
Principal Balance or Notional Amount, as applicable, of the Global Security or
Securities representing Certificates of such Series or Class in exchange for
such Global Security or Securities.
The Depositor may at any time and in its sole discretion determine
that individual Certificates of any Series (or Class within such Series) issued
in the form of one or more Global Securities shall no longer be represented by
such Global Security or Securities. In such event the Depositor shall execute,
and the Trustee, upon receipt of a Depositor Order for the authentication and
delivery of individual Certificates of such Series or Class, shall authenticate
and deliver, individual Certificates of such Series or Class in an aggregate
Certificate Principal Balance or Notional Amount, as applicable, equal to the
aggregate Certificate Principal Balance or Notional Amount, as applicable, of
the Global Security or Securities representing Certificates of such Series or
Class in exchange for such Global Security or Securities.
If specified by the Depositor pursuant to Section 5.1 with respect to
a Series (or Class within such Series) of Certificates, the Depositary for such
Series may surrender a Global Security for such Series or Class in exchange in
whole or in part for individual Certificates of such Series or Class on such
terms as are acceptable to the Depositor and such Depositary. Thereupon, the
Depositor shall execute, and the Trustee, upon receipt of a Depositor Order,
shall authenticate and deliver, without service charge,
(i) to each Person specified by such Depositary a new individual
Certificate or Certificates of the same Series or Class, of any
authorized denomination as requested by such Person in an aggregate
Certificate Principal Balance or Notional Amount, as applicable, equal
to and in exchange for such Person's beneficial interest in the Global
Security; and
(ii) to such Depositary a new Global Security in a denomination
equal to the difference, if any, between the aggregate Certificate
Principal Balance or Notional Amount, as applicable, of the surrendered
Global Security and the aggregate Certificate Principal Balance or
Notional Amount, as applicable, of individual Certificates delivered to
Holders thereof.
In any exchange provided for in any of the preceding three paragraphs,
the Depositor shall execute, and the Trustee, upon receipt of a Depositor Order,
will authenticate and deliver individual Certificates in registered form in
authorized denominations.
Upon the exchange of a Global Security for individual Certificates,
such Global Security shall be cancelled by the Trustee. Individual Certificates
issued in exchange for a Global Security pursuant to this Section 5.4 shall be
registered in such names and in such authorized denominations as the Depositary
for such Global Security, pursuant to instructions from its Participants, any
indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such Certificates to the Persons in whose names such Certificates
are so registered.
All Certificates issued upon any registration of transfer or exchange
of Certificates shall constitute complete and indefeasible evidence of ownership
in the Trust related to such Certificates and be entitled to the same benefits
under this Agreement as the Certificates surrendered upon such registration of
transfer or exchange.
Every Certificate presented or surrendered for registration of
transfer or exchange shall (if so required by the Depositor, the Trustee or the
Certificate Registrar) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Depositor, the Trustee and
the Certificate Registrar, duly executed, by the Holder thereof or his attorney
duly authorized in writing, with such signature guaranteed by a brokerage firm
or financial institution that is a member of a Securities Approved Medallion
Program such as Securities Transfer Agents Medallion Program (STAMP), Stock
Exchange Medallion Program (SEMP) or New York Stock Exchange Inc. Medallion
Signature Program (MSP).
No service charge shall be made to a Holder for any registration of
transfer or exchange of Certificates, but the Depositor 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 Certificates,
other than exchanges pursuant to Section 5.3 not involving any transfer.
Section 5.5. MUTILATED, DESTROYED, LOST AND STOLEN CERTIFICATES. If
(i) any mutilated Certificate is surrendered to the Trustee at its Corporate
Trust Office (in the case of Certificates) or (ii) the Depositor and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any
Certificate, and there is delivered to the Depositor and the Trustee such
security or indemnity as they may require to hold each of them and any Paying
Agent harmless, and neither the Depositor nor the Trustee receives notice that
such Certificate has been acquired by a bona fide purchaser, then the Depositor
shall execute and the Trustee, upon receipt of a Depositor Order, shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Certificate a new Certificate of the same Series and
Class of like tenor, form, terms and principal amount, bearing a number not
contemporaneously Outstanding.
Upon the issuance of any new Certificate under this Section, the
Depositor may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in respect thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
Every new Certificate of any Series or Class issued pursuant to this
Section shall constitute complete and indefeasible evidence of ownership in the
Trust related to such Series, whether or not the destroyed, lost or stolen
Certificate shall be at any time enforceable by anyone, and shall be entitled to
all the benefits of this Agreement equally and proportionately with any and all
other Certificates of that Series or Class duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Certificates.
Section 5.6. DISTRIBUTION OF INTEREST; INTEREST RIGHTS PRESERVED.
Interest on any Certificate that is payable and is punctually paid or duly
provided for on any Distribution Date shall be distributed to the Person in
whose name such Certificate (or one or more Predecessor Certificates) is
registered at the close of business on the related Record Date notwithstanding
the cancellation of such Certificate upon any transfer or exchange subsequent to
such related Record Date. The distribution of interest on Certificates shall be
made at the Corporate Trust Office (except as otherwise specified pursuant to
Section 5.1) or, at the option of the Trustee, by check mailed to the address of
the Person entitled thereto as such address shall appear in the Certificate
Register or, if provided pursuant to Section 5.1 and in accordance with
arrangements satisfactory to the Trustee, at the option of the Holder by wire
transfer to an account designated by the Holder.
(b) Subject to the foregoing provisions of this Section 5.6, each
Certificate delivered under this Agreement upon transfer of or in exchange for
or in lieu of any other Certificate shall carry the rights to interest accrued
and undistributed, and to accrue, that were carried by such other Certificate.
(c) All computations of interest due with respect to any Certificate
of any Series or Class within such Series shall be made as specified in the
Series Supplement applicable to that particular Series or Class of Certificates.
(d) With respect to any computations or calculations to be made under
this Agreement, the applicable Series Supplement and the Certificates, except as
otherwise provided, (i) all percentages resulting from any calculation of
accrued interest will be rounded, if necessary, to the nearest 1/100,000 of 1%
(.0000001), with five one-millionths of a percentage point rounded upward, and
(ii) all currency amounts will be rounded to the nearest one- hundredth of a
unit (with .005 of a unit being rounded upward).
(e) Notwithstanding any other provisions in this Agreement, the right
of the Holder of any Certificate to receive any of the payments described above
in this Section 5.6, and to institute suit for the enforcement of any such
payment on or after the date such payment is payable, shall not be impaired
without the consent of such Holder.
Section 5.7. PERSONS DEEMED OWNERS. The Depositor, the Trustee and the
Administrative Agent, if any, and any agent of the Depositor, the Trustee or the
Administrative Agent, if any, may treat the Person in whose name any Certificate
is registered as the owner of such Certificate for the purpose of receiving
distributions of principal of (and premium, if any) and (subject to Section 5.6)
interest, if any, on such Certificate and for all other purposes whatsoever,
whether or not such Certificate be overdue, and neither the Depositor, the
Trustee, the Administrative Agent, if any, nor any agent of the Depositor, the
Trustee nor the Administrative Agent, if any, shall be affected by notice to the
contrary. All distributions made to any Holder, or upon his order, shall be
valid, and, to the extent of the sum or sums paid, effectual to satisfy and
discharge the liability for moneys distributable upon such Certificate.
None of the Depositor, the Trustee, the Administrative Agent, if any,
or any of their agents will have any responsibility or liability for any aspect
of the records relating to or distributions made on account of beneficial
ownership interests in a Global Security or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.
In connection with any notice or other communication to be provided to
Holders pursuant to this Agreement by the Trustee with respect to any consent or
other action to be taken by Holders, the Trustee shall establish a record date
for such consent or other action and in the case of Global Certificates, give
the Depository notice of such record date not less than 15 calendar days in
advance of such record date to the extent possible. Such record date shall be
the later of thirty (30) days prior to the first solicitation of such consent or
other action or the date of the most recent list of Holders furnished to the
Trustee pursuant to Section 3.19 hereof.
Section 5.8. CANCELLATION. Unless otherwise specified pursuant to
Section 5.1 for Certificates of any Series, all Certificates surrendered for
payment, redemption, transfer or exchange shall, if surrendered to any Person
other than the Trustee, be delivered to the Trustee and shall be promptly
cancelled by it. No Certificates shall be authenticated in lieu of or in
exchange for any Certificates cancelled as provided in this Section, except as
expressly permitted by this Agreement.
Section 5.9. GLOBAL SECURITIES. If the Series Supplement pursuant to
Section 5.1 provides that a Series (or Class within such Series) of Certificates
shall be represented by one or more Global Securities, then the Depositor shall
execute and the Trustee shall authenticate and deliver one or more Global
Securities that (i) shall represent an aggregate initial Certificate Principal
Balance or Notional Amount, as applicable, equal to the aggregate initial
Certificate Principal Balance or Notional Amount, as applicable, of the
Certificates of such Series or Class to be represented by such one or more
Global Securities, (ii) shall be registered, in the name of the Depositary for
such Global Security or Securities or the nominee of such Depositary, (iii)
shall be delivered by the Trustee to such Depositary or pursuant to such
Depositary's instruction and (iv) shall bear a legend substantially to the
following effect: "Unless and until it is exchanged in whole or in part for the
individual Certificates represented hereby, this Global Security may not be
transferred except as a whole by the Depositary to a nominee of the Depositary
or by a nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary."
No Holder of a Certificate of such Series or Class will receive a
Definitive Certificate representing such Holder's interest in such Certificate
or Certificates, except as provided in Section 5.11. Unless and until
definitive, fully registered Certificates (the "Definitive Certificates") have
been issued to Holders of such Series or Class pursuant to Section 5.11:
(i) the provisions of this Section 5.9 shall be in full force
and effect;
(ii) the Certificate Registrar and the Trustee shall be entitled
to deal with the Depositary for all purposes of this Agreement
(including the distribution of principal of, and premium, if any, and
interest on the Certificates and the giving of instructions or
directions hereunder) as the sole Holder of the Certificates of such
Series or Class, and shall have no obligation to the owners of
beneficial interests in such Series or Class (collectively, the
"Certificate Owners");
(iii) to the extent that the provisions of this Section 5.9
conflict with any other provisions of this Agreement, the provisions of
this Section 5.9 shall control;
(iv) the rights of Certificate Owners of such Series or Class
shall be exercised only through the Depositary and shall be limited to
those established by law and agreements between such Certificate Owners
and the Depositary or its Participants; and
(v) whenever this Agreement requires or permits actions to be
taken based upon instructions or directions of Holders of Certificates
of such Series or Class evidencing a specified percentage of the
aggregate Voting Rights of such Series or Class, the Depositary shall
be deemed to represent such percentage only to the extent that it has
received instructions to such effect from Certificate Owners of such
Series or Class or Participants in such Depositary's system owning or
representing, respectively, such required percentage of the beneficial
interest in the Certificates of such Series or Class and has delivered
such instructions to the Trustee.
(b) Each Depositary designated pursuant to Section 5.1 for a Global
Security in registered form must, at the time of its designation and at all
times while it serves as such Depositary, be a clearing agency registered under
the Exchange Act and any other applicable statute or regulation.
Section 5.10. NOTICES TO DEPOSITARY. Whenever a notice or other
communication to the Holders of a Series or Class within such Series represented
by one or more Global Securities is required under this Agreement, unless and
until Definitive Certificates for such Series or Class shall have been issued to
such Certificate Owners pursuant to Section 5.11, the Trustee shall give all
such notices and communications specified herein to be given to Holders of the
Certificates of such Series to the Depositary, and shall have no obligation to
the Certificate Owners.
Section 5.11. DEFINITIVE CERTIFICATES. If in respect of a Series (or
Class within such Series) represented by one or more Global Securities (i) the
Depositor advises the Trustee in writing that the Depositary is no longer
willing or able to properly discharge its responsibilities with respect to the
Certificates of such Series or Class and the Depositor is unable to locate a
qualified successor, (ii) the Depositor at its option advises the Trustee in
writing that it elects to terminate the book-entry system for such Series or
Class through the Depositary or (iii) after the occurrence of an Administrative
Agent Termination Event, Certificate Owners representing beneficial interests
aggregating at least a majority (or such other Required Percentage--Definitive
Certificates that may be specified in a Series Supplement) of the Voting Rights
of the Certificates of such Series or Class advise the Depositary in writing
that the continuation of a book-entry system for such Series or Class through
the Depositary is no longer in the best interests of the Certificate Owners of
such Series or Class, then the Depositary shall notify all Certificate Owners or
Participants in the Depositary's system with respect to such Series or Class and
the Trustee of the occurrence of any such event and of the availability of
Definitive Certificates for such Series or Class to Certificate Owners of such
Series or Class requesting the same. Upon surrender to the Trustee of the Global
Securities of such Series or Class by the Depositary, accompanied by
registration instructions, the Depositor shall execute and the Trustee shall
authenticate the Definitive Certificates of such Series or Class in accordance
with the instructions of the Depositary. None of the Depositor, the Certificate
Registrar or the Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Certificates of such Series
or Class, the Trustee shall recognize the holders of the Definitive Certificates
of such Series or Class as Holders.
Section 5.12. CURRENCY OF DISTRIBUTIONS IN RESPECT OF CERTIFICATES.
(a) Except as otherwise specified pursuant to Section 5.1 for
Certificates of any Series (or Class within such Series), distributions of the
principal of (and premium, if any) and interest on Certificates of such Series
or Class will be made in Dollars.
(b) For purposes of any provision of the Agreement where the Holders
of Outstanding Certificates may perform an act that requires that a specified
percentage of the aggregate Voting Rights of the Certificates of all Series
perform such act and for purposes of any decision or determination by the
Trustee of amounts due and not distributed for the principal of (and premium, if
any) and interest on the Certificates of all Series in respect of which moneys
are to be disbursed ratably, the principal of (and premium, if any) or notional
amount of, as applicable, and interest on the Outstanding Certificates
denominated in a Foreign Currency will be the amount in Dollars based upon
exchange rates, determined as specified pursuant to Section 5.1 for Certificates
of such Series, as of the date for determining whether the Holders entitled to
perform such act have performed it or as of the date of such decision or
determination by the Trustee, as the case may be.
(c) With respect to Certificates of any Series (or Class within such
Series), any decision or determination to be made regarding exchange rates shall
be made by an Exchange Rate Agent appointed by the Depositor; provided that such
Exchange Rate Agent shall accept such appointment in writing and the terms of
such appointment shall be acceptable to the Trustee and shall, in the opinion of
the Depositor at the time of such appointment, require such Exchange Rate Agent
to make such determination by a method consistent with the method provided in
the applicable Series Supplement for the making of such decision or
determination. All decisions and determinations of such Exchange Rate Agent
regarding exchange rates shall be in its sole discretion and shall, in the
absence of manifest error, be conclusive for all purposes and irrevocably
binding upon the Depositor, the Trustee and all Holders of the Certificates of
such Series or Class.
(d) If distributions in respect of a Certificate are required to be
made in a Specified Currency other than Dollars and such currency is unavailable
due to the imposition of exchange controls or other circumstance beyond the
control of the Trustee, the Administrative Agent, if any, and the Depositor or
is no longer used by the government of the country issuing such Specified
Currency or is no longer commonly used for the settlement of transactions by
public institutions of or within the international banking community, then all
distributions in respect of such Certificate shall be made in Dollars until such
Specified Currency is again so used in the manner specified in the related
Series Supplement.
Section 5.13. CONDITIONS OF AUTHENTICATION AND DELIVERY OF NEW SERIES.
Certificates of a new Series may be issued at any time and from time to time
after the execution and delivery of this Agreement. The Depositor shall execute
and deliver Certificates of such Series to the Trustee and the Trustee shall
authenticate and deliver such Certificates upon a Depositor Order and upon
delivery by the Depositor to the Trustee of the following:
(1) BOARD RESOLUTION. A Board Resolution (or action by a Person
authorized by Board Resolution) authorizing the execution,
authentication and delivery of the Certificates and specifying the
Series, the Classes within such Series and their respective Final
Scheduled Distribution Dates, priorities as to distributions of
principal, premium (if any) and interest, aggregate initial Certificate
Principal Balances and Notional Amounts, if any, and Pass Through Rates
of, if any, each Class of such Series of Certificates to be
authenticated and delivered and the method of calculation thereof.
(2) SERIES SUPPLEMENT. A Series Supplement consistent with the
applicable provisions of this Agreement, accompanied by a Board
Resolution (or action by a Person authorized by Board Resolution)
authorizing such Series Supplement (and, in the case of the first
Series to be authenticated and delivered hereunder, authorizing this
Agreement).
(3) CERTIFICATES OF THE DEPOSITOR.
(a) An Officer's Certificate of the Depositor, dated as of the Closing
Date, to the effect that the Depositor is not in breach of this Agreement and
that the issuance of the Certificates applied for will not result in any breach
of any of the terms, conditions, or provisions of, or constitute a default
under, the Depositor's Certificate of Incorporation or bylaws, or any indenture,
mortgage, deed of transfer or other agreement or instrument to which the
Depositor is a party or by which it or its property is bound or any order of any
court or administrative agency entered in any Proceeding to which the Depositor
is a party or by which it or its property may be bound or to which it or its
property may be subject.
(b) An Officer's Certificate of the Depositor, dated as of the Closing
Date, to the effect that attached thereto are true and correct copies of letters
signed by the Rating Agency (or other evidence satisfactory to the Trustee) and
confirming that the related Certificates have received the Required Rating.
(4) REQUIREMENTS OF SERIES SUPPLEMENT. Such other funds, accounts,
documents, certificates, agreements, instruments or opinions as may be
required by the terms of the Series Supplement creating such Series.
If all the Certificates of a Series are not to be originally issued at
the same time, then the documents required to be delivered pursuant to this
Section 5.13 must be delivered only once, prior to the authentication and
delivery of the first Certificate of such Series; PROVIDED, HOWEVER, that any
subsequent Depositor Order to the Trustee to authenticate Certificates of such
Series upon original issuance shall constitute a representation and warranty by
the Depositor that, as of the date of such request, the statements made in the
Officer's Certificates delivered pursuant to this Section 5.13 shall be true and
correct as if made on such date.
Section 5.14. APPOINTMENT OF PAYING AGENT. The Trustee may appoint one
or more paying agents (each, a "Paying Agent") with respect to the Certificates
of any Series. Any such Paying Agent shall be authorized to make distributions
to Certificateholders of such Series from the Certificate Account for such
Series pursuant to the provisions of the applicable Series Supplement and shall
report the amounts of such distributions to the Trustee. Any Paying Agent shall
have the revocable power to withdraw funds from such Certificate Account for the
purpose of making the distributions referred to above. The Trustee may revoke
such power and remove the Paying Agent if the Trustee determines in its sole
discretion that the Paying Agent shall have failed to perform its obligations
under this Agreement in any material respect. The Paying Agent shall initially
be the Trustee and any co-paying agent chosen by the Depositor and acceptable to
the Trustee, including, if and so long as any Series or Class within such Series
is listed on the Luxembourg Stock Exchange and such exchange so requires, a
co-paying agent in Luxembourg or another European city. Any Paying Agent shall
be permitted to resign as Paying Agent upon 30 days' notice to the Trustee. In
the event that the Trustee shall no longer be the Paying Agent, the Trustee
shall appoint a successor or additional Paying Agent. The Trustee shall cause
each successor to act as Paying Agent to execute and deliver to the Trustee an
instrument in which such successor or additional Paying Agent shall agree with
the Trustee that (i) it will hold all sums, if any, held by it for distribution
to the Certificateholders in trust for the benefit of the Certificateholders
entitled thereto until such sums shall be distributed to such Certificateholders
and (ii) it will give the Trustee notice of any default by any obligor on the
applicable Series of Certificates or on the Term Assets. The Paying Agent shall
return all unclaimed funds to the Trustee and upon removal shall also return all
funds in its possession to the Trustee. The provisions of Sections 8.1, 8.2,
8.3, 8.5 and 8.9 shall apply to the Trustee also in its role as Paying Agent,
for so long as the Trustee shall act as Paying Agent. Any reference in this
Agreement to the Paying Agent shall include any co-paying agent unless the
context requires otherwise. Notwithstanding anything contained herein to the
contrary, the appointment of a Paying Agent pursuant to this Section 5.14 shall
not release the Trustee from the duties, obligations, responsibilities or
liabilities arising under this Agreement other than with respect to funds paid
to such Paying Agent.
