Exhibit 4(d)
[FACE OF NOTE]
CUSIP NO.:
REGISTERED
PRINCIPAL AMOUNT:
No. SUB/FLR -
BOEING CAPITAL
CORPORATION
SUBORDINATED MEDIUM-TERM NOTE,
SERIES XII
(FLOATING RATE)
Due from 9 Months to 30 Years
from Date of Issue
If the registered owner of this
Security (as indicated below) is The Depository Trust Company (the
“ Depository ”) or a nominee of the Depository,
this Security is a Global Security and the following two legends
apply:
Unless this certificate is
presented by an authorized representative of The Depository Trust
Company (55 Water Street, New York, New York) to the issuer or its
agent for registration of transfer, exchange or payment, and such
certificate issued is registered in the name of CEDE &
CO., or such other name as requested by an authorized
representative of the Depository, ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL,
since the registered owner hereof, CEDE & CO., has an
interest herein.
Unless and until this certificate
is exchanged in whole or in part for Notes in certificated form,
this certificate may not be transferred except as a whole by the
Depository to a nominee thereof or by a nominee thereof to the
Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor of the Depository or
a nominee of such successor.
IF APPLICABLE, THE “ TOTAL
AMOUNT OF OID ”, “ YIELD TO MATURITY ”
AND “ INITIAL ACCRUAL PERIOD OID ” (COMPUTED
UNDER THE APPROXIMATE METHOD) BELOW WILL BE COMPLETED SOLELY FOR
THE PURPOSES OF APPLYING THE UNITED STATES FEDERAL INCOME TAX
ORIGINAL ISSUE DISCOUNT (“ OID ”)
RULES.
ISSUE PRICE:
ORIGINAL ISSUE DATE:
STATED MATURITY DATE:
INITIAL INTEREST RATE:
BASE RATE:
If LIBOR, LIBOR Currency:
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If CMT Rate:
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¨ Reuters Page FRBCMT
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¨ Reuters Page FEDCMT
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¨ Weekly Average
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¨ Monthly Average
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If Federal Funds Rate:
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¨ (Effective) Rate
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¨ Open Rate
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¨ Target Rate
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INDEX MATURITY:
SPREAD (PLUS OR MINUS):
SPREAD MULTIPLIER:
CALCULATION AGENT (if other than
Deutsche Bank Trust Company Americas):
CALCULATION DATE:
SINKING FUND:
MAXIMUM INTEREST RATE:
MINIMUM INTEREST RATE:
DAY COUNT CONVENTION:
INTEREST DETERMINATION
DATE:
INTEREST RESET PERIOD:
INTEREST RESET DATES:
INTEREST PAYMENT PERIOD:
INTEREST PAYMENT DATES:
TOTAL AMOUNT OF OID:
INITIAL ACCRUAL PERIOD
OID:
YIELD TO MATURITY:
OPTIONAL INTEREST RATE:
Reset: ¨ Yes ¨ No
OPTIONAL INTEREST RATE:
Reset Date:
OPTION TO ELECT REPAYMENT:
¨
YES ¨ NO
OPTIONAL REPAYMENT
DATE[S]:
OPTIONAL REDEMPTION:
¨
YES ¨ NO
INITIAL REDEMPTION DATE:
INITIAL REDEMPTION
PERCENTAGE:
ANNUAL REDEMPTION PERCENTAGE
REDUCTION:
MINIMUM DENOMINATION:
¨ $100,000
¨ Other:
SPECIFIED CURRENCY:
United States Dollars: ¨ YES ¨ NO
FOREIGN CURRENCY:
OPTION TO RECEIVE
PAYMENTS
IN SPECIFIED CURRENCY
OTHER THAN U.S. DOLLARS:
¨ YES ¨ NO
EXCHANGE RATE AGENT:
REFERENCE BANKS:
ADDITIONAL AMOUNTS:
DEFEASANCE: ¨ YES ¨ NO
COVENANT DEFEASANCE:
¨
YES ¨ NO
OTHER/DIFFERENT
PROVISIONS:
REGULAR RECORD DATE IF OTHER THAN
15 th
CALENDAR DAY PRECEDING THE INTEREST
PAYMENT DATE:
2
BOEING CAPITAL CORPORATION, a
Delaware corporation (herein referred to as the “
