Common use of Term Rate Clause in Contracts

Term Rate. A Term Rate shall be determined for each --------- Term Rate Period as described below. Upon conversion to a Term Mode, a Nominal Term Rate Period shall be fixed by the Borrower pursuant to Section 2.05 as a term of two or more consecutive Semiannual Periods constituting the nominal length of each Term Rate Period thereafter until the date of a conversion to another Rate Mode. A Term Mode based on one Nominal Term Rate Period and a Term Mode based on another Nominal Term Rate Period are different Rate Modes. Each Term Rate shall be determined by the Remarketing Agent, on the Term Rate Calculation Date, as the lowest rate of interest that, in the judgment of the Remarketing Agent, taking into account prevailing financial market conditions, would be necessary to enable the Remarketing Agent to arrange for the sale of the Bonds in the respective Term Mode in a secondary market sale at a price equal to the principal amount thereof, plus accrued interest, on the first Business Day of the respective Term Rate Period; provided that (1) if the Remarketing Agent fails for any reason to determine the Term Rate for any Term Rate Period, such Term Rate shall be equal to 80% of the average of the annual bond equivalent yield evaluations at par as of the first day of the corresponding Term Rate Period or, if such day is not a Business Day, the next preceding Business Day of United States Treasury obligations having a term to maturity similar to such Term Rate Period, and (2) no Term Rate shall exceed the lesser of (i) the maximum interest rate at which the Letter of Credit then in effect provides coverage for at least 200 days interest and (ii) 25% per annum. In determining a Term Rate pursuant to this Section, prevailing financial market conditions which the Remarketing Agent shall take into account shall include (i) existing long-term tax-exempt market rates and indexes of such long-term rates, (ii) the existing market supply and demand for long-term tax-exempt securities, (iii) existing yield curves for long-term tax-exempt securities for obligations of credit quality comparable to the Bonds, (iv) general economic conditions, (v) industry, economic and financial conditions that may affect or be relevant to the Bonds, and (vi) such other facts, circumstances and conditions as the Remarketing Agent, in its sole discretion, shall determine to be relevant. Notice of each Term Rate shall promptly be given by telephone (promptly confirmed in writing) by the Remarketing Agent to the Trustee, the Issuer, the Borrower and the Bank. Determinations of Term Rates pursuant to this Section shall be conclusive and binding upon the Issuer, the Borrower, the Trustee, the Bank and the Holders.

Term Rate. (a) A Term Rate shall be determined for each --------- Term Rate Period as described below. Upon conversion to a Term Mode, a Nominal Term Rate Period shall be fixed by the Borrower Company pursuant to Section 2.05 2A.5 as a term of two or more consecutive Semiannual Periods constituting the nominal length of each Term Rate Period thereafter until the date of a conversion to another Rate Mode. A Term Mode based on one Nominal Term Rate Period and a Term Mode based on another Nominal Term Rate Period are different Rate Modes. Each Term Rate shall be determined by the Remarketing Agent, Agent on the Term Rate Calculation Date, Date as the lowest rate of interest thatwhich, in the judgment of the Remarketing Agent, Agent taking into account prevailing financial market conditionsPrevailing Market Conditions, would be necessary to enable the Remarketing Agent to arrange for the sale of the Bonds in the respective Term Mode in a secondary market sale at a price equal to the principal amount thereof, plus accrued interest, thereof on the first Business Day of the respective Term Rate Period; provided that (1) if the Remarketing Agent fails for any reason to determine the Term Rate for any Term Rate Period, such Term Rate shall be equal to 8090% of the average of the annual bond equivalent yield evaluations at par as provided by the Remarketing Agent as of the first day of the corresponding Term Rate Period or, if such day is not a Business Day, the next preceding Business Day Day, of United States Treasury obligations having a term to maturity similar to such Term Rate Period, and (2) in no event shall any Term Rate shall for any Term Rate Period exceed the lesser of (i) 12% per annum or, if a Liquidity Facility is in effect, the maximum interest rate at which the Letter of Credit then in effect such Liquidity Facility provides coverage for at least 200 days interest and (ii) 25% per annum. In determining a Term Rate pursuant to this Section, prevailing financial market conditions which the Remarketing Agent shall take into account shall include (i) existing long-term tax-exempt market rates and indexes of such long-term rates, (ii) the existing market supply and demand for long-term tax-exempt securities, (iii) existing yield curves for long-term tax-exempt securities for obligations of credit quality comparable to the Bonds, (iv) general economic conditions, (v) industry, economic and financial conditions that may affect or be relevant to the Bonds, and (vi) such other facts, circumstances and conditions as the Remarketing Agent, in its sole discretion, shall determine to be relevant193 days' interest. Notice of each Term Rate shall promptly be given by telephone (promptly confirmed in writing) by the Remarketing Agent to the Issuer, the Trustee, the IssuerCompany, the Borrower Bank, the Insurer, and the BankPaying Agent. Determinations of Term Rates pursuant to this Section shall be conclusive and binding upon the Issuer, the BorrowerCompany, the Trustee, the Bank Paying Agent, the Bank, the Insurer and the HoldersOwners.