Section 5.15. AUTHENTICATING AGENT. The Trustee may appoint one or
more Authenticating Agents (each, an "Authenticating Agent") with respect to the
Certificates of any Series which shall be authorized to act on behalf of the
Trustee in authenticating such Certificates in connection with the issuance,
delivery and registration of transfer or exchange of such Certificates. Whenever
reference is made in this Agreement to the authentication of Certificates by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication 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 must be acceptable to the
Depositor and the Administrative Agent, if any. Notwithstanding anything
contained herein to the contrary, the appointment of an Authenticating Agent
pursuant to this Section 5.15 shall not release the Trustee from the duties,
obligations, responsibilities or liabilities arising under this Agreement.
(b) Any institution succeeding to the corporate agency business of any
Authenticating Agent shall continue to be an Authenticating Agent without the
execution or filing of any power or any further act on the part of the Trustee
or such Authenticating Agent. An Authenticating Agent may at any time resign by
giving notice of resignation to the Trustee and to the Depositor. The Trustee
may at any time terminate the agency of an Authenticating Agent by giving notice
of termination to such Authenticating Agent and to the Depositor. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
an Authenticating Agent shall cease to be acceptable to the Trustee or the
Depositor, the Trustee promptly may appoint a successor Authenticating Agent.
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 acceptable to the
Administrative Agent, if any, and the Depositor. The Trustee agrees to pay to
each Authenticating Agent from time to time reasonable compensation for its
services under this Section. The provisions of Section 8.1, 8.2, 8.3 and 8.9
shall be applicable to any Authenticating Agent.
(c) Pursuant to an appointment made under this Section, the
Certificates may have endorsed thereon, in lieu of the Trustee's certificate of
authentication, an alternate certificate of authentication in substantially the
following form:
This is one of the Certificates described in the Trust Agreement and
the related Series Supplement.
_________________________________________
as Authenticating Agent
for the Trustee,
By_______________________________________
Authorized Signatory
Section 5.16. EVENTS OF DEFAULT. If any Event of Default shall occur
and be continuing with respect to any class of Certificates, then, and in each
and every case, the Trustee shall exercise any rights in respect of the related
Term Assets as provided in the applicable Series Supplement.
Section 5.17. CONTROL BY HOLDERS. The Holders of Outstanding
Certificates representing the Required Percentage -- Direction of Trustee shall,
subject to provision being made for indemnification against costs, expenses and
liabilities in a form satisfactory to the Trustee, have the right to direct the
time, method and place of conducting any Proceeding for any remedy available to
the Trustee with respect to any Issuer Payment Default; provided, however, that:
(i) such direction shall not be in conflict with any rule of law\
or with this Agreement;
(ii) subject to Section 8.7, the Trustee need not take any action
that it determines might cause it to incur any liability or might
materially adversely affect the rights of any Holders not consenting to
such action.
Section 5.18. WAIVER OF PAST DEFAULTS.
The Holders of Outstanding Certificates representing the Required
Percentage -- Direction of Trustee may waive any past default and its
consequences except (i) an Issuer Payment Default or other default in the
payment of principal of or interest on any of the Certificates or (ii) a default
in respect of a covenant or provision hereof which cannot be modified or amended
without the consent of the Holder of each Certificate. In the case of any such
waiver, the Depositor, the Trustee and the Holders shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other default or impair any right consequent
thereto.
ARTICLE VI
THE DEPOSITOR AND THE ADMINISTRATIVE AGENT
Section 6.1. PREPARATION AND FILING OF EXCHANGE ACT REPORTS;
OBLIGATIONS OF THE DEPOSITOR AND THE ADMINISTRATIVE AGENT. (a) The
Administrative Agent, if any, shall be liable in accordance herewith only to the
extent of the obligations specifically imposed by this Agreement and the related
Series Supplement. The Trustee shall:
(i) on behalf of the Trust, prepare for signature by the Depositor
and file with the Commission, following the execution thereof by the
Depositor, within the time period set forth below, copies of the annual
reports and of the information, documents and other reports (or copies
of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe), if any, which the
Depositor on behalf of the Trust may be required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act
(collectively, "Reports") with respect to the Trust. The names of such
Reports and the dates on which they are required to be filed with the
Commission are as follows:
(A) Form 8-K, in substantially the form previously provided by
the Depositor to the Trustee, within 15 calendar days after the Closing Date and
each Distribution Date, and within the time advised to the Trustee by the
Depositor if the filing of Form 8-K is necessary for any other reason;
(B) Form 10-K, in substantially the form previously provided by
the Depositor to the Trustee, within 90 calendar days after December 31 of each
year; and
(C) such other Reports as the Depositor requests the Trustee to
prepare and file from time to time as may be required pursuant to Section 13 or
15(d) of the Exchange Act;
(ii) receive from the Depositor, within 15 days after the
Depositor is required to file the same with the Commission, such
additional information, documents and reports with respect to
compliance by the Depositor with the conditions and covenants of this
Agreement, if any, as may be required to be filed with the Commission
from time to time by such rules and regulations;
(iii) receive from the Depositor and transmit by mail to all
Holders described in TIA Section 313(c), in the manner and to the
extent provided therein, such summaries of any information, documents
and reports required to be filed by the Depositor and received pursuant
to clauses (i) and (ii) of this Section 6.1(a), if any, as may be
required by rules and regulations prescribed from time to time by the
Commission.
(b) The Depositor shall deliver to the Trustee, not less often than
annually, an Officer's Certificate signed by an Executive Officer who is the
principal executive officer, principal financial officer or principal accounting
officer of the Depositor, dated as of the date set forth in the Series
Supplement for such year, stating that:
(i) a review of the activities of the Depositor during such fiscal
year and of performance under this Agreement has been made under such
Executive Officer's supervision; and
(ii) to the best of such Executive Officer's knowledge, based on
such review, the Depositor has fulfilled all of its obligations under
this Agreement throughout such year, or, if there has been a default in
the fulfillment of any such obligation, specifying each such default
known to such Executive Officer and the nature and status thereof. A
copy of such certificate may be obtained by any Holder by a request in
writing to the Depositor addressed to the Corporate Trust Office of the
Trustee.
(c) If and only if the Series Supplement provides for the pledge of
the Term Assets to the Trustee (and not merely the transfer, assignment,
conveyance and sale, without recourse, thereof to the Trustee), on the Closing
Date, the Depositor shall furnish to the Trustee an Opinion of Counsel either
stating that, in the opinion of such counsel, such action has been taken with
respect to the recording and filing of this Agreement, any agreements
supplemental hereto and any other requisite documents, and with respect to the
execution and filing of any financing statements and continuation statements as
are necessary to perfect and make effective the lien and security interest of
this Agreement and reciting the details of such action, or stating that, in the
opinion of such counsel, no such action is necessary to make such lien and
security interest effective.
(d) If and only if the Series Supplement provides for the pledge of
the Term Assets to the Trustee (and not merely the transfer, assignment,
conveyance and sale, without recourse, thereof to the Trustee), at least
annually after the Closing Date, the Depositor shall furnish to the Trustee an
Opinion of Counsel either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re-recording and
refiling of this Agreement, any agreements supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as is necessary to maintain the
lien and security interest created by this Agreement and reciting the details of
such action or stating that in the opinion of such counsel no such action is
necessary to maintain the lien and security interest created by this Agreement.
Such Opinion of Counsel shall also describe the recording, filing, re-recording
and refiling of this Agreement, any agreements supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Agreement until such date in
the following calendar year.
(e) If and only if the Series Supplement provides for the pledge of
the Term Assets to the Trustee (and not merely the transfer, assignment,
conveyance and sale, without recourse, thereof to the Trustee),
(i) whenever any property or securities are to be released from
the lien of this Agreement, the Depositor shall furnish to the Trustee
an Officer's Certificate of the Depositor certifying or stating the
opinion of each Person signing such certificate as to the fair value
(within 90 days of such release) of the property or securities proposed
to be released and stating that in the opinion of such person the
proposed release will not impair the security under this Agreement in
contravention of the provisions hereof.
(ii) whenever the Depositor is required to furnish to the Trustee
an Officer's Certificate of the Depositor certifying or stating the
opinion of any signatory thereof as to the matters described in clause
(i) above, the Depositor shall also furnish to the Trustee an
Independent Certificate as to the same matters if the fair value of the
property or securities and of all other property or securities released
from the lien of this Agreement since the commencement of the then
current calendar year, as set forth in the certificates required by
clause (i) above and this clause (ii), equals 10% or more of the
principal amount of the Outstanding Certificates, but such certificate
need not be furnished in the case of any release of property or
securities if the fair value thereof as set forth in the related
Officer's Certificate of the Depositor is less than $25,000 or less
than one percent of the then principal amount of the Outstanding
Certificates.
(iii) prior to the deposit with the Trustee of any securities that
are to be made the basis for the authentication and delivery of
Certificates, the withdrawal of cash constituting a part of the trust
estate or the release of any property or securities subject to the lien
of this Agreement, the Depositor shall furnish to the Trustee an
Officer's Certificate of the Depositor certifying or stating the
opinion of each person signing such certificate as to the fair value
(within 90 days of such deposit) to the Depositor of the securities to
be so deposited.
(iv) whenever the Depositor is required to furnish to the Trustee
an Officer's Certificate of the Depositor described in clause (iii)
above, the Depositor shall also deliver to the Trustee an Independent
Certificate as to the same matters, if the fair value to the Depositor
of the securities to be so deposited and of all other such securities
made the basis of any such withdrawal or release since the commencement
of the then current fiscal year of the Depositor, as set forth in the
certificates delivered pursuant to clause (iii) above and this clause
(iv), is 10% or more of the principal amount of the Outstanding
Certificates, but such a certificate need not be furnished with respect
to any securities so deposited, if the fair value thereof to the
Depositor as set forth in the related Officer's Certificate of the
Depositor is less than $25,000 or less than one percent of the
principal amount of the Outstanding Certificates.
(v) subject to the payment of its fees and expenses hereunder, the
Trustee may, and when required by the provisions of this Agreement,
shall, execute instruments to release property from the lien of this
Agreement, or convey the Trustee's interest in the same, in a manner
and under circumstances that are consistent with the provisions of this
Agreement. No party relying upon an instrument executed by the Trustee
in connection therewith shall be bound to ascertain the Trustee's
authority, inquire into the satisfaction of any conditions precedent or
see to the application of any moneys.
(vi) the Trustee shall at such time as there are no Outstanding
Certificates and all sums due to the Trustee hereunder have been paid,
release any remaining portion of the trust estate that secured the
Certificates from the lien of this Agreement and release to the
Depositor or any other Person entitled thereto any funds then included
in the trust estate.
(f) Upon any application or request by the Depositor to the Trustee to
take any action under the provisions of this Agreement, which action is subject
to the satisfaction of a condition precedent (including any covenants compliance
with which constitutes a condition precedent), the Depositor shall furnish to
the Trustee: (i) an Officer's Certificate stating that all conditions precedent,
if any, provided for in this Agreement relating to the proposed action have been
complied with, (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with and (iii)
(if required by the TIA) an Independent Certificate from a firm of certified
public accountants meeting the applicable requirements of the TIA, except that,
in the case of any such application or request as to which the furnishing of
such documents is specifically required by any provision of this Agreement, no
additional certificate or opinion need be furnished. Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Agreement shall include:
(i) a statement that such signatory of such certificate or opinion
has read or has caused to be read such covenant or condition and the
definitions herein relating thereto;
(ii) 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;
(iii) a statement that, in the judgment of each such signatory,
such signatory has made such examination or investigations as is
necessary to enable such signatory to express an informed opinion as to
whether or not such covenant or condition has been complied with; and
(iv) a statement as to whether, in the opinion of each such
signatory, such condition or covenant has been complied with.
Section 6.2. MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE
ADMINISTRATIVE AGENT. Subject to the following paragraph, the Depositor will
keep in full effect its existence, rights and franchises as a corporation under
the laws of the jurisdiction of its incorporation, and the Administrative Agent,
if any, will keep in full effect its existence, rights and franchises under the
laws of the jurisdiction of its incorporation or association. The Depositor and
the Administrative Agent, if any, each will obtain and preserve its
qualification to do business as a foreign corporation or association in each
jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement, the Certificates or any of the
Term Assets and to perform its respective duties under this Agreement.
(b) The Depositor and an Administrative Agent, if any, may consolidate
or merge with or into any other Person, PROVIDED that:
(i) the Person (if other than the Depositor or Administrative
Agent, as applicable) formed by or surviving such consolidation or
merger shall expressly assume, by an agreement supplemental hereto
executed and delivered to the Trustee, in form satisfactory to the
Trustee, the performance or observance of every agreement and covenant
of this Agreement on the part of the Depositor or Administrative Agent,
as applicable, to be performed or observed, all as provided herein and
in the applicable Series Supplement or Supplements;
(ii) immediately after giving effect to such transaction, no
Administrative Agent Termination Event or event which with the passage
of time or notice or both would become an Administrative Agent
Termination Event shall have occurred and be continuing;
(iii) the Rating Agency Condition shall have been satisfied with
respect to such transaction; and
(iv) the Depositor or Administrative Agent, as applicable, shall
have delivered to the Trustee an Officer's Certificate and an Opinion
of Counsel each stating that such consolidation or merger and such
supplemental agreement comply with this Article VI and that all
conditions precedent herein provided for relating to such transaction
have been complied with.
Section 6.3. LIMITATION ON LIABILITY OF THE DEPOSITOR AND THE
ADMINISTRATIVE AGENT. Unless otherwise expressly specified in this Agreement or
a Series Supplement, neither the Administrative Agent, if any, nor the Depositor
shall be under any obligation to expend or risk its own funds or otherwise incur
financial liability in the performance of its duties hereunder or under a Series
Supplement or in the exercise of any of its rights or powers if reasonable
grounds exist for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.
(b) Neither the Depositor, an Administrative Agent, if any, nor any of
the directors, officers, employees or agents of the Depositor or such
Administrative Agent shall be under any liability to any Trust or the
Certificateholders of any Series for any action taken, or for refraining from
the taking of any action, in good faith pursuant to this Agreement, or for
errors in judgment; PROVIDED, HOWEVER, that this provision shall not protect the
Depositor, any such Administrative Agent or any such person against any breach
of warranties, representations or covenants made herein, or against any specific
liability imposed on such Administrative Agent pursuant hereto, or against any
liability which would otherwise be imposed by reason of wilful misfeasance, bad
faith or negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder.
Neither the Depositor nor an Administrative Agent, if any, shall be
under any obligation to appear in, prosecute or defend any legal action unless
such action is related to its respective duties under this Agreement and, in its
opinion, does not involve it in any expense or liability; PROVIDED, HOWEVER,
that either of the Depositor or such Administrative Agent may in its discretion
undertake any such action which it may deem necessary or desirable with respect
to this Agreement and the rights and duties of the parties hereto and the
interests of the Certificateholders hereunder. The legal expenses and costs of
such action and any liability resulting (except any loss, liability or expense
incurred by reason of wilful misfeasance, bad faith or negligence in the
performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder) shall be allocated as specified in the
applicable Series Supplement.
Section 6.4. LIMITATION ON RESIGNATION OF THE ADMINISTRATIVE AGENT. An
Administrative Agent appointed pursuant to the applicable Series Supplement
shall not resign from the obligations and duties hereby imposed on it except (a)
upon appointment by the Trustee of a successor administrative agent and receipt
by the Trustee of a letter from the Rating Agency that such a resignation and
appointment will satisfy the Rating Agency Condition or (b) upon a determination
that its duties hereunder are no longer permissible under applicable law. Any
such determination pursuant to clause (b) of the preceding sentence permitting
the resignation of the Administrative Agent shall be evidenced by an Opinion of
Counsel to such effect delivered to the Trustee and the Depositor. No
resignation of an Administrative Agent shall become effective until the Trustee
or a successor administrative agent shall have assumed the Administrative
Agent's responsibilities, duties, liabilities (other than those liabilities
arising prior to the appointment of such successor) and obligations under this
Agreement.
Section 6.5. RIGHTS OF THE DEPOSITOR IN RESPECT OF THE ADMINISTRATIVE
AGENT. An Administrative Agent appointed pursuant to the applicable Series
Supplement shall afford the Depositor and the Trustee, upon reasonable notice,
during normal business hours, access to all records maintained by the
Administrative Agent in respect of its rights and obligations hereunder and
access to officers of the Administrative Agent responsible for such obligations.
Upon request, the Administrative Agent shall furnish to the Depositor and the
Trustee the Administrative Agent's most recent financial statements and such
other information relating to its capacity to perform its obligations under this
Agreement as the Administrative Agent possesses. To the extent such information
is not otherwise available to the public, the Depositor and the Trustee shall
not disseminate any information obtained pursuant to the preceding two sentences
without the Administrative Agent's written consent, except as required pursuant
to this Agreement to the extent that it is appropriate to do so (i) in working
with legal counsel, auditors, taxing authorities or other governmental agencies
or (ii) pursuant to any law, rule, regulation, order, judgment, writ, injunction
or decree of any court or governmental authority having jurisdiction over the
Depositor, the Trustee or the Trust. The Depositor may, but is not obligated to,
enforce the obligations of the Administrative Agent under this Agreement and
may, but is not obligated to, perform, or cause a designee to perform, any
defaulted obligation of the Administrative Agent under this Agreement or
exercise the rights of the Administrative Agent under this Agreement; PROVIDED,
HOWEVER, that the Administrative Agent shall not be relieved of any of its
obligations under this Agreement by virtue of such performance by the Depositor
or its designee. The Depositor shall not have any responsibility or liability
for any action or failure to act by the Administrative Agent and is not
obligated to supervise the performance of the Administrative Agent under this
Agreement or otherwise.
Section 6.6. DEPOSITOR MAY PURCHASE CERTIFICATES. The Depositor may at
any time purchase Certificates in the open market or otherwise. Certificates so
purchased by the Depositor may, at the discretion of the Depositor, be held or
resold. Certificates beneficially owned by the Depositor will be disregarded for
purposes of determining whether the required percentage of the aggregate Voting
Rights has given any request, demand, authorization, direction, notice, consent
or waiver hereunder.
Section 6.7. THE ADMINISTRATIVE AGENT AND OTHER PARTIES. The Person
serving as an Administrative Agent, if any, appointed pursuant to the applicable
Series Supplement may be the Depositor, the Trustee or an Affiliate of either
thereof, and may have normal business relationships with the Depositor, the
Trustee or any Affiliates thereof.
Section 6.8. PREFERENTIAL COLLECTION OF CLAIMS AGAINST DEPOSITOR. The
Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent required by TIA
Section 311(a).
ARTICLE VII
ADMINISTRATIVE AGENT TERMINATION EVENTS
Section 7.1. ADMINISTRATIVE AGENT TERMINATION Events. "Administrative
Agent Termination Event", wherever used herein with respect to any Series of
Certificates, means any one of the following events:
(i) a failure by any Administrative Agent specified in the
applicable Series Supplement to remit to the Trustee, pursuant to the
terms of this Agreement, any funds in respect of collections on Term
Assets, Credit Support, if any, and Advances, if any, collected by the
Administrative Agent pursuant to the terms of this Agreement that
continues unremedied for a period of five days after the date upon
which written notice of such failure, requiring the same to be
remedied, shall have been given to the Administrative Agent by the
Depositor or the Trustee (in which case notice shall be provided by
telecopy), or to the Administrative Agent, the Depositor and the
Trustee by the Holders of Certificates of such Series representing at
least 25% of the aggregate Voting Rights; or
(ii) a failure on the part of any Administrative Agent specified
in the applicable Series Supplement to observe or perform in any
material respect any other of the covenants or agreements on the part
of the Administrative Agent contained in the Certificates of such
Series or in this Agreement which continues unremedied for a period of
30 days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the
Administrative Agent by the Depositor or the Trustee, or to the
Administrative Agent, the Depositor and the Trustee by the Holders of
Certificates of such Series representing at least 25% of the aggregate
Voting Rights; or
(iii) a decree or order of a court or agency or supervisory
authority having jurisdiction in an involuntary case under any present
or future Federal or State bankruptcy, insolvency or similar law or the
appointment of a conservator or receiver or liquidator in any
insolvency, readjustment of debt, marshalling of assets and liabilities
or similar proceeding, or for the winding up or liquidation of its
affairs, shall have been entered against the Administrative Agent, if
any, specified in the applicable Series Supplement and such decree or
order shall have remained in force undischarged or unstayed for a
period of 30 days; or
(iv) any Administrative Agent specified in the applicable Series
Supplement shall consent to the appointment of a conservator or
receiver or liquidator in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings of or
relating to the Administrative Agent or of or relating to all or
substantially all its property; or
(v) any Administrative Agent specified in the applicable Series
Supplement shall admit in writing its inability to pay its debts
generally as they become due, file a petition to take advantage of any
applicable insolvency or reorganization statute, make an assignment for
the benefit of its creditors, or voluntarily suspend payment of its
obligations; or
(vi) if so specified in the related Series Supplement, any failure
of the Administrative Agent, if any, specified in the applicable Series
Supplement to make any Advances required to be made from its own funds
pursuant to Section 4.3 which continues unremedied until twelve o'clock
noon New York City time on the Business Day immediately following the
day on which such Advance was required to have been made; or
(vii) any additional Administrative Agent Termination Event that
may be specified with respect to such Series in the related Series
Supplement.
