TWENTY-THIRD SUPPLEMENTAL INDENTURE

 

TABLE OF CONTENTS

 

ARTICLE I           DEFINITIONS, CREATION, FORMS AND TERMS AND CONDITIONS OF THE SECURITIES	2
SECTION 1.01. Definitions	2
SECTION 1.02. Creation of the August Notes; Aggregate Principal Amount of the Series	4
SECTION 1.03. Form of the August Notes	4
SECTION 1.04. Terms and Conditions of the August Notes	4
ARTICLE II           COVENANTS FOR BENEFIT OF HOLDERS OF NOTES; EVENTS AND NOTICE OF DEFAULT	6
SECTION 2.01. Covenants for Benefit of Holders of Notes	6
SECTION 2.02. Definitions	6
SECTION 2.03. Events of Default	8
SECTION 2.04. Notice of Defaults	9
ARTICLE III           TRANSFER AND EXCHANGE	9
SECTION 3.01.Transfer and Exchange	9
ARTICLE IV           LEGENDS	10
SECTION 4.01. Legends	10
ARTICLE V           TRUSTEE	10
SECTION 5.01. Corporate Trust Office	10
SECTION 5.02. Recitals of Fact	10
SECTION 5.03. Successor	10
ARTICLE VI           MISCELLANEOUS PROVISIONS	11
SECTION 6.01. Ratification of Original Indenture	11
SECTION 6.02. Effect of Headings	11
SECTION 6.03. Successors and Assigns	11
SECTION 6.04. Separability Clause	11
SECTION 6.05. Governing Law	11
SECTION 6.06. Counterparts	11

 

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EXHIBITS

 

EXHIBIT A                                                                                   Form of Global Note

EXHIBIT B                                                                                     Form of Certificated Note

 

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TWENTY-THIRD SUPPLEMENTAL INDENTURE , dated as of August 11, 2009 (the “Twenty-Third Supplemental Indenture”), between SIMON PROPERTY GROUP, L.P. (formerly known as Simon DeBartolo Group, L.P.), a Delaware limited partnership (the “Issuer” or the “Operating Partnership”), having its principal offices at 225 West Washington Street, Indianapolis, Indiana 46204, and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (as successor to The Chase Manhattan Bank), a national banking association organized and existing under the laws of the United States of America, as trustee (the “Trustee”), having its Corporate Trust Office at 2 North LaSalle Street, Suite 1020, Chicago, Illinois 60602.

 

RECITALS

 

WHEREAS , the Issuer and Simon Property Group, L.P., a Delaware limited partnership acting as a guarantor (the “Guarantor”), executed and delivered to the Trustee an Indenture, dated as of November 26, 1996 (the “Original Indenture”), providing for the issuance from time to time of debt securities evidencing unsecured and unsubordinated indebtedness of the Issuer;

 

WHEREAS , on December 31, 1997 the Guarantor was merged into the Issuer as contemplated under the Indenture;

 

WHEREAS , the Issuer changed its name from “Simon DeBartolo Group, L.P.” to “Simon Property Group, L.P.” effective as of September 24, 1998;

 

WHEREAS , the Original Indenture provides that by means of a supplemental indenture, the Issuer may create one or more series of its debt securities and establish the form and terms and conditions thereof;

 

WHEREAS , pursuant to the Twenty-Second Supplemental Indenture, dated as of May 15, 2009, between the Issuer and the Trustee (the “Twenty-Second Supplemental Indenture”), which supplements the Original Indenture,  the Issuer created and provided for a series of debt securities designated as “Simon Property Group, L.P. 6.75% Notes due 2014” (the “Series”), initially in an aggregate principal amount of $600,000,000;

 

WHEREAS , pursuant to the Twenty-Second Supplemental Indenture, the Issuer issued $600,000,000 aggregate principal amount of debt securities of the Series (the “Initial Notes”) on May 15, 2009;

 

