Looking for an agreement? Search from over 1 million agreements now.

Trust Indenture

This is an actual contract by Mcclain Industries.
Browse the agreement preview below and buy the entire agreement for $35
Search This Document
TRUST INDENTURE


between


THE INDUSTRIAL DEVELOPMENT BOARD
OF THE CITY OF DEMOPOLIS


and


LASALLE NATIONAL BANK,
as Trustee


DATED AS OF APRIL 1, 1997


================================================================================


Pertaining to


$5,225,000
THE INDUSTRIAL DEVELOPMENT BOARD
OF THE CITY OF DEMOPOLIS
Industrial Development Revenue Bonds
Series 1997
(McClain of Alabama, Inc. Project) 2
TRUST INDENTURE


TABLE OF CONTENTS


Page
No.
-----
ARTICLE I


DEFINITIONS AND USE OF PHRASES


Section 1.1 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Section 1.2 Use of Phrases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11


ARTICLE II


GRANTING CLAUSES


Section 2.1 Granting Clauses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11


ARTICLE III


THE BONDS


Section 3.1 General Provisions Respecting the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 3.2 Variable Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Section 3.3 Term Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 3.4 Optional Tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 3.5 Mandatory Tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 3.6 Procedures for Purchase and Remarketing of Bonds; Delivery of Purchased
and Remarketed Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Section 3.7 Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Section 3.8 Concerning the Confirmation of the Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 3.9 Payments Due on Non-Business Days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Section 3.10 Form of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Section 3.11 Execution and Delivery of the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Section 3.12 Application of Proceeds from Sale of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39


ARTICLE IV


REDEMPTION PROVISIONS


Section 4.1 Redemption Dates and Prices of the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Section 4.2 Selection of Bonds to be Called for Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Section 4.3 Notice of Redemption. Deposit of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 4.4 Bonds Redeemed in Part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41


i 3
ARTICLE V


GENERAL PROVISIONS
RESPECTING THE BONDS


Section 5.1 Execution of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Section 5.2 Authentication of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Section 5.3 Replacement of Mutilated, Lost, Stolen or Destroyed Bonds . . . . . . . . . . . . . . . . . . . . . 42 Section 5.4 Registration, Transfer and Exchange of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Section 5.5 Persons Deemed Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Section 5.6 Payment of Principal and Interest; Interest Rights Reserved . . . . . . . . . . . . . . . . . . . . 44 Section 5.7 Source of Payment; Limited Obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Section 5.8 Registration of Bonds in the Book-Entry Only System . . . . . . . . . . . . . . . . . . . . . . . . 45


ARTICLE VI


THE CONSTRUCTION FUND


Section 6.1 Construction Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Section 6.2 Trustee Protected in Construction Fund Payments. Additional Evidence May Be Required . . . . . . . . 47 Section 6.3 Security for Construction Fund Moneys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Section 6.4 Investment of Construction Fund Moneys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Section 6.5 Agreement Respecting Non-Arbitrage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48


ARTICLE VII


APPLICATION OF REVENUES
AND CREATION OF DEBT SERVICE
FUND AND BOND PURCHASE FUND


Section 7.1 Debt Service Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Section 7.2 Bond Purchase Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Section 7.3 Money for Bond Payments to be Held in Trust; Repayment of Unclaimed Money . . . . . . . . . . . . . . 52 Section 7.4 Investment of Debt Service Fund and Bond Purchase Fund . . . . . . . . . . . . . . . . . . . . . . . 52 Section 7.5 Security for Debt Service Fund Moneys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53


ARTICLE VIII


PARTICULAR COVENANTS OF THE BOARD


Section 8.1 Payment of the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Section 8.2 Priority of Pledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Section 8.3 Concerning the Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Section 8.4 Warranty of Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55


ii 4 Section 8.5 Sale of Project Prohibited Except under Certain Conditions . . . . . . . . . . . . . . . . . . . . . 55 Section 8.6 Freedom of Project from Prior Liens. Payment of Charges . . . . . . . . . . . . . . . . . . . . . . 55 Section 8.7 Inspections by Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Section 8.8 Recordation. Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Section 8.9 Concerning Certain Federal Tax Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56


ARTICLE IX


CERTAIN PROVISIONS RELATING TO
THE POSSESSION, USE AND RELEASE
OF THE PROJECT AND TO THE
DISPOSITION OF INSURANCE
PROCEEDS AND CONDEMNATION AWARDS