Each Series Supplement shall specify as to each of the foregoing clauses
requiring a vote of Holders of different Classes the circumstances and manner in
which the aggregate Voting Rights applicable to each such clause shall be
calculated.
(b) Unless otherwise provided in the applicable Series Supplement and
provided an Administrative Agent shall have been appointed pursuant to the
applicable Series Supplement, so long as an Administrative Agent Termination
Event with respect to the related Series of Certificates shall have occurred and
be continuing, the Depositor or the Trustee may, and at the written direction of
the Holders of Certificates evidencing not less than the "Required
Percentage--Administrative Agent Termination" of the aggregate Voting Rights,
the Trustee shall, by notice in writing to such Administrative Agent (and to the
Depositor if given by the Trustee or to the Trustee if given by the Depositor)
terminate all the rights and obligations of the Administrative Agent specified
in the applicable Series Supplement in its capacity as Administrative Agent with
respect to such Series under this Agreement, to the extent permitted by law, and
in and to the Term Assets relating to such Series (other than any Retained
Interest of the Administrative Agent, if any) and the proceeds thereof. On or
after the receipt by such Administrative Agent of such written notice, all
authority and power of the Administrative Agent under this Agreement relating to
such Series, whether with respect to the Certificates (other than as a Holder of
any Certificate) of such Series or the Term Assets relating to such Series or
otherwise, shall pass to and be vested in the Trustee pursuant to and under this
Section 7.1(b), and without limitation, the Trustee is hereby authorized and
empowered, as attorney-in-fact or otherwise, to execute and deliver, on behalf
of and at the expense of the Administrative Agent, any and all documents and
other instruments and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of such Term Assets and
related documents, or otherwise. The Administrative Agent, if any, specified in
the applicable Series Supplement agrees promptly (and in any event not later
than ten Business Days subsequent to such notice) to provide the Trustee with
all documents and records requested by it to enable it to assume the functions
of the Administrative Agent under this Agreement relating to such Series, and to
cooperate with the Trustee in effecting the termination of the Administrative
Agent's responsibilities and rights under this Agreement relating to such
Series, including the transfer within one Business Day to the Trustee for
administration by it of all cash amounts and investments which shall at the time
be or should have been credited by the Administrative Agent to the Certificate
Account relating to such Series or thereafter be received with respect to such
Term Assets; PROVIDED, HOWEVER, that the Administrative Agent shall continue to
be entitled to receive all amounts accrued or owing to it under this Agreement
on or prior to the date of such termination, whether in respect of Advances or
otherwise, and shall continue to be entitled to the benefits of Section 6.3
notwithstanding any such termination.
Section 7.2. TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR. On and after
the time an Administrative Agent, if any, specified in the applicable Series
Supplement receives a notice of termination pursuant to Section 7.1, the Trustee
shall be the successor in all respects to the Administrative Agent in its
capacity as Administrative Agent under this Agreement or the applicable Series
Supplement and the transactions set forth or provided for herein and shall be
subject and entitled to all the rights, responsibilities, duties and liabilities
relating thereto and arising thereafter placed on the Administrative Agent
(except for any representations or warranties of the Administrative Agent under
this Agreement and except as otherwise provided herein or in the applicable
Series Supplement) by the terms and provisions hereof including the
Administrative Agent's obligation, if any, to make Advances pursuant to Section
4.3; PROVIDED, HOWEVER, that the Trustee shall not be obligated to make such
Advances pursuant to Section 4.3; and PROVIDED FURTHER, that any failure to
perform such duties or responsibilities caused by the Administrative Agent's
failure to provide information required by Section 7.1 shall not be considered a
default by the Trustee as successor to the Administrative Agent hereunder. As
compensation therefor, the Trustee shall be entitled to the amounts relating to
the Term Assets of a given Series to which such Administrative Agent would have
been entitled if the Administrative Agent had continued to act hereunder.
Notwithstanding the above, the Trustee may, if it shall be unwilling to so act,
or shall, if it is unable to so act or if the Holders of Certificates of such
Series evidencing not less than the Required Percentage--Administrative Agent
Termination of the aggregate Voting Rights, so request in writing to the
Trustee, promptly appoint, or petition a court of competent jurisdiction to
appoint, an Administrative Agent acceptable to the Rating Agency (such
acceptance to be evidenced by satisfaction of the Rating Agency Condition with
respect to such appointment) and having a net worth of not less than
$15,000,000, as the successor to such Administrative Agent under this Agreement
with respect to such Series in the assumption of all or any part of the
responsibilities, duties or liabilities of such Administrative Agent under this
Agreement with respect to such Series. The Trustee, the Depositor and any such
successor Administrative Agent may agree upon the compensation to be paid with
respect thereto; PROVIDED, HOWEVER, that in no event shall such compensation be
greater than the compensation payable to the Administrative Agent under this
Agreement. No appointment of a successor Administrative Agent under this
Agreement shall be effective until the assumption by the successor
Administrative Agent of all the responsibilities, duties and liabilities placed
on the Administrative Agent hereunder and under the related Series Supplement.
Pending appointment of a successor Administrative Agent under this Agreement,
the Trustee shall act in such capacity as and to the extent hereinabove
provided.
Section 7.3. NOTIFICATION TO CERTIFICATEHOLDERS. Upon any such
termination pursuant to Section 7.2 or appointment of a successor Administrative
Agent, the Trustee shall give prompt written notice thereof to
Certificateholders of the affected Series in the manner provided in Section
10.5.
(b) Within 60 days after the occurrence of any Administrative Agent
Termination Event or event which but for the lack of notice or passage of time
or both would constitute an Administrative Agent Termination Event with respect
to any Series, the Trustee shall transmit by mail to all Certificateholders of
such Series notice of each such Administrative Agent Termination Event or event
which but for lack of notice or passage of time or both would constitute an
Administrative Agent Termination Event which is known to the Trustee, unless
such Administrative Agent Termination Event or event which but for lack of
notice or passage of time or both would constitute an Administrative Agent
Termination Event shall have been cured or waived.
Section 7.4. WAIVER OF ADMINISTRATIVE AGENT TERMINATION EVENTS. Unless
otherwise provided in the applicable Series Supplement, the Holders of
Certificates of the related Series evidencing not less than the Required
Percentage--Waiver of the aggregate Voting Rights may, on behalf of all
Certificateholders of such Series, (i) if so provided in the applicable Series
Supplement, waive compliance by the Depositor, the Trustee or the Administrative
Agent, if any, with certain restrictive provisions of this Agreement as set
forth in such Series Supplement prior to the time such compliance is required
and (ii) waive any Administrative Agent Termination Event or event which but for
lack of notice or passage of time or both would constitute an Administrative
Agent Termination Event with respect to such Series; PROVIDED, HOWEVER, that an
Administrative Agent Termination Event or event which but for lack of notice or
passage of time or both would constitute an Administrative Agent Termination
Event with respect to such Series regarding the failure to distribute, in
accordance with the terms of this Agreement, amounts received with respect to
any Term Asset or any such event with respect to such Series in respect of a
covenant or provision of this Agreement the modification or amendment of which
would require the consent of the Holders of all outstanding Certificates of such
Series, may be waived only by all the Certificateholders of such Series. Upon
any such waiver of an Administrative Agent Termination Event or event which but
for lack of notice or passage of time or both would constitute an Administrative
Agent Termination Event with respect to such Series, such Administrative Agent
Termination Event or event which but for lack of notice or passage of time or
both would constitute an Administrative Agent Termination Event shall cease to
exist and shall be deemed to have been remedied for every purpose hereunder. No
such waiver shall extend to any subsequent or other Administrative Agent
Termination Event or event which but for lack of notice or passage of time or
both would constitute an Administrative Agent Termination Event or impair any
right consequent thereon except to the extent expressly so waived.
ARTICLE VIII
CONCERNING THE TRUSTEE
Section 8.1. DUTIES OF TRUSTEE; NOTICE OF DEFAULTS. The Trustee, prior
to the occurrence of an Administrative Agent Termination Event or Event of
Default with respect to any Series and after the curing of all such
Administrative Agent Termination Events or Events of Default which may have
occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement and the related Series Supplement.
During the period an Administrative Agent Termination Event or Event of Default
with respect to any Series shall have occurred and be continuing, the Trustee
shall exercise such of the rights and powers vested in it by this Agreement, and
shall use the same degree of care and skill in their exercise, as a prudent man
would exercise or use under the circumstances in the conduct of such person's
own affairs. Any permissive right of the Trustee enumerated in this Agreement
shall not be construed as a duty.
(b) The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform to the requirements of this Agreement. If any such instrument is found
not to conform to the requirements of this Agreement, the Trustee shall take
action as it deems appropriate to have the instrument corrected, and if the
instrument is not corrected to the Trustee's satisfaction, the Trustee will
provide notice thereof to the Depositor, Administrative Agent, if any, and
Certificateholders.
(c) No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own misconduct; PROVIDED, HOWEVER, that:
(i) prior to the occurrence of an Administrative Agent Termination
Event or Event of Default with respect to any Series, and after the
curing of all such Administrative Agent Termination Events or Events of
Default which may have occurred, the duties and obligations of the
Trustee shall be determined solely by the express provisions of this
Agreement, the Trustee shall not be liable except for the performance
of such duties and obligations as are specifically set forth in this
Agreement, no implied covenants or obligations shall be read into this
Agreement against the Trustee and, in the absence of bad faith on the
part of the Trustee, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Trustee or
upon any directions or information supplied by the Administrative
Agent or the Depositor that conform to the requirements of this
Agreement;
(ii) the Trustee shall not be personally liable for an error of
judgment made in good faith by a Responsible Officer or Responsible
Officers of the Trustee, unless it shall be proved that the Trustee was
negligent in ascertaining the pertinent facts; and
(iii) the Trustee shall not be personally liable with respect to
any action taken, suffered or omitted to be taken by it in good faith
in accordance with the direction of Holders of the Required
Percentage--Direction of Trustee of the aggregate Voting Rights of a
given Series (or Class or group of Classes within such Series) relating
to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Agreement;
(iv) the Trustee shall not be required to expend or risk its own
funds or otherwise incur financial liability in the performance of any
of its duties hereunder or in the exercise of any of its rights or
powers if there is reasonable ground for believing that the repayment
of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it, and none of the provisions contained in
this Agreement shall in any event require the Trustee to perform, or be
responsible for the manner of performance of, any obligations of an
Administrative Agent, if any, appointed pursuant to the applicable
Series Supplement, under this Agreement except during such time, if
any, as the Trustee shall be the successor to, and be vested with the
rights, duties, powers and privileges of, such an Administrative Agent
in accordance with and only to the extent provided in this Agreement;
(v) except for actions expressly authorized by this Agreement, the
Trustee shall take no actions reasonably likely to impair the interests
of the Trust in any Term Asset now existing or hereafter acquired or to
impair the value of any Term Asset now existing or hereafter acquired;
(vi) except as expressly provided in this Agreement, the Trustee
shall not engage in any activity other than those required or
authorized by the terms of this Agreement. In particular, after the
Closing Date the Trustee shall not purchase or otherwise acquire any
additional securities, modify or permit the modification of any Trust
Asset or otherwise vary the investment of the Certificateholders or
incur or modify any obligations, (i) except as expressly required or
permitted by the terms of this Agreement or (ii) unless the Trustee
obtains, at the expense of the Certificateholders, an Opinion of
Counsel to the effect that such acquisition, incurrence or modification
will not cause the Trust (unless otherwise indicated in a related
Series Supplement) to fail to be classified as a grantor trust for
federal income tax purposes; and
(vii) in the event that the Paying Agent or the Certificate
Registrar shall fail to perform any obligation, duty or agreement in
the manner or on the day required to be performed by the Paying Agent
or Certificate Registrar, as the case may be, under this Agreement, the
Trustee shall be obligated promptly upon its knowledge thereof to
perform such obligation, duty or agreement in the manner so required.
(d) The Trustee shall have the legal power to exercise all of the
rights, powers and privileges of holders of the Term Assets in which the
Certificates evidence an interest. However, neither the Trustee (except as
specifically provided herein or in the TIA) nor the Depositor shall be under any
obligation whatsoever to appear in, prosecute or defend any action, suit or
other proceeding in respect of Term Assets or Certificates.
(e) Neither the Trustee nor the Depositor shall have any obligation on
or with respect to the Term Assets, except as provided in this Article VIII with
respect to the Trustee; and their respective obligations with respect to
Certificates shall be solely as set forth in this Agreement.
(f) If there is an event of default (as defined in the indenture or
other document pursuant to which the Term Assets were issued) with respect to
any Term Asset and such default is known to the Trustee, the Trustee shall
promptly give notice to the Depository or, if the Certificates are Definitive
Certificates, directly to Holders thereof as provided in Section 10.5 hereof
(and in the manner and to the extent provided in TIA Section 313(c)) within 90
days after such event of default occurs. Such notice shall set forth (i) the
identity of the Term Assets, (ii) the date and nature of such default, (iii) the
face amount of the obligation to which such default relates, (iv) the
identifying numbers of the Series and Class of Certificates, or any combination,
as the case may be, evidencing the obligations (or portions thereof) described
above in clause (iii), and (v) any other information which the Trustee may deem
appropriate. Except in the case of a default in payment of principal or interest
(including payments pursuant to a redemption of any Certificate), the Trustee
may withhold the notice to Holders if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of the Holders.
(g) Holders of Certificates shall have no recourse against the
Depositor or the Trustee for payment defaults on the Term Assets.
Section 8.2. CERTAIN MATTERS AFFECTING THE TRUSTEE. Except as
otherwise provided in Section 8.1:
(i) the Trustee may request and rely upon and shall be protected
in acting or refraining from acting upon any resolution, Officer's
Certificate, certificate of auditors or any other certificate,
statement, instrument, opinion, report, notice, request, consent,
order, appraisal, bond or other paper or document reasonably believed
by it to be genuine and to have been signed or presented by the proper
party or parties;
(ii) the Trustee may consult with counsel and any written advice
or Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted by it
hereunder in good faith and in accordance with such written advice or
Opinion of Counsel;
(iii) the Trustee shall be under no obligation to exercise any of
the trusts or powers vested in it by this Agreement or to institute,
conduct or defend any litigation hereunder or in relation hereto, at
the request, order or direction of any of the Certificateholders,
pursuant to the provisions of this Agreement, unless such
Certificateholders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby; PROVIDED, HOWEVER, that
nothing contained herein shall relieve the Trustee of the obligations,
upon the occurrence of an Administrative Agent Termination Event or
Event of Default (which has not been cured or waived), to exercise
such of the rights and powers vested in it by this Agreement,
and to use the same degree of care and skill in their exercise as a
prudent man would exercise or use under the circumstances in the
conduct of such person's own affairs;
(iv) the Trustee shall not be personally liable for any action
taken, suffered or omitted by it in good faith and believed by it to be
authorized or within the discretion or rights or powers conferred upon
it by this Agreement;
(v) prior to the occurrence of an Administrative Agent Termination
Event hereunder and after the curing of all Administrative Agent
Termination Events which may have occurred, the Trustee shall not be
bound to make any investigation into the facts of matters stated in any
resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, appraisal, approval, bond or other
paper or document believed by it to be genuine, unless requested in
writing to do so by Holders of the Required Percentage--Direction of
Trustee of the aggregate Voting Rights of the affected Series (or Class
or Classes within any such Series), as specified by the applicable
Series Supplement; PROVIDED, HOWEVER, that if the payment within a
reasonable time to the Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in
the opinion of the Trustee, not reasonably assured to the Trustee by
the security afforded to it by the terms of this Agreement, the Trustee
may require reasonable indemnity against such expense or liability as a
condition to taking any such action;
(vi) 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 or a custodian and shall not be liable for such persons'
actions if it has selected such persons with reasonable care; and
(vii) the Trustee shall not be personally liable for any loss
resulting from the investment of funds held in any Certificate Account
or Reserve Account at the direction of an Administrative Agent or the
Depositor pursuant to Section 3.10.
(b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by it without the
possession of any of the Certificates of any Series (or Class within such
Series), or the production thereof at the trial or other Proceeding relating
thereto, and any such suit, action or proceeding instituted by the Trustee shall
be brought in its name for the benefit of all the Holders of such Certificates,
subject to the provisions of this Agreement.
Section 8.3. TRUSTEE NOT LIABLE FOR RECITALS IN CERTIFICATES OR TERM
ASSETS. The Trustee assumes no responsibility for the correctness of the
recitals contained herein and in the Certificates or in any document issued in
connection with the sale of the Certificates (other than the signature and
authentication on the Certificates). Except as set forth in Section 8.12, the
Trustee makes no representations or warranties as to the validity or sufficiency
of this Agreement or of the Certificates of any Series (other than the signature
and authentication on the Certificates) or of any Term Asset or related
document. The Trustee shall not be accountable for the use or application by the
Depositor or the Administrative Agent, if any, of any of the Certificates or of
the proceeds of such Certificates.
Section 8.4. TRUSTEE MAY OWN CERTIFICATES. The Trustee in its
individual capacity or any other capacity may become the owner or pledgee of
Certificates with the same rights it would have if it were not Trustee.
Section 8.5. TRUSTEE'S FEES AND EXPENSES; INDEMNIFICATION; UNDERTAKING
FOR COSTS. The Trustee shall be entitled to receive from the Depositor or an
affiliate of the Depositor as compensation for the Trustee's services hereunder,
trustee's fees pursuant to a separate agreement between the Trustee and the
Depositor, and shall be reimbursed for all reasonable expenses, disbursements
and advances incurred or made by the Trustee (including the reasonable
compensation, disbursements and expenses of its counsel and other persons not
regularly in its employ). The Depositor shall indemnify and hold harmless the
Trustee and its successors, assigns, agents and servants against any and all
loss, liability or reasonable expense (including attorney's fees) incurred by it
in connection with the administration of this trust and the performance of its
duties thereunder. The Trustee shall notify the Depositor promptly of any claim
for which it may seek indemnity. Failure by the Trustee to so notify the
Depositor shall not relieve the Depositor of its obligations hereunder. The
Depositor need not reimburse any expense or indemnify against any loss,
liability or expense incurred by the Trustee through the Trustee's own willful
misconduct, negligence or bad faith. The indemnities contained in this Section
8.5(a) shall survive the resignation or termination of the Trustee or the
termination of this Agreement.
(b) Failure by the Depositor to pay, reimburse or indemnify the
Trustee shall not entitle the Trustee to any payment, reimbursement or
indemnification from the Trust, nor shall such failure release the Trustee from
the duties it is required to perform under this Agreement. Any unpaid,
unreimbursed or unindemnified amounts shall not be borne by the Trust and shall
not constitute a claim against the Trust, but shall be borne by the Trustee in
its individual capacity.
(c) All parties to this Agreement agree, and each Holder of any
Certificate by such Holder's acceptance thereof shall be deemed to have agreed,
that any court may in its discretion require, in any Proceeding for the
enforcement of any right or remedy under this Agreement, or in any Proceeding
against the Trustee for any action taken, suffered or omitted by it as Trustee,
the filing by any party litigant in such Proceeding of an undertaking to pay the
costs of such Proceeding and that such court may in its discretion assess
reasonable costs, including reasonable attorneys' fees, against any party
litigant in such Proceeding, having due regard to the merits and good faith of
the claims or defenses made by such party litigant; but the provisions of this
Section 8.5(c) shall not apply to:
(i) any Proceeding instituted by the Trustee;
(ii) any Proceeding instituted by any Holder, or group of Holders,
in each case holding in the aggregate Outstanding Certificates
representing more than 10% of the Voting Rights; or
(iii) any Proceeding instituted by any Holder for the enforcement
of the payment of principal or interest on or after the respective due
dates expressed in such Certificate and in this Agreement (or, in the
case of redemption, on or after the redemption date).
