Item 9 Preliminary Official Statment Dated February 25, 1994

Home Browse Search

the extent possible, results in approximately equal Annual Debt Service on the Bonds Outstanding following such redemption. For purposes of selecting Bonds for redemption, Current Interest Bonds shall be deemed to be composed of portions of$5,000 principal and Capital Appreciation Bonds shall be deemed to be composed of $5,000 maturity amount and any such portion may be separately redeemed. If notice of redemption has been duly given as aforesaid and money for the payment of the redemption price of the Bonds called for redemption is held by the Trustee, then on the redemption date designated in such notice Bonds shall become due and payable, and from and after the date so designated interest on the Bonds so called for redemption shall cease to accrue, and the Owners of such Bonds shall have no rights in respect thereof except to receive payment of the redemption price thereof. Failure by the Trustee to give notice pursuant to the Indenture to any one or more of the Information Services or the Securities Depositories, or the insufficiency of any such notice, shall not affect the sufficiency of the proceedings for redemption and shall not result in any liability to the Trustee. Failure by the Trustee to mail notice of redemption pursuant to the Indenture to any one or more of the respective Owners of any Bonds designated for redemption will not affect the sufficiency of the proceedings for redemption with respect to the Owners to whom such notice was mailed and shall not result in any liability to the Trustee. All Bonds redeemed pursuant to the provisions of the Indenture shall be cancelled by the Trustee and shall be destroyed and shall not be reissued. Exchange of Bonds Bonds may be exchanged at the Corporate Trust Office of the Trustee for a like aggregate principal amount of fully registered Bonds of the same series and maturity of other Authorized Denominations. The Trustee will require the payment by the Owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange as a condition precedent to the exercise of such privilege. The Trustee shall not be required to register the transfer of the exchange of any Bond (i) during any period commencing the day five (5) Business Days before the date on which Bonds are to be selected for redemption and ending on such date of selection, or(ii) which has been selected for redemption in whole or in part. Book-Entry System General The Bonds will be executed and delivered in the form of one global bond for each maturity, registered in the name of Cede & Co. and will be deposited with The Depository Trust Company ("DTC"). The Authority cannot and does not give any assurances that DTC Participants or others will distribute payments with respect to the Bonds received by DTC or its nominee as the registered owner, or any redemption or other notices, to the Beneficial Owners, or that they will do so on a timely basis, or that DTC will serve and act in the manner described in this Official Statement. See Appendix D hereto for additional information concerning DTC. The Authority may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, Bonds will be printed and delivered and will be governed by the provisions of the Indenture with respect to payment of principal and interest and rights of exchange and transfer. THE TRUSTEE, AS LONG AS A BOOK-ENTRY ONLY SYSTEM IS USED FOR THE BONDS, WILL SEND ANY NOTICE OF REDEMPTION OR OTHER NOTICES TO OWNERS ONLY TO DTC. ANY FAILURE OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC PARTICIPANT TO NOTIFY ANY BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT OR EFFECT WILL NOT AFFECT THE VALIDITY OR SUFFICIENCY OF THE PROCEEDINGS RELATING TO THE 7