Operational arrangements - bet 7
V. Redemption Notifications / Procedures
A. Redemptions, Advance Refundings, and Calls Inclusive of Sinking Funds
and Mandatory Redemptions
In the event of a full or partial redemption or advance refunding of a portion of outstanding
Securities, all redemption notification documents should be sent to DTC electronically. When
utilizing e-mail, redemption notifications should be sent to
Senders will receive an e-mail "confirmation of receipt" for all notifications received by theRedemption Notification e-mail address.
In the event of a full or partial redemption or an advance refunding of part of the outstandingSecurities, Issuer or Agent shall send a notice to DTC specifying:
Security description and CUSIP number(s);
amount of the redemption or refunding (in the case of a refunding, the maturity date(s)established under the refunding);
Publication Date of any related notices;
Redemption Agent’s name and address (predetermined number issued for spreadsheet
administrator’s contact information;
rate information; and
any other descriptive information that accurately identifies the called Security.
Unless the option for pro rata pass-through distributions of principal is clearly indicated to DTCat the time the issue is made eligible, DTC will process redemptions by means of a random
.(See Section V(A)(1), Notification of Pro Rata Pass-Through Distributions of Principal).
DTC does not support the announcement of, or payment distribution for, “pro-rata lottery”redemptions.
DTC will consider for eligibility a new issue of securities where the issuance is registered underthe Securities Act and containing provisions for monthly optional redemptions by the Issuer if
and only if the issue is in BEO format and DTC has received an executed LOR prior to closing.
(See Section (I) (B), Documentation)
Notification should be sent to DTC in a timely manner designed to assure that such notice is inDTC’s possession no later than the close of business two business days before the Publication
Date. Except as noted below, the Publication Date shall be no fewer than 30 calendar days nor
more than 60 calendar days prior to the redemption date or, in the case of an advance refunding,
the date that the proceeds are deposited in escrow (and, in such cases, final notification must be
received no later than 30 calendar days prior to the refunding date). The Publication Date for a
conventional municipal bond
shall be no fewer than 20 calendar days nor more than 60 calendardays prior to the redemption date or, in the case of an advance refunding, the date that the
proceeds are deposited in escrow (and, in such cases, final notification must be received no later
than 20 calendar days prior to the refunding date).
A conventional municipal bond is defined as a bond without any derivatives attached to it and noinherent features that would prevent a redemption announcement from being provided in a timely manner.
Such notice should be sent to DTC by using the appropriate DTC formatted Microsoft Excelspreadsheet (which contains the pertinent data fields) to be attached to the e-mail. A copy of this
format can be obtained by contacting the Call Notification Department at (212) 855-4349, 7207,
or (813) 470-1170, 1161, 1165, or by e-mailing DTC at
Word and Adobe Reader formatted documents are also acceptable. Senders will receive a"confirmation of receipt" via e-mail for all notifications received via e-mail. If the person sending
the notice does not receive an e-mail from DTC confirming that the notice has been received,
such person must telephone the Customer Service help line at 1-888-382-2721 to confirm receipt.
Delivery of the notice to a mailbox location or e-mail address other than the mailbox location ore-mail address set forth above will not constitute a valid notification.
A “second” redemption notice shall be sent to DTC in a secure fashion within 60 calendar days, ifaction is required and if DTC has not responded to the first notice.
Automated CUSIP level identification must accompany all redemption payments to DTC. Agentsmust include the CUSIP number, DTC’s RPS form number, or DTC’s Letter of Transmittal
(“LT”) form number to identify all redemption payments. The LT is the form used by paying
agents to confirm information about Securities to be redeemed and provides the paying agent with
The Agent’s receipt of securities and redemption presentment documentation from DTC shouldbe confirmed to DTC by using DTC’s PBS function Redemption Payment Summary Return
Paying agents on the Payment Without Presentation (“PWP”) program must send their
confirmations via e-mail at
using the format provided by DTC
confirmation verifies receipt of the redemption presentment and confirms intent to pay DTC, on
the payable date by 3:00 p.m. ET, the value stated in the presentment documentation, provided
the item is funded. Agent must notify DTC immediately via e-mail at
when discrepancies between the securities and redemption presentment documentation and theAgent’s records are identified.