Section 8.6. ELIGIBILITY REQUIREMENTS FOR TRUSTEE. The Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Trustee
hereunder shall at all times be a corporation which is not an Affiliate of the
Depositor (but may have normal banking relationships with the Depositor or any
obligor with respect to the Term Assets with respect to such Series of
Certificates and their respective Affiliates) organized and doing business under
the laws of any State or the United States, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at
least $50,000,000 and subject to supervision or examination by Federal or State
authority. If such corporation or association publishes reports of conditions at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section the
combined capital and surplus of such corporation or association shall be deemed
to be its combined capital and surplus as set forth in its most recent report of
conditions so published. Such corporation or association must be rated in one of
the four highest rating categories by the Rating Agency.
(b) The Trustee shall comply with Section 310(b); provided, however,
that there shall be excluded from the operation of TIA Section 310(b)(1), any
Series Supplement under which other securities are outstanding evidencing
ownership interest in obligations of the Term Assets Issuer if the requirements
for such exclusion set forth in TIA Section 310(b)(1) are met.
Section 8.7. RESIGNATION OR REMOVAL OF THE TRUSTEE. The Trustee may,
with respect to any Series of Certificates, at any time resign and be discharged
from any trust hereby created by giving written notice thereof to the Depositor,
the Administrative Agent, if any, the Rating Agency and to all
Certificateholders of such Series. Upon receiving such notice of resignation,
the Depositor shall promptly appoint a successor trustee for such Series by
written instrument, in duplicate, which instrument shall be delivered to the
resigning Trustee and to the successor trustee. A copy of such instrument shall
be delivered to such Certificateholders and the Administrative Agent, if any, by
the Depositor. If no such successor trustee shall have been so appointed and
have accepted appointment 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 for such Series.
(b) If at any time the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.6 and shall fail to resign after
written request therefor by the Depositor, or if at any time the Trustee shall
become incapable of acting, or shall be adjudged 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 the
Depositor may remove the Trustee and appoint a successor trustee by written
instrument, in duplicate, which instrument shall be delivered to the Trustee so
removed and to the successor trustee. A copy of such instrument shall be
delivered to the Certificateholders and the Administrative Agent, if any, by the
Depositor.
(c) The Holders of Certificates of any Series representing the
Required Percentage--Removal of Trustee of the aggregate Voting Rights may at
any time remove the Trustee and appoint a successor trustee by written
instrument or instruments, in triplicate, signed by such Holders or their
attorneys-in-fact and duly authorized, one complete set of which instruments
shall be delivered to the Depositor, one complete set to the Trustee so removed
and one complete set to the successor trustee so appointed. A copy of such
instrument shall be delivered to the Certificateholders and the Administrative
Agent, if any, by the Depositor.
(d) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor trustee as
provided in Section 8.8.
Section 8.8. SUCCESSOR TRUSTEE. Any successor trustee appointed as
provided in Section 8.7 shall execute, acknowledge and deliver to the Depositor
and to its predecessor trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor trustee
shall become effective and such successor trustee, without any further act, deed
or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder (either with respect to a given Series
of Certificates or with respect to all Certificates issued under this
Agreement), with the like effect as if originally named as trustee herein. The
predecessor trustee shall deliver to the successor trustee all documents and
statements held by it hereunder, and the Depositor and the predecessor trustee
shall execute and deliver such instruments and do such other things as may
reasonably be required for more fully and certainly vesting and confirming in
the successor trustee all such rights, powers, duties and obligations. No
successor trustee shall accept appointment as provided in this Section unless at
the time of such acceptance such successor trustee shall be eligible under the
provisions of Section 8.6.
(b) Upon acceptance of appointment by a successor trustee as provided
in this Section, the Depositor shall transmit notice of the succession of such
trustee hereunder to all Holders of Certificates and to the Rating Agency in the
manner provided in Section 10.5.
Section 8.9. MERGER OR CONSOLIDATION OF TRUSTEE. Any corporation or
association into which the Trustee may be merged or converted or with which it
may be consolidated or any corporation or association resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation or association succeeding to the trust business of the Trustee,
shall be the successor of the Trustee hereunder, provided such corporation or
association shall be eligible under the provisions of Section 8.6, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding.
Section 8.10. APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.
Notwithstanding any other provisions hereof, at any time, for the purpose of
meeting any legal requirements of any jurisdiction in which any part of the
Trust for a given Series may at the time be located, the Depositor and the
Trustee acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Trustee to act as
co-trustee or co-trustees, jointly with the Trustee, or separate trustee or
separate trustees, of all or any part of such Trust, and to vest in such Person
or Persons, in such capacity, such title to such Trust, or any part thereof,
and, subject to the other provisions of this Section 8.10, such powers, duties,
obligations, rights and trusts as the Depositor and the Trustee may consider
necessary or desirable. If the Depositor shall not have joined in such
appointment within 15 days after the receipt by it of a request so to do, or in
case an Administrative Agent Termination Event shall have occurred and be
continuing, the Trustee alone shall have the power to make such appointment. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 8.6 hereunder and no notice to
Holders of Certificates of the appointment of co-trustee or co-trustees or
separate trustee or trustees shall be required under Section 8.8 hereof.
Notwithstanding anything contained herein to the contrary, the appointment of a
co-trustee pursuant to this Section 8.10 shall not release the Trustee from the
duties, obligations, responsibilities or liabilities arising under this
Agreement.
(b) In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.10, all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed by the Trustee (whether as
Trustee hereunder or as successor to an Administrative Agent hereunder), the
Trustee shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties and obligations (including the holding
of title to such Trust or any portion thereof in any such jurisdiction) shall be
exercised and performed by such separate trustee or co-trustee at the direction
of the Trustee.
(c) Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee.
(d) Any separate trustee or co-trustee may, at any time, constitute
the Trustee, its agent or attorney-in-fact, with full power and authority, to
the extent not prohibited by law, to do any lawful act under or in respect of
this Agreement on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all its
estates, properties, rights, remedies and trusts shall vest in and be exercised
by the Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.
Section 8.11. APPOINTMENT OF OFFICE OR AGENCY. As specified in a
Series Supplement, the Trustee shall appoint an office or agency in the City of
New York where the Certificates may be surrendered for registration of transfer
or exchange, and presented for the final distribution with respect thereto, and
where notices and demands to or upon the Trustee in respect of the Certificates
of the related Series and this Agreement may be served.
Section 8.12. REPRESENTATIONS AND WARRANTIES OF TRUSTEE. The Trustee
represents and warrants that:
(i) the Trustee is duly organized, validly existing and in
good standing under the laws of its jurisdiction of incorporation or
association;
(ii) neither the execution nor the delivery by the Trustee of this
Agreement, nor the consummation by it of the transactions contemplated
hereby nor compliance by it with any of the terms or provisions hereof
will violate its charter documents or by-laws.
(iii) the Trustee has full power, authority and right to execute,
deliver and perform its duties and obligations as set forth herein and
in each Series Supplement to which it is a party and has taken all
necessary action to authorize the execution, delivery and performance
by it of this Agreement; and
(iv) this Agreement has been duly executed and delivered by the
Trustee and constitutes the legal, valid and binding obligation of the
Trustee, enforceable in accordance with its terms, except as
enforcement may be limited by the applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights of
creditors generally and general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or
at law).
Section 8.13. TRUSTEE TO ACT ONLY IN ACCORDANCE WITH THIS AGREEMENT OR
PURSUANT TO INSTRUCTIONS OF CERTIFICATEHOLDERS. The Trustee shall only take such
action or shall refrain from taking such action under this Agreement as directed
pursuant to a specific provision of this Agreement or, if required hereunder, by
all the Certificateholders, and the Trustee shall not otherwise act in respect
of the Trust; PROVIDED, HOWEVER, that the Trustee shall not be required to take
any such action if it reasonably determines, or receives, at the expense of the
Certificateholders, an Opinion of Counsel (with copies thereof delivered to the
Certificateholders and the Depositor), that such action (i) is inconsistent with
the purpose of the Trust set forth in Section 2.7 or contrary to the terms
hereof.
Section 8.14. ACCOUNTING AND REPORTS TO CERTIFICATEHOLDERS, INTERNAL
REVENUE SERVICE AND OTHERS. The Trustee shall (a) maintain the books of the
Trust on a calendar year basis on the accrual method of accounting, (b) after
the close of each calendar year, deliver to each Certificateholder, as may be
required by the Code and applicable Treasury Regulations or otherwise, such
information for such year as may be required to enable each Certificateholder to
prepare its federal income tax returns, (c) as specifically directed in writing
by the Depositor, file such tax returns relating to the Trust and make such
elections as may from time to time be required or appropriate under any
applicable state or federal statute or rule or regulation thereunder so as to
maintain the Trust's characterization as other than an association taxable as a
corporation for federal income tax purposes, (d) cause such tax returns to be
signed in the manner required by law and (e) collect or cause to be collected
any withholding tax as described in and in accordance with Subsection 4.4 with
respect to income or distributions to Certificateholders.
Section 8.15. SIGNATURE ON RETURNS. Except as required by law, the
Trustee shall sign on behalf of the Trust any and all tax returns of the Trust
presented to it by the Depositor in final execution form.
ARTICLE IX
TERMINATION
Section 9.1. TERMINATION UPON PURCHASE OR LIQUIDATION OF ALL TERM
ASSETS. defined.The respective obligations and responsibilities under this
Agreement of the Depositor, the Administrative Agent, if any, and the Trustee
(other than the obligations of any such Administrative Agent to provide for and
the Trustee to make distributions to Holders of the Certificates of any given
Series as hereafter set forth) shall terminate (subject to surviving rights of
indemnity) upon the distribution to such Holders of all amounts held in all the
Accounts for such Series or by an Administrative Agent, if any, and required to
be paid to such Holders pursuant to this Agreement on the Distribution Date
coinciding with or following the earlier to occur of (i) if and as provided in
the Series Supplement for such Series, the purchase by, and at the sole option
of, the Administrative Agent, if any, or the Depositor, as provided in the
Series Supplement for such Series, of all remaining Term Assets for such Series
in the Trust for such Series on any Distribution Date, PROVIDED that such option
may be exercised only if the aggregate principal amount of such Term Assets at
the time of any such purchase is less than 10% (or such other percentage as may
be specified in such Series Supplement) of the aggregate principal amount of all
Term Assets deposited in such Trust as of the applicable Cut-off Date and (ii)
the final payment on or other liquidation (which may include redemption or other
purchase thereof by the applicable Term Assets Issuer) (or any Advance with
respect thereto) of the last Term Asset remaining in the Trust for such Series
or the disposition of all property acquired upon foreclosure or liquidation of
any such Term Asset; PROVIDED, HOWEVER, that in no event shall the trust created
hereby continue beyond the expiration of 21 years from the death of the last
survivor of the descendants of Joseph P. Kennedy, the late ambassador of the
United States to the Court of St. James, living on the date hereof.
(b) The Depositor or an Administrative Agent, as the case may be,
shall exercise its option to purchase all the Term Assets remaining in the Trust
pursuant to clause (i) of Section 9.1(a) not later than 91 days prior to the
anticipated date of purchase of all such Term Assets, at a price as may be
specified in the applicable Series Supplement; PROVIDED, however, that such
price shall not be less than the then outstanding aggregate principal amount of
such Term Assets as determined on the date of purchase. The proceeds of such
purchase will be deposited into the Certificate Account and applied in the same
manner and priority that collections on Term Assets would be applied as provided
in the applicable Series Supplement.
(c) Written notice of any termination shall be provided as set forth
in Section 10.5.
(d) Upon presentation and surrender of the Certificates by the
Certificateholders on the Final Scheduled Distribution Date, or the Distribution
Date coinciding with or next following the earlier to occur of the occurrences
specified in clauses (i) and (ii) of Section 9.1(a), with respect to the
applicable Series of Certificates, the Trustee shall distribute to each Holder
presenting and surrendering its Certificates (i) the amount otherwise
distributable on such Distribution Date in accordance with Section 4.1 in
respect of the Certificates so presented and surrendered, if not in connection
with the purchase by an Administrative Agent or the Depositor of all the Term
Assets or (ii) as specified in the applicable Series Supplement, if in
connection with an Administrative Agent's purchase of all the remaining Term
Assets. Any funds not distributed on such Distribution Date shall be set aside
and held in trust for the benefit of Certificateholders not presenting and
surrendering their Certificates in the aforesaid manner, and shall be disposed
of in accordance with this Section 9.1 and Section 4.1 hereof. Immediately
following the deposit of funds in trust hereunder, the Trust for such Series
shall terminate.
ARTICLE X
MISCELLANEOUS PROVISIONS
Section 10.1. AMENDMENT. This Agreement may be amended from time to
time by the Depositor and the Trustee without notice to or the consent of any of
the Certificateholders for any of the following purposes: (i) to cure any
ambiguity or to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein; (ii) to add or
supplement any Credit Support for the benefit of any Certificateholders
(provided that if any such addition affects any series or class of
Certificateholders differently that any other series or class of
Certificateholders, then such addition will not, as evidenced by an opinion of
counsel, have a material adverse effect on the interests of any affected series
or class of Certificateholders); (iii) to add to the covenants, restrictions or
obligations of the Depositor, the Administrative Agent, if any, or the Trustee
for the benefit of the Certificateholders; (iv) to add, change or eliminate any
other provisions with respect to matters or questions arising under this
Agreement, so long as (x) any such amendment described in (i) through (iv) will
not, as evidenced by an opinion of counsel, cause the Trust (unless otherwise
specified in a related Series Supplement) to fail to qualify as a grantor trust
for federal income tax purposes or result in a sale or exchange of any
Certificate for tax purposes and (y) the Trustee has received written
confirmation from each Rating Agency rating such Certificates that such
amendment will not cause such Rating Agency rating such Certificates to reduce
or withdraw the then current rating thereof; (v) to comply with any requirements
imposed by the Code; (vi) to evidence and provide for the acceptance of
appointment hereunder of a Trustee other than First Trust Company of New York,
National Association, as Trustee for a Series of Certificates, and to add to or
change any of the provisions of this Agreement as shall be necessary to provide
for or facilitate the administration of the separate Trusts hereunder by more
than one Trustee, pursuant to the requirements of Section 5.1 hereof; (vii) to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Certificates of one or more Series or to add or
change any of the provisions of this Agreement as shall be necessary to provide
for or facilitate the administration of the trusts hereunder; or (viii) to
provide for the issuance of a new Series of Certificates pursuant to a Series
Supplement issued hereunder pursuant to Sections 5.1 and 5.13 hereof.
(b) Without limiting the generality of the foregoing, with respect to
any Series this Agreement may also be modified or amended from time to time by
the Depositor and the Trustee with the consent of the Holders of Certificates
representing the Required Percentage-- Amendment of the aggregate Voting Rights
of those Certificates to which such modification or amendment relates for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or of modifying in any manner the rights of
the Holders of Certificates; PROVIDED, HOWEVER, that no such amendment shall (i)
reduce in any manner the amount of, or alter the timing of, payments received on
Term Assets which are required to be distributed on any Certificate without the
unanimous consent of the Holders of such Certificates, (ii) adversely affect in
any material respect the interests of the Holders of any Series (or Class within
such Series) of Certificates in a manner other than as described in (i), without
the consent of the Holders of Certificates of such Series or Class evidencing
not less than the Required Percentage--Amendment of the aggregate Voting Rights
of such Series or Class or (iii) reduce the percentage of aggregate Voting
Rights required by (ii), as described in (ii), without the consent of the
Holders of all Certificates of such Series or Class then Outstanding; and
provided further that the Depositor shall furnish to the Trustee an Opinion of
Counsel (unless otherwise indicated in a related Series Supplement) stating
that, in the opinion of such counsel, any such amendment would not affect the
characterization of the Trust as a "grantor trust" for federal income tax
purposes. Notwithstanding any other provision of this Agreement, for purposes of
the giving or withholding of consents pursuant to this Section 10.1,
Certificates registered in the name of the Depositor, or any Affiliate thereof,
shall be entitled to Voting Rights with respect to matters affecting such
Certificates; and PROVIDED FURTHER that in the event the Rating Agency Condition
is not satisfied with respect to such modification or amendment, the Required
Percentage--Amendment shall be increased to require an aggregate percentage of
the aggregate Voting Rights in the amount specified in the applicable Series
Supplement. Notwithstanding any other provision of this Agreement, this Section
10.1(b) shall not be amended without the unanimous consent of the Holders of all
such Certificates.
(c) Promptly after the execution of any such amendment or
modification, the Trustee shall furnish a copy of such amendment or modification
to each Certificateholder of the affected Series or Class and to the Rating
Agency. It shall not be necessary for the consent of Certificate-holders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.
Section 10.2. COUNTERPARTS. This Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.
Section 10.3. LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS. The death or
incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust, nor entitle such Certificateholder's legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of the applicable Trust,
nor otherwise affect the rights, obligations and liabilities of the parties
hereto or any of then.
(b) No Certificateholder of a given Series shall have any right to
vote (except as expressly provided for herein) or in any manner otherwise
control the operation and management of any Trust, or the obligations of the
parties hereto, nor shall anything herein set forth, or contained in the terms
of the Certificates, be construed so as to constitute the Certificateholders
from time to time as partners or members of an association; nor shall any
Certificateholder be under any liability to any third person by reason of any
action taken by the parties to this Agreement pursuant to any provision hereof.
(c) No Certificateholder of a given Series shall have any right by
virtue of any provision of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Agreement,
unless (i) such Holder previously shall have given to the Trustee a written
notice of breach and of the continuance thereof and unless also the Holders of
Certificates of such Series evidencing not less than the Required
Percentage--Remedies of the aggregate Voting Rights of such Series shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for 15 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and agreed that the Trustee shall not be obligated to make any
investigation of matters arising under this Agreement or to institute, conduct
or defend any litigation hereunder or in relation hereto at the request, order
or direction of any Certificateholders unless such Certificateholders have
offered to the Trustee the reasonable indemnity referred to above. It is further
understood and agreed, and expressly covenanted by each Certificateholder of
each Series with every other Certificateholder of such Series and the Trustee,
that no one or more Holders of Certificates of such Series shall have any right
in any manner whatever by virtue of any provision of this Agreement to affect,
disturb or prejudice the rights of the Holders of any other of the Certificates
of such Series, or to obtain or seek to obtain priority over or preference to
any other such Holder, or to enforce any right under this Agreement, except in
the manner herein provided and for the equal, ratable and common benefit of all
Certificateholders of such Series. For the protection and enforcement of the
provisions of this Section, each and every Certificateholder and the Trustee
shall be entitled to such relief as can be given either at law or in equity.
Section 10.4. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements made and to be performed entirely therein without reference to such
State's principles of conflicts of law to the extent that the application of the
laws of another jurisdiction would be required thereby, and the obligations,
rights and remedies of the parties hereunder shall be determined in accordance
with such laws.
Section 10.5. NOTICES. All directions, demands and notices hereunder
shall be in writing and shall be delivered as set forth in the applicable Series
Supplement. Any notice required to be provided to a Holder of a Certificate
shall be given by first class mail, postage prepaid, at the last address of such
Holder as shown in the Certificate Register. Any notice so mailed within the
time prescribed in this Agreement shall be conclusively presumed to have been
duly given when mailed, whether or not the Certificateholder receives such
notice.
Section 10.6. SEVERABILITY OF PROVISIONS. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the Holders thereof.
Section 10.7. NOTICE TO RATING AGENCY. The Trustee shall use its best
efforts promptly to provide notice to the Rating Agency with respect to each of
the following of which it has actual knowledge:
(i) any change or amendment to this Agreement;
(ii) the occurrence of any Administrative Agent Termination Event;
(iii) the resignation or termination of an Administrative Agent,
if any, or the Trustee;
(iv) the repurchase or substitution of Term Assets, if any,
pursuant to Section 2.3;
(v) the final payment to Holders of the Certificates of any
Class;
(vi) any change in the location of the Certificate Account; and
(vii) any event that would result in the inability of the Trustee
to make Advances.
In addition, the Trustee shall promptly furnish to each Rating Agency copies of
each report to Certificateholders described in Section 4.2 and the
Administrative Agent, if any, or otherwise the Trustee shall promptly furnish to
each Rating Agency copies of the following:
(viii) each annual statement as to compliance described in
Section 3.15; and
(ix) each annual independent public accountants' servicing report
described in Section 3.16.
Any such notice pursuant to this Section shall be in writing and shall be
deemed to have been duly given if personally delivered or mailed by first class
mail, postage prepaid, or by express delivery service to each Rating Agency at
the address specified in the applicable Series Supplement.