WHEREAS , Section 1.04(h) of the Twenty-Second Supplemental Indenture provides that the Issuer may, from time to time, create and issue, without the consent of holders of debt securities of the Series, additional debt securities under the Original Indenture having the same terms and conditions as the Initial Notes, in all respects, except for issue date, issue price and, if applicable, first payment of interest, and that such additional debt securities shall be consolidated with and shall form a single series with previously outstanding debt securities of the Series, and that a new supplemental indenture shall be executed in connection with the issuance of such additional debt securities;

 

WHEREAS , pursuant to Sections 301 and 901 of the Original Indenture and Section 1.04(h) of the Twenty-Second Supplemental Indenture,  the Board of Directors of Simon Property Group, Inc., the general partner of the Issuer, has approved the creation and issuance of debt securities (the “August Notes”) to be represented by the forms set forth herein and having the same terms and conditions as the Initial Notes, except for the issue price and except that the issue date of the August Notes shall be the date first above written;

 

 

WHEREAS , in accordance with Section 1.04(h) of the Twenty-Second Supplemental Indenture, the August Notes shall be consolidated with and form a single series with the Initial Notes (collectively, the “Notes”); and

 

WHEREAS , all actions required to be taken under the Original Indenture with respect to this Twenty-Third Supplemental Indenture have been taken.

 

NOW, THEREFORE, IT IS AGREED:

 

ARTICLE I

 

DEFINITIONS, CREATION, FORMS AND
TERMS AND CONDITIONS OF THE SECURITIES

 

SECTION 1.01.                  Definitions .  Capitalized terms used in this Twenty-Third Supplemental Indenture and not otherwise defined shall have the meanings ascribed to them in the Original Indenture.  Certain terms, used principally in Article II of this Twenty-Third Supplemental Indenture, are defined in that Article.  In addition, the following terms shall have the following meanings to be equally applicable to both the singular and the plural forms of the terms defined:

 

“August Notes” has the meaning set forth in the Recitals hereto.

 

“ Business Day ” means any day, other than a Saturday or Sunday, on which banking institutions in The City of New York are open for business.

 

“ Certificated Notes ” has the meaning set forth in Article III.

 

“ Closing Date ” means August 11, 2009.

 

“ Dollar ” or “ $ ” means the lawful currency of the United States of America.

 

“ DTC ” means The Depository Trust Company, its nominees and their successors and assigns.

 

“ Exchange Act ” means the Securities Exchange Act of 1934, as amended from time to time.

 

“ Global Note ” means a permanent fully-registered global note in book-entry form, without coupons, substantially in the form of Exhibit A attached hereto.

 

“ Indenture ” means the Original Indenture as supplemented by the Twenty-Second Supplemental Indenture and this Twenty-Third Supplemental Indenture.

 

“Initial Notes” has the meaning set forth in the Recitals hereto.

 

“ Interest Payment Date ” has the meaning set forth in Section 1.04(c).

 

“ Issuer ” has the meaning set forth in the Recitals hereto.

 

“ Make-Whole Amount ” means, in connection with any optional redemption or accelerated payment of any Notes, the excess, if any, of (i) the aggregate present value, as of the date of such redemption or accelerated payment, of each Dollar of principal being redeemed or paid and the amount of interest (exclusive of interest accrued to the date of redemption or accelerated payment) that would have been payable in respect of each such Dollar if such redemption or accelerated payment had not been

 

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made, determined by discounting, on a semi-annual basis, such principal and interest at the Reinvestment Rate, determined on the third Business Day preceding the date notice of such redemption or accelerated payment is given, from the respective dates on which such principal and interest would have been payable if such redemption or accelerated payment had not been made, to the date of redemption or accelerated payment, over (ii) the aggregate principal amount of the Notes being redeemed or accelerated.

 

“ Notes ” has the meaning set forth in the Recitals hereto.

 

“ Operating Partnership ” has the meaning set forth in the Recitals hereto.

 

“ Original Indenture ” has the meaning set forth in the Recitals hereto.

 

“ Prior Supplemental Indentures ” has the meaning set forth in Section 2.01.

 

“ Redemption Price ” has the meaning set forth in Section 1.04(d).

 

“ Regular Record Date ” has the meaning set forth in Section 1.04(c).