Company ”, which term includes any successor
corporation under the Subordinated Indenture hereinafter referred
to), for value received, hereby promises to pay to
,
or registered assigns, the principal sum of
in the Specified Currency on the Stated Maturity Date shown above
(except to the extent redeemed or repaid prior to the Stated
Maturity Date) and to pay interest thereon at the Initial Interest
Rate shown above from the Original Issue Date shown above until the
first Interest Reset Date shown above following the Original Issue
Date (if the first Interest Reset Date is later than the Original
Issue Date) and thereafter at the interest rate determined by
reference to the Base Rate shown above, plus or minus the Spread,
if any, or multiplied by the Spread Multiplier, if any, shown
above, or determined by reference to such other formula or adjusted
in such other manner, in each case calculated in accordance with
the provisions on the reverse hereof, until the principal hereof is
paid or duly made available for payment. The Company will pay
interest on each Interest Payment Date, if any, specified above,
commencing with the first Interest Payment Date next succeeding the
Original Issue Date, and on the Stated Maturity Date, any
Redemption Date or Repayment Date (such terms together are
hereinafter referred to as the “ Maturity Date ”
with respect to the principal repayable on such date);
provided , however , that any payment of principal
(or premium, if any) or interest, if any, to be made on any
Interest Payment Date or on the Maturity Date that is not a
Business Day (as defined below) shall be made on the next
succeeding Business Day (except that if the Base Rate specified
above is LIBOR or EURIBOR, and such day falls in the next
succeeding calendar month, such payment will be made on the next
preceding Business Day) as described on the reverse hereof. For
purposes of this Security unless otherwise specified on the face
hereof, “ Business Day ” means any day, other
than a Saturday or Sunday, that is neither a legal holiday nor a
day on which commercial banks are authorized or required by law,
regulation or executive order to close in The City of New York;
provided , however , that, if this Security is
denominated or payable in a Specified Currency, such day is also
not a day on which commercial banks are authorized or required by
law, regulation or executive order to close in the Principal
Financial Center (as defined below) of the country issuing the
Specified Currency or, if the Specified Currency is the euro, such
day is also a day on which the Trans-European Automated Real-time
Gross Settlement Express Transfer (TARGET) System is open
(“TARGET Business Day”); provided further
that, if the Base Rate specified above is LIBOR, such day is also a
London Business Day. “ London Business Day ”
means a day on which commercial banks are open for business
(including dealings in the LIBOR Currency) in London. “
Principal Financial Center ” means (i) the
capital city of the country issuing the Specified Currency or
(ii) the capital city of the country to which the LIBOR
Currency specified above relates, as applicable, except, in the
case of (i) or (ii) above, that with respect to U.S.
dollars, Australian dollars, Canadian dollars, New Zealand dollars,
and Swiss francs, the “ Principal Financial Center
” shall be The City of New York, Sydney, Toronto, Auckland,
and Zurich, respectively, and in the event the LIBOR Currency is
euro, the “ Principal Financial Center ” shall
be London.