Section 10.8. GRANT OF SECURITY INTEREST. It is the express intent of
the parties hereto that each conveyance of any Term Assets by the Depositor to
the Trustee be, and be construed as, a sale of the Term Assets by the Depositor
and not a pledge of any Term Assets by the Depositor to secure a debt or other
obligation of the Depositor. However, in the event that, notwithstanding the
aforementioned intent of the parties, any Term Assets are held to be property of
the Depositor, then, (a) it is the express intent of the parties that such
conveyance be deemed a pledge of such Term Assets by the Depositor to the
Trustee to secure a debt or other obligation of the Depositor and (b)(1) this
Agreement shall also be deemed to be a security agreement within the meaning of
Articles 8 and 9 of the Uniform Commercial Code as in effect from time to time
in the State of New York, or such other State as may be specified in the related
Series Supplement; (2) the conveyance provided for in Section 2.1 hereof shall
be deemed to be a grant by the Depositor to the Trustee of a security interest
in all the Depositor's right, title and interest in and to such Term Assets and
all amounts payable to the holders of such Term Assets in accordance with the
terms thereof and all proceeds of the conversion, voluntary or involuntary, of
the foregoing into cash, instruments, securities or other property, including
all amounts from time to time held or invested in the applicable Certificate
Account, whether in the form of cash, instruments, securities or other property;
(3) the obligations secured by such security agreement shall be deemed to be all
the Depositor's obligations under this Agreement, including the obligation to
provide to the Certificateholders the benefits of this Agreement relating to
such Term Assets and the applicable Trust; and (4) notifications to persons
holding such property, and acknowledgements, receipts or confirmations from
persons holding such property, shall be deemed notifications to, or
acknowledgements, receipts or confirmations from, financial intermediaries,
bailees or agents (as applicable) of the Trustee for the purpose of perfecting
such security interest under applicable law. Accordingly, the Depositor hereby
grants to the Trustee a security interest in the Term Assets and all other
property described in clause (2) of the preceding sentence, for the purpose of
securing to the Trustee the performance by the Depositor of the obligations
described in clause (3) of the preceding sentence. Notwithstanding the
foregoing, the parties hereto intend the Grant pursuant to Section 2.1 to be a
true, absolute and unconditional sale of the Term Assets and assets constituting
the applicable Trust by the Depositor to the Trustee. The Depositor shall direct
the Trustee to the extent consistent with this Agreement, take such actions as
may be necessary to ensure that, if this Agreement were deemed to create a
security interest in the Term Assets, such security interest would be deemed to
be a perfected security interest of first priority under applicable law and will
be maintained as such for so long as any of the Term Assets remain outstanding.
Without limiting the generality of the foregoing, the Trustee, upon receipt of
such direction, shall file, or shall cause to be filed, all filings identified
by the Depositor to be necessary to maintain the effectiveness of any original
filings identified by the Depositor to be necessary under the Uniform Commercial
Code as in effect in any jurisdiction to perfect the Trustee's security interest
in or lien on the Term Assets, including (x) continuation statements and (y)
such other statements as may be occasioned by (1) any change of name of the
Depositor or the Trustee, (2) any change of location of the place of business or
the chief executive office of the Depositor or (3) any transfer of any interest
of the Depositor in any Term Asset.
Section 10.9. NONPETITION COVENANT. Notwithstanding any prior
termination of this Agreement, each of the Trustee (including any Co-Trustee)
the Administrative Agent, if any, (including any Sub-Administrative Agent,
Authenticating Agent, Calculation Agent, or Paying Agent) and the Depositor
agrees that it shall not, until the date which is one year and one day after the
earlier of a Trust Termination Event or the Final Scheduled Distribution Date,
as defined in the related Series Supplement, acquiesce, petition or otherwise
invoke or cause the Trust to invoke the process of the United States of America,
any State or other political subdivision thereof or any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government for the purpose of commencing or sustaining a case by
or against the Trust under a Federal or state bankruptcy, insolvency or similar
law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Trust or all or any part of the
property or assets of the Trust or ordering the winding up or liquidation of the
affairs of the Trust.
Section 10.10. NO RECOURSE. Provided that there exists no default on
the Term Assets, neither the Trustee (including any Co-Trustee), the
Administrative Agent, if any (including any Sub-Administrative Agent,
Authenticating Agent, Calculation Agent, or Paying Agent) nor the Depositor
shall have any recourse to the Term Assets, except as specifically provided in
the related Series Supplement.
Section 10.11. ARTICLE AND SECTION REFERENCES. All article and section
references used in this Agreement, unless otherwise provided, are to articles
and sections in this Agreement.
Section 10.12. CONFLICT WITH TRUST INDENTURE ACT.
(a) If any provision hereof limits, qualifies or conflicts with
another provision hereof that is required to be included in this Agreement by
any of the provisions of the TIA, such required provision shall control.
(b) The provisions of TIA Sections 310 through 317 that impose duties
on any Person (including the provisions automatically deemed included herein
unless expressly excluded by this Agreement) are a part of and govern this
Agreement, whether or not physically contained herein.
<PAGE>
IN WITNESS WHEREOF, the Depositor and the Trustee have caused their
names to be signed hereto by their respective officers thereunto duly
authorized, in each case as of the day and year first above written.
STRUCTURED PRODUCTS CORP.,
as Depositor
By:
Authorized Signatory
U.S. BANK TRUST NATIONAL
ASSOCIATION, as Trustee
By:
Authorized Signatory
<PAGE>
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS AND ASSUMPTIONS............................ 1
Section 1.1. Definitions.........................................1
Section 1.2. Rules of Construction..............................15
ARTICLE II DECLARATION OF TRUSTS; ISSUANCE OF CERTIFICATES........15
Section 2.1. Creation and Declaration of Trusts; Assignment
of Term Assets.....................................15
Section 2.2. Acceptance by Trustee..............................16
Section 2.3. Repurchase or Substitution of Certain Term
Assets by the Term Asset Provider.................16
Section 2.4. Representations and Warranties of the Depositor
and Representations, Warranties and Covenants
of the Administrative Agent........................18
Section 2.5. Breach of Representation, Warranty or Covenant.....19
Section 2.6. Agreement to Authenticate and Deliver
Certificates.......................................19
Section 2.7. Statement of Intent................................19
ARTICLE III ADMINISTRATION OF EACH TRUST...........................20
Section 3.1. Administration of each Trust......................20
Section 3.2. Sub-Administration Agreements Between
Administrative Agent or Trustee and
Sub-Administrative Agents.........................21
Section 3.3. Successor Sub-Administrative Agents...............21
Section 3.4. Liability of the Administrative Agent.............22
Section 3.5. No Contractual Relationship Between
Certain Sub-Administrative Agents and
Trustee or Certificateholders.....................22
Section 3.6. Assumption or Termination of Sub-Administration
Agreements by Trustee.............................22
Section 3.7. Collection of Certain Term Asset Payments.........23
Section 3.8. Collections by Sub-Administrative Agent...........23
Section 3.9. Certificate Account...............................23
Section 3.10. Investment of Funds in the Accounts...............24
Section 3.11. Maintenance of Credit Support.....................25
Section 3.12. Realization Upon Defaulted Term Assets............25
Section 3.13. Retained Interest.................................27
Section 3.14. Administrative Agent's Compensation and
Reimbursement.....................................27
Section 3.15. Statement as to Compliance........................27
Section 3.16. Independent Public Accountants'
Administration Report.............................28
Section 3.17. Access to Certain Documentation...................28
Section 3.18. Duties of the Administrative Agent................29
Section 3.19. Depositor to Furnish Names and Addresses of
Holders to Trustee................................29
Section 3.20. Preservation of Information, Communications
to Holders........................................29
Section 3.21. Reports by Trustee................................29
ARTICLE IV DISTRIBUTIONS AND REPORTS TO CERTIFICATEHOLDERS........29
Section 4.1. Distributions.....................................29
Section 4.2. Reports to Certificateholders.....................30
Section 4.3. Advances..........................................31
Section 4.4. Compliance with Withholding Requirements..........32
Section 4.5. Optional Exchange.................................32
ARTICLE V THE CERTIFICATES........................................33
Section 5.1. The Certificates..................................33
Section 5.2. Execution, Authentication and Delivery............38
Section 5.3. Temporary Certificates............................38
Section 5.4. Registration; Registration of Transfer
and Exchange......................................39
Section 5.5. Mutilated, Destroyed, Lost and Stolen
Certificates......................................41
Section 5.6. Distribution of Interest; Interest Rights
Preserved.........................................42
Section 5.7. Persons Deemed Owners.............................43
Section 5.8. Cancellation......................................43
Section 5.9. Global Securities.................................43
Section 5.10. Notices to Depositary.............................44
Section 5.11. Definitive Certificates...........................45
Section 5.12. Currency of Distributions in Respect of
Certificates......................................45
Section 5.13. Conditions of Authentication and Delivery of
New Series........................................46
Section 5.14. Appointment of Paying Agent.......................47
Section 5.15. Authenticating Agent..............................48
Section 5.16. Events of Default.................................49
Section 5.17. Control by Holders................................49
Section 5.18. Waiver of Past Defaults...........................49
ARTICLE VI THE DEPOSITOR AND THE ADMINISTRATIVE AGENT.............50
Section 6.1. Preparation and Filing of Exchange Act Reports;
Obligations of the Depositor and the
Administrative Agent..............................50
Section 6.2. Merger or Consolidation of the Depositor or
the Administrative Agent..........................53
Section 6.3. Limitation on Liability of the Depositor and
the Administrative Agent..........................54
Section 6.4. Limitation on Resignation of the
Administrative Agent..............................55
Section 6.5. Rights of the Depositor in Respect of the
Administrative Agent..............................55
Section 6.6. Depositor May Purchase Certificates...............55
Section 6.7. The Administrative Agent and Other Parties........56
Section 6.8. Preferential Collection of Claims Against
Depositor.........................................56
ARTICLE VII ADMINISTRATIVE AGENT TERMINATION EVENTS.................56
Section 7.1. Administrative Agent Termination Events...........56
Section 7.2. Trustee to Act; Appointment of Successor..........58
Section 7.3. Notification to Certificateholders................59
Section 7.4. Waiver of Administrative Agent Termination
Events............................................59
ARTICLE VIII CONCERNING THE TRUSTEE..................................60
Section 8.1. Duties of Trustee; Notice of Defaults.............60
Section 8.2. Certain Matters Affecting the Trustee.............62
Section 8.3. Trustee Not Liable for Recitals in Certificates
or Term Assets....................................63
Section 8.4. Trustee May Own Certificates......................64
Section 8.5. Trustee's Fees and Expenses; Indemnification;
Undertaking for Costs.............................64
Section 8.6. Eligibility Requirements for Trustee..............65
Section 8.7. Resignation or Removal of the Trustee.............65
Section 8.8. Successor Trustee.................................66
Section 8.9. Merger or Consolidation of Trustee................66
Section 8.10. Appointment of Co-Trustee or Separate Trustee.....66
Section 8.11. Appointment of Office or Agency...................67
Section 8.12. Representations and Warranties of Trustee.........67
Section 8.13. Trustee to Act Only in Accordance With This
Agreement or Pursuant to Instructions of
Certificateholders................................68
Section 8.14. Accounting and Reports to Certificateholders,
Internal Revenue Service and Others...............68
Section 8.15. Signature on Returns..............................68
ARTICLE IX TERMINATION............................................69
Section 9.1. Termination upon Purchase or Liquidation of
All Term Assets...................................69
ARTICLE X MISCELLANEOUS PROVISIONS..............................70
Section 10.1. Amendment.........................................70
Section 10.2. Counterparts......................................71
Section 10.3. Limitation on Rights of Certificateholders........71
Section 10.4. Governing Law.....................................72
Section 10.5. Notices...........................................72
Section 10.6. Severability of Provisions........................72
Section 10.7. Notice to Rating Agency...........................73
Section 10.8. Grant of Security Interest........................73
Section 10.9. Nonpetition Covenant..............................74
Section 10.10. No Recourse.......................................74
Section 10.11. Article and Section References....................75
Section 10.12. Conflict with Trust Indenture Act.................75
EXHIBIT 4.2
SERIES C 1998-6 SUPPLEMENT
between
STRUCTURED PRODUCTS CORP.,
as Depositor
and
U.S. BANK TRUST NATIONAL ASSOCIATION,
as Trustee
TIERSSM Corporate Bond-Backed Certificates Trust C 1998-6
<PAGE>
SERIES C 1998-6 SUPPLEMENT dated as of May 21, 1998 (this
"Series Supplement") between STRUCTURED PRODUCTS CORP., a
Delaware corporation, as depositor (the "Depositor"),
and U.S. BANK TRUST NATIONAL ASSOCIATION, a national
banking association, as trustee (the "Trustee").
PRELIMINARY STATEMENT
Pursuant to the Base Trust Agreement dated as of May 21, 1998 (as
amended and supplemented pursuant to a Series Supplement, the "Agreement"),
among the Depositor and the Trustee, such parties may at any time and from time
to time enter into a series supplement supplemental to the Agreement for the
purpose of creating a trust. Section 5.13 of the Agreement provides that the
Depositor may at any time and from time to time direct the Trustee to
authenticate and deliver, on behalf of any such trust, a new Series of trust
certificates. Each trust certificate of such new Series of trust certificates
will represent a fractional undivided beneficial interest in such trust. Certain
terms and conditions applicable to each such Series are to be set forth in the
related series supplement to the Agreement.
Pursuant to this Series Supplement, the Depositor and the Trustee
shall create and establish a new trust to be known as TIERS Corporate
Bond-Backed Certificates Trust C 1998-6, and a new Series of trust certificates
to be issued thereby, which certificates shall be known as the TIERSSM Corporate
Bond-Backed Certificates, Series C 1998-6, and the Depositor and the Trustee
shall herein specify certain terms and conditions in respect thereof.
The Certificates shall be Fixed Rate Certificates issued in two
Classes consisting of (a) the Amortizing Class Certificates (the "Amortizing
Class Certificates"), and (b) the ZTF Class Certificates (the "ZTF Class
Certificates," and collectively with the Amortizing Class Certificates, the
"Certificates").
On behalf of and pursuant to the authorizing resolutions of the Board
of Directors of the Depositor, an authorized officer of the Depositor has
authorized the execution, authentication and delivery of the Certificates, and
has authorized the Agreement and this Series Supplement in accordance with the
terms of Section 5.13 of the Agreement.
SECTION 1. CERTAIN DEFINED TERMS. (a) All terms used in this Series
Supplement that are defined in the Agreement, either directly or by reference
therein, have the meanings assigned to such terms therein, except to the extent
such terms are defined or modified in this Series Supplement or the context
requires otherwise. The Agreement also contains rules as to usage which shall be
applicable hereto.
(b) Pursuant to Article I of the Agreement, the meaning of certain
defined terms used in the Agreement shall, when applied to the trust
certificates of a particular Series, be as defined in Article I but with such
additional provisions and modifications as are specified in the related series
supplement. With respect to the Certificates, the following definitions shall
apply:
"ACCELERATION": The acceleration of the maturity of the Term Assets
after the occurrence of a default under the Term Assets (other than a Payment
Default).
"AFFILIATE'S EXCHANGE RIGHT": As defined in Section 28 hereof.
"AGGREGATE AMORTIZED AMOUNT": The aggregate Amortized Amount of all
the Amortizing Class Certificates. On each Scheduled Distribution Date as set
forth on Schedule 2 hereto, the Aggregate Amortized Amount will be reduced by
the positive difference between (i) the Fixed Payment made on such Distribution
Date and (ii) interest accrued on the Certificate Principal Balance at the
Amortizing Class Yield during the Interest Accrual Period.
"AGGREGATE CERTIFICATE PRINCIPAL BALANCE": The Aggregate Certificate
Principal Balance of the ZTF Class Certificates as of any date of determination
shall be equal to the aggregate principal balance of the Term Assets in the
Trust as of such date of determination. The Aggregate Certificate Principal
Balance of the Amortizing Class Certificates as of any date of determination
shall be equal to the Aggregate Amortized Amount.
"AMORTIZED AMOUNT": For any Amortizing Class Certificate of $1,000
denomination, initially, $1,000.
"AMORTIZING CLASS FINAL DISTRIBUTION DATE": August 1, 2018.
"AMORTIZING CLASS YIELD": 6.6% per annum.
"BUSINESS DAY": Any day other than a Saturday, Sunday or a day on
which banking institutions in New York, New York are authorized or obligated by
law, executive order or governmental decree to be closed.
"CALCULATION AGENT": Salomon Brothers Inc.
"CERTIFICATEHOLDER" or "HOLDER": With respect to any outstanding
Certificate, the Holder thereof.
"CERTIFICATEHOLDERS" or "HOLDERS": The Holders of the Amortizing Class
Certificates and the ZTF Class Certificates.
"CERTIFICATE PRINCIPAL BALANCE": For any ZTF Class Certificate, a pro
rata portion of the then current Aggregate Certificate Principal Balance of all
outstanding ZTF Class Certificates; and for any Amortizing Class Certificate,
the Amortized Amount.
"CLOSING DATE": May 21, 1998.
"COLLECTION ACCOUNT": With respect to each Series, an account
established and maintained by the Trustee in its corporate trust department in
the Trustee's name on behalf of the related Certificateholders, into which all
payments made on or with respect to the related Term Assets will be deposited.
"COLLECTION PERIOD": The period from (but excluding) the preceding
Distribution Date (or, in the case of the first Distribution Date, from and
including the Closing Date), through and including the current Distribution
Date.
"CORPORATE TRUST OFFICE": U.S. Bank Trust National Association, 100
Wall Street, Suite 1600, New York, New York 10005, Attention: Corporate Trust or
such other corporate trust office as the Trustee shall designate in writing to
the Depositor and the Certificateholders.
"DEPOSITARY": The Depository Trust Company.
"DISTRIBUTION DATE": Any Scheduled Distribution Date, Special Event
Redemption Distribution Date or Term Assets Default Distribution Date.
"FIXED PAYMENT": Each equal semiannual installment of interest
received on the Term Assets by the Trustee, in an amount equal to the product of
(i) 7.40%, (ii) 180 divided by 360 and (iii) $50,000,000 (or such other amount
equal to the amount of Term Assets in the Trust) through and including April 1,
2018.
"INDENTURE": The indenture under which the Term Assets were issued.
"INTEREST ACCRUAL PERIOD": With respect to any Scheduled Distribution
Date, the period from and including the immediately preceding Scheduled
Distribution Date (or, in the case of the first Interest Accrual Period, from
and including February 1, 1998) to but excluding the current Scheduled
Distribution Date.
"INTEREST COLLECTIONS": With respect to any Scheduled Distribution
Date, all payments received by the Trustee, during the Collection Period ending
on such Scheduled Distribution Date, in respect of (i) interest on the Term
Assets and (ii) penalties or other amounts required to be paid because of late
payments on the Term Assets.
"NYSE": The New York Stock Exchange, Inc.
"PAYMENT DEFAULT": A default by the Term Assets Issuer in the payment
of any amount due (on the Term Assets after the same becomes due and payable
(and the expiration if any applicable grace period on the Term Assets).
"PASS-THROUGH RATE": 7.40% per annum.
"PLACE OF DISTRIBUTION": New York, New York.
"RATING AGENCY": Each of Moody's Investors Service, Inc. ("Moody's"),
and Standard & Poor's Ratings Services ("S&P"), a division of The McGraw-Hill
Companies, Inc., and any successor to either of the foregoing. References to
"the Rating Agency" in the Agreement shall mean each such credit rating agency.
"RECORD DATE": With respect to any Distribution Date, the day
immediately preceding such Distribution Date.
"REQUIRED PERCENTAGE--DIRECTION OF TRUSTEE": For purposes of this
Series Supplement, 66-2/3% of the aggregate Voting Rights of the Certificates.
"REQUIRED PERCENTAGE--REMEDIES": For purposes of this Series
Supplement, 66-2/3% of the aggregate Voting Rights of the Certificates.
"SCHEDULED DISTRIBUTION DATE": The first day of each February and
August, or, if any such day is not a Business Day, then the immediately
following Business Day, commencing August 1, 1998, through and including August
1, 2018; provided, however, that payment on each Scheduled Distribution Date
(other than August 1, 2018) shall be subject to prior payment of interest or
principal, as applicable, on the Term Assets.
"SPECIAL EVENT REDEMPTION": (i) A shortening of the maturity of the
Term Assets by the Term Assets Issuer to a date prior to April 1, 2018 as a
result of a Tax Event, (ii) a redemption of the Term Assets in whole by the Term
Assets Issuer on a date prior to April 1, 2018 as a result of a Tax Event and
the receipt by the the Term Assets Issuer of a Tax Event Redemption Opinion or
(iii) a Term Assets Optional Redemption on a date prior to April 1, 2018, in
which event the Certificates or a portion thereof will be redeemed.