Section 9.1 Retention of Possession of Project by Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Section 9.2 Release of Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Section 9.3 Release Upon Payment of Condemnation Award to Trustee . . . . . . . . . . . . . . . . . . . . . . . 57 Section 9.4 Disposition of Insurance Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Section 9.5 Release of Certain Real Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58


ARTICLE X


EVENTS OF DEFAULT AND
REMEDIES OF TRUSTEE AND BONDHOLDERS


Section 10.1 Events of Default Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Section 10.2 Remedies on Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Section 10.3 Application of Moneys Received By Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Section 10.4 Remedies Vested in Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Section 10.5 Waivers of Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63


ARTICLE XI


CONCERNING THE TRUSTEE, THE
REMARKETING AGENT AND THE TENDER AGENT


Section 11.1 Trustee Acceptance of Trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Section 11.2 Trustee Authorized to Pay Certain Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Section 11.3 Trustee May File Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Section 11.4 Resignation and Discharge of Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Section 11.5 Appointment of Successor Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Section 11.6 Concerning Any Successor Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Section 11.7 Remarketing Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Section 11.8 Tender Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Section 11.9 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69


iii 5
ARTICLE XII


AUTHORIZATION OF SUPPLEMENTAL
INDENTURES AND MODIFICATION OF
THE LEASE AND THE GUARANTY


Section 12.1 Supplemental Indentures without Bondholder Consent . . . . . . . . . . . . . . . . . . . . . . . . . 70 Section 12.2 Supplemental Indenture Requiring Bondholder Consent . . . . . . . . . . . . . . . . . . . . . . . . 70 Section 12.3 Execution of Supplemental Indentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Section 12.4 Amendments to Lease and Guaranty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Section 12.5 Notices with Respect to Certain Changes in the Indenture, the Lease and the Guaranty . . . . . . . . 72 Section 12.6 Approval of Credit Obligor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Section 12.7 Discretion of the Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73


ARTICLE XIII


PAYMENT AND CANCELLATION OF THE
BONDS AND SATISFACTION OF THE INDENTURE


Section 13.1 Satisfaction of Indenture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Section 13.2 Cancellation of Paid Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Section 13.3 Trust for Payment of Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74


ARTICLE XIV


MISCELLANEOUS PROVISIONS


Section 14.1 Disclaimer of General Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Section 14.2 Retention of Moneys for Payment of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Section 14.3 Form of Requests, etc., by Bondholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Section 14.4 Limitation of Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Section 14.5 Manner of Proving Ownership of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Section 14.6 Interest Rate Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Section 14.7 Indenture Governed by Alabama Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Section 14.8 Notices to Rating Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Section 14.9 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76


Exhibit A - Description of Project Site Exhibit B - Description of the Leased Equipment


iv 6


TRUST INDENTURE between THE INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF DEMOPOLIS, a public corporation under the laws of Alabama (the "Board"), and LASALLE NATIONAL BANK, a national banking corporation under the laws of Alabama (the "Trustee"),


R E C I T A L S


The Board makes the following recitals of fact as the basis for the undertaking following: it is duly incorporated under the provisions of Article 4 of Chapter 54 of Title 11 of the Code of Alabama of 1975, as amended, by Certificate of Incorporation duly filed for record in the office of the Judge of Probate of Marengo County, Alabama; it is not in default under any of the provisions contained in its Certificate of Incorporation or in the laws of said state; by proper corporate action it has duly authorized the issuance of the Bonds hereinafter referred to; and to secure payment of the principal of and the interest and premium (if any) on said Bonds, payment of the purchase price thereof upon tenders herein provided for, and payment of amounts owing under the Credit Agreement hereinafter referred to, it has by proper corporate action duly authorized the execution and delivery of this Indenture.


