SECTION 403. Mandatory Tender Provisions.
If (i) the Bank
gives notice to the Paying Agent requiring the Paying Agent to
cause the mandatory tender for purchase of all Bonds on the
Mandatory Tender Date as a result of an event of default under the
Reimbursement Agreement (or similar agreement with respect to a
Substitute Credit Facility or Alternate Credit Facility), (ii) the
State Treasurer gives notice to the Paying Agent that there are
not sufficient Net Revenues made available by the University to
make the deposit to the Reserve Account required by Section 605(d)
hereof or (iii) an Act of Bankruptcy shall have occurred, the
Holders of all Bonds (other than Bank Bonds) shall be deemed to
have tendered their Bonds to the Paying Agent effective as of the
Mandatory Tender Date and the Holders of such Tendered Bonds shall
have only those rights with respect to such Tendered Bonds as are
set forth in Section 207 hereof. Upon receipt of such notice from
the Bank or the State Treasurer the Paying Agent shall give
written notice to the Holders as soon as practicable thereafter,
but in any event not later than twenty days prior to the Mandatory
Tender Date, stating: (i) that all Bonds shall be deemed to have
been tendered as of the Mandatory Tender Date, (ii) that the
Holders of all such Bonds shall not be entitled to any payment
(including any interest to accrue subsequently to the Mandatory
Tender Date) other than the purchase price for such Bonds which
shall be equal to the unpaid principal amount of such Bonds, and
such Bonds shall no longer be entitled to the benefits of the
Resolution except for the purpose of payment of the purchase price
therefor, which payment shall be made only upon the surrender of
such Bonds at the principal corporate trust office of the Paying
Agent; and (iii) that the Holders will not have the right to elect
to retain their Bonds.