"SPECIAL EVENT REDEMPTION DATE": The date of the redemption of Term
Assets pursuant to a Special Event Redemption.
"SPECIAL EVENT REDEMPTION DISTRIBUTION DATE": The date on which the
Trustee receives the payment on the Term Assets due on a Special Event
Redemption Date.
"SPECIFIED CURRENCY": United States Dollars.
"TAX EVENT": means that the Term Assets Issuer shall have received an
opinion of nationally recognized independent tax counsel to the effect that, as
a result of (a) any amendment to, clarification of, or change (including any
announced prospective amendment, clarification or change) in any law, or any
regulation thereunder, of the United States, (b) any judicial decision, official
administrative pronouncement, ruling, regulatory procedure, notice or
announcement, including any notice or announcement of intent to adopt or
promulgate any ruling, regulatory procedure or regulation (any of the foregoing,
an "Administrative or Judicial Action"), or (c) any amendment to, clarification
of, or change in any official position with respect to, or any interpretation
of, an Administrative or Judicial Action or a law or regulation of the United
States that differs from the theretofore generally accepted position or
interpretation, in each case, occurring on or after July 15, 1997, there is more
than an insubstantial increase in the risk that interest paid by the Term Assets
Issuer on the Term Assets is not, or will not be, deductible, in whole or in
part, by the Term Assets Issuer for United States federal income tax purposes.
"TAX EVENT REDEMPTION OPINION": An opinion of nationally recognized
independent tax counsel to the effect that there would be, notwithstanding any
shortening of the maturity of the Term Assets, more than an insubstantial risk
that interest paid on the Term Assets by the Term Assets Issuer is not, or will
not be, deductible in whole or part, by the Term Assets Issuer for United States
income tax purposes.
"TERM ASSETS": The 7.40% Debentures due August 1, 2097 issued by the
Term Assets Issuer, deposited in the Trust by the Depositor and identified on
Schedule 1 hereto in the initial aggregate principal amount of $50,000,000 (the
"Securities"), together with all cash, instrument, securities and other
investment property arising from, relating to or consisting of the Securities.
Term Assets shall also include additional 7.40% Debentures due August 1, 2097
issued by the Term Assets Issuer and deposited in the Trust by the Depositor
pursuant to Section 5.
"TERM ASSETS DEFAULT DISTRIBUTION DATE": The date on which the Trustee
makes a distribution in kind of the Term Assets following a Payment Default or
Acceleration.
"TERM ASSETS ISSUER": Chrysler Corporation.
"TERM ASSETS OPTIONAL REDEMPTION": The optional redemption of the Term
Assets by the Term Assets Issuer in whole at any time or in part from time to
time on not less than 30 nor more than 60 days' notice to the holders of the
Term Assets.
"TERM ASSETS PAYMENT DATE": The first day of each February and August,
commencing February 1, 1998; PROVIDED, HOWEVER, that if any Term Assets Payment
Date would otherwise fall on a day that is not a Business Day, such Term Assets
Payment Date will be the following Business Day.
"TERM ASSETS PROSPECTUS": The prospectus of the Term Assets Issuer,
dated February 19, 1997, as supplemented by a supplement thereto, dated July 15,
1997, with respect to the Term Assets.
"TERM ASSETS TRUSTEE": The trustee under the Indenture.
"TRUST": TIERS Corporate Bond-Backed Certificates Trust C 1998-6.
"TRUST TERMINATION EVENT": (a) the distribution in kind of all the
Term Assets to the ZTF Class Certificateholders on August 1, 2018, (b) the
payment in full of amounts due and owing on the Certificates following a Special
Event Redemption, (c) the distribution in kind of the Term Assets to the ZTF
Class Certificateholders and Amortizing Class Certificateholders after a Payment
Default or an Acceleration or (d) the distribution in kind of all the Term
Assets upon the tender at any time pursuant to an Affiliate's Exchange Right
with respect to 100% of each of the aggregate principal amount of the
then-outstanding ZTF Class Certificates and the Amortizing Class Certificates in
exchange for 100% of the aggregate principal amount of the Term Assets.
"VOTING RIGHTS": The ZTF Class Certificateholders shall have 50% of
the total Voting Rights with respect to the Certificates, and the Amortizing
Class Certificateholders shall have 50% of the total Voting Rights with respect
to the Certificates. Subject to the foregoing, "Voting Rights" shall mean (a)
with respect to the Amortizing Class Certificates, the voting rights allotted to
such Class, allocated among all Holders of Amortizing Class Certificates in
proportion to the respective Certificate Principal Balances held by such Holders
on any date of determination, and (b) with respect to the ZTF Class
Certificates, the voting rights allotted to such Class, allocated among all
Holders of ZTF Class Certificates in proportion to the respective Certificate
Principal Balances held by such Holders on any date of determination.
SECTION 2. CREATION AND DECLARATION OF TRUST; GRANT OF TERM ASSETS;
ACCEPTANCE BY TRUSTEE. (a) The Depositor, concurrently with the execution and
delivery hereof and pursuant to Section 2.1 of the Agreement, has delivered or
caused to be delivered to the Trustee, for deposit in the Collection Account the
Term Assets in exchange for the delivery to, or at the direction of the
Depositor, of all of the Certificates, representing an undivided beneficial
interest in all of the assets of the Trust.
(b) The Trustee hereby (i) acknowledges such deposit, pursuant to
subsection (a) above, and receipt by it of the Term Assets, (ii) accepts the
trusts created hereunder in accordance with the provisions hereof and of the
Agreement but subject to the Trustee's obligation, as and when the same may
arise, to make any payment or other distributions of the assets of the Trust as
may be required pursuant to this Series Supplement, the Agreement and the
Certificates, and (iii) agrees to perform the duties herein or therein required
and any failure to receive reimbursement of expenses and disbursements under
Section 14 hereof shall not release the Trustee from its duties herein or
therein.
SECTION 3. DESIGNATION. There is hereby created a Series of trust
certificates to be issued pursuant to the Agreement and this Series Supplement
to be known as the "TIERSSM Corporate Bond-Backed Certificates, Series C
1998-6." The Certificates shall be issued in two Classes consisting of the
Amortizing Class Certificates and the ZTF Class Certificates.
SECTION 4. DATE OF THE CERTIFICATES. The Certificates that are
authenticated and delivered by the Trustee to or upon Depositor Order on the
Closing Date shall be dated the Closing Date. All other Certificates that are
authenticated after the Closing Date for any other purpose under the Agreement
shall be dated the date of their authentication. The Certificates shall all be
originally issued on the Closing Date.
SECTION 5. CERTIFICATE PRINCIPAL BALANCE AND DENOMINATIONS. The
Trustee shall cause the Certificates to be executed on behalf of the Trust,
authenticated and delivered to the Depositor upon the written order of the
Depositor. The Certificates are issuable in minimum denominations of $1,000 and
in integral multiples thereof. The Depositor may sell to the Trustee additional
Term Assets for deposit in the Trust on any date hereafter upon at least 5
Business Days notice to the Trustee and upon (i) satisfaction of the Rating
Agency Condition and (ii) delivery of an Opinion of Counsel to the effect that
the deposit of such additional Term Assets will not materially increase the
likelihood that the Trust would fail to qualify as a grantor trust under the
Code. Upon such sale to the Trustee, the Trustee shall deposit such additional
Term Assets in the Collection Account, and shall authenticate and deliver to the
Depositor, or its order, (i) ZTF Class Certificates in a Certificate Principal
Balance equal to the principal amount of such additional Term Assets deposited
into the Trust and (ii) Amortizing Class Certificates in a Certificate Principal
Balance calculated in the same manner as used in the initial offering of the
Certificates hereunder, as calculated by the Depositor. Any such additional
Certificates authenticated and delivered shall rank pari passu with any
Certificates of the same class previously issued in accordance with this Series
Supplement.
SECTION 6. CURRENCY OF THE CERTIFICATES. All distributions on the
Certificates will be made in the Specified Currency.
SECTION 7. FORM OF SECURITIES. The Certificates will be delivered in
registered form and will be represented by one or more Global Securities issued
in accordance with Section 5.9 of the Agreement and initially registered in the
name of Cede & Co. as nominee of The Depository Trust Company. The Amortizing
Class Certificates shall be in the form attached hereto as Exhibit A and the ZTF
Class Certificates shall be in the form attached hereto as Exhibit B.
SECTION 8. [RESERVED.]
SECTION 9. CERTAIN PROVISIONS OF BASE TRUST AGREEMENT NOT APPLICABLE.
The provisions of Sections 3.12, 5.16, 5.17 and 9.1 of the Base Trust Agreement
dated as of May 21, 1998 and any other provision of the Base Trust Agreement
dated as of May 21, 1998 which imposes obligations on, or creates rights in
favor of, the Trustee or the Certificateholders as a result of or in connection
with an "Event of Default" or "Administrative Agent Termination Event" shall be
inapplicable with respect to the Certificates.
SECTION 10. DISTRIBUTIONS. (a) On each Scheduled Distribution Date,
the Trustee shall distribute the related Fixed Payment to the Holders of the
Amortizing Class Certificates, to the extent of Interest Collections; provided,
however, if a payment with respect to the Term Assets is made to the Trustee
after the Term Assets Payment Date on which such payment was due, the Trustee
will distribute such amount received on the Business Day following such receipt.
Each Fixed Payment shall be allocated first to interest accrued at a rate equal
to the Amortizing Class Yield on the then-outstanding Aggregate Certificate
Principal Balance of the Amortizing Certificates, with the balance of such Fixed
Payment allocated to repayment of principal, in accordance with the schedule
attached hereto as Schedule 2; provided that to the extent the amount received
in respect of the Fixed Payment due August 1, 2018 exceeds the amounts due on
the Certificates, after the Certificates are paid in full, such excess shall be
paid to the Trustee as compensation for its services rendered under this and
other similar agreements, and the Depositor shall receive a credit against the
amount which it would otherwise have owed the Trustee, in the absence of such
payment, in respect of the Trustee's fees and expenses.
(b) On August 1, 2018, the Trustee shall distribute the Term Assets in
kind to the ZTF Class Certificateholders.
(c) In the event of a Payment Default or an Acceleration, on a Term
Assets Default Distribution Date, the Trustee shall distribute the Term Assets
in kind to the Holders of the Amortizing Class Certificates and the Holders of
the ZTF Class Certificates in the same ratio as (i) the present value of all
scheduled future payments on the Amortizing Class Certificates discounted
semiannually at a rate of 6.60% per annum to the date of such Payment Default or
Acceleration bears to (ii) the present value of all scheduled future payments on
the Term Assets after August 1, 2018 discounted semiannually at a rate of 7.057%
per annum to the date of such Payment Default or Acceleration. Such ratio shall
be calculated by the Calculation Agent. Schedule 3 hereto contains a table
showing as of each Scheduled Distribution Date such ratio and the amounts that
would be distributable to the Amortizing Class Certificates and the ZTF Class
Certificates, respectively, if the Term Assets are redeemed at par.
(d) On a Special Event Redemption Distribution Date, the Trustee shall
distribute the amount received from the Term Assets Issuer on or with respect to
any Special Event Redemption Date to the Holders of the Amortizing Class
Certificates and ZTF Class Certificates in the same ratio as (i) the present
value of all scheduled future payments on the Amortizing Class Certificates
discounted semiannually at a rate of 6.60% per annum to the Special Event
Redemption Date bears to (ii) the present value of all scheduled future payments
on the Term Assets after August 1, 2018 discounted semiannually at a rate of
7.057% per annum to the Special Event Redemption Date. Such ratio shall be
calculated by the Calculation Agent. Schedule 3 hereto contains a table showing
as of each Scheduled Distribution Date such ratio and the amounts that would be
distributable to the Amortizing Class Certificates and the ZTF Class
Certificates, respectively, if the Term Assets are redeemed at par.
In the event of a redemption of a portion of the Term Assets on
deposit in the Trust pursuant to a Term Assets Optional Redemption, the Trustee
shall select by lot a portion of each of the ZTF Class Certificates and the
Amortizing Class Certificates for redemption based on their respective
Certificate Principal Balances in the same proportion (or as near as
practicable) that the amount of the Term Assets on deposit in the Trust being
redeemed bears to the aggregate amount of the Term Assets then on deposit in the
Trust.
(e) Distributions to the Certificateholders on each Distribution Date
will be made to the Certificateholders of record on the related Record Date of
the Amortizing Class Certificates and ZTF Class Certificates, as applicable.
(f) All distributions to Certificateholders of any Class shall be
allocated pro rata among the Certificates of such Class based on their
respective Certificate Principal Balances as of the Record Date with respect to
the applicable Distribution Date.
(g) Notwithstanding any provision of the Agreement to the contrary, to
the extent funds are available, the Trustee will initiate payment in immediately
available funds by 10:00 A.M. (New York City time) on each Distribution Date of
all amounts (whether in the form of principal, interest premium or prepayment)
payable to each Certificateholder with respect to any Certificate held by such
Certificateholder or its nominee (without the necessity for any presentation or
surrender thereof or any notation of such payment thereon) in the manner and at
the address as each Certificateholder may from time to time direct the Trustee
in writing fifteen days prior to such Distribution Date requesting that such
payment will be so made and designating the bank account to which such payments
shall be so made. The Trustee shall be entitled to rely on the last instruction
delivered by the Certificateholder pursuant to this Section 10(h) unless a new
instruction is delivered 15 days prior to a Distribution Date.
(h) The rights of the Certificateholders to receive distributions in
respect of the Certificates, and all interests of the Certificateholders in such
distributions, shall be as set forth in this Series Supplement. The Trustee
shall in no way be responsible or liable to the Certificateholders nor shall any
Certificateholder in any way be responsible or liable to any other
Certificateholder in respect of amounts previously distributed on the
Certificates based on their respective Certificate Principal Balances.
SECTION 11. [RESERVED.]
SECTION 12. TERMINATION OF TRUST. (a) The Trust shall terminate upon
the occurrence of any Trust Termination Event.
(b) Promptly after the Trustee has received a notice from the Term
Assets Trustee, the Term Assets Issuer, any Holder or the Depositor of a Special
Event Redemption, a Payment Default or an Acceleration, the Trustee shall
establish the Term Assets Default Distribution Date, if applicable, and shall
provide notice to the Certificateholders of the expected occurrence of a Trust
Termination Event, the termination of the Trust and the Special Event Redemption
Date or the Term Assets Default Distribution Date, as applicable.
(c) Except for any reports and other information required to be
provided to Certificateholders hereunder and under the Agreement and except as
otherwise specified herein and therein, the obligations of the Trustee will
terminate upon the distribution to Certificateholders of all amounts or property
required to be distributed to them and the disposition of all Term Assets held
by the Trustee. The Trust shall thereupon terminate, except for surviving rights
of indemnity.
SECTION 13. LIMITATION OF POWERS AND DUTIES. (a) The Trustee shall
administer the Trust and the Term Assets solely as specified herein and in the
Agreement.
(b) The Trust is constituted solely for the purpose of acquiring and
holding the Term Assets. The Trustee is not authorized to acquire any other
investments or engage in any activities not authorized herein and, in
particular, notwithstanding anything to the contrary in the Agreement, the
Trustee is not authorized (i) to sell, assign, transfer, exchange, pledge,
set-off or otherwise dispose of any of the Term Assets, once acquired, or
interests therein, including to Certificateholders, except as expressly provided
herein or (ii) to do anything that would materially increase the likelihood that
the Trust will fail to qualify as a grantor trust for United States federal
income tax purposes.
(c) The parties acknowledge that the Trustee, as the holder of the
Term Assets, has the right to vote and give consents and waivers in respect of
the Term Assets and enforce such other rights, if any, of the holder of the Term
Assets, except as otherwise limited by the Agreement or this Series Supplement.
In the event that the Trustee receives a request from the Term Assets Trustee,
the Term Assets Issuer or, if applicable, the Depositary with respect to the
Term Assets, for the Trustee's consent to any amendment, modification or waiver
of the Term Assets, the Indenture or any other document thereunder, or relating
thereto, or receives any other solicitation for any action with respect to the
Term Assets, the Trustee shall within two Business Days mail a notice of such
proposed amendment, modification, waiver or solicitation to each
Certificateholder of record as of the date of such request. The Trustee shall
request instructions from the Certificateholders as to what action to take in
response to such request and shall be protected in taking no action if no
direction is received. Except as otherwise provided herein, the Trustee shall
consent or vote, or refrain from consenting or voting, in the same proportion
(based on the Certificate Principal Balances) as the Certificates of the Trust
were actually voted or not voted by the Holders thereof as of the date
determined by the Trustee prior to the date such vote or consent is required;
PROVIDED, HOWEVER, that in calculating the results of such voting, for any vote
conducted before August 1, 2018, the Trustee shall assign to the ZTF Class
Certificates, as a whole, 50% of the total Voting Rights of the Certificates and
shall assign to the Amortizing Class Certificates, as a whole, 50% of the total
Voting Rights of the Certificates; and provided, further, that, notwithstanding
anything to the contrary in the Agreement or this Series Supplement, the Trustee
shall at no time vote in favor of or consent to any matter (i) unless such vote
or consent would not, based solely on an Opinion of Counsel, materially increase
the likelihood that the Trust will fail to qualify as a grantor trust, for
federal income tax purposes, (ii) which would alter the timing or amount of any
payment on the Term Assets (including, without limitation, any demand to
accelerate the Term Assets), except in the case of any action which would
prevent the acceleration of principal payments on the Term Assets after the
occurrence of a default on the Term Assets or the occurrence of an event which,
with the passage of time will become a default or (iii) which would result in
the exchange or substitution of any Term Assets pursuant to a plan for the
refunding or refinancing of such Term Asset, except in the event of a default on
the Term Assets. The Trustee shall have no liability for any failure to act or
to refrain from acting resulting from the Certificateholders' late return of, or
failure to return, directions requested by the Trustee from the
Certificateholders.
(d) Notwithstanding any provision of the Agreement to the contrary,
for purposes of any security or indemnity against the costs, expenses and
liabilities the Trustee may incur by reason of any action undertaken at the
direction of the Certificateholders, which the Trustee may require from the
Certificateholders prior to taking any such action, an unsecured indemnity
agreement of a Certificateholder or any of its Affiliates, if acceptable to the
Trustee, shall be deemed sufficient to satisfy such security or indemnity
requirement.
(e) Notwithstanding any provision of the Agreement to the contrary,
the Trustee shall act as the sole Authenticating Agent, Paying Agent, and
Registrar.
SECTION 14. COMPENSATION OF TRUSTEE. The Trustee shall be entitled to
receive from the Depositor or an affiliate of the Depositor as compensation for
the Trustee's services hereunder, trustee's fees pursuant to a separate
agreement between the Trustee and the Depositor, and shall be reimbursed for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
(including the reasonable compensation, disbursements and expenses of its
counsel and other persons not regularly in its employ). The Depositor shall
indemnify and hold harmless the Trustee and its successors, assigns, agents and
servants against any and all loss, liability or reasonable expense (including
attorney's fees) incurred by it in connection with the administration of this
trust and the performance of its duties thereunder. The Trustee shall notify the
Depositor promptly of any claim for which it may seek indemnity. Failure by the
Trustee to so notify the Depositor shall not relieve the Depositor of its
obligations hereunder. The Depositor need not reimburse any expense or indemnify
against any loss, liability or expense incurred by the Trustee through the
Trustee's own willful misconduct, negligence or bad faith. The indemnities
contained in this Section 14 shall survive the resignation or termination of the
Trustee or the termination of this Agreement.
Failure by the Depositor to pay, reimburse or indemnify the Trustee
shall not entitle the Trustee to any payment, reimbursement or indemnification
from the Trust, nor shall such failure release the Trustee from the duties it is
required to perform under this Series Supplement. Any unpaid, unreimbursed or
unindemnified amounts shall not be borne by the Trust and shall not constitute a
claim against the Trust, but shall be borne by the Trustee in its individual
capacity, and the Trustee shall have no recourse against the Trust with respect
thereto.
SECTION 15. MODIFICATION OR AMENDMENT. In addition to and
notwithstanding anything to the contrary in the Agreement or this Series
Supplement, the Trustee shall not enter into any modification or amendment of
the Agreement or this Series Supplement unless such modification or amendment
would not, based on an Opinion of Counsel, materially increase the likelihood
that the Trust would fail to qualify as a grantor trust for federal income tax
purposes, nor shall the Trustee enter into any such modification or amendment
without satisfaction of the Rating Agency Condition or the unanimous written
consent of the Certificateholders.