Any interest hereon is accrued from,
and including, the next preceding Interest Payment Date in respect
of which interest, if any, has been paid or duly provided for (or
from and including the Original Issue Date if no interest has been
paid or duly provided for) to, but excluding, the succeeding
Interest Payment Date or the Maturity Date, as the case may be
(each an “ Interest Period ”). The interest, if
any, so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Subordinated
Indenture (referred to on the reverse hereof), be paid to the
person (the “ Holder ”) in whose name this
Security (or one or more Predecessor Securities) is registered at
the close of business on the fifteenth calendar day (whether or not
a Business Day)
3
next preceding such Interest Payment Date
(unless other Regular Record Dates are specified on the face
hereof) (each a “ Regular Record Date ”);
provided , however , that, if this Security was
issued between a Regular Record Date and the initial Interest
Payment Date relating to such Regular Record Date, interest, if
any, for the period beginning on the Original Issue Date and ending
on such initial Interest Payment Date shall be paid on the Interest
Payment Date following the next succeeding Regular Record Date to
the Holder hereof on such next succeeding Regular Record Date; and
provided further that interest, if any, payable on the
Maturity Date will be payable to the person to whom the principal
hereof shall be payable. Any such interest not so punctually paid
or duly provided for on any Interest Payment Date other than the
Maturity Date (“ Defaulted Interest ”) will
forthwith cease to be payable to the Holder on such Regular Record
Date and may either be paid to the person in whose name this
Security (or one or more Predecessor Securities) is registered at
the close of business on a special record date (the “
Special Record Date ”) for the payment of such
Defaulted Interest to be fixed by the Trustee (referred to on the
reverse hereof), notice whereof shall be given to the Holder of
this Security not less than ten days prior to such Special Record
Date, or may be paid at any time in any other lawful manner, all as
more fully provided in the Subordinated Indenture.
Unless otherwise specified above,
all payments in respect of this Security will be made in U.S.
dollars regardless of the Specified Currency shown above unless the
Holder hereof makes the election described below. If the Specified
Currency shown above is other than U.S. dollars, the Exchange Rate
Agent (referred to on the reverse hereof) will arrange to convert
all payments in respect hereof into U.S. dollars in the manner
described on the reverse hereof; provided , however ,
that the Holder hereof may, if so indicated above, elect to receive
all or a specified portion of any payment of principal, premium, if
any, and/or interest in such Specified Currency by delivery of a
written request to the corporate trust office of the Trustee in The
City of New York on or prior to the applicable Regular Record Date
or at least fifteen calendar days prior to the Maturity Date, as
the case may be. Such request may be in writing (mailed or hand
delivered) or by cable, telex or other form of facsimile
transmission. The Holder hereof may elect to receive payment in
such Specified Currency for all principal, premium, if any, and
interest, if any, payments and need not file a separate election
for each payment. Such election will remain in effect until revoked
by written notice to the Trustee, but written notice of any such
revocation must be received by the Trustee on or prior to the
applicable Regular Record Date or at least fifteen calendar days
prior to the Maturity Date, as the case may be.
Notwithstanding the foregoing, if
the Specified Currency is other than U.S. dollars and the Company
determines that such Specified Currency is not available for making
payments in respect hereof due to the imposition of exchange
controls or other circumstances beyond the Company’s control,
the Company will be entitled to satisfy its obligations to the
Holder hereof by making such payment in U.S. dollars on the basis
of the noon buying rate in The City of New York for cable transfers
of such Specified Currency as certified for customs purposes (or,
if not so certified as otherwise determined) by the Federal Reserve
Bank of New York (the “ Market Exchange Rate ”)
as computed by the Exchange Rate Agent on the second Business Day
prior to such payment or, if not then available, on the basis of
the most recently available Market Exchange Rate or as otherwise
indicated on the face hereof. Any payment made in U.S. dollars
under such circumstances shall not constitute an Event of Default
(as defined in the Subordinated Indenture).
4
In the event of an official
redenomination of the Specified Currency, the obligations of the
Company with respect to payments on this Security shall, in all
cases, be deemed, immediately following such redenomination, to
provide for payment of that amount of redenominated currency
representing the amount of such obligations immediately before such
redenomination. Except as set forth above, in no event shall any
adjustment be made to any amount payable hereunder as a result of
any change in the value of the Specified Currency shown above
relative to any other currency due solely to fluctuations in
exchange rates.
Until this Security is paid in full
or payment therefor in full is duly provided for, the Company will
at all times maintain a Paying Agent (which Paying Agent may be the
Trustee) in The City of New York (which, unless otherwise specified
above, shall be the “ Place of Payment ”). The
Company has initially appointed Deutsche Bank Trust Company
Americas, at its corporate trust office in The City of New York, as
Paying Agent.