1. Pro Rata Pass-Through Distributions of Principal
Unless the option for pro rata pass-through distributions of principal is clearly indicated to DTC
at the time the issue is made eligible, DTC will process redemptions by means of a random
.In the event of a pro rata pass-through distribution of principal, Agent shall send DTC’s
Announcements Department written notice clearly indicating that it relates to a pro rata pass- through distribution of principal. In addition, the notice shall include payment details and be sent
in the manner set forth in Section IV(A), Dividend and Income Payment Details. Such notice
shall be sent preferably five, but no fewer than two business days prior to such payable date.
The final pay-down will be processed by DTC as a full redemption and notice must be directed tothe Call Notification Department. Agent shall contact DTC’s Call Notification Department for
further instructions on the format of this notice at (212) 855-4349, 7207 or (813) 470-1170, 1161,
2. Partial Redemptions for Auction Rate Securities (“ARS”) and Requests for ARS
With respect to partial redemption notices relating to ARS, Issuer or Agent must provide thePublication Date to DTC at least two business days prior to such Publication Date. The
Publication Date shall be the business day after the last auction date prior to the redemption.
Notices for ARS that fail to provide a Publication Date will result in DTC using the standard
Publication Date in the notice for lottery results. In the event DTC accepts a revision to thePublication Date, Issuer or Agent may be subject to additional processing fees.
DTC releases ARS lottery results to Issuer or trustee. In order for DTC to release lottery results toan Auction Agent, Issuer or trustee must provide a written request on behalf of Auction Agent on
Issuer’s or trustee’s letterhead. The Issuer or trustee’s letter must identify the Auction Agent and
the issue(s) by CUSIP number(s) for which they are authorizing the release of results to the
Auction Agent. A request to provide lottery results to the Auction Agent must include appropriate
indemnification language. After the proper authorization is received by DTC, and upon the
Auction Agent’s request, DTC may release ARS lottery results. For further instructions on
requirements for the authorization letter, contact DTC’s Call Notification Department at (212)
855-7207, 4349 or (813) 470-1170, 1161, 1165.
Requests for releasing lottery results must be sent firstname.lastname@example.org
receipt and verification of such request, DTC will release the lottery results by facsimile
transmission. Such transmission will be sent to the Issuer or trustee at the designated facsimile
number or, if properly authorized, to Auction Agent upon its request. This release of lottery results to Auction Agent is subject to processing fees at DTC’s discretion.
3. Redemption Notification Exceptions
DTC reserves the right to forego processing exceptions, including revisions and late notificationsreceived from Agents until the next scheduled redemption date. Late notification is defined herein
as less than four
business days prior to the redemption date. It is the responsibility of Issuerand/or Agent to continue accruing interest at the coupon rate or forfeiting the interest for a
revision that requires reducing a prior call.
B. Put Notifications
1. Standards for Put Notifications
DTC requires Agents to meet standards for put notifications as they apply to notifications to
depositories and to the extent that this OA or a related LOR does not supersede them.
