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<br />5 <br /> <br />4826-7904-2280v7/200434-0005 <br />Mandatory Sinking Fund Redemption of the Bonds <br />The Bonds maturing August 1, 20__ (the “Term Bonds”) are subject to mandatory sinking fund <br />redemption at a redemption price equal to the principal amount thereof, plus accrued interest to the redemption <br />date, without premium. The Term Bonds will be so redeemed on the following dates and in the following <br />amounts: <br />Redemption Date <br />(August 1) <br />Principal <br />Amount <br /> <br /> <br /> <br /> <br /> <br /> <br />* <br /> <br />* Final maturity. <br />On or before each July 15 next preceding any mandatory sinking fund redemption date, the Trustee will <br />proceed to select for redemption pro-rata from all Term Bonds subject to mandatory sinking fund redemption at <br />that time, an aggregate principal amount of such Term Bonds equal to the amount for such year as set forth in <br />the table above and will call such Term Bonds or portions thereof for redemption and give notice of such <br />redemption in accordance with the terms of the Trust Agreement. At the option of the City, to be exercised by <br />delivery of a written certificate to the Trustee on or before June 1 next preceding any mandatory sinking fund <br />redemption date, it may: (a) deliver to the Trustee for cancellation Term Bonds or portions thereof (in the amount <br />of an Authorized Denomination) of the stated maturity subject to such redemption; or (b) specify a principal <br />amount of such Term Bonds or portions thereof (in the amount of an Authorized Denomination) which prior to <br />said date have been purchased or redeemed (otherwise than under the mandatory sinking fund redemption <br />provisions of the Trust Agreement) and cancelled by the Trustee at the request of the City and not theretofore <br />applied as a credit against any mandatory sinking fund redemption requirement. Each such Term Bonds or <br />portion thereof so delivered or previously redeemed will be credited by the Trustee at 100% of the principal <br />amount of the Term Bonds so delivered to the Trustee by the City against the obligation of the City on such <br />mandatory sinking fund redemption date. <br />Selection of Bonds for Redemption <br />If less than all of the Bonds are called for redemption, the City will designate the maturities from which <br />the Bonds are to be redeemed. For so long as the Bonds are registered in book entry form and DTC or a successor <br />securities depository is the sole registered owner of such Bonds, if fewer than all of such Bonds of the same <br />maturity and bearing the same interest rate are to be redeemed, the particular Bonds to be redeemed shall be <br />selected on a pro rata pass-through distribution of principal basis in accordance with the operational <br />arrangements of DTC then in effect, and if the DTC operational arrangements do not allow for redemption on a <br />pro rata pass-through distribution of principal basis, all Bonds to be so redeemed will be selected for redemption <br />in accordance with DTC procedures by lot; provided further that any such redemption must be performed such <br />that all Bonds remaining outstanding will be in authorized denominations. <br />In connection with any repayment of principal of the Bonds pursuant to the pass-through distribution of <br />principal as described above, the Paying Agent will direct DTC to make a pass-through distribution of principal <br />to the owners of the Bonds. A form of Pro Rata Pass-Through Distribution of Principal Notice will be provided <br />to the Trustee that includes a table of factors reflecting the relevant scheduled redemption payments and DTC’s <br />applicable procedures, which are subject to change.