SECTION 16. ACCOUNTING. (a) Pursuant to Section 3.16 of the Agreement,
INDEPENDENT PUBLIC ACCOUNTANTS' ADMINISTRATION REPORT, the Trustee shall cause
the accountings with respect to Distribution Dates for the Certificates to be
reviewed by an Independent certified public accountant selected by the Depositor
within four months following the end of an Accounting Period; provided that such
review by an independent certified public accountant shall only be required if a
distribution was scheduled to be made on the Term Assets during an Accounting
Period. "Accounting Period" shall mean each 12-month period ending on the 30th
day of June. The Depositor may change the timing of Accounting Periods upon
written notice to the Trustee; PROVIDED, HOWEVER, that the length of an
Accounting Period may in no event exceed 12 months.
(b) Pursuant to Section 4.2 of the Agreement, REPORTS TO
CERTIFICATEHOLDERS, the Trustee shall cause the statements to be prepared and
forwarded as provided therein.
(c) An Independent certified public accountant for the Trust, in
consideration for its duties as described herein and in Section 3.16 of the
Agreement, INDEPENDENT PUBLIC ACCOUNTANTS' ADMINISTRATION REPORT, shall be
compensated by the Depositor for reasonable expenses and disbursements incurred
in connection therewith pursuant to a separate agreement with the Depositor. The
Depositor retains the right to replace any Independent certified public
accountant and the Independent certified public accountant retains the right to
resign from its duties, in which case the Depositor shall appoint a successor
thereto.
SECTION 17. NO INVESTMENT OF AMOUNTS RECEIVED ON TERM ASSETS. All
amounts received on or with respect to the Term Assets shall be held uninvested
by the Trustee.
SECTION 18. NO EVENT OF DEFAULT. There shall be no Events of Default
defined with respect to the Certificates.
SECTION 19. NOTICES. (a) All directions, demands and notices hereunder
and under the Agreement shall be in writing and shall be deemed to have been
duly given when received if personally delivered or mailed by first class mail,
postage prepaid or by express delivery service or by certified mail, return
receipt requested or delivered in any other manner specified herein, (i) in the
case of the Depositor, to Structured Products Corp., Seven World Trade Center,
Room 33-130, 33rd Floor, New York, New York 10048, Attention: Secretary, or such
other address as may hereafter be furnished to the Trustee in writing by the
Depositor, and (ii) in the case of the Trustee, to U.S. Bank Trust National
Association, 100 Wall Street, Suite 1600, New York, New York 10005, Attention:
Corporate Trust, facsimile number (212) 809- 5459, or such other address as may
hereafter be furnished to the Depositor in writing by the Trustee and (iii) in
the case of the NYSE, to New York Stock Exchange, Inc., 20 Broad Street, New
York, New York 10005, facsimile number (212) 656-5893, or such other address as
may hereafter be furnished to the Depositor and the Trustee in writing by the
NYSE.
(b) For purposes of delivering notices to the Rating Agency under
Section 10.07, NOTICE TO RATING AGENCY, of the Agreement or otherwise, such
notices shall be mailed or delivered as provided in Section 10.07, NOTICE TO
RATING AGENCY, to: Standard & Poor's Ratings Services, 26 Broadway (15th Floor),
New York, New York 10004; and Moody's Investors Service, Inc., Structured
Derivative Products, 99 Church Street, New York, New York 10007; or such other
address as the Rating Agency may designate in writing to the parties hereto.
(c) Notwithstanding any provisions of the Agreement to the contrary,
the Trustee shall deliver all notices or reports required to be delivered to or
by the Trustee or the Depositor to the Certificateholders without charge to such
Certificateholders.
SECTION 20. ACCESS TO CERTAIN DOCUMENTATION. Access to documentation
regarding the Term Assets will be afforded without charge to any
Certificateholder so requesting pursuant to Section 3.17 of the Agreement,
ACCESS TO CERTAIN Documentation. Additionally, the Trustee shall provide at the
request of any Certificateholder without charge to such Certificateholder the
name and address of each Certificateholder of Certificates hereunder as recorded
in the Certificate Register for purposes of contacting the other
Certificateholders with respect to their rights hereunder or for the purposes of
effecting purchases or sales of the Certificates, subject to the transfer
restrictions set forth herein.
SECTION 21. ADVANCES. There is no Administrative Agent specified
herein; hence no person (including the Trustee) shall be permitted or obligated
to make Advances as described in Section 4.03 of the Agreement, ADVANCES.
SECTION 22. [RESERVED.]
SECTION 23. RATIFICATION OF AGREEMENT. With respect to the Series
issued hereby, the Agreement, as supplemented by this Series Supplement, is in
all respects ratified and confirmed and the Agreement as so supplemented by this
Series Supplement shall be read, taken and construed as one and the same
instrument. To the extent there is any inconsistency between the terms of the
Agreement and this Series Supplement, the terms of this Series Supplement shall
govern.
SECTION 24. COUNTERPARTS. This Series Supplement may be executed in
any number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and the
same instrument.
SECTION 25. GOVERNING LAW. This Series Supplement and each Certificate
issued hereunder shall be governed by and construed in accordance with the laws
of the State of New York applicable to agreements made and to be performed
entirely therein without reference to such State's principles of conflicts of
law to the extent that the application of the laws of another jurisdiction would
be required thereby, and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws.
SECTION 26. TRUSTEE ELECTION. In the event the Internal Revenue
Service successfully recharacterizes the Trust as a partnership for federal
income tax purposes, the Trustee, on behalf of all of the past and present
partners of such partnership, will, to the extent possible, elect out of
subchapter K of the Code pursuant to Treasury Regulation 1.761-2. Such election
will, to the extent possible, be effective for the first taxable year of the
Trust and thereafter. Each Certificateholder is deemed to consent to such
election.
SECTION 27. COVENANT OF DEPOSITOR. The Depositor hereby covenants that
it will be adequately capitalized at all times. In connection therewith, the
Depositor will make no dividend or other similar distribution unless the funds
remaining after such action exceed the amount required to pay all scheduled fees
and expenses of the Depositor in connection with the Certificates and each other
issue of securities with respect to which the Depositor is acting as depositor.
SECTION 28. AFFILIATE'S EXCHANGE RIGHT. (a) Any affiliate of the
Depositor, but not the Depositor itself, will have the right on any date to
tender to the Trustee ZTF Class Certificates comprising a specified percentage
of the aggregate Certificate Principal Balance of the ZTF Class Certificates,
together with Amortizing Class Certificates comprising the same percentage of
the aggregate Certificate Principal Balance of the Amortizing Class
Certificates, and to receive in exchange a principal amount of Term Assets
comprising the same percentage of the Term Assets deposited in the Trust.
(b) Any tender of a Certificate for exchange pursuant to this Section
28 shall be irrevocable.
SECTION 29. CERTIFICATE OF COMPLIANCE. The Depositor shall deliver to
the Trustee on or prior to June 30 of each year prior to a Trust Termination
Event the Officer's Certificate as to compliance as required by Section 6.1 of
the Base Trust Agreement.
<PAGE>
IN WITNESS WHEREOF, the Depositor and the Trustee have caused this
Series Supplement to be duly executed by their respective officers thereunto
duly authorized as of the day and year first above written.
STRUCTURED PRODUCTS CORP.,
as Depositor
By:/s/ Matthew Mayers
--------------------
Authorized Signatory
U.S. BANK TRUST NATIONAL
ASSOCIATION, as Trustee
By:/s/ Marlene J. Fahey
----------------------
Authorized Signatory
<PAGE>
EXHIBIT A
[Form of Amortizing Class Certificate]
NUMBER $41,250,000
R-1 CUSIP NO. 871928 BM 8
SEE REVERSE FOR CERTAIN DEFINITIONS
THE HOLDER OF THIS CERTIFICATE SHALL HAVE NO RIGHT TO PRINCIPAL
PAYMENTS IN RESPECT OF THE TERM ASSETS EXCEPT IN THE EVENT OF A MATURITY
SHORTENING REDEMPTION (AS SUCH TERM IS DEFINED IN THE TRUST AGREEMENT REFERRED
TO HEREIN) ON OR PRIOR TO AUGUST 1, 2018. THE REGISTERED HOLDER HEREOF, BY ITS
ACCEPTANCE HEREOF, AGREES THAT IT WILL LOOK SOLELY TO THE TRUST PROPERTY (TO THE
EXTENT OF ITS RIGHTS THEREIN) FOR DISTRIBUTIONS HEREUNDER.
THIS CERTIFICATE REPRESENTS A FRACTIONAL UNDIVIDED INTEREST IN THE
TRUST AND DOES NOT EVIDENCE AN OBLIGATION OF, OR AN INTEREST IN, AND IS NOT
GUARANTEED BY THE DEPOSITOR OR THE TRUSTEE OR ANY OF THEIR RESPECTIVE
AFFILIATES. NEITHER THIS CERTIFICATE NOR THE TRUST ASSETS ARE INSURED OR
GUARANTEED BY ANY GOVERNMENTAL AGENCY OR ANY OTHER PERSON.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER,
PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
<PAGE>
TIERS CORPORATE BOND-BACKED CERTIFICATES TRUST C 1998-6
TIERSSM CORPORATE BOND-BACKED CERTIFICATES,
SERIES C 1998-6
Amortizing Class
evidencing a fractional undivided beneficial ownership interest in the Trust, as
defined below, the property of which consists of 7.40% Debentures due 2097 (the
"Term Assets") issued by Chrysler Corporation (the "Term Assets Issuer") in the
initial aggregate principal amount of $50,000,000 together with all cash,
instrumental securities and other investment property thereto and deposited in
the Trust by the Depositor, as defined below. The Term Assets will be purchased
by the Trust from Structured Products Corp. (the "Depositor") with the net
proceeds of the sale of the Certificates to the Depositor by the Trust.
THIS CERTIFIES THAT CEDE & Co. is the registered owner of a
nonassessable, fully-paid, fractional undivided interest in TIERS Corporate
Bond-Backed Certificates Trust C 1998-6 formed by the Depositor. Under the Trust
Agreement, there will be distributed on the fifteenth day of each February and
August, or if such day if not a Business Day, then the immediately following
Business Day, commencing August 1, 1998 through and including the date the
Certificate Principal Balance hereof has been reduced to zero (each a "Scheduled
Distribution Date"), to the Holders of the Amortizing Class Certificates, to the
extent of Interest Collections, an amount equal to the Fixed Payment. Each Fixed
Payment shall be allocated first to interest accrued at a rate equal to the
Amortizing Class Yield on the then outstanding aggregate Certificate Principal
Balance of the Amortizing Class Certificates, with the balance of such Fixed
Payment allocated to the repayment of principal in accordance with the
amortization schedule attached to the Agreement (as defined below) as Schedule 2
(the "Amortization Schedule"). The amounts allocated to interest and principal
in the Amortization Schedule are referred to hereinafter as "Scheduled Interest"
and "Scheduled Principal" respectively.
The Trust was created pursuant to a Base Trust Agreement dated as of
May 21, 1998 (the "Agreement"), between the Depositor and U.S. Bank Trust
National Association, a national banking association, not in its individual
capacity but solely as Trustee (the "Trustee"), as supplemented by the Series C
1998-6 Supplement dated as of May 21, 1998 (the "Series Supplement" and,
together with the Agreement, the "Trust Agreement"), between the Depositor and
the Trustee. This Certificate does not purport to summarize the Trust Agreement
and reference is hereby made to the Trust Agreement for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of the Trustee with respect
hereto. A copy of the Trust Agreement may be obtained from the Trustee by
written request sent to the Corporate Trust Office. Capitalized terms used but
not defined herein have the meanings assigned to them in the Trust Agreement.
This Certificate is one of the duly authorized Certificates designated
as "TIERSSM Corporate Bond-Backed Certificates, Series C 1998-6, Amortizing
Class Certificates" (herein called the "Amortizing Class Certificates"). The
Trust is also issuing certificates designated as "TIERSSM Corporate Bond-Backed
Certificates, Series C 1998-6, ZTF Class Certificates" (hereinafter called the
"ZTF Class Certificates" and together with the Amortizing Class Certificates,
the "Certificates") pursuant to the Trust Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Trust
Agreement, to which Trust Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which such Holder is bound. The property of
the Trust consists of the Term Assets and all payments on or collections in
respect of the Term Assets accrued on or after February 1, 1998, all as more
fully specified in the Trust Agreement. Additional Term Assets may be deposited
in the Trust and additional Certificates may be authenticated and delivered from
time to time in the appropriate Certificate Principal Balance as provided in the
Trust Agreement, which additional Certificates shall rank pari passu with all
other Certificates of the same class issued in accordance with the Series
Supplement.
Subject to the terms and conditions of the Trust Agreement (including
the availability of funds for distribution) and until the obligation created by
the Trust Agreement shall have terminated in accordance therewith, distributions
will be made on each Distribution Date to the Person in whose name this
Certificate is registered on the applicable Record Date, in an amount equal to
such Certificateholder's fractional undivided interest in the amount required to
be distributed to the Holders of the Amortizing Class Certificates on such
Distribution Date. The Record Date applicable to any Distribution Date is the
day immediately preceding such Distribution Date.
Distributions made on this Certificate will be made as provided in the
Trust Agreement by the Trustee by wire transfer or credit to the appropriate
account of the Holder in immediately available funds, without the presentation
or surrender of this Certificate or the making of any notation hereon. Except as
otherwise provided in the Trust Agreement and notwithstanding the above, the
final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency maintained for that
purpose by the Trustee in the Borough of Manhattan, the City of New York.
Reference is hereby made to the further provisions of this Certificate
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
or on behalf of the Trustee, by manual signature, this Certificate shall not
entitle the holder hereof to any benefit under the Trust Agreement or be valid
for any purpose.
It is the intent of the Depositor and the Certificateholders that, for
purposes of federal income, state and local income and franchise taxes and any
other taxes imposed upon, measured by or based upon gross or net income, the
Trust shall be treated as a grantor trust or, failing that, as a partnership
that is not taxable as a corporation or a publicly traded partnership, and the
Trust Agreement shall be interpreted accordingly. Except as otherwise required
by appropriate taxing authorities, the Depositor and the other
Certificateholders by acceptance of a Certificate, agree to treat, the
Certificates for such tax purposes as interests in such grantor trust. It is
also the intent of the Depositor and the Certificateholders that, in the event
that the Internal Revenue Service successfully recharacterizes the Trust as a
partnership for federal income tax purposes, the Trust will elect out of
subchapter K of the Code beginning with the first taxable year of the Trust.
THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY THEREIN WITHOUT REFERENCE TO SUCH STATE'S PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY, AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE HOLDER HEREOF SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
<PAGE>
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed as of the date set forth below.
U.S. BANK TRUST NATIONAL
ASSOCIATION, not in its individual capacity
but solely as Trustee,
By:
Authorized Signatory
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Amortizing Class Certificates described in the
Trust Agreement referred to herein.
U.S. BANK TRUST NATIONAL
ASSOCIATION, not in its individual capacity
but solely as Trustee,
By:
Authorized Signatory
Dated: May 21, 1998
<PAGE>
(REVERSE OF TRUST CERTIFICATE)
The Certificates are limited in right of distribution to certain
payments and collections respecting the Trust Agreement, all as more
specifically set forth herein and in the Trust Agreement. The registered Holder
hereof, by its acceptance hereof, agrees that it will look solely to the Term
Assets (to the extent of its rights therein) for distributions hereunder.
Subject to the next paragraph and to certain exceptions provided in
the Trust Agreement, the Trust Agreement permits the amendment thereof and the
modification of the rights and obligations of the Depositor and the Trustee and
the rights of the Certificateholders under the Trust Agreement at any time by
the Depositor and the Trustee with the consent of the Holders of Certificates
evidencing greater than the Required Percentage which shall be either 50% or
66-2/3% of the aggregate Voting Rights of each Outstanding Class of Certificates
as set forth in the Trust Agreement. Any such consent by the Holder of this
Certificate (or any predecessor Certificate) shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange hereof or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Trust Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.
The Certificates are issuable in fully registered form only in minimum
original principal amounts of $1,000 and integral multiples thereof. As provided
in the Trust Agreement and subject to certain limitations therein set forth,
Certificates are exchangeable for new Certificates of the same principal amount,
class, original issue date and maturity, in authorized denominations as
requested by the Holder surrendering the same.
As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies of the Certificate Registrar maintained by
the Trustee in the Borough of Manhattan, The City of New York, duly endorsed by,
or accompanied by an assignment in the form below and by such other documents as
required by the Trust Agreement signed by, the Holder hereof, and thereupon one
or more new Certificates of the same class in authorized denominations
evidencing the same principal amount will be issued to the designated transferee
or transferees. The Certificate Registrar appointed under the Trust Agreement is
U.S. Bank Trust National Association.
No service charge will be made for any registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The Depositor and the Trustee and any agent of the Depositor or the
Trustee may treat the Person in whose name this Certificate is registered as the
owner hereof for all purposes, and neither the Depositor, the Trustee, nor any
such agent shall be affected by any notice to the contrary.
The Trust and the obligations of the Depositor and the Trustee created
by the Trust Agreement with respect to the Certificates will terminate upon (a)
the distribution in kind of all the Term Assets to the ZTF Class
Certificateholders on August 1, 2018, (b) the payment in full of amounts due and
owing on the Certificates after a Special Event Redemption, (c) the distribution
in kind of the Term Assets to the ZTF Class Certificateholders and Amortizing
Class Certificateholders after a Payment Default or an Acceleration or (d) the
distribution in kind of all the Term Assets upon the tender at any time by an
affiliate of the Depositor of 100% of each of the aggregate principal amount of
the then-outstanding ZTF Class Certificates and the Amortizing Class
Certificates in exchange for 100% of the aggregate principal amount of the Term
Assets.
<PAGE>
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto
PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE
_______________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)
_______________________________________________________________________________
the within Trust Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing
_______________________________________________________________________________
Attorney to transfer said Trust Certificate on the books of the Certificate
Registrar, with full power of substitution in the premises.
Dated:
____________________________*
Signature Guaranteed;
____________________________*
* NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Trust Certificate in every particular,
without alteration, enlargement or any change whatever. Such signature must be
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Certificate Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Certificate Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
<PAGE>
EXHIBIT B
[Form of ZTF Class Certificate]
NUMBER $50,000,000
R-1 CUSIP NO. 871928 BL O
SEE REVERSE FOR CERTAIN DEFINITIONS
THE HOLDER OF THIS CERTIFICATE SHALL HAVE NO RIGHT TO PAYMENTS IN
RESPECT OF THE TERM ASSETS EXCEPT IN THE EVENT OF A SPECIAL EVENT REDEMPTION (AS
SUCH TERM IS DEFINED IN THE TRUST AGREEMENT REFERRED TO HEREIN) ON OR PRIOR TO
AUGUST 1, 2018. THE REGISTERED HOLDER HEREOF, BY ITS ACCEPTANCE HEREOF, AGREES
THAT IT WILL LOOK SOLELY TO THE TRUST PROPERTY (TO THE EXTENT OF ITS RIGHTS
THEREIN) FOR DISTRIBUTIONS HEREUNDER.
THIS CERTIFICATE REPRESENTS A FRACTIONAL UNDIVIDED INTEREST IN THE
TRUST AND DOES NOT EVIDENCE AN OBLIGATION OF, OR AN INTEREST IN, AND IS NOT
GUARANTEED BY THE DEPOSITOR OR THE TRUSTEE OR ANY OF THEIR RESPECTIVE
AFFILIATES. NEITHER THIS CERTIFICATE NOR THE TRUST ASSETS ARE INSURED OR
GUARANTEED BY ANY GOVERNMENTAL AGENCY OR ANY OTHER PERSON.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER,
PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
<PAGE>
TIERS CORPORATE BOND-BACKED CERTIFICATES TRUST C 1998-6
TIERSSM CORPORATE BOND-BACKED CERTIFICATES,
SERIES C 1998-6
ZTF Class
evidencing a fractional undivided beneficial ownership interest in the Trust, as
defined below, the property of which consists of 7.40% Debentures due 2097 (the
"Term Assets") issued by Chrysler Corporation (the "Term Assets Issuer") in the
initial aggregate principal amount of $50,000,000, together with all cash
instruments, securities and other investment property with respect thereto, and
deposited in the Trust by the Depositor, as defined below. The Term Assets will
be purchased by the Trust from Structured Products Corp. (the "Depositor") with
the net proceeds of the sale of the Certificates to the Depositor by the Trust.