If the Specified Currency shown
above is U.S. dollars or the Specified Currency shown above is a
Foreign Currency, and the Holder has not elected to exercise its
option, if any, to receive payments in such Specified Currency,
(i) payment of interest on this Security (other than on the
Maturity Date) will be made in U.S. dollars by check mailed to the
registered address of the Holder hereof, or at the Company’s
option, by wire transfer to a bank account maintained by the Holder
and (ii) the principal of this Security, premium, if any,
together with the interest accrued and unpaid thereon, due at the
Maturity Date shall be paid in U.S. dollars in immediately
available funds upon surrender of this Security at the corporate
trust office of the Trustee in The City of New York, or, at the
Company’s option, by wire transfer to such bank account of
immediately available funds in U.S. dollars to an account with a
bank designated at least fifteen calendar days prior to the
Maturity Date by the Holder hereof, provided such bank has
appropriate facilities to receive such payments and this Security
is presented and surrendered at the office or agency designated by
the Company for such purpose in the Borough of Manhattan, The City
of New York, in time for the Trustee to make such payments in such
funds in accordance with its normal procedures. If the Specified
Currency shown above is a Foreign Currency and the Holder is
entitled to elect, and has elected, to receive payments in such
Specified Currency, (i) interest due on an Interest Payment
Date other than the Maturity Date will be paid by check in the
Specified Currency mailed to the registered address of the Holder
hereof or, at our option, by wire transfer in the Specified
Currency to a bank account maintained by the Holder in the country
of the Specified Currency and (ii) the principal of, premium,
if any, and interest on this Security due on the Maturity Date will
be paid in the Specified Currency in immediately available funds
upon surrender of this Security at the corporate trust office of
the Trustee in The City of New York, or, at the Company’s
option, by wire transfer to such bank account of immediately
available funds in the Specified Currency to an account with a bank
designated at least 15 calendar days prior to the Maturity Date by
the Holder, provided , in the case of (ii), the particular
bank has appropriate facilities to make these payments and this
Security is presented and surrendered at the office or agency
maintained by the Company for this purpose in the Borough of
Manhattan, The City of New York, in time for the Trustee to make
these payments in accordance with its normal procedures. The
Company will pay any administrative costs imposed by banks in
making payments in immediately available funds but, except as
otherwise provided under Additional Amounts above, any tax,
assessment or governmental charge imposed upon payments will be
borne by the Holders of the Securities in respect of which such
payments are made.
5
REFERENCE IS HEREBY MADE TO THE
FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE
HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE
SAME EFFECT AS IF SET FORTH AT THIS PLACE, INCLUDING, WITHOUT
LIMITATION, THE PROVISIONS RELATING TO SUBORDINATION OF THIS
SECURITY TO THE COMPANY’S SENIOR INDEBTEDNESS.
Unless the Certificate of
Authentication hereon has been executed by the Trustee by manual
signature, this Security shall not be entitled to any benefit under
the Subordinated Indenture or be valid or obligatory for any
purpose.
6
IN WITNESS WHEREOF, the Company has
caused this instrument to be duly executed, manually or in
facsimile, and an imprint or facsimile of its corporate seal to be
imprinted hereon.
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[SEAL]
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BOEING CAPITAL
CORPORATION
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By:
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Title:
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Attest:
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By:
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Title:
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Dated:
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TRUSTEE’S CERTIFICATE OF AUTHENTICATION:
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This is one of
the Debt Securities of the series designated therein referred to in
the within-mentioned Subordinated Indenture.
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DEUTSCHE BANK
TRUST COMPANY AMERICAS, as Trustee
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By:
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Authorized
Officer
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[REVERSE OF NOTE]
BOEING CAPITAL
CORPORATION
SUBORDINATED MEDIUM-TERM NOTE,
SERIES XII
Section 1. General .
