Res13 15263 - Laserfiche WebLink

Browse Search

institution which has an unsecured rating, or which agreement is itself rated, as of the date of execution thereof, "AA" and "Aa2", respectively, by S&P and Moody's, provided that (1) such agreement shall require that if during its term the provider's rating by either S&P or Moody's falls below "AA"-" or "Aa3," respectively, the provider shall, at its option, within 10 days of receipt of publication of such downgrade, either (i) collateralize the investment agreement by delivering or transferring in accordance with applicable state and federal laws (other than by means of entries on the provider's books) to the Authority, the Trustee or a third party acting solely as agent therefor(the"Holder of the Collateral") collateral free and clear of any third-party liens or claims the market value of which collateral is maintained at levels and upon such conditions as would be acceptable to S&P and Moody's to maintain an "A" rating in an "A" rated structured financing (with a market value approach); or (ii) at the sole expense of the provider, the provider shall obtain the unconditional assumption of their remaining obligations under the same terms and conditions of the investment agreement from an eligible replacement provider whose ratings are at least "AA-" and "Aa3" by S&P and Moody's, respectively; (2) if the provider's rating by either S&P or Moody's is withdrawn or suspended or falls below"A-"or "A3," respectively, the provider must, at the direction of the City, the Authority or the Trustee, within 10 days of receipt of sach direction, repay the principal of and accrued but unpaid interest on the investment, in either case with no penalty or premium to the Authority; (3) in the event that.the provider shall default in its payment obligations, the provider's obligations under the investment agreement shall, at the direction of the City, the Authority or the Trustee, be accelerated and amounts invested and accrued but unpaid interest thereon shall be repaid to the AuthoriTy or the Trustee, as appropriate;�and (4) should the provider become insolvent, not pay its debts as they become due, be declared or petition to be declared bankrupt, etc. ("event of insolvency"), the provider's obligations shall automatically be accelerated and amounts invested and accrued but unpaid interest thereon shall be repaid to the Authority or the Trustee, as appropriate. 7. Commercial paper rated, at the time of purchase, "Prime -1" by Moody's and"A- 1"or better by S&P. 8. Bonds or notes issued by any state or municipality which aze rated by Moody's and S&P in one of the two highest rating categories assigned by such agencies. 9. Federal funds or bankers acceptances with a m�imum term of one year of any bank which has an unsecured, uninsured and unguaranteed obligation rating of "Prime -1" or "A3"or better by Moody's and"A-1+"by S&P. 10. Repurchase agreements for 30 days or less must provide for the transfer of securities from a dealer bank or securities firm (seller/borrower) to the Trustee (buyer/lender), and the transfer of cash from the Trustee to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the Trustee in exchange for the securities at a specified date. 11. Medium-term Notes: Corporate notes issued by corporations organized and operating within the United States with a rating of"AAA" or higher at the time of purchase by a -8- 338471 1.DOC