NOW, THEREFORE, THIS INDENTURE


W I T N E S S E T H:


For the aforesaid purpose and in consideration of the respective agreements herein contained, it is hereby agreed between the parties signatory hereto and the Holders of all Bonds issued hereunder (the Holders of said Bonds evidencing their consent hereto by their acceptance of the said Bonds and the parties signatory hereto evidencing their consent hereto by their execution hereof), each with each of the others, as follows (provided, that in the performance of any of the agreements of the Board herein contained, any obligation it may thereby incur for the payment of money shall not be a general debt on its part but shall be payable solely out of the revenues and receipts derived from the leasing or sale of the Project hereinafter referred to):


ARTICLE I


DEFINITIONS AND USE OF PHRASES


SECTION 1.1 DEFINITIONS. The following words and phrases and others evidently intended as the equivalent thereof shall, in the absence of clear implication herein otherwise, be given the following respective interpretations herein:


"ACT OF BANKRUPTCY" means the filing of a petition in bankruptcy (or other commencement of a bankruptcy or similar proceeding) by or against the designated entity under any applicable bankruptcy, insolvency, reorganization or similar law now or hereafter in effect.


1 7
"AFFILIATE" means any person, firm or corporation controlled by, or under common control with, the Company and any person, firm or corporation controlling the Company.


"AUTHORIZED DENOMINATION" means any denomination of Bonds permitted by the provisions of Section 3.1(b) hereof.


"AUTHORIZED BOARD REPRESENTATIVE" means the person or persons at the time designated as such by written certificate furnished to the Company and the Trustee, containing the specimen signature or signatures of such person or persons and signed on behalf of the Board by the Chairman or the Vice Chairman of the Directors.


"AUTHORIZED COMPANY REPRESENTATIVE" means the person or persons at the time designated as such by written certificate furnished to the Board and the Trustee, containing the specimen signature or signatures of such person or persons and signed on behalf of the Company by the Chairman of its Board of Directors, by its President, by any Vice President, by its Secretary or by its Treasurer.


"BASIC RENT" means (i) the moneys payable by the Company pursuant to the provisions of Section 5.2 of the Lease, (ii) any other moneys payable by the Company pursuant to the Lease to provide for the payment of the principal of and the interest and premium (if any) on, or purchase price of, the Bonds (other than the aforesaid moneys payable pursuant to Section 5.2 of the Lease), and (iii) any other moneys payable by the Company pursuant to the Lease that are therein referred to as Basic Rent.


"BOARD" means The Industrial Development Board of the City of Demopolis and, subject to the provisions of Section 8.6 hereof, includes its successors and assigns and any corporation resulting from or surviving any consolidation or merger to which it or its successors may be a party.


"BOND COUNSEL" means Independent Counsel whose experience in matters relating to the issuance of obligations by states and their political subdivisions is nationally recognized.


"BOND PAYMENT DATE" means each date (including any date fixed for redemption or acceleration of Bonds) on which Debt Service is payable on the Bonds.


"BOND PURCHASE FUND" means the Bond Purchase Fund created in to Section 7.2 hereof.


"BOND REGISTER" means the registry and transfer books maintained by the Trustee pursuant to the provisions of Section 5.4 hereof.


"BONDHOLDER" means the Holder of any Bond.


"BONDS" means the bonds authorized to be issued in Article III hereof.


"BUSINESS DAY" means any day other than a Saturday, a Sunday or a day on which banking institutions are closed in any of the following locations: (i) the city in which the


2 8 principal office of the Trustee is located, (ii) the city in which the principal office of the Remarketing Agent is located, (iii) the city in which the office of the Credit Obligor where drawings under the Letter of Credit are to be made is located, (iv) the City of New York, New York or (v) the City of Chicago, Illinois.


"CODE" means the Internal Revenue Code of 1986, as amended from time to time.


"COLLATERALLY SECURED" means secured by collateral meeting all of the following requirements:


(a) The collateral shall be in the form of obligations
described in subparagraph (a), (b) or (c) of the definition of
Eligible Investments, except that the security for certificates of
deposit, time deposits or other similar banking arrangements may
include other marketable securities which meet S&P's "qualified
investment criteria" and are eligible as security for trust funds
under applicable regulations of the Comptroller of the Currency of the
United States of America or under applicable state laws and
regulations.


(b) The collateral shall have an aggregate market value,
calculated not less frequently than monthly, at least equal to the
principal amount (less any portion insured by the Federal Deposit
Insurance Corporation or any comparable insurance corporation
chartered by the United States of America) or the repurchase price
secured thereby, as the case may be. The instruments governing the
issuance of and security for the Eligible Investments shall designate
the person responsible for making the foregoing calculations; provided
that the Trustee shall make such calculations if they are not made by
the person so designated.