 

“ Reinvestment Rate ” means, in connection with any optional redemption or accelerated payment of any Notes, the yield on treasury securities at a constant maturity corresponding to the remaining life (as of the date of redemption or accelerated payment, and rounded to the nearest month) to Stated Maturity of the principal being redeemed (the “Treasury Yield”), plus 0.50%.  For purposes hereof, the Treasury Yield shall be equal to the arithmetic mean of the yields published in the Statistical Release under the heading “Week Ending” for “U.S. Government Securities — Treasury Constant Maturities” with a maturity equal to such remaining life; provided , that if no published maturity exactly corresponds to such remaining life, then the Treasury Yield shall be interpolated or extrapolated on a straight-line basis from the arithmetic means of the yields for the next shortest and next longest published maturities, rounding each of such relevant periods to the nearest month.  For purposes of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date of determination of the Make-Whole Amount shall be used.  If the format or content of the Statistical Release changes in a manner that precludes determination of the Treasury Yield in the above manner, then the Treasury Yield shall be determined in the manner that most closely approximates the above manner, as reasonably determined by the Operating Partnership.

 

“ Securities Act ” means the Securities Act of 1933, as amended from time to time.

 

“ Series ” has the meaning set forth in the Recitals hereto.

 

“ Statistical Release ” means the statistical release designated “H.15(519)” or any successor publication which is published weekly by the Federal Reserve System and which reports yields on actively traded United States government securities adjusted to constant maturities, or, if such statistical release is not published at the time of any required determination, then such other reasonably comparable index which shall be designated by the Operating Partnership.

 

“ Trustee ” has the meaning set forth in the Recitals hereto.

 

“Twenty-Second Supplemental Indenture” has the meaning set forth in the Recitals hereto.

 

“Underwriters” means, collectively, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman, Sachs & Co., UBS Securities LLC, Calyon Securities (USA) Inc., ING Financial Markets

 

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LLC, Mitsubishi UFJ Securities (USA), Inc., RBC Capital Markets Corporation, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc.

 

“ Underwriting Agreement ” means the Underwriting Agreement relating to the August Notes, dated August 6, 2009, among the Operating Partnership and those Underwriters executing such agreement, as representatives for the other Underwriters named therein.

 

SECTION 1.02.                  Creation of the August Notes; Aggregate Principal Amount of the Series .  In accordance with Section 301 of the Original Indenture and Section 1.04(h) of the Twenty-Second Supplemental Indenture, the Issuer hereby creates the August Notes as part of the same series of its debt securities under the Indenture as the Initial Notes.  Except as permitted by Sections 301, 304, 305 or 306 of the Original Indenture, the August Notes shall be issued initially in an aggregate principal amount of $500,000,000.

 

Subject to any further issuance of debt securities of the Series, the debt securities of the Series shall be limited to an aggregate principal amount of $1,100,000,000, except as permitted by Sections 301, 304, 305 or 306 of the Original Indenture.

 

SECTION 1.03.                  Form of the August Notes .  The August Notes shall be issued in the form of one or more Global Notes, duly executed by the Operating Partnership and authenticated by the Trustee without the necessity of the reproduction thereon of the corporate seal of the General Partner (as defined in the Original Indenture), which shall be deposited with, or on behalf of, DTC and registered in the name of “Cede & Co.,” as the nominee of DTC.  The August Notes shall be substantially in the form of Exhibit A attached hereto.  So long as DTC, or its nominee, is the registered owner of a Global Note, DTC or its nominee, as the case may be, shall be considered the sole owner or Holder of the Notes represented by such Global Notes for all purposes under the Indenture.  Ownership of beneficial interests in such Global Notes shall be shown on, and transfers thereof will be effected only through, records maintained by DTC (with respect to beneficial interests of participants) or by participants or Persons that hold interests through participants (with respect to beneficial interests of beneficial owners).

