DTC Notes; Book-Entry Notes Sample Clauses
The "DTC Notes; Book-Entry Notes" clause defines how certain securities, such as notes or bonds, are issued and held in electronic form through the Depository Trust Company (DTC) system, rather than as physical certificates. Under this arrangement, ownership and transfers of the notes are recorded electronically, and investors hold beneficial interests through accounts with DTC participants, such as banks or brokers. This clause ensures efficient settlement, reduces the risk of loss or theft of physical certificates, and streamlines the process of trading and transferring the notes.
DTC Notes; Book-Entry Notes. The DTC Notes shall be delivered by the Issuer to DTC or, pursuant to DTC’s instructions, shall be delivered by the Issuer on behalf of DTC to and deposited with the DTC Custodian, and in each case shall be registered in the name of Cede & Co. The Book-Entry Notes may be deposited with such other depositary as the Issuer may from time to time designate, and shall bear such legend as may be appropriate; provided that such successor depositary maintains a book-entry system that qualifies to be treated as “registered form” under Section 163(f)(3) of the Code.