(c) The Trustee shall have a perfected security interest
in all such collateral, free and clear of the claims of third parties.
Such security interests shall be perfected in such manner as may be
permitted or required by applicable law, provided that if possession
of the collateral is required for such perfection, the collateral
shall be deposited with the Trustee, with a Federal Reserve Bank for
the account of the Trustee or with a bank or trust company (other than
the obligor) which is acting solely as agent for the Trustee and has a
combined net capital and surplus of at least $50,000,000.


"COMPANY" means McClain of Alabama, Inc., a corporation organized under the laws of the State of Michigan, and, subject to the provisions of Section 7.4 of the Lease, includes its successors and assigns and any corporation resulting from or surviving any consolidation or merger to which it or its successors may be a party.


"CONFIRMATION" means the irrevocable confirmation issued by LaSalle National Bank, confirming the initial Letter of Credit issued by Standard Federal Bank and delivered to the Trustee on the Issue Date, and any substitute Confirmation issued in accordance with the provisions of Section 3.8 hereof.


3 9
"CONFIRMING BANK" means LaSalle National Bank, its successors and assigns, until a substitute Confirmation shall have been accepted by the Trustee, and thereafter means the issuer of such substitute Confirmation.


"CONVERSION DATE" means the first day of any Term Rate Period.


"COUNSEL" means an attorney or firm of attorneys duly admitted to practice before the highest court of one or more states of the United States of America or of the District of Columbia.


"CREDIT AGREEMENT" means that certain Reimbursement Agreement dated as of April 1, 1997, between the Credit Obligor and the Company, including any amendments or supplements to such instrument from time to time entered into pursuant to the applicable provisions thereof, until a Substitute Letter of Credit shall have been accepted by the Trustee, and thereafter "Credit Agreement" means the instrument evidencing the Company's obligations with respect to such Substitute Letter of Credit.


"CREDIT OBLIGOR" means Standard Federal Bank, a federal savings bank, and its successors and assigns, until a Substitute Letter of Credit shall have been accepted by the Trustee, and thereafter "Credit Obligor" means the issuer of such Substitute Letter of Credit.


"DEBT SERVICE" means the principal of and interest and premium (if any) payable on the Bonds.


"DEBT SERVICE FUND" means the Bond Principal and Interest Fund created in Section 7.1 hereof.


"DEFAULT" or "DEFAULT" means an event or condition the occurrence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.


"DETERMINATION OF TAXABILITY" means a determination that the interest income on any of the Bonds is Taxable, which determination shall be deemed to have been made upon the occurrence of the first to occur of the following:


(a) the date on which the Company determines that the
interest income on any of the Bonds is Taxable by filing with the
Trustee a statement to that effect; or


(b) the date on which the Company shall be advised by
private ruling, technical advice or any other written communication
from an authorized official of the Internal Revenue Service that,
based upon any filings of the Company, or upon any review or audit of
the Company, or upon any other grounds whatsoever, the interest income
on any of the Bonds is Taxable; or


(c) the date on which the Company shall receive notice
from the Trustee in writing that the Trustee has been advised (i) by
any Holder of any


4 10
Bonds that the Internal Revenue Service has determined that the
interest income on the Bonds is Taxable or (ii) by any authorized
official of the Internal Revenue Service that the interest income on
any of the Bonds is Taxable;


provided that no Determination of Taxability shall be deemed to have occurred: (1) as a result of a determination by the Company pursuant to the preceding clause (a) unless supported by a written opinion of Bond Counsel acceptable to the Trustee and the Board that the interest income on the Bonds is Taxable; or (2) as a result of the event described in the preceding clauses (b) or (c) unless and until (1) the Company has been afforded a reasonable opportunity, at its expense, to contest such determination either through its own action (if permitted by law) or by or on behalf of one or more of the holders of the Bonds and (2) such contest, if made, has been abandoned by the Company or has been finally determined by a court of competent jurisdiction from which no further appeal exists, but if such contest has not been abandoned or finally determined within three years of the event described in either of said clauses (b) and (c) which forms the basis of the Determination of Taxability in question, then such Determination of Taxability shall be deemed to have occurred
-- End of Preview --
Home| About Us| FAQ| Subscription | Contact Us |