Term Rate. A The Term Rate shall be determined for each --------- Term Rate Period as described below. Upon conversion to a Term Mode, a Nominal Term Rate Period shall be fixed by the Borrower pursuant to Section 2.05 as a term of two or more consecutive Semiannual Periods constituting the nominal length of each Term Rate Period thereafter until the date of a conversion to another Rate Mode. A Term Mode based on one Nominal Term Rate Period and a Term Mode based on another Nominal Term Rate Period are different Rate Modes. Each The Term Rate shall be determined by the Remarketing Agent, on the Term Rate Calculation Date, as the lowest rate of interest that, in the judgment of the Remarketing Agent, taking into account prevailing financial market conditions, would be necessary to enable the Remarketing Agent to arrange for the sale of the Bonds in the respective Term Mode in a secondary market sale at a price equal to the principal amount thereof, without premium plus accrued interest, on the first Business Day of the respective Term Rate Period; provided that (1) if the Remarketing Agent fails for any reason to determine the Term Rate for any Term Rate Period, such Term Rate shall be equal to 80125% of the average of the annual bond equivalent yield evaluations calculations at par as of the first day of the corresponding Term Rate Period or, if such day is not a Business Day, the next preceding Business Day Day, of United States Treasury obligations having a term to maturity similar to such Term Rate Period, and (2) no Term Rate shall exceed the lesser of (i) the maximum interest rate at which the Letter Letters of Credit then in effect provides coverage for at least 200 Forty Three (43) days interest and (ii) 2510% per annum. In determining a Term Rate pursuant to this Section, prevailing financial market conditions which the Remarketing Agent shall take into account shall include (i) existing long-term tax-exempt market rates and indexes of such long-term rates, (ii) the existing market supply and demand for long-term tax-exempt securities, (iii) existing yield curves for long-term tax-exempt securities for obligations of credit quality comparable to the Bonds, (iv) general economic conditions, (v) industry, economic and financial conditions that may affect or be relevant to the Bonds, and (vi) such other facts, circumstances and conditions as the Remarketing Agent, in its sole discretion, shall determine to be relevant. Notice of each Term Rate shall promptly be given by telephone (promptly confirmed in writing) by the Remarketing Agent to the Trustee, the Issuer, the Borrower Company and the BankAgent. Determinations of Term Rates pursuant to this Section shall be conclusive and binding upon the Issuer, the BorrowerCompany, the Trustee, the Bank Agent and the Holders.