 

SECTION 1.04.                  Terms and Conditions of the August Notes .  The August Notes shall be governed by all the terms and conditions of the Indenture.  In particular, the following provisions shall be terms of the August Notes:

 

(a)                                   Title and Aggregate Principal Amount .  The August Notes shall have the same title as the designated title of the Series; the aggregate principal amount of the August Notes shall be as specified in Section 1.02 of this Twenty-Third Supplemental Indenture; and the aggregate principal amount of the Notes shall be the aggregate principal amount of the debt securities of the Series as specified in Section 1.02 of this Twenty-Third Supplemental Indenture.

 

(b)                                  Stated Maturity .  The August Notes shall mature, and the unpaid principal thereon shall be payable, on May 15, 2014, subject to the provisions of the Original Indenture and Section 1.04(d) below.

 

(c)                                   Interest .  The rate per annum at which interest shall be payable on the August Notes shall be 6.75%.  Interest on the August Notes shall be payable semi-annually in arrears on each May 15 and November 15, commencing on November 15, 2009 (each, an “Interest Payment Date”), to the Persons in whose names the applicable Notes are registered in the Security Register applicable to the August Notes at the close of business on the 15 th  calendar day immediately prior to the applicable Interest Payment Date regardless of whether such day is a Business Day (each, a “Regular Record Date”).

 

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Interest on the August Notes shall be computed on the basis of a 360-day year of twelve 30-day months.  Interest on the August Notes shall accrue from and including May 15, 2009.

 

(d)                                  Sinking Fund, Redemption or Repayment .  No sinking fund shall be provided for the August Notes and the August Notes shall not be repayable at the option of the Holders thereof prior to Stated Maturity.  The Notes, including the August Notes,  may be redeemed at any time at the option of the Issuer, in whole or from time to time in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the Notes being redeemed plus accrued interest thereon to the Redemption Date and (ii) the Make-Whole Amount, if any, with respect to such Notes (collectively, the “Redemption Price”), all in accordance with the provisions of Article XI of the Original Indenture; provided, however, that if the Notes are redeemed on or after 90 days prior to the Stated Maturity of the Notes, the Redemption Price shall not include the Make-Whole Amount.

 

If notice of redemption has been given as provided in the Original Indenture and funds for the redemption of any Notes called for redemption shall have been made available on the Redemption Date referred to in such notice, such Notes shall cease to bear interest on the Redemption Date and the only right of the Holders of the Notes from and after the Redemption Date shall be to receive payment of the Redemption Price upon surrender of such Notes in accordance with such notice.

 

(e)                                   Registration and Form .  The August Notes shall be issuable as Registered Securities as provided in Section 1.03 of this Twenty-Third Supplemental Indenture.  The August Notes shall be issued and may be transferred only in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  All payments of principal, premium, if any, and interest in respect of the August Notes shall be made by the Issuer in immediately available funds.

 

(f)                                     Defeasance and Covenant Defeasance .  The provisions for defeasance in Section 1402 of the Original Indenture, and the provisions for covenant defeasance (which provisions shall apply, without limitation, to the covenants set forth in Article II of this Twenty-Third Supplemental Indenture) in Section 1403 of the Original Indenture, shall be applicable to the Notes, including the August Notes.

 

(g)                                  Make-Whole Amount Payable Upon Acceleration .  Upon any acceleration of the Stated Maturity of the Notes, including the August Notes,  in accordance with Section 502 of the Original Indenture, the Make-Whole Amount on the Notes shall become immediately due and payable, subject to the terms and conditions of the Indenture.

 

(h)                                  Further Issues .  Notwithstanding anything to the contrary contained herein or in the Original Indenture, the Issuer may, from time to time, without the consent of or notice to the Holders, create and issue further debt securities under the Indenture having the same terms and conditions as the Notes in all respects, except for issue date, issue price and, to the extent applicable, first payment of interest.  Additional debt securities issued in this manner shall be consolidated with and shall form a single series with the previously outstanding Notes.  Notice of any such issuance shall be given to the Trustee and a new supplemental indenture shall be executed in connection with the issuance of such additional debt securities.

 

(i)                                      Other Terms and Conditions .  The August Notes shall have such other terms and conditions as provided in the form thereof attached as Exhibit A.