This Security is one of a duly authorized issue of securities
(herein called the “ Securities ”) of the
Company, issued and to be issued in one or more series under a
subordinated indenture for the issuance of subordinated debentures,
notes or other evidences of indebtedness, dated as of
August 31, 2000 as it may be supplemented from time to time
(herein called the “ Subordinated Indenture ”),
between the Company and Deutsche Bank Trust Company Americas
(formerly Bankers Trust Company), as Trustee (herein called the
“ Trustee ”, which term includes any successor
trustee under the Subordinated Indenture with respect to a series
of which this Security is a part), to which Subordinated Indenture
and all indentures supplemental thereto, reference is hereby made
for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and
the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof which
is unlimited in aggregate principal amount.
Section 2. Payments . If
the Specified Currency is other than U.S. dollars and the Holder
hereof fails to elect payment in such Specified Currency, the
amount of U.S. dollar payments to be made in respect hereof will be
determined by the Exchange Rate Agent specified on the face hereof
or a successor thereto (the “ Exchange Rate Agent
”) based on the highest bid quotation in The City of New York
at approximately 11:00 A.M., New York City time, on the second
Business Day preceding the applicable payment date from three
recognized foreign exchange dealers (one of whom may be the
Exchange Rate Agent) selected by the Exchange Rate Agent and
approved by the Company for the purchase by the quoting dealer of
the Specified Currency for U.S. dollars for settlement on such
payment date in the aggregate amount of the Specified Currency
payable to all Holders of Securities denominated in a Foreign
Currency scheduled to receive U.S. dollar payments and at which the
applicable dealer commits to execute a contract. If three such bid
quotations are not available, payments will be made in the
Specified Currency. All currency exchange costs will be borne by
the Holder of the Security by deductions from such
payments.
All determinations referred to above
made by the Exchange Rate Agent will be at its sole discretion
(except to the extent expressly provided that any determination is
subject to approval by the Company) and, in the absence of manifest
error, will be conclusive for all purposes and binding on the
Holder of this Security, and the Exchange Rate Agent will have no
liability therefor.
All currency exchange costs will be
borne by the Company unless the Holder of this Security has made
the election to receive payments in the Specified Currency. In that
case, the Holder shall bear its pro rata portion of currency
exchange costs, if any, by deductions from payments otherwise due
to such Holder.
References herein to “ U.S.
dollars ” or “ U.S. $ ” or “
$ ” are to the currency of the United States of
America.
Section 3. Interest Rate
Calculations . Unless otherwise set forth on the face hereof,
the following provisions of this Section 3 shall apply to the
calculation of interest on this Security. If the first Interest
Reset Date is later than the Original Issue Date, this Security
will bear interest from its Original Issue Date to the first
Interest Reset Date at the Initial Interest Rate set forth on the
face hereof. Thereafter, the interest rate hereon for each Interest
Reset Period (as defined below) will be determined by reference to
the Base Rate set forth on the face hereof, as adjusted by the
Spread, the Spread Multiplier or other formula, if any, set forth
on the face hereof.
As set forth on the face hereof,
this Security may also have either or both of the following:
(i) a maximum limitation, or ceiling, on the rate at which
interest may accrue during any Interest Period (as defined below)
(“ Maximum Interest Rate ”); and (ii) a
minimum limitation, or floor, on the rate at which interest may
accrue during any Interest Period (“ Minimum Interest
Rate ”). In addition to any Maximum Interest Rate that
may be set forth on the face hereof, the interest rate on this
Security will in no event be higher than the maximum rate permitted
by New York law, as the same may be modified by United States law
of general application.
