SECTION 301. Remarketing of Tendered Bonds.
(a) On each
November 15, commencing November 15, 1987, prior to the Fixed Rate
Date and fifteen (15) days prior to the Mandatory Tender Date, the
Paying Agent shall give notice by telephone, telecopier, telegram
or other telecommunications device, promptly confirmed by a
written notice, to the State Treasurer, the University, the
Remarketing Agent and the Bank specifying the principal amount of
Bonds, if any, tendered or deemed to have been tendered for
purchase on the next succeeding Tender Date pursuant to Sections
204(c), 206, 402, 403 and 801 hereof and the amount necessary for
said purchase.
(b) The Remarketing Agent shall offer for sale an aggregate
principal amount of Bonds equal to the amount of Bonds as to which
the Paying Agent has delivered the notice specified in Section
301(a) above except that Bonds deemed to have been tendered
pursuant to Section 403 hereof shall not be remarketed.
(c) Upon receipt of notice from the Paying Agent of any
Bonds tendered or deemed to have been tendered in accordance with
Sections 204(c), 206, 402 and 801 hereof, the Remarketing Agent
shall offer for sale and use its best efforts to sell all such
Bonds on the next December 1, at a price equal to the principal
amount thereof and with an interest rate determined pursuant to
Sections 203 and 204 hereof. All Bonds sold by the Remarketing
Agent pursuant to this section shall be sold at the Adjustable
Interest Rate prior to the Fixed Rate Date and at the Fixed
Interest Rate on and after the Fixed Rate Date. The Remarketing
Agent shall notify the Paying Agent by 11:00 A.M., New York time,
on the Business Day prior to each December 1 of the principal
amount of Bonds sold pursuant to this paragraph, and the names and
addresses of the purchasers of such Bonds. The proceeds received
from the purchaser of any Bonds resold by the Remarketing Agent
shall be paid by the Remarketing Agent to the Paying Agent by
11:00 A.M., New York time, on such December 1 for payment to the
holders who have tendered or are deemed to have tendered such
Bonds.
(d) On the appropriate Tender Date, the Paying Agent shall
draw on the Credit Facility an amount sufficient, together with
the proceeds received from the Remarketing Agent, to pay the
Holders tendering or deemed to have tendered their Bonds for
purchase on said date pursuant to Sections 206(a), 204, 402, 403
and 801 hereof. The Paying Agent shall, not later than 3:00 P.M.,
New York time, on the Business Day preceding each Tender Date,
submit the necessary draw certificates to ensure that, on each
Tender Date, the Paying Agent shall draw on the Credit Facility in
an amount sufficient, together with the proceeds received from the
Remarketing Agent, to pay the purchase price of any Bonds tendered
or deemed to have been tendered for purchase on such Tender Date.
Bonds purchased with the proceeds of a drawing under the Credit
Facility shall be delivered to the Bank in exchange for the
proceeds of such drawing.
(e) The Remarketing Agent shall continue to offer for sale
Bank Bonds for the account of the Bank and shall use its best
efforts to sell, at a price not less than the principal amount
thereof, any Bank Bonds.
- (f) The portion of the purchase price attributable to
principal of Bonds tendered or deemed to have been tendered for
purchase shall be paid only from the following sources:
- (i) the proceeds of the sale of such Bonds by the
Remarketing Agent; and
- (ii) to the extent that the proceeds derived from the
Remarketing Agent shall be insufficient therefor, the
proceeds of a drawing under the Credit Facility.
(g) The portion of the purchase price of Bonds attributable
to interest shall be paid only from the sources specified in
Section 210 hereof.
(h) The University and the Remarketing Agent shall, upon the
remarketing of any Tendered Bonds, deliver to the Paying Agent in
its capacity as Custodian under the Custody Agreement, dated as of
November 1, 1984, by and between the Bank and the Paying Agent
(the "Custody Agreement"), the certificates required to be
delivered by each of them by Section 3 of the Custody Agreement in
order to cause the automatic reinstatement of the obligation of
the Bank to honor drawings under the Credit Facility for the
purpose of paying the principal portion of the purchase price of
such Tendered Bonds in an amount equal to the principal amount of
such Tendered Bonds.