a. Initial Notices of Puts
Initial notices should be sent to DTC with respect to all “one-time-only” puts and all putsoccurring on a regular cycle such as quarterly, semi-annually, annually or less frequently. A
notice of the availability of an optional put
or exercise of a mandatory tender17
all information relevant to such transactions including, at a minimum, the following:
(1) CUSIP number;
(2) descriptive documentation that accurately identifies the puttable Security (including
identification of the interest rate, or that the Security is a variable-rate Security, if
applicable) and its stated maturity date;
(3) clear identification of the type of put provision involved (e.g., an optional put, amandatory tender with right to retain
, a mandatory tender with a conditional right toretain, a mandatory tender with no right to retain, or a relinquishment
of put rights);(4) first and last date, if applicable, including cutoff times and applicable time zones, for
submission of put exercise instructions and submission of Securities;
(5) names and addresses for delivery of put exercise instructions20
and Securities to the
appropriate parties (e.g., the names and addresses of the tender agent and, if
appropriate, the remarketing agent);
(6) proposed description, if known, of the Securities to be reissued following a modechange, and the CUSIP number assigned to such Securities (if available at the time of
(7) date on which proceeds resulting from the exercise of the put provision will be paid, therate or rates at which interest will be paid after the put date (if available at the time of
the notice), the manner in which funds will be paid, or if no proceeds will be paid such
as on a relinquishment, the date on which the instructions provided will be effective;
(8)indication of concurrent partial redemption
, if applicable; and notification to DTC’sCall Notification Department via e-mail to email@example.com to
provide the MS Excel spreadsheet (as set forth in section V, RedemptionNotifications/Procedures ) to identify both the put position and the call position and to
clearly indicate the random lottery position, put selection, and total position for each
An optional put is a provision under which the holder of securities may elect to have the securities repaid at the statedput price after giving notice to the tender agent within the required notification period. Persons not giving notice retain
A mandatory tender is a provision under which all holders of the securities are “cashed out” at the stated put price onthe payable date. Holders may have the right to retain their securities.
The right to retain is a provision under which the holder of securities subject to a mandatory tender may elect toretain the securities under new terms after a mandatory tender, upon the holder providing notice within the required
notification period. If the holder elects to retain ownership of the Security under its new terms, their position is not
“cash-out,” however, they may be required to exchange the security certificate under the indenture provisions. In
certain limited cases, the retention instruction may be conditional on the new terms that apply to the securities after the
mandatory tender date.
Relinquishment is a provision under which the holder of securities may elect to give up the option Securities (i.e.,puttable bonds) for the underlying non-option securities. Relinquishments usually are provided on issues on which the
holder pays a fee (typically deducted from the interest payment) for an optional put. A holder relinquishing this right
receives the interest payment from which the put fee otherwise would have been deducted.
Put exercise instructions are the notice of election to tender or election to retain, or other instructions or directionsgiven by the holder of the securities, as required, to the appointed tender agent at its designated office, usually in
advance of submission of actual securities.
A concurrent partial redemption is a partial call of securities of the same issue when the payable date for the calloccurs on the same date as, or nearly the same date as, the payable date for any put exercise instruction.
CUSIP(s). If the party sending the notice does not receive an e-mail from DTC
confirming that the notice has been received, such party shall telephone DTCC's
Customer Service help line at 1-888-382-2721. Delivery of the notice to a mailbox
location or e-mail address other than the mailbox location or e-mail address set forth
above will not constitute a valid notification.
(9) logistics with regard to guaranteed deliveries, if applicable;
(10) if the put occurs on a regularly scheduled cycle, a statement stating such, and the cycleon which it will be available (e.g., semi-annually on February 1-15 and August 1-15);
(11) a listing of information to be submitted in such put exercise instructions, for thoseissues that provide for put exercise instructions to be submitted separately from
submission of the actual Securities (e.g., the CUSIP number, amount tendered, taxpayer
I.D., amount to be reissued, and re-issuance instructions if applicable);
(12) a listing of information to be submitted with delivery of the physical Securities,including CUSIP number, amount tendered, taxpayer I.D., amount to be reissued, re-
issuance instructions, if applicable, and put exercise instructions if not submitted
(13) delivery instructions that put exercise instructions be sent to the tender agent by thefastest possible means (e.g., hand-delivery, overnight delivery, e-mail, or telecopy);
(14) a statement declaring that put exercise instructions are irrevocable, if applicable;
(15) instructions provided by the party tendering the Securities, put exercise instructions, the
contact information (e.g., name, address, telephone number, and e-mail address) of the
individual representing the tendering party, if available;
(16) a statement as to whether or not an election notice is required and appropriateenclosures of such notice, if applicable; and
(17) any other information deemed relevant by Agent.