8
The rate of interest hereon will be
reset daily, weekly, monthly, quarterly, semi-annually or annually
or at another interval (each, an “ Interest Reset
Period ”), as set forth on the face hereof. The date or
dates on which interest will be reset (each, an “ Interest
Reset Date ”) will be, if this Security resets
(i) daily, each Business Day; (ii) weekly, the Wednesday
of each week (unless the Base Rate set forth on the face hereof is
the Treasury Rate); (iii) weekly and if the Base Rate set
forth on the face hereof is the Treasury Rate, the Tuesday of each
week (except as provided below); (iv) monthly, the third
Wednesday of each month; (v) quarterly, the third Wednesday of
March, June, September and December of each year;
(vi) semi-annually, the third Wednesday of the two months set
forth on the face hereof; and (vii) annually, the third
Wednesday of the month set forth on the face hereof. If the Base
Rate set forth on the face hereof is the Treasury Rate and a
Treasury auction shall fall on the Interest Reset Date for this
Security, then such Interest Reset Date shall instead be the first
Business Day immediately following such Treasury auction. If any
Interest Reset Date would otherwise be a day that is not a Business
Day, such Interest Reset Date shall be postponed to the next
succeeding Business Day, except that, if the Base Rate set forth on
the face hereof is LIBOR or EURIBOR, if such Business Day is in the
next succeeding calendar month, such Interest Reset Date shall be
the immediately preceding Business Day.
The face hereof describes the
initial interest rate formula on each Note. That rate is effective
until the following Interest Reset Date. Thereafter, the interest
rate will be the rate determined on each Interest Determination
Date. Each time a new interest rate is determined, it becomes
effective on the subsequent Interest Reset Date. If any Interest
Reset Date is not a Business Day, then the Interest Reset Date is
postponed to the next Business Day, except, in the case of a LIBOR
or EURIBOR Note, in which case, if the next Business Day is in the
next calendar month, the Interest Reset Date is the immediately
preceding Business Day.
The interest payable hereon on each
Interest Payment Date and on the Maturity Date shall be the amount
of interest accrued from and including the Original Issue Date or
the last Interest Payment Date to which interest has been paid or
duly provided for, as the case may be, to, but excluding, the
applicable Interest Payment Date or the Maturity Date (each such
period, an “ Interest Period ”). If the Maturity
Date falls on a day which is not a Business Day, the payment of
principal, premium, if any, and interest with respect to the
Maturity Date will be paid on the next succeeding Business Day with
the same force and effect as if made on the Maturity Date, and no
interest shall accrue on the amount so payable as a result of such
delayed payment. If an Interest Payment Date other than the
Maturity Date falls on a day that is not a Business Day, such
Interest Payment Date will be postponed to the next day that is a
Business Day and interest will accrue for the period of such
postponement (except if the Base Rate specified above is LIBOR or
EURIBOR, and such day falls in the next succeeding calendar month,
such Interest Payment Date will be advanced to the immediately
preceding Business Day), it being understood that, to the extent
this sentence is inconsistent with the Subordinated Indenture, the
provisions of this sentence shall apply in lieu of the applicable
Section of the Subordinated Indenture.
Accrued interest will be calculated
by multiplying the principal amount hereof by an accrued interest
factor. Such accrued interest factor will be computed by adding the
interest factor calculated for each day in the Interest Period for
which accrued interest is being calculated. The interest factor for
each such day is computed by dividing the interest rate applicable
on such day by 360, if the Base Rate set forth on the face hereof
is the CD Rate, Commercial Paper Rate, Eleventh District Cost of
Funds Rate, Federal
9
Funds Rate, Prime Rate, LIBOR or EURIBOR (as
described below), or by the actual number of days in the year, if
the Base Rate set forth on the face hereof is the Treasury Rate or
the CMT Rate (as described below). The interest rate applicable to
any day that is an Interest Reset Date is the interest rate as
determined, in accordance with the procedures hereinafter set
forth, with respect to the Interest Determination Date (as defined
below) pertaining to such Interest Reset Date. The interest rate
applicable to any other day is the interest rate for the
immediately preceding Interest Reset Date (or if none, the Initial
Interest Rate, as set forth on the face hereof).
All percentages resulting from any
calculation with respect hereto will be rounded, if necessary, to
the nearest one hundred-thousandth of a percentage point, with five
one-millionths of a percentage point rounded upward ( e.g. ,
7.123455% (or 0.07123455) being rounded to 7.12346% (or 0.0712346)
and 7.123454% (or 0.07123454) being rounded to 7.12345% (or
0.0712345)), and all currency amounts used in or resulting from
such calculation will be rounded to the nearest one-hundredth of a
unit (with five one-thousandths of a unit being rounded
upwards).