 

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ARTICLE II

 

COVENANTS FOR BENEFIT OF HOLDERS OF NOTES;
EVENTS AND NOTICE OF DEFAULT

 

SECTION 2.01.                  Covenants for Benefit of Holders of Notes .   In addition to the covenants set forth in Article X of the Original Indenture, there are established pursuant to Section 901(2) of the Original Indenture the following covenants for the benefit of the Holders of the Notes, including the August Notes, and to which the Notes, including the August Notes, shall be subject.  Furthermore, the covenants set forth in Article II of any Supplemental Indenture dated prior to June 7, 2005 (“Prior Supplemental Indentures”) as the same may be amended or modified from time to time hereafter shall apply to the Notes only for so long as any Securities issued pursuant to any Prior Supplemental Indentures remain outstanding.

 

(a)                                   Limitation on Debt .  As of each Reporting Date (as defined below), Debt (as defined below) shall not exceed 65% of Total Assets (as defined below).

 

(b)                                  Limitation on Secured Debt .  As of each Reporting Date, Secured Debt (as defined below) shall not exceed 50% of Total Assets.

 

(c)                                   Fixed Charge Coverage Ratio .  For the four consecutive quarters ending on each Reporting Date, the ratio of Annualized EBITDA (as defined below) to Annualized Interest Expense (as defined below) shall be at least 1.50 to 1.00.

 

(d)                                  Maintenance of Unencumbered Assets .  As of each Reporting Date, Unencumbered Assets (as defined below) shall be at least 125% of Unsecured Debt (as defined below).

 

SECTION 2.02.                  Definitions .  As used herein:

 

“ Annualized EBITDA ” means, for the four consecutive quarters ending on each Reporting Date, the Operating Partnership’s Pro Rata Share (as defined below) of earnings before interest, taxes, depreciation and amortization (“EBITDA”), with other adjustments as are necessary to exclude the effect of all realized or unrealized gains and losses related to hedging obligations, items classified as extraordinary items and impairment charges in accordance with generally accepted accounting principles, adjusted to reflect the assumption that (i) any EBITDA related to any assets acquired or placed in service since the first day of such four-quarter period had been earned, on an annualized basis, from the beginning of such period, and (ii) any assets disposed of during such four-quarter period had been disposed of as of the first day of such period and no EBITDA related to such assets had been earned during such period.

 

“ Annualized Interest Expense ” means, for the four consecutive quarters ending on each Reporting Date, the Operating Partnership’s Pro Rata Share of interest expense, with other adjustments as are necessary to exclude the effect of items classified as extraordinary items, in accordance with generally accepted accounting principles, reduced by amortization of debt issuance costs and adjusted to reflect the assumption that (i) any interest expense related to indebtedness incurred since the first day of such four-quarter period is computed as if such indebtedness had been incurred as of the beginning of such period, and (ii) any interest expense related to indebtedness that was repaid or retired since the first day of such four-quarter period is computed as if such indebtedness had been repaid or retired as of the beginning of such period (except that, in making such computation, the amount of interest expense related to indebtedness under any revolving credit facility shall be computed based upon the average daily balance of such indebtedness during such four-quarter period).

 

“ Capitalization Rate ” means 7.00%.

 

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“ Capitalized Value ” means, as of any date, Annualized EBITDA divided by the Capitalization Rate.

 

“ Company ” means Simon Property Group, Inc., a Delaware corporation and the sole general partner of the Operating Partnership.

 

“ Debt ” means the Operating Partnership’s Pro Rata Share of the aggregate principal amount of indebtedness in respect of (i) borrowed money evidenced by bonds, notes, debentures or similar instruments, as determined in accordance with generally accepted accounting principles, (ii) indebtedness secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on property owned by the Operating Partnership or any Subsidiary directly, or indirectly through unconsolidated joint ventures, as determined in accordance with generally accepted accounting principles, (iii) reimbursement obligations in connection with any letters of credit actually issued and called, (iv) any lease of property by the Operating Partnership or any Subsidiary as lessee which is reflected in the Operating Partnership’s balance sheet as a capitalized lease, in accordance with generally accepted accounting principles; provided , that Debt also includes, to the extent not otherwise included, any obligation by the Operating Partnership or any Subsidiary to be liable for, or to pay, as obligor, guarantor or otherwise, items of indebtedness of another Person (other than the Operating Partnership or any Subsidiary) described in clauses (i) through (iv) above (or, in the case of any such obligation made jointly with another Person, the Operating Partnership’s or Subsidiary’s allocable portion of such obligation based on its ownership interest in the related real estate assets); and provided , further , that Debt excludes Intercompany Debt (as defined below).

