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Cont. (part 1)
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Vol. 1- City of Santa Ana Financing Authority (Police Admin. and Holding Facility)
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Cont. (part 1)
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(b) On the Business Day preceding each Interest Payment Date, the Trustee <br /> shall advise: <br /> (i) the Auction Agent, so long as no Payment Default has occurred and is <br /> continuing and the ownership of the ARS is maintained in book-entry form by the <br /> Securities Depository, of (1) such next Interest Payment Date and (2) the amount <br /> payable to the Auction Agent on the Interest Payment Date pursuant to Section 3(e) <br /> of this Appendix; and <br /> (ii) the Securities Depository, so long as the ownership of the ARS or the <br /> IRS is maintained in book-entry form by the Securities Depository, of the Weighted <br /> Average Applicable Factors and the amount of interest distributable in respect of <br /> each $1,000 in principal amount (taken to the nearest ten thousandth (.0001) of 1% <br /> without rounding) of the ARS and the IRS for any Interest Period or portion thereof, <br /> calculated in accordance with Sections 3(e) and 3(g) of this Appendix. <br /> If any day scheduled to be an Interest Payment Date shall be changed after the <br /> Trustee shall have given the notice referred to in clause (i) of the preceding sentence, the <br /> Trustee shall, not later than 9:15 a.m., New York City time, on the Business Day next <br /> preceding the earlier of the new Interest Payment Date or the old Interest Payment Date, by <br /> such means as the Trustee deems practicable, give notice of such change to the Auction <br /> Agent, so long as no Payment Default has occurred and is continuing and the ownership of <br /> the ARS is maintained in book-entry form by the Securities Depository. <br /> Section 6. Adiustment in Percentages. <br /> (a) The Market Agent shall adjust the percentage used in determining the <br /> Minimum Rate, the Applicable Percentages used in determining the Maximum Rate and the <br /> percentage of the Index used in calculating the Non-Payment Rate, if any such adjustment is <br /> necessary, in the judgment of the Market Agent, to reflect any Change of Tax Law such <br /> that an ARS bearing interest at the Maximum Rate, an ARS bearing interest at the <br /> Minimum Rate and an ARS bearing interest at the Non-Payment Rate, in each case shall <br /> have substantially the same market values after such Change of Tax Law as before such <br /> Change of Tax Law. In making any such adjustment, the Market Agent shall take the <br /> following factors, as in existence both before and after such Change of Tax Law, into <br /> account: (i) short-term taxable and tax-exempt market rates and indices of such short-term <br /> rates; (ii) the market supply and demand for short-term tax-exempt securities; (iii) yield <br /> curves for short-term and long-term tax-exempt securities or obligations having a credit <br /> rating that is comparable to the ARS and IRS; (iv) general economic conditions; and (v) <br /> economic and financial factors present in the securities industry that may affect, or that may <br /> be relevant to, the ARS and IRS. <br /> (b) The Market Agent shall communicate its determination to adjust the <br /> percentage used in determining the Minimum Rate, the Applicable Percentages used in <br /> LA1-63221.5 A-16 <br />
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