Unless specified on the face hereof,
interest will be payable on, if this Security resets
(i) daily, weekly or monthly, the third Wednesday of each
month; (ii) quarterly, the third Wednesday of March, June,
September and December of each year; (iii) semi-annually, the
third Wednesday of the two months set forth on the face hereof; and
(iv) annually, the third Wednesday of the month set forth on
the face hereof (each, an “ Interest Payment Date
”), and in each case, on the Maturity Date.
If the Base Rate set forth on the
face hereof is the CD Rate or the CMT Rate, the Interest
Determination Date will be the second Business Day before such
Interest Reset Date; if the Base Rate set forth on the face hereof
is LIBOR, the Interest Determination Date will be the second London
Business Day immediately preceding such Interest Reset Date (unless
the LIBOR Currency is Sterling, in which case the Interest
Determination Date will be the Interest Reset Date); if the Base
Rate set forth on the face hereof is EURIBOR, the Interest
Determination Date will be the second TARGET Business Day
immediately preceding the Interest Reset Date; and if the Base Rate
set forth on the face hereof is the Treasury Rate, the Interest
Determination Date will be the day of the week in which such
Interest Reset Date falls on which Treasury bills of the Index
Maturity (as defined below) would normally be auctioned. Treasury
bills are usually sold at auction on Monday of each week, unless
that day is a legal holiday, in which case the auction is usually
held on the following Tuesday, except that such auction may be held
on the preceding Friday. If an auction is held on the preceding
Friday, such Friday will be the Interest Determination Date
pertaining to the Interest Reset Date occurring in the next
succeeding week. If the Base Rate set forth on the face hereof is
the Eleventh District Cost of Funds Rate, the Interest
Determination Date is the last Business Day of the month
immediately preceding the applicable Interest Reset Date in which
the Federal Home Loan Bank of San Francisco published the
applicable rate.
If the Base Rate set forth on the
face hereof is the Commercial Paper Rate, Federal Funds Rate or the
Prime Rate, the Interest Determination Date will be the first
Business Day preceding such Interest Reset Date.
10
If the interest rate of this
Security is determined by reference to two or more Interest Rate
Bases specified on the face hereof, the Interest Determination Date
will be the most recent Business Day which is at least two Business
Days prior to the applicable Interest Reset Date on which each
Interest Reset Basis is determinable.
Unless otherwise set forth on the
face hereof, the “ Calculation Date ”, where
applicable, pertaining to an Interest Determination Date is the
earlier of (i) the tenth calendar day after such Interest
Determination Date, or if any such day is not a Business Day, the
next succeeding Business Day and (ii) the Business Day
immediately preceding the applicable Interest Payment Date or the
Maturity Date, as the case may be.
The Company will appoint and enter
into an agreement with an agent (a “ Calculation Agent
”) to calculate the rate of interest on the Securities of
this series which bear interest at a floating rate. Unless
otherwise set forth on the face hereof, the paying agent will be
the Calculation Agent. At the request of the Holder hereof, the
Calculation Agent will provide the interest rate then in effect
and, if different, the interest rate that will become effective on
the next Interest Reset Date.
Subject to applicable provisions of
law and except as specified herein, with respect to each Interest
Determination Date, the rate of interest shall be the rate
determined by the Calculation Agent in accordance with the
provisions of the applicable heading below.
Determination of CD
Rate . If the Base Rate
set forth on the face hereof is the CD Rate, this Security will
bear interest for each Interest Reset Period at the interest rate
calculated with reference to the CD Rate and the Spread, Spread
Multiplier or other formula, if any, set forth on the face hereof.
Unless otherwise set forth on the face hereof, the “ CD
Rate ” for any Interest Determination Date is the rate on
that date for negotiable U.S. dollar certificates of deposit having
the Index Maturity described in the related prospectus supplement
or pricing supplement, as published in H.15(519) prior to 3:00
p.m., New York City time, on the Calculation Date, for that
Interest Determination Date under the heading “ CDs
(secondary market) ”. The “Index Maturity” is
the period to maturity of the instrument or obligation with respect
to which the related interest rate basis or formula will be
calculated.