 

“ Intercompany Debt ” means Debt to which the only parties are the Company, the Operating Partnership and any of their Subsidiaries or affiliates (but only so long as such Debt is held solely by any of the Company, the Operating Partnership and any Subsidiary or affiliate) and provided that, in the case of Debt owed by the Operating Partnership to any Subsidiary or affiliate, the Debt is subordinated in right of payment to the Notes.

 

“ Pro Rata Share ” means any applicable figure or measure of the Operating Partnership and its Subsidiaries on a consolidated basis, less any portion attributable to minority interests, plus the Operating Partnership’s or its Subsidiaries’ allocable portion of such figure or measure, based on their ownership interest, of unconsolidated joint ventures.

 

“ Reporting Date ” means March 31, June 30, September 30 and December 31 of each year.

 

“ Secured Debt ” means Debt secured by any mortgage, lien, pledge, encumbrance or security interest of any kind upon any of the property of the Operating Partnership or any Subsidiary.

 

“ Stabilized Asset ” means (i) with respect to an acquisition of an asset, such asset becomes stabilized when the Operating Partnership or its Subsidiaries or an unconsolidated joint venture in which the Operating Partnership or any Subsidiary has an interest has owned the asset as of at least six Reporting Dates, and (ii) with respect to a new construction or development asset, such asset becomes stabilized four Reporting Dates after the earlier of (a) six Reporting Dates after substantial completion of construction or development or (b) the first Reporting Date on which the asset is at least 90% leased.

 

“ Total Assets ” means, as of any Reporting Date, the sum of (i) for Stabilized Assets, Capitalized Value; (ii) for all other assets of the Operating Partnership and its Subsidiaries, the Operating Partnership’s Pro Rata Share of undepreciated book value as determined in accordance with generally accepted accounting principles; and (iii) the Operating Partnership’s Pro Rata Share of cash and cash equivalents.

 

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“ Unencumbered Annualized EBITDA ” means Annualized EBITDA less any portion thereof attributable to assets serving as collateral for Secured Debt.

 

“ Unencumbered Assets ” as of any Reporting Date shall be equal to Total Assets as of such date multiplied by a fraction, the numerator of which is Unencumbered Annualized EBITDA and the denominator of which is Annualized EBITDA.

 

“ Unsecured Debt ” means Debt which is not secured by any mortgage, lien, pledge, encumbrance or security interest of any kind.

 

SECTION 2.03.                  Events of Default .  For the purposes of the Notes, including the August Notes, Section 501 of the Original Indenture is hereby amended by, supplemented with, and where inconsistent replaced by, the following provisions; provided, however, that Section 501 of the Original Indenture, as the same may be amended or modified from time to time hereafter, shall also apply to the Notes only for so long as any Securities issued pursuant to any Prior Supplemental Indentures remain outstanding:

 

(a)                                   Section 501(4) of the Original Indenture is replaced in its entirety by the following:

 

“(4)                             default in the performance, or breach, of any covenant or warranty of the Issuer in this Indenture with respect to any Security of that series (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a period of 90 days after there has been given, by registered or certified mail, to the Issuer by the Trustee or to the Issuer and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or”

 

(b)                                  Section 501(5) of the Original Indenture is replaced in its entirety by the following:

 

“(5)                             a default under any evidence of recourse indebtedness of the Issuer, or under any mortgage, indenture or other instrument of the Issuer (including a default with respect to Securities of any series other than that series) under which there may be issued or by which there may be secured any recourse indebtedness of the Issuer (or of any Subsidiary, the repayment of which the Issuer has guaranteed or for which the Issue