Notice should be sent to DTC no fewer than 15 calendar days prior to the payable date onmandatory tenders without retention. Notice should be sent to DTC no fewer than 10 business
days prior to the expiration date of the applicable tender period for puts with instruction windows
(i.e., optional repayments and mandatory tenders with right to retain).
c. Additional Notices
If a concurrent partial redemption occurs, the initial notice described in Section V(B)(1)(a),
Notices of Puts, shall include a statement of that fact, and the Publication Date of the call notice
should be at least 10 business days prior to the commencement of the period for submission of
put exercise instructions. In addition, a copy of the call notice should be included with the mailing
of the initial notice.
All notices regarding put provisions should be sent by the Issuer or Agent to one or more
nationally recognized information services that disseminate bond put notices.
d. Warning on Envelope
If the bond indenture stipulates that a physical notice must be sent, a warning shall be printed oneach envelope containing a put provision notice. One of the following warnings should be stated
on such an envelope:
“IMPORTANT FINANCIAL INFORMATION ENCLOSED,”
“IMPORTANT NOTICE ENCLOSED,”or
“REDEMPTION OR PUT NOTICE
e. Notice to DTC
Issuers and Agents shall send notices regarding put provisions to DTC’s ReorganizationDepartment via e-mail to
. If the party sending the notice via e-mail is to
confirm DTC’s receipt of such information, such party shall telephone (212) 855-5155, 5131, or
(813) 470-1552, 2230. If electronic or e-mail transmission is not available, such notice may be
sent by overnight courier or by hand to the address set forth in Section 2.d below.
2. Put Features with Special Processing Requirements
a. Exercise of a Put on a Daily or Weekly Basis
If the terms of an issue of securities allow for the exercise of a put option on a daily or weeklybasis, DTC will accept the securities for eligibility only if the put is exercisable by means of
DTC’s Deliver Order Procedures. If the issue has several modes (as is the case with municipal
and corporate variable-rate demand obligations (“VRDOs”) and similar instruments), this
requirement applies only to modes permitting the put to be exercised on a weekly or more
frequent basis. (See Section VII, Additional Operational Requirements for VRDOs, for additional
b. Collateralized Mortgage Obligations
(“CMOs”) and Asset-Backed Securities (“ABSs”)
In order to allow for CMOs and ABSs to be tendered for payment, DTC will accept tender
requests from Participants by means of voluntary offering instructions (“Instructions”) via DTC’s
PTS, PBS or other DTC-approved electronic communication medium. DTC will accept
Instructions monthly, within the time period specified by Agent. DTC will electronically time-
stamp all Instructions that it receives during such period. Participants that have submitted
Instructions may withdraw them by sending electronic notice directly to Agent by means of
Voluntary Offering Withdrawal Instructions via PTS, PBS or other DTC-approved electronic
communication medium. Agent must receive all such withdrawal Instructions on or prior to the
last business day of the time period specified by Agent which is typically one month prior to the
month in which the payment occurs.
For death redemptions, the death certificate must be presented to the Agent in order for theParticipant’s instruction to be recognized and prioritized for selection by the Agent but DTC does
not monitor this activity.
In the event of a payment, Agent shall select Securities to be repaid from Instructions previouslysubmitted to Agent by DTC, which are electronically
time-stamped when submitted by
Participants via DTC’s Automated Put (“APUT”) system. To facilitate the payment process,
Agent shall use DTC’s APUT system, which is available on PTS, PBS or other DTC-approved
electronic communication medium. The APUT system allows Agents to notify DTC and
Participants whose Instructions have been accepted for payment. The information must be
received by DTC no fewer than two business days prior to the payment date. The following
information must be received via email to
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