The following procedures will be
followed if the CD Rate cannot be determined as described
above:
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If the above rate is not
published in H.15(519) by 3:00 p.m., New York City time, on the
Calculation Date, the CD Rate will be the rate on that Interest
Determination Date for negotiable United States dollar certificates
of deposit of the Index Maturity described in the prospectus
supplement or pricing supplement as published in H.15 Daily Update,
or such other recognized electronic source used for the purpose of
displaying such rate, under the caption “CDs (secondary
market)”.
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If that rate is not published in
H.15(519), H.15 Daily Update or another recognized electronic
source by 3:00 p.m., New York City time, on the Calculation Date,
then the calculation agent will determine the CD Rate to be the
average of the
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secondary market offered rates as of
10:00 a.m., New York City time, on that Interest Determination
Date, quoted by three leading nonbank dealers of negotiable U.S.
dollar certificates of deposit in New York City (which may include
an agent or its affiliates) for negotiable U.S. dollar certificates
of deposit of major United States money-center banks with a
remaining maturity closest to the Index Maturity in an amount that
is representative for a single transaction in the market at that
time described in the prospectus supplement or pricing supplement.
The calculation agent will select the three dealers referred to
above.
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If fewer than three dealers are
quoting as mentioned above, the CD Rate will remain the CD Rate
then in effect on that Interest Determination Date.
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“ H.15(519) ”
means the weekly statistical release designated as such, or any
successor publication, published by the Board of Governors of the
Federal Reserve System.
“ H.15 Daily Update
” means the daily update of H.15(519), available through the
web site of the Board of Governors of the Federal Reserve System at
http://www.federalreserve.gov/releases/h15/update, or any successor
site or publication.
Determination of Commercial Paper
Rate . If the Base Rate
set forth on the face hereof is the Commercial Paper Rate, this
Security will bear interest for each Interest Reset Period at the
interest rate calculated with reference to the Commercial Paper
Rate and the Spread, Spread Multiplier or other formula , if any,
set forth on the face hereof. Unless otherwise set forth on the
face hereof, the “ Commercial Paper Rate ” for
any Interest Determination Date is the Money Market Yield of the
rate on that date for commercial paper having the Index Maturity
described in the related prospectus supplement or pricing
supplement, as published in H.15(519) prior to 3:00 p.m., New York
City time, on the Calculation Date for that Interest Determination
Date under the heading “ Commercial
Paper—Nonfinancial ”.
The following procedures will be
followed if the Commercial Paper Rate cannot be determined as
described above:
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If the above rate is not
published in H.15(519) by 3:00 p.m., New York City time, on the
Calculation Date, the Commercial Paper Rate will be the Money
Market Yield of the rate on that Interest Determination Date for
commercial paper having the Index Maturity described in the
prospectus supplement or pricing supplement, as published in H.15
Daily Update, or such other recognized electronic source used for
the purpose of displaying such rate, under the caption
“Commercial Paper—Nonfinancial”.
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If that rate is not published in
H.15(519), H.15 Daily Update or another recognized electronic
source by 3:00 p.m., New York City time, on the Calculation Date,
then the calculation agent will determine the Commercial Paper Rate
to be the Money Market Yield of the average of the offered rates of
three leading dealers of U.S. dollar commercial paper in
New
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York City (which may include an
agent or its affiliates) as of 11:00 a.m., New York City time, on
that Interest Determination Date for commercial paper having the
Index Maturity described in the prospectus supplement or pricing
supplement placed for an industrial issuer whose bond rating is
“Aa”, or the equivalent, from a nationally recognized
statistical rating organization. The calculation agent will select
the three dealers referred to above.
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If fewer than three dealers
selected by the calculation agent are quoting as mentioned above,
the Commercial Paper Rate will remain the Commercial Paper Rate
then in effect on that Interest Determination Date.
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“ Money Market Yield
” shall be a yield (expressed as a percentage) calculated in
accordance with the following formula: