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<br />capacity. Securities that are not held m the Book Entry System or DeposItones will be held in Bank of New York's
<br />vault and physically segregated from s~cuntles and other non-cash property belonging to Bank of New York.
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<br />(c)(i) Upon the initial and each subsequent deposit of Eligible Collateral and Proceeds mto the Account
<br />(including but not limited to any deposit of Eligible Collateral as part of an Approved Substitution), Bank of New
<br />York shall promptly provide Public Entity with a Trust Receipt. AddItIonal customized Account sUltements may be
<br />available upon mutual agreement of Public Entity and Bank of New York.
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<br />(ii) Public Entity agrees that It shall promptly revIew all Trust ReceIpts and Account statements delivered to
<br />it by Bank of New York and shall promptly adVIse Bank of New York by Oral Instruction or Wntten InstructJOn of
<br />any error, omission or inaccuracy m such statements. In the event that Bank of New York receives such an Oral
<br />Instruction or Wntten Instruction identifymg a specific concern WIth respect to the Aggregate Margm Value or any
<br />other matter connected with the Account, Bank of New York shall undertake to correct any errors, failures or
<br />omissions, provided that Bank of New York determines in its sole discretIOn that such error, failure or omission
<br />actually occurred and shall notify Public Entity of Its actIOn concerning each such error, failure, or omissIOn.
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<br />(d)
<br />New York.
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<br />The Account shall not be subject to any security mterest, hen or any right of set-off by Bank of
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<br />(e) Public EntIty agrees that, WIth respect lo all Securities held m the Account, Bank of New York by
<br />Itself, or through the use of the Book Entry System or the appropriate DepOSItory, shall, unless otherwlse lllstructed
<br />to the contrary by Bank of America or as provlded m SectIOn 3 hereof: (i) collect all payments reflecting mterest and
<br />pnncipal on the Securities in the Account and credIt such amounts to the Account pending receipt from Bank of
<br />Amenca, for depOSIt to the Account of addItional Eligible Collateral haVIng a Margin Value equal to or greater than
<br />the Margin Value of such payments; (Ii) forv,'ard to Bank of America copies of all information or documems that it
<br />may receive from an issuer of SecuritIes whIch, ID the opinion of Bank of New York, is intended far the beneficial
<br />owner of the Securities including, WIthout llTYlltatlOn all proxies and other authonzations properly executed and all
<br />proxy statements, notices and reports, (IIi) execute, as Bank of New York, any certificates of ownersillp, affidavIt~
<br />declaralJons or other certificates under any UlX laws now or hereafter m effect In connection with the collectJon of
<br />bond and note coupons; (iv) hold dITectly, or through the Book Entry System or Depository, all rights Issued WIth
<br />respect to any Secunties held by Bank of New York hereunder; and (v) upon receIpt of Written Instructlons from
<br />Bank of Amenca, Bank of New York will exchange Securities held hereunder for other securitIes and/or cash m
<br />connectlon \vith (A) any conversIOn pnvllege, reorgaruzation, recapltahzatlon, redemption in kind, consolidatIOn,
<br />tender offer or exchange offer, or (B) any exercise, subscnption, purchase or other sImilar rights; provided, however,
<br />such exchanged securities shall continue to be held by Bank of New York hereunder for the benefit of Public EntIty
<br />if such exchanged securities constitute EbgibJe Collateral. Upon receipt of addItIOnal Eligible Collateral as provided
<br />in clause (i) in the immediately preceding sentence, Bank of New York shall transfer from the Account to or for the
<br />benefit of Bank of America princIpal and mterest payments collected with respect to Securities in the Account.
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<br />(f) Bank of New York hereby agrees that Public Entity and, If permitted by law, the Comptroller of
<br />Public Accounls of the State of Texas (the "Comptroller") may inspect, al any tune during regular busmess hours of
<br />Bank of New York, one or more defmlllve Secuntles on depOSIt in the Account ar Bank of New York's books and
<br />records wlth respect to the Account. Bank of New York further agrees to file repons with the Comptroller regardmg
<br />the ElIgible Collateral and Proceeds pledged to secure the Uninsured DepOSIts of Public Entity hereunder, as and
<br />when required by the Comptroller,
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<br />3. CollectIOn of SecuritIes
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<br />IfPubhc EntIty certIfies m wntmg to Bank of New York that (a) Bank of America is in default under any
<br />underlymg pledge or secunty agreement between Public EntIty and Bank of Amenca and (b) Pubbc Emlty has
<br />sallsfied any notJce or other reqUITemenl to whIch Public EntIty IS subject pursuant to the DepOSItory Agreement
<br />between Public EntIty and Bank of Amenca, then Public EntIty may gIve Bank of New York Written InstructIOns (x)
<br />to transfer speCIfic amounts and Issues of SecuntJes held in the Accoum and. If applicable, speCIfic amounts of the
<br />Proceeds held m the Account whIch ha\e not preVIOusly been released 10 Bank of America, to deSIgnated accounts
<br />of Pubilc Entity and (y) to cease releasmg \0 an account of Bank of Amenca any Proceeds refleclmg mlereSI and
<br />pnnClpal on SecuntJes m the Account as provloed m paragraph (e) of SeCIJOn :2
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