Term Rate. A The Bonds shall initially bear interest at the Variable Rate. In addition, the Bonds shall bear interest at a Term Rate during each Term Rate Period of 30 days, 6 months, 1 year or any multiple of 1 year specified by the Company as provided below. Each period during which a Term Rate is in effect is herein called a "Term Rate Period." The first day of any such Term Rate Period is herein called a "Conversion Date." The Term Rate shall be determined for each --------- Term Rate Period as described below. Upon conversion to a Term Mode, a Nominal Term Rate Period fixed rate per annum which shall be fixed by applicable during the Borrower pursuant to Section 2.05 as a term of two or more consecutive Semiannual Periods constituting the nominal length of each Term Rate Period thereafter until the date of a conversion to another Rate Mode. A Term Mode based on one Nominal entire Term Rate Period and a Term Mode based on another Nominal Term Rate Period are different Rate Modes. Each Term Rate shall be determined by the Remarketing Agent, on Agent as provided below. The Company may elect that the Bonds bear interest at a Term Rate by delivery of written notice of such election to the Trustee not less than 40 days prior to the proposed Conversion Date. Such notice shall specify the first day and the last day of the Term Rate Calculation DatePeriod elected; provided, however, that (i) as a condition to the lowest rate establishment of a Term Rate, the Company shall cause to be delivered to the Board and the Trustee an opinion of Bond Counsel stating that the establishment of such Term Rate will not cause the interest that, in the judgment of the Remarketing Agent, taking into account prevailing financial market conditions, would be necessary to enable the Remarketing Agent to arrange for the sale of income on the Bonds in the respective Term Mode in a secondary market sale at a price equal to the principal amount thereofbecome taxable, plus accrued interest, on the first Business Day of the respective Term Rate Period; provided that (1ii) if the Remarketing Agent fails for any reason to determine the Term Rate for any such election is made during a Term Rate Period, such Term Rate shall the specified Conversion Date may not be equal to 80% of the average of the annual bond equivalent yield evaluations at par as of sooner than the first day of immediately following the corresponding Term Rate Period orthen in effect, if such day is not a Business Day, the next preceding Business Day of United States Treasury obligations having a term to maturity similar to such Term Rate Period, and (2iii) no Term Rate shall exceed the lesser of either (iA) the maximum interest rate at which the Letter of Credit then in effect provides must have a Stated Expiration Date that is not earlier than the 15th day following the expiration of such Term Rate Period, provide coverage of interest on the Bonds at the Maximum Rate for a number of days not less than the sum of 15 days plus the maximum number of days between Interest Payment Dates with respect to such Term Rate Period and provide coverage for at least 200 days interest the payment of the maximum redemption premium payable with respect to the Bonds during such Term Rate Period, or, (B) as a condition to the establishment of such Term Rate Period, the Company shall be required to deliver to the Trustee a Substitute Letter of Credit in accordance with the provisions of the Indenture, and (iiiv) 25% per annum. In determining a the Term Rate pursuant Period may not extend beyond the day immediately prior to this Sectionthe final maturity of the Bonds. Any such election by the Company shall be irrevocable after 3:00 p.m. (Detroit, prevailing financial market conditions which Michigan time) on the Remarketing Agent last Business Day immediately prior to the proposed Conversion Date. A notice given by the Company may specify that successive Term Rate Periods of specified lengths shall take into account shall include (i) existing long-term tax-exempt market rates and indexes of such long-term rates, (ii) the existing market supply and demand for long-term tax-exempt securities, (iii) existing yield curves for long-term tax-exempt securities for obligations of credit quality comparable be established with respect to the Bonds, (iv) general economic conditions, (v) industry, economic and financial conditions that may affect or be relevant . If such notice is provided to the Bonds, Trustee and (vi) such the other facts, circumstances and conditions requirements of the Indenture are met as the Remarketing Agent, in its sole discretion, shall determine to be relevant. Notice of each Conversion Date, no additional notice shall be required from the Company to establish a new Term Rate shall promptly on each such Conversion Date. Any such notice may be given by telephone revoked prior to 3:00 p.m. (promptly confirmed in writingDetroit, Michigan time) by on the Remarketing Agent last Business Day immediately prior to the Trusteeeach proposed Conversion Date, the Issuer, the Borrower and the Bank. Determinations of Term Rates pursuant to this Section but such revocation shall be conclusive and binding upon applicable only with respect to proposed Term Rate Periods commencing after the Issuer, date of the Borrower, the Trustee, the Bank and the Holdersnotice of revocation.