THIS CERTIFIES THAT CEDE & Co. is the registered owner of a
nonassessable, fully-paid, fractional undivided interest in TIERS Corporate
Bond-Backed Certificates Trust C 1998-6 formed by the Depositor. Under the Trust
Agreement, this Certificate will be terminated and deemed involuntarily
surrendered by the holder hereof in exchange for a principal amount of the Term
Assets underlying this Certificate equal to the Certificate Principal Balance
hereof on August 1, 2018.
The Trust was created pursuant to a Base Trust Agreement dated as of
May 21, 1998 (the "Agreement"), between the Depositor and U.S. Bank Trust
National Association, a national banking association, not in its individual
capacity but solely as Trustee (the "Trustee"), as supplemented by the Series C
1998-6 Supplement dated as of May 21, 1998 (the "Series Supplement" and,
together with the Agreement, the "Trust Agreement"), between the Depositor and
the Trustee. This Certificate does not purport to summarize the Trust Agreement
and reference is hereby made to the Trust Agreement for information with respect
to the interests, rights, benefits, obligations, proceeds and duties evidenced
hereby and the rights, duties and obligations of the Trustee with respect
hereto. A copy of the Trust Agreement may be obtained from the Trustee by
written request sent to the Corporate Trust Office. Capitalized terms used but
not defined herein have the meanings assigned to them in the Trust Agreement.
This Certificate is one of the duly authorized Certificates designated
as "TIERSSM Corporate Bond-Backed Certificates, Series C 1998-6, ZTF Class
Certificates" (herein called the "ZTF Class Certificates"). The Trust is also
issuing certificates designated as "TIERSSM Corporate Bond-Backed Certificates,
Series C 1998-6, Amortizing Class Certificates" (hereinafter called the
"Amortizing Class Certificates" and together with the ZTF Class Certificates,
the "Certificates") pursuant to the Trust Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Trust
Agreement, to which Trust Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which such Holder is bound. The property of
the Trust consists of the Term Assets and all payments on or collections in
respect of the Term Assets accrued on or after February 1, 1998, all as more
fully specified in the Trust Agreement. Additional Term Assets may be deposited
in the Trust and additional Certificates may be authenticated and delivered from
time to time in the appropriate Certificate Principal Balance as provided in the
Trust Agreement, which additional Certificates shall rank pari passu with all
other Certificates of the same class issued in accordance with the Series
Supplement.
Subject to the terms and conditions of the Trust Agreement (including
the availability of funds for distributions) and until the obligation created by
the Trust Agreement shall have terminated in accordance therewith, distributions
will be made on each Distribution Date to the Person in whose name this
Certificate is registered on the applicable Record Date, in an amount equal to
such Certificateholder's fractional undivided interest in the amount required to
be distributed to the Holders of the ZTF Class Certificates on such Distribution
Date. The Record Date applicable to any Distribution Date is the day immediately
preceding such Distribution Date. "Available Funds" shall mean, as of any
Distribution Date, the aggregate amount received on or with respect to the Term
Assets on or with respect to such Distribution Date.
Distributions made on this Certificate will be made as provided in the
Trust Agreement by the Trustee by wire transfer or credit to the appropriate
account of the Holder in immediately available funds, without the presentation
or surrender of this Certificate or the making of any notation hereon. Except as
otherwise provided in the Trust Agreement and notwithstanding the above, the
final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency maintained for that
purpose by the Trustee in the Borough of Manhattan, City of New York.
Reference is hereby made to the further provisions of this Certificate
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
or on behalf of the Trustee, by manual signature, this Certificate shall not
entitle the holder hereof to any benefit under the Trust Agreement or be valid
for any purpose.
It is the intent of the Depositor and the Certificateholders that, for
purposes of federal income, state and local income and franchise taxes and any
other taxes imposed upon, measured by or based upon gross or net income, the
Trust shall be treated as a grantor trust or, failing that, as a partnership
that is not taxable as a corporation or a publicly traded partnership, and the
Trust Agreement shall be interpreted accordingly. Except as otherwise required
by appropriate taxing authorities, the Depositor and the other
Certificateholders by acceptance of a Certificate, agree to treat, the
Certificates for such tax purposes as interests in such grantor trust. It is
also the intent of the Depositor and the Certificateholders that, in the event
that the Internal Revenue Service successfully recharacterizes the Trust as a
partnership for federal income tax purposes, the Trust will elect out of
subchapter K of the Code beginning with the first taxable year of the Trust.
THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY THEREIN WITHOUT REFERENCE TO SUCH STATE'S PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY, AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE HOLDER HEREOF SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
<PAGE>
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed as of the date set forth below.
U.S. BANK TRUST NATIONAL
ASSOCIATION, not in its individual capacity
but solely as Trustee,
By:
Authorized Signatory
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the ZTF Class Certificates described in the Trust
Agreement referred to herein.
U.S. BANK TRUST NATIONAL
ASSOCIATION, not in its individual capacity
but solely as Trustee,
By:
Authorized Signatory
Dated: May 21, 1998
<PAGE>
(REVERSE OF TRUST CERTIFICATE)
The Certificates are limited in right of distribution to certain
payments and collections respecting the Trust Agreement, all as more
specifically set forth herein and in the Trust Agreement. The registered Holder
hereof, by its acceptance hereof, agrees that it will look solely to the Term
Assets (to the extent of its rights therein) for distributions hereunder.
Subject to the next paragraph and to certain exceptions provided in
the Trust Agreement, the Trust Agreement permits the amendment thereof and the
modification of the rights and obligations of the Depositor and the Trustee and
the rights of the Certificateholders under the Trust Agreement at any time by
the Depositor and the Trustee with the consent of the Holders of Certificates
evidencing greater than the Required Percentage which shall be either 50% or
66-2/3% of the aggregate Voting Rights of each Outstanding Class of Certificates
as set forth in the Trust Agreement. Any such consent by the Holder of this
Certificate (or any predecessor Certificate) shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange hereof or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Trust Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.
The Certificates are issuable in fully registered form only in minimum
original principal amounts of $1,000 and integral multiples thereof. As provided
in the Trust Agreement and subject to certain limitations therein set forth,
Certificates are exchangeable for new Certificates of the same principal amount,
class, original issue date and maturity, in authorized denominations as
requested by the Holder surrendering the same.
As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies of the Certificate Registrar maintained by
the Trustee in the Borough of Manhattan, The City of New York, duly endorsed, by
or accompanied by an assignment in the form below and by such other documents as
required by the Trust Agreement signed by, the Holder hereof, and thereupon one
or more new Certificates of the same class in authorized denominations
evidencing the same principal amount will be issued to the designated transferee
or transferees. The Certificate Registrar appointed under the Trust Agreement is
U.S. Bank Trust National Association.
No service charge will be made for any registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.
The Depositor and the Trustee and any agent of the Depositor or the
Trustee may treat the Person in whose name this Certificate is registered as the
owner hereof for all purposes, and neither the Depositor, the Trustee, nor any
such agent shall be affected by any notice to the contrary.
The Trust and the obligations of the Depositor and the Trustee created
by the Trust Agreement with respect to the Certificates shall terminate upon (a)
the distribution in kind of all the Term Assets to the ZTF Class
Certificateholders on August 1, 2018, (b) the payment in full of amounts due and
owing on the Certificates after a Special Event Redemption, (c) the distribution
in kind of the Term Assets to the ZTF Class Certificateholders and Amortizing
Class Certificateholders after a Payment Default or an Acceleration or (d) the
distribution in kind of all the Term Assets upon the tender at any time by an
affiliate of the Depositor of 100% of each of the aggregate principal amount of
the then-outstanding ZTF Class Certificates and the Amortizing Class
Certificates in exchange for 100% of the aggregate principal amount of the Term
Assets.
<PAGE>
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto
PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE
_______________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)
_______________________________________________________________________________
the within Trust Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing
_______________________________________________________________________________
Attorney to transfer said Trust Certificate on the books of the Certificate
Registrar, with full power of substitution in the premises.
Dated:
________________________*
Signature Guaranteed;
________________________*
* NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Trust Certificate in every particular,
without alteration, enlargement or any change whatever. Such signature must be
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Certificate Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Certificate Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
<PAGE>
SCHEDULE 1
IDENTIFICATION OF TERM ASSETS
TERMS OF TERM ASSETS
Term Assets Issuer: Chrysler Corporation
Term Assets: 7.40% Debentures due 2097
Dated: July 18, 1997
Original Principal Maturity Date: August 1, 2097
Original Par Value Amount Issued: $500,000,000
CUSIP Number: 171196 AT5
Stated Interest Rate: 7.40%
Interest Payment Dates: February 1 and August 1
Mode of Payment of Term Assets: By credit to the account of
the holder at DTC
Par Value Amount of Term Assets
Deposited Under Trust
Agreement: $50,000,000
The Term Assets will be held by the Trustee for the Owners of
Certificates as book-entry credits to an account of the Trustee at DTC.
AVAILABLE INFORMATION
The Term Assets Issuer is subject to the information requirements of
the Securities Exchange Act of 1934 and in accordance therewith files reports
and other information with the Commission. Such reports, proxy and information
statements and other information filed by the Term Assets Issuer with the
Commission can be inspected and copied at the public reference facilities
maintained by the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549,
and at the Commission's regional offices at 500 West Madison Street, 14th Floor,
Chicago, Illinois 60661 and 5 Park Place, New York, New York 10007. Copies of
such material can be obtained from the Public Reference Section of the
Commission at 450 Fifth Street, N.W., Washington, D.C. 20549, at prescribed
rates. The Commission maintains a Web site at http://www.sec.gov containing
reports, proxy statements and other information regarding registrants that file
electronically with the Commission. In addition, certain material described
above and other information will also be available for inspection at the offices
of the New York Stock Exchange at 20 Broad Street, New York, New York and the
Midwest Stock Exchange, 120 South LaSalle Street, Chicago, Illinois; the Pacific
Stock Exchange, Inc., 618 South Spring Street, Los Angeles, California 90014,
and 301 Pine Street, San Francisco, California 94104; and the Philadelphia Stock
Exchange, Inc., 1900 Market Street, Philadelphia, Pennsylvania 19103.
<PAGE>
SCHEDULE 2
<TABLE>
<CAPTION>
AMORTIZING CLASS CERTIFICATES
SCHEDULE OF AMORTIZING PAYMENTS
Total Amortized
Amortizing Outstanding
Distribution Date Interest Principal Payment Principal
Balance
<S> <C> <C> <C> <C>
May 21, 1998 $41,250,000.00
August 1, 1998 $1,361,250.00 $ 488,750.00 $1,850,000.00 $40,761,250.00
February 1, 1999 $1,345,121.25 $ 504,878.75 $1,850,000.00 $40,256,371.25
August 1, 1999 $1,328,460.25 $ 521,539.75 $1,850,000.00 $39,734,813.50
February 1, 2000 $1,311,249.44 $ 538,750.56 $1,850,000.00 $39,196,080.94
August 1, 2000 $1,293,470.67 $ 556,529.33 $1,850,000.00 $38,639,551.61
February 1, 2001 $1,275,105.20 $ 574,894.80 $1,850,000.00 $38,064,656.82
August 1, 2001 $1,256,133.67 $ 593,866.33 $1,850,000.00 $37,470,790.49
February 1, 2002 $1,236,536.09 $ 613,463.91 $1,850,000.00 $36,857,326.58
August 1, 2002 $1,216,291.78 $ 633,708.22 $1,850,000.00 $36,223,618.35
February 1, 2003 $1,195,379.41 $ 654,620.59 $1,850,000.00 $35,568,997.76
August 1, 2003 $1,173,776.93 $ 676,223.07 $1,850,000.00 $34,892,774.68
February 1, 2004 $1,151,461.56 $ 698,538.44 $1,850,000.00 $34,194,236.25
August 1, 2004 $1,128,409.80 $ 721,590.20 $1,850,000.00 $33,472,646.05
February 1, 2005 $1,104,597.32 $ 745,402.68 $1,850,000.00 $32,727,243.37
August 1, 2005 $1,079,999.03 $ 770,000.97 $1,850,000.00 $31,957,242.40
February 1, 2006 $1,054,589.00 $ 795,411.00 $1,850,000.00 $31,161,831.40
August 1, 2006 $1,028,340.44 $ 821,659.56 $1,850,000.00 $30,340,171.83
February 1, 2007 $1,001,225.67 $ 848,774.33 $1,850,000.00 $29,491,397.50
August 1, 2007 $ 973,216.12 $ 876,783.88 $1,850,000.00 $28,614,613.62
February 1, 2008 $ 944,282.25 $ 905,717.75 $1,850,000.00 $27,708,895.87
August 1, 2008 $ 914,393.56 $ 935,606.44 $1,850,000.00 $26,773,289.43
February 1, 2009 $ 883,518.55 $ 966,481.45 $1,850,000.00 $25,806,807.98
August 1, 2009 $ 851,624.66 $ 998,375.34 $1,850,000.00 $24,808,432.65
February 1, 2010 $ 818,678.28 $ 1,031,321.72 $1,850,000.00 $23,777,110.92
August 1, 2010 $ 784,644.66 $ 1,065,355.34 $1,850,000.00 $22,711,755.58
February 1, 2011 $ 749,487.93 $ 1,100,512.07 $1,850,000.00 $21,611,243.52
August 1, 2011 $ 713,171.04 $ 1,136,828.96 $1,850,000.00 $20,474,414.56
February 1, 2012 $ 675,655.68 $ 1,174,344.32 $1,850,000.00 $19,300,070.24
August 1, 2012 $ 636,902.32 $ 1,213,097.68 $1,850,000.00 $18,086,972.55
February 1, 2013 $ 596,870.09 $ 1,253,129.91 $1,850,000.00 $16,833,842.65
August 1, 2013 $ 555,516.81 $ 1,294,483.19 $1,850,000.00 $15,539,359.46
February 1, 2014 $ 512,798.86 $ 1,337,201.14 $1,850,000.00 $14,202,158.32
August 1, 2014 $ 468,671.22 $ 1,381,328.78 $1,850,000.00 $12,820,829.54
February 1, 2015 $ 423,087.37 $ 1,426,912.63 $1,850,000.00 $11,393,916.92
August 1, 2015 $ 375,999.26 $ 1,474,000.74 $1,850,000.00 $ 9,919,916.17
February 1, 2016 $ 327,357.23 $ 1,522,642.77 $1,850,000.00 $ 8,397,273.41
August 1, 2016 $ 277,110.02 $ 1,572,889.98 $1,850,000.00 $ 6,824,383.43
February 1, 2017 $ 225,204.65 $ 1,624,795.35 $1,850,000.00 $ 5,199,588.08
August 1, 2017 $ 171,586.41 $ 1,678,413.59 $1,850,000.00 $ 3,521,174.49
February 1, 2018 $ 116,198.76 $ 1,733,801.24 $1,850,000.00 $ 1,787,373.25
August 1, 2018 $ 58,983.32 $ 1,787,373.25 $1,846,356.57 $ 0.00
</TABLE>
<PAGE>
SCHEDULE 3
<TABLE>
<CAPTION>
AMOUNTS DISTRIBUTABLE UPON SPECIAL EVENT
REDEMPTION, PAYMENT DEFAULT OR ACCELERATION
Amortizing Class ZTF Class
Distribution Date Certificates Certificates
Amount of Percentage of Total Amount of Percentage of
Distribution (1) Distribution Distribution(1) Total Distribution
<S> <C> <C> <C> <C>
May 21, 1998 $38,074,931.47 76.15% $11,925,068.53 23.85%
August 1, 1998 $37,842,636.65 75.69% $12,157,363.35 24.31%
February 1, 1999 $37,403,648.59 74.81% $12,596,351.41 25.19%
August 1, 1999 $36,948,714.20 73.90% $13,051,285.80 26.10%
February 1, 2000 $36,477,256.99 72.95% $13,522,743.01 27.05%
August 1, 2000 $35,988,680.53 71.98% $14,011,319.47 28.02%
February 1, 2001 $35,482,367.89 70.96% $14,517,632.11 29.04%
August 1, 2001 $34,957,681.04 69.92% $15,042,318.96 30.08%
February 1, 2002 $34,413,960.33 68.83% $15,586,039.67 31.17%
August 1, 2002 $33,850,523.82 67.70% $16,149,476.18 32.30%
February 1, 2003 $33,266,666.82 66.53% $16,733,333.18 33.47%
August 1, 2003 $32,661,661.26 65.32% $17,338,338.74 34.68%
February 1, 2004 $32,034,755.11 64.07% $17,965,244.89 35.93%
August 1, 2004 $31,385,171.92 62.77% $18,614,828.08 37.23%
February 1, 2005 $30,712,110.20 61.42% $19,287,889.80 38.58%
August 1, 2005 $30,014,742.97 60.03% $19,985,257.03 39.97%
February 1, 2006 $29,292,217.23 58.58% $20,707,782.77 41.42%
August 1, 2006 $28,543,653.50 57.09% $21,456,346.50 42.91%
February 1, 2007 $27,768,145.41 55.54% $22,231,854.59 44.46%
August 1, 2007 $26,964,759.30 53.93% $23,035,240.70 46.07%
February 1, 2008 $26,132,533.84 52.27% $23,867,466.16 47.73%
August 1, 2008 $25,270,479.78 50.54% $24,729,520.22 49.46%
February 1, 2009 $24,377,579.66 48.76% $25,622,420.34 51.24%
August 1, 2009 $23,452,787.66 46.91% $26,547,212.34 53.09%
February 1, 2010 $22,495,029.48 44.99% $27,504,970.52 55.01%
August 1, 2010 $21,503,202.35 43.01% $28,496,797.65 56.99%
February 1, 2011 $20,476,175.07 40.95% $29,523,824.93 59.05%
August 1, 2011 $19,412,788.21 38.83% $30,587,211.79 61.17%
February 1, 2012 $18,311,854.40 36.62% $31,688,145.60 63.38%
August 1, 2012 $17,172,158.75 34.34% $32,827,841.25 65.66%
February 1, 2013 $15,992,459.42 31.98% $34,007,540.58 68.02%
August 1, 2013 $14,771,488.33 29.54% $35,228,511.67 70.46%
February 1, 2014 $13,507,952.09 27.02% $36,492,047.91 72.98%
August 1, 2014 $12,200,533.04 24.40% $37,799,466.96 75.60%
February 1, 2015 $10,847,890.59 21.70% $39,152,109.41 78.30%
August 1, 2015 $9,448,662.67 18.90% $40,551,337.33 81.10%
February 1, 2016 $8,001,567.54 16.00% $41,998,532.46 84.00%
August 1, 2016 $6,504,905.81 13.01% $43,495,094.19 86.99%
February 1, 2017 $4,957,562.73 9.92% $45,042,437.27 90.08%
August 1, 2017 $3,358,010.77 6.72% $46,641,989.23 93.28%
February 1, 2018 $1,704,812.66 3.41% $48,295,187.34 96.59%
August 1, 2018 $0.00 0.00% $50,000,000.00 100.00%
</TABLE>
<PAGE>
TABLE OF CONTENTS
PAGE
PRELIMINARY STATEMENT...................................................1
SECTION 1. Certain Defined Terms........................................1
SECTION 2. Creation and Declaration of Trust; Grant of Term Assets;
Acceptance by Trustee........................................6
SECTION 3. Designation..................................................6
SECTION 4. Date of the Certificates.....................................6
SECTION 5. Certificate Principal Balance and Denominations..............6
SECTION 6. Currency of the Certificates.................................7
SECTION 7. Form of Securities...........................................7
SECTION 8. [RESERVED.]..................................................7
SECTION 9. Certain Provisions of Base Trust Agreement Not Applicable....7
SECTION 10.Distributions................................................7
SECTION 11.[RESERVED.]..................................................9
SECTION 12.Termination of Trust.........................................9
SECTION 13.Limitation of Powers and Duties..............................9
SECTION 14.Compensation of Trustee.....................................11
SECTION 15.Modification or Amendment...................................11
SECTION 16.Accounting..................................................11
SECTION 17.No Investment of Amounts Received on Term Assets............12
SECTION 18.No Event of Default.........................................12
SECTION 19.Notices.....................................................12
SECTION 20.Access to Certain Documentation.............................12
SECTION 21.Advances....................................................13
SECTION 22.[RESERVED.].................................................13
SECTION 23.Ratification of Agreement...................................13
SECTION 24.Counterparts................................................13
SECTION 25.Governing Law...............................................13
SECTION 26.Trustee Election............................................13
SECTION 27.Covenant of Depositor.......................................13
SECTION 28.Affiliate's Exchange Right..................................14
SCHEDULE 1 -- Identification of Term Assets
SCHEDULE 2 -- Amortizing Class Certificates-Schedule of Amortizing Payments
SCHEDULE 3 -- Amounts Distributable Upon Special Event Redemption
